In 2020, we saw retailers hard hit by
the economic effects of the COVID-19 pandemic with dozens of retailers—Neiman
Marcus, J.C. Penney, and Brooks Brothers to name a few— declaring bankruptcy.
During the unprecedented chaos of lockdowns and social distancing, consumers
accelerated their shift to online shopping. Retailers like Target and Best Buy
saw online sales double while Amazon’s e–commerce sales grew 39 percent.1
Retailers navigated supply chain disruptions due to COVID-19, climate change
events, trade tensions, and cybersecurity events.
After the last twelve tumultuous
months, what will 2021 bring for the retail industry? I spoke with Microsoft
Azure IoT partners to understand how they are planning for 2021 and compiled
insights about five retail trends. One theme we’re seeing is a focus on
efficiency. Retailers will look to pre-configured digital platforms that
leverage cloud-based technologies including the Internet of Things (IoT),
artificial intelligence (AI), and edge computing to meet their business goals.
Empowering
frontline workers with real-time data
In 2021, retailers will increase
efficiency by empowering frontline workers with real-time data. Retail
employees will be able to respond more quickly to customers and expand their
roles to manage curbside pickups, returns, and frictionless kiosks.
In H&M Mitte Garten in Berlin,
H&M empowered employee ambassadors with fashionable bracelets connected to
the Azure cloud. Ambassadors were able to receive real-time requests via their
bracelets when customers needed help in fitting rooms or at a cash desk. The
ambassadors also received visual merchandising instructions and promotional
updates.
Through the app built on Microsoft
partner Turnpike’s wearable SaaS platform leveraging Azure IoT Hub, these
frontline workers could also communicate with their peers or their management
team during or after store hours. With the real-time data from the connected
bracelets, H&M ambassadors were empowered to delivered best-in-class
service.
Carl Norberg, Founder, Turnpike
explained, “We realized that by connecting store IoT sensors, POS systems, and
AI cameras, store staff can be empowered to interact at the right place at the
right time.”
Leveraging live
stream video to innovate omnichannel
Livestreaming has been exploding in China as influencers sell through their social media channels. Forbes recently projected that nearly 40 percent of China’s population will have viewed livestreams during 2020.2 Retailers in the West are starting to leverage live stream technology to create innovative omnichannel solutions.
For example, Kjell & Company, one
of Scandinavia’s leading consumer electronics retailers, is using a solution
from Bambuser and Ombori called Omni-queue built on top of the Ombori Grid.
Omni-queue enables store employees to handle a seamless combination of physical
and online visitors within the same queue using one-to-one live stream video
for online visitors.
Kjell & Company ensures e-commerce
customers receive the same level of technical expertise and personalized
service they would receive in one of their physical locations. Omni-queue also
enables its store employees to be utilized highly efficiently with advanced
routing and knowledge matching.
Maryam Ghahremani, CEO of Bambuser
explains, “Live video shopping is the future, and we are so excited to see how
Kjell & Company has found a use for our one-to-one solution.” Martin
Knutson, CTO of Kjell & Company added “With physical store locations
heavily affected due to the pandemic, offering a new and innovative way for
customers to ask questions—especially about electronics—will be key to Kjell’s
continued success in moving customers online.”
Augmenting
omnichannel with dark stores and micro-fulfillment centers
In 2021, retailers will continue experimenting
with dark stores—traditional retail stores that have been converted to local
fulfillment centers—and micro-fulfillment centers. These supply chain
innovations will increase efficiency by bringing products closer to customers.
Microsoft partner Attabotics, a 3D
robotics supply chain company, works with an American luxury department store
retailer to reduce costs and delivery time using a micro-fulfillment center.
Attabotics’ unique use of both horizontal and vertical space reduces warehouse
needs by 85 percent. Attabotics’ structure and robotic shuttles leveraged
Microsoft Azure Edge Zones, Azure IoT Central, and Azure Sphere.
The luxury retailer leverages the
micro-fulfillment center to package and ship multiple beauty products together.
As a result, customers experience faster delivery times. The retailer also
reduces costs related to packaging, delivery, and warehouse space.
Scott Gravelle, Founder, CEO, and CTO
of Attabotics explained, “Commerce is at a crossroads, and for retailers and
brands to thrive, they need to adapt and take advantage of new technologies to
effectively meet consumers’ growing demands. Supply chains have not
traditionally been set up for e-commerce. We will see supply chain innovations
in automation and modulation take off in 2021 as they bring a wider variety of
products closer to the consumer and streamline the picking and shipping to
support e-commerce.”
Helping keep
warehouse workers safe
What will this look like? Cognizant’s
recent work with an athletic apparel retailer offers a blueprint. During the
peak holiday season, the retailer needed to protect its expanding warehouse
workforce while minimizing absenteeism. To implement physical distancing and
other safety measures, the retailer leveraged Cognizant’s Safe Buildings
solution built with Azure IoT Edge and IoT Hub services.
With this solution, employees maintain physical distancing using smart wristbands. When two smart wristbands were within a pre-defined distance of each other for more than a pre-defined time, the worker’s bands buzzed to reinforce safe behaviors. The results drove nearly 98 percent distancing compliance in the initial pilot. As the retailer plans to scale-up its workforce at other locations, implementing additional safety modules are being considered:
- Touchless temperature checks.
- Occupancy sensors communicate capacity information to the management team for compliance records.
- Air
quality sensors provide environmental data so the facility team could help
ensure optimal conditions for workers’ health.
“For organizations to thrive during
and post-pandemic, enterprise-grade workplace safety cannot be compromised.
Real-time visibility of threats is providing essential businesses an edge in
minimizing risks proactively while building employee trust and empowering
productivity in a safer workplace,” Rajiv Mukherjee, Cognizant’s IoT Practice
Director for Retail and Consumer Goods.
Optimizing
inventory management with real-time edge data
In 2021, retailers will ramp up the
adoption of intelligent edge solutions to optimize inventory management with
real-time data. Most retailers have complex inventory management systems.
However, no matter how good the systems are, there can still be data gaps due
to grocery pick-up services, theft, and sweethearting. The key to addressing
these gaps is to combine real-time data from applications running on edge
cameras and other edge devices in the physical store with backend enterprise
resource planning (ERP) data.
Seattle Goodwill worked with Avanade
to implement a new Microsoft-based Dynamics platform across its 24 stores. The
new system provided almost real-time visibility into the movement of goods from
the warehouses to the stores.
Rasmus Hyltegård, Director of Advanced
Analytics at Avanade explained, “To ensure inventory moves quickly off the
shelves, retailers can combine real-time inventory insights from Avanade’s
smart inventory accelerator with other solutions across the customer journey to
meet customer expectations.” Hyltegård continued, “Customers can check online
to find the products they want, find the stores with product in stock, and gain
insight into which stores have the shortest queues, which is important during
the pandemic and beyond. Once a customer is in the store, digital signage
allows for endless aisle support.”
Summary
The new year 2021 holds a wealth of
opportunities for retailers. We foresee retail leaders reimagining their
businesses by investing in platforms that integrate IoT, AI, and edge computing
technologies. Retailers will focus on increasing efficiencies to reduce costs.
Modular platforms supported by an ecosystem of strong partner solutions will
empower frontline workers with data, augment omnichannel fulfillment with dark
stores and micro-fulfillment, leverage livestream video to enhance omnichannel,
prioritize warehouse worker safety, and optimize inventory management with
real-time data.
Ref:
https://cloudblogs.microsoft.com/industry-blog/retail/2021/01/19/five-iot-retail-trends-for-2021/