Recent advancements in machine learning and AI have hugely contributed to the growth of object detection and image recognition in the retail industry. AI is recently been implemented in almost all fields opening the gates to a whole new era of opportunities to make things more visible & transparent. Having said this, it’s no surprise that automatic store checkouts, shelf monitoring, and analysis are now designed very commonly with the help of AI, machine learning, and deep learning.
According to stats, the global image recognition in retail market size was USD 1.5 billion in 2020 and is expected to increase at a CAGR) of 22.0% to USD 3.7 billion by 2025.
In this article, let’s take a look at how image recognition technology helps retail stores in shelf monitoring and analysis:
1) Improving Compliance at Store Level: With the installation of image recognition software, it helps you analyze the shelf images and also share real-time insights to the concerned merchandising managers. This enables the team to instantly track how well the store strategy is been executed and such real-time insight generation enables the managers to take immediate corrective measures whenever required.
2) Product Placement Trends: Traditionally, retailers relied on extensive market research and assumptions for the placement of products on the store shelves. But now, the use of image recognition software opens up opportunities to identify and improve product placement by using data to determine what customers are looking for and where. The software uses pictures and quickly gives insights on placements of products on display, consumer behavior & preferences.
3) Shelf Auditing on Product Placement: Providing high OSA (on-shelf availability) is a key factor to increase profits in retail stores. With image recognition integrated into the existing systems, you can gather data that enables time savings in audits. From automatic product counting to detecting out-of-stock, advanced shelf measurements adding missing products and rearranging, everything can be done using image recognition software.
4) Enhanced Product Category Analysis: Product category analysis using image recognition software provides the retailer a deeper insight into customer experiences, information about competitors marketing activities, and even emerging trends in the market. Altogether, the AI software helps you understand, how your store should be positioned in the marketplace to attain growth & maximum profitability.
5) Assessing Competition & Strengthen Your Brand Strategy: Brand marketing is something that keeps changing and where you need to keep pushing your strategy forward to continue succeeding. Image recognition helps to monitor trends in real-time in order to have competitive advantages. This in turn gives retailers a distinct advantage as they can easily identify competitors’, customers’ concerns and instantly address them in their future strategies & marketing campaigns.
Devising innovative shopping experiences for your customers by combining technologies is very important to build the physical retail store of the future. And to attain this, image recognition software with AI is undoubtedly the technology that can sculpt the future of retails stores.
Looking for the perfectAI image recognition softwarefor your store?Sterison, one of the leading technology services company provides image recognition software that helps you drive up conversions through data accuracy, real-time visibility, improved product placement, and analysis.