In the context of machine vision, image recognition is the ability of software to identify objects, places, people, writing, and actions in images. Computers can use machine vision technologies combined with a camera and artificial intelligence software to achieve image recognition. However, retail brands are using this to get instant insights and avoid fraud. Let’s have a look at how Image Recognition is helping retail brands all over the world.
According to a study by IHL Group, the worldwide retail industry misses out on $984 billion every year in sales due to out-of-stock products. Image Recognition helps retail brands prevent losing money and customers. When an SKU is missing on the shelf, Image Recognition helps notify the staff in real-time to replenish the shelves quickly.
According to a Stanford study, manual audits in retail proved to be time-consuming and inaccurate, with error rates reaching as high as 20%. Image recognition technology helps digitize and standardize audits to get consistent and accurate data more frequently that enables sales and marketing teams to make timely decisions. The information interpreted by image recognition software can help track sales trends, too. Tapping into the data on how well different brands and SKUs are selling, retailers may boost the sales of priority SKUs by placing them closer to the buyer.
The way products are merchandised influences profoundly buying decisions. Image recognition helps compare the arrangement of items on the shelf to match the planogram given to the retailer to implement Object recognition algorithms scans a supermarket shelves to detect the products, and classify them by a brand or an SKU. The solution compares the obtained results to a reference planogram and notifies retailers about any mismatches.
Brands can monitor if stores execute their visibility, promotions, and pricing compliances properly. This can enable your teams to work with the area sales manager, category managers and store managers to fix violations.
Competitive insights on how your display, promotional, and pricing strategies stack up against competitors in-store strategies. Brand managers can also track the product launches of their competitors, promotions of rivals, and any new SKUs introduced by them in order to reposition their brand.
Monitoring where and how in-store promotional and Point of Sale materials are positioned and displayed to the consumers. This also helps in determining appropriate store payouts and incentives.
Monitoring millions of consumer touch-points at the store shelves to gain insights into their preferences and behaviours thus enabling better designing of the store. Hot and cold spots can be identified and measures to address them can be taken.
Modern Image Recognition applications process images instantly to identify every SKU on the shelf. The insights are then made available to the store manager or store staff in real-time (within < 2 mins). This helps merchandisers in taking action to fix execution errors and ensure 100% store compliance on the spot! These analysis helps sales leaders understand what SKUs are selling and why they are selling. By combining historical sales data and demand patterns, sales managers can thus optimize their assortment mix and distribute the right product mix in the right quantities to the right stores.