A STUDY OF RETAIL TECHNOLOGIES

Prepared for-
Prof- Somayya Mandakam
FORE School of Management

Prepared by-
Madhav Garg
123031
IMG-12D

December 9, 2018,

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 ACKNOWLEDGEMENT

I would like to my special thanks of gratitude to my teacher Prof Somayya Mandakam who gave
me this golden opportunity to do this wonderful project on the topic of Retail Technologies,
which also helped me in doing a lot of research and I came to know about so many new concepts
and topics.
I am really thankful to them
Secondly I would want to thank my family and friends who supported me in the completion of
this project in any way that they could.
I am making the project not only for my marks but to also increase my knowledge.

Thank you,

Madhav Garg

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Contents
INTRODUCTION ..................................................................................... 4
NEED FOR STUDY ................................................................................................ 5
LITERATURE REVIEW ......................................................................................... 8
DATA ANALYSIS .......................................................................................... 13
CONCLUSION .............................................................................................. 19

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 INTRODUCTION

In the quickly advancing retail scene, purchasers' needs still drive their buy choices.
Customers make generally utilization choices, yet more up to date technologies (e.g.,
Web of things, robots), more up to date plans of action (e.g., membership models),
what's more, huge information/prescient investigation recommend that the shopping
process is nearly a quantum jump into an obscure shopping domain. The outcome is an
incredible need to comprehend basic retailing regions in which advancements are
changing the amusement; so that we can all the more likely comprehend where the
retailing field will be developing later on.

In modern, multifaceted, omnichannel environments, consumers are bombarded with

information about goods and services. Retailers that can connect with their customers
by providing targeted information and offering value stand apart and have the potential
to create deep customer engagement. Technology helps retailers in
- Targeting appropriate customers
- Consumers making more informed decisions

A buy gives the retailer a huge number of divergent data, counting value-based
information (e.g., cost paid, amount obtained), shopper information (e.g., sexual
orientation, age, family piece), and ecological information (e.g., temperature).

Retailers that can draw compelling experiences from huge information can improve
forecasts about buyer conduct, plan all the more engaging offers, better focus on their
clients, what's more, create instruments that urge customers to make buy choices that

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 support their items. Along these lines, enormous information can start helpful,
repetitive purchase from shopper and commitment that leads to improved profits.

Information Technology in technology is the key enabler to improving customer

satisfaction, operational efficiencies and by extension, profitability. Technology has
been the great enabler of business and especially retail enterprise. We are now wireless
and seamless and cashless and everything less and can get any information we want and
need.

Information technology in retail covers five domains and these include

- Technology and tools required to make decisions

- Visual displays and merchandise offer decisions
- Consumption and engagement
- Big data collection and usage
- Analytics and profitability

SIGNIFICANCE OF STUDY
- With the expanding globalization of retailing, both in terms of point of sale and their
points of supply the IT spend in the retail division has expanded essentially. IT assumes
an undeniably imperative job in the administration of complex retail activities.

- Market learning, and control of information and data, is critical to getting an upper hand
in the retail division. Markets are proceeding to develop and turned out to be
progressively perplexing; the straightforward procedure of retailing has begun to send
further developed retail data frameworks to adapt to every one of the exchanges
includes.

NEED OF STUDY
- Main objective of this project is using information technology we can easily manage the
Retail Store Management System. Now a day, in world every work is require fast. In
short time we can require bulk of work, and also manage many documentation records.

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 - IT plays an increasingly important role in the management of complex retail operations.
Market knowledge, as well as control of data and information, is key to obtaining a
competitive advantage in the retail sector

- Innovation is upgrading numerous ventures from budgetary organizations to retail

outlets. It is essential that organizations remain fully informed regarding the expanding
changes and improvements innovation is making for their business. In the retail
business, innovation is changing the manner in which numerous parts of the business
are directed.

IT for Competitive Advantage

- Retailers take IT's assistance in doing fundamental capacities for example, frameworks
for moving things, getting deals information thing astute, control of stock, purchasing,
the board reports, client data, and bookkeeping. Today retailers should separate their
administration offers from contenders and embrace creative approaches to serve them.
Investing in IT along with organizational changes, improve retail logistics all which have
resulted in considerable reduction in retailer inventory holding.

- Redefining and refocusing of many of the successful firms and using information about
consumer demand to re-frame retail policies and sell products and own brands

- Use IT to measure staff performance, reduce costs by making use of information relating
to transactions and performance levels

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 BENEFITS OF IT IN RETAILING

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 LITERATURE REVIEW

1) How emerging technologies are changing retail shopping experience

- IT in retail has brought exciting time for customers as emerging technologies such as AI,
CHATBOTS, VR and AR which are creating more possibilities for engaging customers in
retail stores. Retail technologies are providing the customers with informed and fast
services and ability to experience products before they arrive at your doorsteps.

- For retailers, the stakes of giving better retail client encounters are high. . The retailers
that keep on putting resources into the correct advancements will pass and flourish. The
individuals who don't act or make wrong ventures will flop, possibly following in the
strides of now outdated physical retailers.

2) 4 retail technology trends to watch in 2018

There have been 4 retail technologies that will change the retail experience for the retailers as
well as the shoppers. These technologies are-
- Application of AI over all the retail functions- According to Gartner, 85 percent of
customer interactions in retail will be managed by AI by 2020, and 30 percent of all
companies will employ AI to augment at least one of their primary sales processes

- AR and VR go beyond the hype- To future-proof, retailers need to go beyond the hype
and ensure they have a strong business proposition for adopting these technologies. To
be effective, AR and VR need to be personalized to the specific sector (furniture,
fashion, grocery) and to the specific brand
- Rise of Smart Stores- In order for the showroom concept to have long-term success,
stores have to be smarter. Data is vital to ensure the right products are showcased, as
well as for continued insight to drive iterative improvements as boundaries between
digital and physical retail get closer
.
- True Omnichannel to become the norm- If a retailer ticks the boxes for online, store
and mobile, it sometimes mistakenly believe it's omnichannel. It's only when these
channels are operated coherently and cohesively, and the retailer is able to gain a single

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 customer view, that the real benefits of an omnichannel strategy are achieved. With the
right data, technology and approach, this will be a challenge that retailers can overcome
in the next 12 months.

3) Retail technology trends to take off in 2018

- General stores like Tesco and Sainsbury's currently empower their clients to sweep and
pay for items utilizing a portable application as opposed to holding up in a checkout line.
The following period of this includes smart shopping trolleys, or supermarket GPS:
Clients utilize a touch screen to stack shopping records, and the framework causes them
discover the things in the store. Clients would then be able to confirm and pay for things
as they go, specifically on-screen. These shopping trolleys will advance into stores
around the last quarter of 2018.

- Some intriguing uses I've watched: Retailers can send messages to clients when they're
adjacent a store area, and in-store mannequins can offer data about the apparel and
embellishments they're wearing. I foresee that this advancement will take off all
through 2018 and into 2019.

- Electronic rack edge names are not yet comprehensively used, but rather this could
change in 2018 as more retailers embrace this innovation. Right now, retail specialists
should physically choose and refresh printed names to reflect changes in value,
advancements, and so on. This innovation makes the procedure increasingly effective by
dealing with such changes electronically.

- Unmistakably, innovation and advanced change in retail have changed the manner in
which we live and shop. 2018 will see rising advances like machine learning and
computerized reasoning utilizing organized and unstructured information to convey
development. As innovation creates, it will proceed to change and upgrade the retail
encounter.

4) Many innovative retail technologies but mainstream adoption still lacking

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 - It endeavors to distinguish the most "customer prepared" advances, which means those
that are near being generally received by stores — see picture. The closer the speck
speaking to the innovation is to the focal point of the radar screen, the more

- Standard the innovation is. As indicated by the report, the innovation that is nearest to
being customer prepared is information following, which alludes to customers enabling
retailers or brands to utilize their information to get a superior in-store understanding
or something of significant worth.

5) RETAIL TECHNOLOGIES

- It's the way toward consolidating innovation applications or administrations to help

improve the client involvement in a physical retail location. While there are various
innovation benefits out on the planet, here are a couple of instances of retail innovation
that are being utilized now, and that you should need to consider offering in the event
that you don't right now

- Free Wifi, digital signage, Robots

- In this fast-paced world of technology, you need to start incorporating retail technology
into your store(s) if you haven’t done so already
6) Retail in 2017
- 2017 was the worst year on record for brick-and-mortar retail. By December, more than
6,985 stores closed across the US, according to retail think-tank Fung Global Retail &
Technology

- The reality is that many stores are closing for the same reason they’ve always closed —
they simply don’t meet the needs and demands of customers.

- Technologies that will help these stores to revive their customers- AI, AR/VR, Blockchain
and Contactless Shopping

7) Tech Trends in Retail

- Retail is a vicious industry, and achievement relies upon how well your firm does against
the opposition. To remain on the ball, chiefs are utilizing innovation to show signs of
improvement results.

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 - It's in each retail proficient's best enthusiasm to get comfortable with retail innovation.
Regardless of whether you take a shot at the business floor or in the background, acing
retail advances will enable you to remain attractive.
- Electronic Data Interchange (EDI): Direct computer-to-computer transactions from the
store to the vendors' databases and ordering systems.

- Universal Product Code (UPC): Product identification system using bar code and unique
numbering.

8) Retail Technology and marketing trends on the rise in 2018

- A week ago the retail business ran to New York City for the NRF Huge Show. The
gathering united more than 35,000 retail industry experts from everywhere throughout
the globe to find out about the most recent retail patterns and system with friends.

- While there was a lot of buzz about the foreseen primary concern supports from duty
change, I was increasingly inspired by the innovation and showcasing patterns ready to
command 2018. I as of late asked driving financial speculators their viewpoints on the
eventual fate of retail, so I utilized the NRF Enormous Show to get the retailer
perspective.
- Retailers continue to strive for more personalized digital experiences.

- Connecting online and physical store experiences remains a big focus.

- As artificial intelligence (AI) is maturing, more AI-powered retail applications are

gaining adoption.

9) Current Retail technologies

- A study from the Market analyst Insight Unit found that 81 percent of twenty to thirty
year olds utilize their cell phone as their primary buying channel. Past that, the 51
percent of customers who don't utilize cell phones for shopping plan to later on. On the
off chance that you've purchased anything over the most recent couple of years, these
measurements shouldn't come as a shock.

- While these insights may sound threatening, retailers don't have to feel apprehensive.
Buyers still need physical stores. In the period of versatile, retailers should unmistakably

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 explain the estimation of in-person encounters utilizing advanced information and
innovation further bolstering their advantage.

- Beacons can already detect mobile devices and trigger offers, call-to-actions and
welcome messages directly onto in-store displays and signage. By combining artificial
intelligence with data collected about the customer from the current and previous
shopping experiences, retailers can use beacons and enticing digital signage to deliver
personalized recommendations about products and services consumers might not
otherwise consider or find on their own.

10) Retail Technology is ready for transformation

- Since data innovation spending in the retail business went underfunded for quite a long
time, endeavors to revive stores through advanced change will probably be a meticulous
errand. However it is one that retail specialists accept will prompt more noteworthy
benefit. Presently, another review envisions huge interest in IT frameworks, went for
both enhancing the client encounter, and streamlining the production network.
-
- Read the noteworthy research via Planet Retail, a regarded retail consultancy, and find
increasingly about these improvements. Planet Retail's worldwide research chief, Miya
Knights, coordinated the select retail innovation think about in a joint effort with
Digimarc, a pioneer in item straightforwardness and associated bundling.

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 DATA ANALYSIS
THE FOLLOWING ANALYSIS HAS BEEN MADE OUT OF SECONDARY DATA-
CURRENT TECHNOLOGIES IN RETAIL
Today, retailers need to continuously track customer demand and ensure that he does not get
out of stock at any given point of time. At the same time, the retailer can’t afford to have huge
inventories, thereby increasing his costs and reducing profit margins. The IT tools being used
relate to:
i. Supply chain management
ii. Inventory management
iii. iii. Electronic Data Interchange
iv. iv. Customer relationship management

Beginning from the purpose of assembling to warehousing to appropriation lastly

to the point of sale (POS), the composed retail business today is basically
determined by an proficient Inventory network which is subject to the
accessibility of exact and solid supply chain management/data in genuine time.
The (AIDC) Automated Identification and Data Capture Advancements i.e. Bar
coding/RFID joined with Portable Figuring and Remote LAN innovations enables
the retailing business to meet these critical needs of collection of quality data at
all the points of activity across the complete supply chain.

Currently the following is being evident under IT in retail-

1) Bar Code Technology

Bar coding is the most widely used technology for product identification. Bar coding is a proven
technology for automated data collection for the business.
With the barcode in place, the data is fed into the system automatically by scanning the
barcode using a bar code scanner instead of what used to happen earlier which involved
punching the same through a keyboard.
The fast checkout and reduced queues attracts more customers and ensures that customer visit
the store again and again. Barcodes solutions play an important role in quickly locating
merchandise, easily monitoring inventory and checking prices.
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 2) Radio frequency identification
The difference between businesses using RFID and not using RFID is very large. “If the product
in a store is tagged, any in the stock or inventory can be tracked.
Besides, any article moved from the rack without being paid for at the counter can be followed
at the leave zone where the reception apparatus or the is conveyed
RFID framework contains RFID tag, RFID handset, servers, and middleware and application
programming. The RFID tag is a low usefulness microchip with a receiving wire associated to the
thing to be followed, or recognized, and stores the special recognizable proof number of the
thing.

RFID TECHNOLOGY

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 3) Electronic shelf signage
Electronic shelf signage is electronic display panels on the shelf. These panels display product
description or any promotional schemes offered by the retailer. The pricing and promotion
labels on the shelf still have to be attached manually. This leads to duplicity of data and,
therefore, to human errors. It can be seen that the product pricing in software and computers
be updated immediately but shelf edge labels still have to be printed and replaced. In the case
of a price change within the day, the labels would remain unchanged.

4) Interactive kiosks
Interactive kiosks are computers with touch screen displays that provide shoppers with
information about products in the store. With the help of these kiosks, customers can identify
and select products without moving around the store. Kiosks help retailers in offering an
expanded selection of items. Video kiosks may also provide a map of the store and indicate the
location of chosen merchandise. This reduces and controls the movement of the shopper,
which is a beneficial for both the retailer and the shopper.

5) Point of sales technology

Use of computers for a fast and accurate billing system brings efficiency at the retail checkout.
Moreover, computers help create the database of sales and customer data, on which future actions and
decisions of the company would be based. Retail point of sales is the first place where automation
should be initiated. The creation of huge data bases, efficient information systems, and customer
satisfaction begins with automatic point of sales in retail. Automating the point of sales operations
serves two important purposes:

i. Efficiency in service delivery

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ii. Collection of primary sales and customer data

INFORMATION TECHNOLOGY IN INDIAN RETAIL

Technology usage in retailing is low in India today compared to levels achieved in advanced
economies and varied in their use of IT infrastructure which ranges from simple point of sale
(POS) systems to complex retail ERP once.
Retailers like Wal-Mart and Metro have started experimenting with Radio Frequency
Identification (RFID) technology which is expected to provide much better inventory visibility
and hence facilitate efficient management of inventory.
Retailers in India are still to adopt bar coding completely. The level of bar code usage is also
largely due to retailers‟ initiatives of printing these codes at their warehouses, unlike in
developed countries where all the suppliers print bar codes.

Most retailers do not have integrated IT systems today. Many retailers have few IT systems in
the areas of supply chain management, vendor development, merchandising and inventory
management. The annual spends on IT is quite negligible.

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 FUTURE TRENDS IN INFORMATION TECHNOLOG6Y

1) Artificial Intelligence

So how exactly can artificial intelligence help retail store owners? First off, let's say a
few words about how AI and machine learning actually work. Namely, artificial
intelligence technology takes a big data set about something, runs it through AI
algorithms such as neural networks and then produces a model which can provide
answers like a real human. The answers that are given are based on whatever AI was
able to learn about the matter from the dataset.
As it's probably obvious at this point, the dataset that AI learns from in the retail
industry example is the actual sales data linked to the customer data. When this
information is run through the machine learning algorithms, an AI model is produced
which discovers actionable information about a business, customers and inventory
which are not normally obvious or known to the business owner. With this in hands, a
retailer can do a variety of things to benefit his own business.
For example, retail AI can learn about customers, their preferences and their behavior
to get to know them. And, in the recent years, it can get to know them so well that it
knows what they need and when they need it. And it knows this before even they do.
When AI is capable of producing such information on the fly, there are numerous
benefits that can be obtained immediately for the business cash flow and the general
experience. First one is to get the customer to buy more. If AI knows what they need
before they do and issues them a coupon for a given product, this will trigger them to
buy an additional item which they didn't come for while generating extra revenue for
the business.

2) AUGMENTED REAILTY

 Now it’s becoming more of a reality, and forward-thinking retail brands are
incorporating AR technology into the customer experience, both in-store and online.

 Retailers are smart to adopt this technology: Almost 70% of consumers expect retailers
to launch an AR app within the next six months. Despite this, nearly two-thirds of
companies don’t use AR at all.

However, there are many retail brands at the forefront of harnessing the power of AR
and how it can enhance the brand experience. To help inspire you, we're highlighting a
variety of retailers using AR to empower their customers, create a more interactive
shopping experience, and help their products stand out.

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  Retailers across a number of industries have integrated AR technology into the in-store
experience. It’s a smart move, especially considering 61% of consumers prefer stores
that offer AR experiences — and 40% of them would pay more for your product if they
have the chance to experience it through AR.

Lacoste, for example, created the LCST Lacoste AR mobile app that customers could use
to virtually try on shoes. The app also created AR experiences with window displays, in-
store signage, and promotional postcards.

AR has also proven an effective way to bring the in-store experience to life in a virtual
sense. Rather than customers visiting your store, AR allows them to experience your
products and services right in their homes.

3) BEACON TECHNOLOGY
Beacons are small, battery-operated wireless devices that transmit Bluetooth signals to
nearby smartphones. In the context of retail, beacons reach out to customers that have
Bluetooth enabled and the right retail apps downloaded onto their phones.

 Beacon technology is already used by some of North America’s top retailers, including
Macy’s, Target, Urban Outfitters, and CVS. Its continual rise in popularity is expected to
help reinvigorate brick-and-mortar retailers, offering customizable shopping
experiences to customers that can’t be replicated online.

 Beacon technology has proven to be effective as the bridge between brick-and-mortar

retailers and customers glued to their phones. It’s a new way to engage with consumers
and provide incentives for shoppers to enter a particular store, stay for a while, and
hopefully make purchases.

 A 2016 article in the Huffington Post argued that beacon technology could help retailers
recapture current customers rather than draw in new customers or bring back ones who
were already lost. It’s all about personalized engagement combined with strategic in-
store experiences. For example, retailers might offer shoppers personalized discounts,
rewards, and even recommendations sent directly to their smartphones.

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 Conclusion

It is clearly evident from the study that most retailers are still focused on and are using
the conventional methods of technology or are using no IT at all in retail but now the
consumers need to switch to modern IT in retailing considering the intense competition
from the big online vendors like Amazon, Flipkart and others.
The impact of technology on retailing is beyond doubt. Over the years, many
applications of the technology have developed globally. These applications have a deep
impact on the way retail business is conducted.
While many factors like the scale and scope of operations, financial resources available
to the organization, nature of business, availability of trained technological personnel
etc. affect the use of technology in retailing, the creative deployment of technologies
enable retailers save a great deal of time as well as precious resources which have been
channelized to provide the best of services to the customers.
(Information technology (IT) refers to the technology of the production, storage and
communication of information using computers and microelectronics).

According to the secondary data that has been collected it is clearly evident that
retailers wish to and would have to adapt to newer technologies like AI, AR etc.
considering the increasing competition.

Many of them have already adopted techniques like barcode scanning , RFID and others
but still many retailers are concentrated on old techniques of manual work.

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Reference List ( Literature review)

1. https://www.forbes.com/sites/veronikasonsev/2018/01/22/retail-technology-and-
marketing-trends-on-the-rise-for-2018/#95b7b0664c03

2. https://www.retailcustomerexperience.com/blogs/how-emerging-technologies-are-
changing-the-retail-shopping-experience/

3. https://www.mytotalretail.com/article/4-retail-technology-trends-watch-in-2018/

4. https://www.digitalistmag.com/customer-experience/2018/02/13/4-retail-technology-
trends-to-take-off-in-2018-05842102

5. http://www.openbravo.com/blog/many-innovative-retail-technologies-but-mainstream-
adoption-still-lacking/

6. http://www.mktec.com/what-is-retail-technology/

7. https://www.businessoffashion.com/articles/fashion-tech/5-technologies-transforming-
retail

8. https://www.monster.com/career-advice/article/retail-technology-trends

9. https://insights.samsung.com/2018/01/12/the-role-of-retail-technology-in-2018/

10. https://www.digimarc.com/resources/retail-tech-spending-
report?utm_source=google&utm_campaign=planet%20retail&utm_medium=ppc&gclid=
EAIaIQobChMI2d_zx5b-3gIVl4RwCh3F1wa5EAMYAiAAEgK8lfD_BwE

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 Data Analysis

1) http://ijesat.org/Volumes/2012_Vol_02_Iss_01/IJESAT_2012_02_01_18.pdf

2) https://backup.sci-hub.tw/6236/eee1c79e6f504a2b65e0820fc1cff109/grewal2017.pdf

3) https://home.kpmg.com/xx/en/home/insights/2018/03/2018-retail-trends.html

4) https://emerj.com/ai-sector-overviews/artificial-intelligence-retail/

5) https://www.thebalancesmb.com/how-artificial-intelligence-will-change-retail-4143281

6) https://www.shopify.com/retail/how-these-retailers-are-using-augmented-reality-to-
enhance-the-customer-experience

7) https://www.shopify.com/retail/the-ultimate-guide-to-using-beacon-technology-for-retail-
stores

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