Consumer demand for convenient, personalised and contextualised interactions will drive retailers to adopt multiple internet of things (IoT) technologies, says IDC Retail Insights.
According to IDC’s Business Strategy: Developing IoT Use Cases for Retail study, almost 10% of all IoT investment in 2013 was made by retailers and the technology is already playing a role in consumer location-based interactions.
To engage onmi-channel consumers with consistent personalised and contextualised physical and digital interactions, IDC recommended that retailers should consider how to build the architecture for IoT that will continue to adapt to consumer interaction patterns and needs.
IDC predicted that IoT technologies that use radio frequency identification to improve inventory management, sample management, loss prevention, on-shelf availability, and asset management will become more popular as they ultimately enable consumers to find and buy products at their convenience.
“Consumer demand for convenience, product availability, and personalised and contextualised interactions will drive retailers to adopt multiple IoT technologies,” said Leslie Hand, research director of supply chain, merchandising and demand management strategies and author of the new report. “This beckons a fresh evaluation of IoT opportunities in retail, as the challenges diminish and the consumer demand for interactive, engaging, and convenient retail experience trump any hesitance to invest in IoT.”
The study also indicated that retailers are adopting IoT technologies to improve operations in retail supply chain and asset management applications, as well as five key areas including product tracking/traceability, interactive consumer engagement and operations, mobile payments, asset management, and fleet and yard management.
IDC also highlighted that the industry vertical expertise of technology vendors, service providers and systems integrators will play a key role in helping retailers to understand the benefits of IoT investments and defining an IoT strategy.
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