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Solution Overview
A digital, intelligent, and smart transformation of traditional supermarkets through technological means such as the Internet of Things, smart terminals, and cloud computing. Simply put, it means that people and things become smarter and communicate more quickly. It will greatly improve the user shopping experience, enhance operational efficiency, reduce operational risks, and lower management costs.
Industry background
The fierce e-commerce competition has led to the continuous growth of online customer acquisition costs. Internet companies have moved offline, and the giant layout has accelerated the development of the industry; The global development of physical retail is slowing down, and there is an urgent need to find new growth drivers; The development of physical retail in China is in its early stages, with overall low circulation efficiency; Consumers are becoming increasingly digitized, with a comprehensive understanding and a trend towards omnichannel shopping paths; Consumers' consumption patterns are constantly upgrading, with the new generation consuming new content, diverse personalities, new consumption propositions, quality, and intelligent consumption.
Previously, physical retail focused on products and channels, hoping to enhance competitiveness through product prices. But now, after nearly twenty years of price wars, simply offering low prices can no longer attract consumers. Consumers nowadays pay more attention to the quality of products and hope for ultimate experiential services.
market size
According to the data analyzed by iResearch (data from 2016, for reference only), it can be seen that the proportion of offline retail has always been over 80%. At the same time, the dividends of e-commerce platforms are gradually disappearing, and the data in the figure below also shows that the offline retail market is beginning to recover. Although it has been impacted by e-commerce platforms, due to the relatively large retail volume in China, the offline retail volume is still huge. Offline retail still has a very strong market.
The "2019 Market Outlook and Investment Opportunities Research Report on Smart Retail Industry" recently released by the China Business Industry Research Institute shows that the global smart retail market has exceeded 10 billion US dollars, and it is expected to grow to 38.5 billion US dollars by 2023.
customer base
customer pain points
1. In recent years, the large-scale development of e-commerce has had a certain impact on offline retail, and traditional retail urgently needs innovation and reform. The demand for online marketing is obvious, but there is a lack of effective online operations and business models
2. WiFi deployment in public areas has become a new demand. There is no wireless coverage or the wireless deployed in early times has poor signal and poor network speed, which affects customers' online experience. The staff of the mall frequently receive complaints
3. Traditional WiFi devices can only meet simple internet needs and cannot enable supermarkets to use WiFi access to attract WeChat followers, register members, download apps, and conduct online marketing
4. New retail is becoming increasingly popular, and mobile payment wireless POS machines, smart shopping carts, electronic price tags for goods, etc. require stable and secure wireless access
5. There are a large number of supermarkets nationwide with numerous network devices, and most of the local areas do not have information technology departments, making it difficult for the group to unify the management of stores nationwide
The main pain points related to IoT are as follows:
1. The large area of the supermarket environment makes it difficult to effectively control the operating costs of the mall (mainly electricity and air conditioning), resulting in serious waste and increased operating costs, leading to a decline in competitiveness
2. Unable to monitor environmental safety hazards in real time (mainly electricity consumption, fire fighting, etc.), with high risks of line aging, leakage short circuit, overvoltage, overcurrent, underphase, undervoltage and other hazards
3. Large quantities of fresh produce, fruits and vegetables, dairy products, ice cream, and meat in supermarkets require temperature monitoring throughout the entire process to ensure food safety and prevent food loss. The temperature, humidity, and air quality in shopping malls are closely related to customer experience
4. Using paper price tags, changing prices requires first designing the price tag effect, printing labels, and replacing labels. The entire process requires multiple people and long-term cooperation to complete a price change. High labor and time costs, prone to errors and inconsistent information during collaboration
5. The types of electromechanical and water supply equipment in supermarkets are complex, with multiple monitoring points. Traditional inspection methods are difficult to meet the management needs of existing building complexes. Historical theft and professional anti-counterfeiting personnel have caused serious losses to the enterprise
6. The lighting management needs of supermarkets at different time periods have not been pleasantly surprised, resulting in serious energy loss and waste
7. Lack of real-time monitoring methods for the full management of valuable assets and personnel trajectory management
8. Without statistics on passenger flow, entry and exit, WIFI usage time, and time periods, targeted marketing and analysis cannot be conducted
Customer requirements
New retail value-added marketing demand
● The mall provides wireless network to improve the customer experience, and at the same time, it uses WeChat, SMS and APP authentication methods to help WeChat official account attract fans, collect customers' mobile phone numbers, improve the APP registration rate, and guide customers' registered members to receive cash vouchers
● Implement flexible advertising push, personalized advertising pages can be pushed to different regions and types of customers, and discount promotion information can be published
● Wireless full coverage, providing access services for important terminal businesses such as smart shopping carts and wireless POS machines
Merchants can obtain information about consumers' movement routes, dwell times, etc., and adjust the mall's event planning and counter layout accordingly, providing effective support for marketing decisions
Wireless network security requirements
To ensure the safety of users' wireless usage and avoid property damage, the wireless system must have WIPS/anti phishing WIFI, support real-time detection, alarm, and countermeasures against illegal access points
Audit and monitor all online activities
● Meet the requirements of Order No. 82 of the Ministry of Public Security to backup and retain internet data in public areas, support integration with local public security network monitoring platforms, and upload audit data to the public security network monitoring platform
Smart Supermarket IoT Intelligence Needs
Thoroughly solve the hazards of electrical circuit short circuits, provide real-time alarms, and minimize electrical safety risks
● Collect power supply and consumption information remotely to local servers or cloud servers through a centralized reading system, and then implement functions such as energy metering and billing management
Utilizing LPWAN narrowband IoT technology, linking temperature with air conditioning, air with fresh air, noise quality, and garbage bin management and operation to enhance consumer shopping satisfaction
Commercial horizontal refrigerators, dairy product display cabinets, and beverage display cabinets with real-time temperature and humidity monitoring and abnormal alarms to ensure the freshness of fresh products
Intelligent, fast, batch, and accurate price adjustment, saving labor costs and improving product update accuracy
One click zoning lighting strategy setting and remote switch, easily meeting the lighting management needs of supermarkets at different time periods
Real time positioning of valuable equipment and personnel trajectories, identification of individuals with a history of theft or professional counterfeiting, and notification to relevant management personnel
Unified management and operation requirements for national branches
Unified nationwide operation and maintenance, unified management of all devices to ensure wireless stability, continuity, and security
● Support administrator decentralization and grading, with different administrators having different management permissions. Supermarkets in different regions across the country develop their own marketing strategies
● Support mobile app operation and maintenance, allowing for wireless status viewing, wireless broadcasting, alarm notifications, and more through the mobile app
Therefore, the requirements for its IOT platform can be analyzed as follows:
●Summary Center:Display the core status and data within the deployment project
●Equipment management:Perform functions such as data display, statistical analysis, abnormal alarm, remote control, etc. for various types of devices
●Operation and maintenance management:Set up responsible persons and work order management for the operation area
●Store management:Large chain supermarket store information sharing
●Intelligent inspection:Set inspection routes, check-in locations, etc
customer value
For supermarket operators
Help customers reduce electricity safety risks, optimize store operation management, save operating costs, increase interaction and stickiness with consumers, enhance brand image, and increase sales
For supermarket employees
Improve the work efficiency of employees in the store (such as price adjustment, picking, etc.), thereby freeing up their hands and better serving consumers
User side value
For supermarket customers: more accurate price display, more comfortable shopping environment, and more convenient shopping experience
Solution Architecture
List of terminal devices
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