In the coming 18 months, 60 percent of retail companies across the world will be looking at investing in the development of AI infrastructure according to a report by Nvidia. In the last three to four years the retail industry has seen a plethora of technology integrations and innovations related to edge computing that have not only disrupted the industry but also have changed perceptions about several operations for retail businesses. By means of edge computing technologies, retail chains are now successful in warehousing and real-time analytics of data at the source of generation without waiting for information to be gathered in the cloud servers.  Whether it is the data that is being directed towards the consumer market for marketing purposes or the data that is deduced from the inventory or vendor management, the retail sector is making use of edge computing for the analysis of it all. From providing enhanced consumer experience to smart inventory management, retailers are having large-scale applications for mobile edge computing technologies today.

“The enviable growth of edge computing is very much evident today. Just a cursory look at the numbers and one immediately realizes the growth potential the category has. From a market cap of $15.96 bn in 2023, edge computing is estimated to grow 36.3% CAGR to reach $139.58 bn by 2030, as per Fortune Business Insights. This spectacular growth is the transformative shift edge computing has enabled in how businesses store, analyze, and manage data today. Moreover, the ability of edge computing to extract information and help organizations make superior data-based decisions sets it apart from the rest”, mentioned Anand JK Jain, Vice President – Solutions Engineering, MSys Technologies.

In order to understand the ways in which edge computing is increasing the efficiency of retail marketers, one needs to delve deeper into the specific operations that are getting an advanced technology outlook.

Personalized Recommendation Engines and Smart Carts

In the wake of edge computing systems, retailers have been able to create personalized recommendation engines in customer shopping carts. This is being done with the collective integration of sensor modules, image processing and machine learning processors, smart screens, cameras, RFID, scanners, and speakers that are able to collect data and create a virtual model of a customer in order to send personalized shopping recommendations. Customer data is collected from the server in order to analyze standpoints like required items, promotions, and other information based on the past purchases of the customer. This helps in providing an enhanced customer experience.

Zalando, a European online fashion retailer, makes use of a recommendation engine in order to offer personalized clothing and accessory suggestions to potential customers. The engine takes into account a user’s browsing history, past purchases, and brand preferences to provide a personalized experience.

In-store Navigation

Several in-store benefits can be availed by customers with the help of edge computing technologies. While adding items to a smart cart, it is important that a customer is able to locate desired products and conduct proper in-store navigation before setting them on the final list. In this case, creating a portfolio of products among their respective categories also helps in creating brand loyalty in customers. Because of edge computing systems, retailers are able to establish connections with a large number of devices at the same time.

To give an example, voice inputs that are integrated with the shopping carts through virtual assistants such as Amazon’s Alexa and Google Assistant, are an incredible way to enhance the shopping experience and identify the locations of desired products in any given store.

Enhanced Retail Experience with AR and VR

In order to make shopping experiences immersive and interactive, there are various edge devices built inside mobile phones, smart glasses, and other smart electronic devices. These systems help customers explore products according to requirements from portable devices that are high on responsiveness and low on latency. 

IKEA utilizes AR technology in its smart application and allows customers to virtually place furniture items in the places where they are required to see how they fit in and look before deciding on the right purchase.

Customer Recognition 

Retailers are able to use edge computing methods for the identification of customers entering a store by the help of cameras installed at the entrance. The data acquired are processed using edge devices and a customer portfolio is generated. On the basis of the customer’s past purchases, tailored information on products and special offers can be provided in real-time. However, acquiring customer information through cameras has several privacy-related implications that must also be addressed first.

Zara, a global fashion retailer, has deployed customer recognition technology in some of its stores. This technology is able to identify items that customers bring into fitting rooms and allows them to request different sizes or styles by means of a touch-screen interface.

Customer Engagement with Social Media Integration

Globally, retailers are in the process of using social media channels in order to communicate with the customer base to showcase all offerings and examine customer behavior. With the data collected from social media, retailers are able to deploy target marketing programs. In these cases, edge computing is able to enhance the effectiveness of the collected social media data collection and analysis which leads to improved customer engagement and satisfaction. 

Starbucks is popular for its strong social media presence. It encourages customer engagement through various social media channels and allows customers to share shopping experiences, take part in social media campaigns, and even submit new product ideas.

Edge Computing has transformed the retail sector in ways that were unimaginable a decade ago. Apart from the above factors, there are several more technologies that are currently under process and are going to increase sales in the retail sector and establish a system of customer management.