Market Outlook: Internet of Things (IoT) in Retail, 2018-2023, Worldwide

Internet of things (IoT) technologies is helping traditional retail stores in improving business process and operations. In retail efficient operations, business processes, and improved customer experiences directly impacts the revenue growth and hence profit. In today’s world of smart devices, IoT adoption in retail is not an option but is necessary to remain competitive. IoT applications for retail is still evolving with the presence of several vendor with piecemeal solutions. These are a large number of vendors providing IoT solutions by targeting specific segments of retail market. Hence, it is often challenging to find right implementation of IoT solutions to get maximum efficiency. However, the scope of benefits with early adoption of IoT outweighs the cost and the early adopters are expected to enjoy significant competitive advantage over traditional stores.

IoT Implication in Retail Market

Internet of Things is leading to complete transformation of retail stores for improved operations, customer satisfaction, and revenue optimization. The implications for IoT in retail can be categorised into following segments:

• Customer Experience
• In-store Management
• Supply Chain Integration
• Creation of New Revenue Streams
• Automated Operations and Merchandising

RFID is the most common already in use IoT device for In-Store Retailing. It plays an important role in keeping account of stock, security, and helps in reduction of shrinkage and improves sales. By keeping a record and analysing customer movement in the store RFID system can help in designing a better store layout which leads to better product placement. Using RFID along with IoT sensors can give better efficiency to the transportation by giving live updates to traffic and weather so to avoid stoppages and deliver in time. IoT can be helpful in the dynamic re-routing in case there is any stoppage and avoid delays.

Most retail stores use a high amount of energy and workers to run their operations. IoT sensors combined with advanced analytics application helps retailers in optimum utilisation of resources and cut down on expenses.

For automated operations and merchandising, large retailers are deploying smart retail systems including smart shelves and doors, digital signage, smart vending machines, smart mirrors, smart fulfilment centers, intelligent containers, and such others.

IoT market in retail is still in emerging stage with the presence of several vendors with piecemeal solutions. However, several vendors are developing comprehensive and integrated solutions covering wide range of IoT applications for retails. Increasing number of Successful implementations and case studies is expected to boost confidence amongst retailers during 2016-2020, finds Quadrant Knowledge Solutions.

Strategic Insights: Internet of Things (IoT) in Retail

This research services address key strategic questions, such as

• What are the short-term and long-term growth opportunities of IoT technologies in various retail applications?
• What are the major factors driving and inhibiting the market growth?
• Which regions and countries offer the maximum growth opportunities?
• What are the key strategic issues of the market with a technology users and suppliers perspective?
• What are the major trends that are influencing the market growth and technology development?

About Quadrant Knowledge Solutions

Quadrant Knowledge Solutions is a global advisory and consulting firm focused on helping clients in achieving business transformation goals with Strategic Business, and Growth advisory services.

At Quadrant Knowledge Solutions, our vision is to become an integral part of our client’s business as strategic knowledge partner. Our research and consulting deliverable are designed to provide comprehensive information and strategic insights for helping clients formulate growth strategies to survive and thrive in ever-changing business environment.