{"id":56264,"date":"2021-01-19T09:00:27","date_gmt":"2021-01-19T17:00:27","guid":{"rendered":"https:\/\/www.microsoft.com\/industry\/blog\/?p=56264"},"modified":"2023-07-07T09:44:38","modified_gmt":"2023-07-07T16:44:38","slug":"five-iot-retail-trends-for-2021","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/retail\/2021\/01\/19\/five-iot-retail-trends-for-2021\/","title":{"rendered":"5 IoT retail trends for 2021"},"content":{"rendered":"

In 2020<\/span>\u00a0we saw retailers hard hit by the<\/span>\u00a0economic effects of the COVID-19 pandemic<\/span>\u00a0with dozens of retailers\u2014<\/span>Neiman Marcus, J.C. Penney,\u00a0<\/span>and\u00a0<\/span>Brooks Brothers<\/span>\u00a0to name a few<\/span>\u2014<\/span>\u00a0declar<\/span>ing<\/span>\u00a0bankruptcy.\u00a0<\/span>During the<\/span>\u00a0<\/span>unprecedented<\/span>\u00a0chaos<\/span>\u00a0of lockdowns and social distancing<\/span>,\u00a0<\/span>consumers<\/span>\u00a0<\/span>accelerate<\/span>d<\/span>\u00a0their<\/span>\u00a0shift to\u00a0<\/span>online shopping. R<\/span>etailers like Target and Best Buy saw online sales double while Amazon\u2019s <\/span>e<\/span>–<\/span>commerce\u00a0<\/span>sales grew 39 percent.1<\/sup><\/span>\u00a0<\/span>Retailers\u00a0<\/span>navigated\u00a0<\/span>supply chain disruptions<\/span>\u00a0due to COVID-19,<\/span>\u00a0climate change event<\/span>s<\/span>, trade tensions<\/span>, and cybersecurity events<\/span>.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

After the last twelve tumultuous months, what\u00a0<\/span>will<\/span>\u00a02021<\/span>\u00a0bring for the retail industry<\/span>?<\/span>\u00a0<\/span>I spoke with\u00a0<\/span>Microsoft\u00a0<\/span>Azure IoT partners\u00a0<\/span>to understand how they are planning for 2021 and\u00a0<\/span>compiled insights<\/span>\u00a0<\/span>about five retail trends<\/span>.\u00a0<\/span>One theme we\u2019re seeing is\u00a0<\/span>a focus on efficiency<\/span>.<\/span>\u00a0<\/span>Retailers<\/span>\u00a0will<\/span>\u00a0look<\/span>\u00a0to<\/span>\u00a0<\/span>pre-configured digital platforms<\/span>\u00a0that leverage cloud<\/span>-based technologies including\u00a0<\/span>the\u00a0<\/span>Internet of Things (IoT), artificial intelligence (AI), and edge computing<\/span>\u00a0to meet their business goals.<\/span>\u00a0<\/span><\/p>\n

\"a<\/p>\n

Learn how\u00a0<\/span><\/span>Microsoft enables intelligent retail<\/span><\/span><\/a>.<\/span><\/span>\u00a0<\/span><\/p>\n

Empowering\u00a0frontline\u00a0workers\u00a0with\u00a0real-time\u00a0data<\/h3>\n

In 2021,\u00a0<\/span>retailers will increase efficiency\u00a0<\/span>by empowering\u00a0<\/span>frontline workers\u00a0<\/span>with real-time data.\u00a0<\/span>Retail employees<\/span>\u00a0will be able to respond more quickly to customers\u00a0<\/span>and\u00a0<\/span>expand their roles to<\/span>\u00a0manag<\/span>e<\/span>\u00a0c<\/span>urbside pickups, returns, and frictionless\u00a0<\/span>kiosks.\u00a0<\/span>\u00a0<\/span><\/p>\n

In H&M Mitte Garten in Berlin, H&M\u00a0<\/span>empowered employee ambassadors\u00a0<\/span>with<\/span>\u00a0fashionable bracelets<\/span><\/a>\u00a0<\/span>connected to the Azure cloud<\/span>.<\/span>\u00a0<\/span>Ambassadors\u00a0<\/span>were able to\u00a0<\/span>receive real-time requests via their bracelets when customers needed help in fitting rooms or at a cash desk. The ambassadors\u00a0<\/span>also\u00a0<\/span>received\u00a0<\/span>visual merchandising instructions<\/span>\u00a0and<\/span>\u00a0promotional updates<\/span>.<\/span>\u00a0<\/span><\/p>\n

Through the app built on Microsoft partner\u00a0<\/span>Turnpike\u2019s\u00a0<\/span>wearable SaaS\u00a0<\/span>platform<\/span><\/a>\u00a0<\/span>leveraging\u00a0<\/span>Azure IoT Hub<\/span><\/a>,\u00a0<\/span>these frontline workers\u00a0<\/span>could also<\/span>\u00a0communicate with their peers or their management team during\u00a0<\/span>or<\/span>\u00a0after store hours.\u00a0<\/span>With the\u00a0<\/span>real-time\u00a0<\/span>data from the connected bracelets, H&M ambassadors were empowered to delivered best-in-class service.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Carl Norberg, Founder,\u00a0<\/span>Turnpike explained, \u201cWe realized that by connecting store IoT sensors, POS systems, and AI cameras, store staff can be empowered to interact at the right place at the right time<\/span>.\u201d<\/span>\u00a0<\/span><\/p>\n

Leveraging live stream video to innovate omnichannel<\/h3>\n

Livestreaming has been exploding in China as influencers sell through their social media channels. Forbes recently projected that nearly 40 percent of China\u2019s population will have viewed livestreams during 2020.2<\/sup><\/span>\u00a0Retailers in the West are starting to<\/span>\u00a0<\/span>leverage live stream technology to create innovative omnichannel solutions.\u00a0<\/span>\u00a0<\/span><\/p>\n

For example,\u00a0<\/span>Kjell & Company, one of Scandinavia’s leading consumer electronics retailers<\/span>, is using a solution from Bambuser and Ombori called\u00a0<\/span>Omni-queue<\/span>\u00a0built on top of the\u00a0<\/span>Ombori Grid<\/span><\/a>. Omni-queue enables store employees to handle a seamless combination of physical and online visitors within the same queue using one-to-one live stream video for online visitors.\u00a0<\/span>\u00a0<\/span><\/p>\n

Kjell & Company ensures e-commerce customers receive the same level of technical expertise and personalized service they would receive in one of their physical locations.<\/span>\u00a0<\/span><\/b>Omni-queue also enables\u00a0<\/span>its <\/span>store employees to be\u00a0<\/span>utilized<\/span>\u00a0<\/span>highl<\/span>y<\/span>\u00a0efficient<\/span>ly with advanced routing and knowledge matching<\/span>.<\/span>\u00a0<\/span><\/p>\n

Maryam Ghahremani, CEO of Bambuser explains, \u201cLive video shopping is the future, and we are so excited to see how Kjell & Company has found a use for our one-<\/span>to<\/span>-one solution.\u201d\u00a0<\/span>Martin Knutson, CTO of Kjell & Company added<\/span>\u00a0\u201cWith physical store locations heavily affected due to the pandemic, offering a new\u00a0<\/span>and innovative\u00a0<\/span>way for customers to ask questions\u2014especially about electronics\u2014will be key to Kjell\u2019s continued success\u00a0<\/span>in moving customers\u00a0<\/span>online<\/span>.\u201d<\/span>\u00a0<\/span><\/p>\n

\"20191026_JagerandKokemor_Attabotics_RobotOnWhite_15519.FIN<\/p>\n

Augmenting omnichannel with dark stores\u00a0and micro-fulfillment centers\u00a0\u00a0<\/span><\/h3>\n

In 2021, retailers will continue experimenting with dark stores<\/span>\u2014traditional retail stores that have been converted to local fulfillment centers\u2014<\/span>and micro-fulfillment\u00a0<\/span>centers.\u00a0<\/span>These supply chain innovations will increase efficiency by bringing products closer to customers.<\/span>\u00a0<\/span><\/p>\n

Microsoft partner\u00a0<\/span>Attabotics<\/span><\/a>, a 3D robotics supply chain company,<\/span>\u00a0work<\/span>s<\/span>\u00a0with an American luxury department store retailer to reduce costs and deliver<\/span>y\u00a0<\/span>time using a micro-fulfillment center.\u00a0<\/span>Attabotics<\/span>\u2019<\/span>\u00a0<\/span>unique\u00a0<\/span>use of both horizontal and vertical space reduces warehouse needs by 85 percent.<\/span>\u00a0<\/span>Attabotics\u2019 structure and robotic shuttles <\/span>leveraged<\/span>\u00a0<\/span>Microsoft Azure Edge Zones<\/span><\/a>,\u00a0<\/span>Azure<\/span>\u202fIoT Central<\/span><\/a>,<\/span>\u202fand Azure Sphere<\/a>.<\/span><\/p>\n

The luxury retailer leverages the micro-fulfillment center to package and ship multiple beauty products together.\u00a0<\/span>As a result, customers\u00a0<\/span>experience<\/span>\u00a0faster delivery time<\/span>s. The\u00a0<\/span>retailer\u00a0<\/span>also\u00a0<\/span>reduce<\/span>s<\/span>\u00a0costs related to packaging, delivery, and warehouse space.\u00a0<\/span>\u00a0<\/span><\/p>\n

Scott Gravelle, Founder, CEO, and CTO of Attabotics<\/span>\u00a0explained,<\/span>\u00a0\u201cCommerce is at a crossroads, and for retailers and brands to thrive, they need to adapt and take advantage of new technologies to effectively meet consumers\u2019 growing demands. Supply chains have not traditionally been set up for e-commerce<\/span>. We will see supply chain innovations<\/span>\u00a0<\/span>in<\/span>\u00a0automation\u00a0<\/span>and\u00a0<\/span>modulation<\/span> take off in 2021 as they bring a wider variety of products closer to the consumer and streamline the picking and shipping<\/span>\u00a0to support e-commerce<\/span>.<\/span>\u201d<\/span>\u00a0<\/span><\/p>\n

\"a<\/p>\n

Helping keep\u00a0warehouse workers safe<\/h3>\n

What will this look like? Cognizant\u2019s recent work with an athletic apparel retailer offers a blueprint. During the peak holiday season, the retailer needed to protect its expanding warehouse workforce while minimizing absenteeism. To implement physical distancing and other safety measures, the retailer\u202f leveraged Cognizant\u2019s <\/span>Safe Buildings<\/span><\/a>\u00a0solution<\/span>\u00a0built with\u00a0<\/span>Azure IoT Edge<\/span><\/a>\u00a0and\u00a0<\/span>IoT Hub<\/span><\/a>\u00a0services.\u00a0<\/span>\u202f<\/span>\u00a0<\/span><\/p>\n

With this solution, employees maintain physical distancing using smart wristbands. When two smart wristbands were within a pre-defined distance of each other for more than a pre-defined time, the worker’s bands buzzed to reinforce safe behaviors.\u202fThe results drove nearly 98 percent distancing compliance in the initial pilot. As the retailer plans to scale-up its workforce at other locations, implementing additional safety modules are being considered: <\/span>\u202f<\/span>\u00a0<\/span><\/p>\n