As e-commerce goes through automation , headless e-commerce architecture has come into play with smart supermarkets. Experts believe the use of robotics can allow the frontend and backend of an organisation to perform individually and automatically. This eventually creates the concept of a ‘smart supermarket’ or headless e-commerce. Within supermarkets, an unmanned smart shopping guide can bring convenience and efficiency for both customers and retailers. It can help customers quickly locate goods and information while also addressing their needs. “Robots use artificial intelligence (AI) algorithms that can anticipate preferences and needs, out of the vast data generated. As technology advances, in-store service robots are evolving into payment centres, eliminating the hassle of waiting in queues. However, upfront costs, substantial investments, and potential technical issues can pose challenges,” Sanjeev Kumar, CEO and co-founder, Alphadroid, a subscription-based RaaS (Robot as a Service) company, told FE-TransformX.
Automated e-commerce market
Reportedly, in 2021, the global retail automation market was estimated to be worth $12.2 billion. The market is forecasted to grow to $33 billion by 2030, as per insights from Next Move Strategy Consulting, a market research firm. Case in point, Amazon Go stores, which uses overhead cameras and computer vision technology to track both shoppers and items throughout the store, can contribute to the numbers. The system can identify when a person has picked something off the shelf and placed it in their cart, and even when they decided to put something back. This eventually helps in avoiding checkout procedures. Apart from this wearable devices with real-time tracking can send pop-up notifications, curated for users.
Industry experts believe that smart supermarkets use technology such as automated checkouts, smart shelves, and follow-me shopping carts, delivering a personalised shopping experience to make things easier for customers and streamline operations. Adopting smart technologies in supermarkets can offer automated inventory management, order fulfilment, customer service, checkout and payment, restocking and merchandising, among others. “ However, whether all companies should follow the same trend depends on various factors, such as business model, customer base, and strategic goals, among others. Market predictions for ‘smart supermarket’, can be subjected to change based on technological advancements, consumer adoption, regulatory developments, and economic conditions, among others,” Alpna Mishra, Department of Mathematics, Member, centre for cybersecurity and cryptology; Professor, Sharda School of Basic Sciences and Research (SSBSR), Sharda University.
The automated era ahead
Experts believe e-commerce platforms and smart supermarkets are actively creating personalised systems tailored for individual customers on the frontend and business users on the backend. Automation of tedious processes such as aisle navigation, running spot offers, billing, etc, in the retail sector, particularly in supermarkets, can bring benefits such as increased efficiency and improved customer service. But it also raises concerns related to job displacement, initial setup and maintenance costs and technical challenges. “By leveraging advanced predictive analytics and personalised product recommendations, retailers can enhance the overall customer experience, leading to increased customer satisfaction and loyalty. Striking a balance between automation and maintaining a positive customer experience is crucial for the successful implementation of smart supermarket technologies,” Somdutta Singh, serial entrepreneur, LP angel investor, founder and CEO, Assiduus Global Inc, an e-commerce partner and accelerator, said.
About 59% of shoppers in the United States (US) mentioned that Amazon Go will hurt other stores. On the contrary, about 54% of customers mentioned that their visit was good. As the conundrum continues, experts believe that headless e-commerce can either emerge as a winner or loser. Smart supermarkets can use data analytics to offer personalised recommendations and promotions to customers based on their purchase history and preferences. “However, implementing these technologies requires a significant initial investment in hardware, software, and infrastructure, which can be prohibitive for some retailers. Smart systems are susceptible to technical glitches and failures, which can disrupt operations and inconvenience customers. The collection of customer data for personalised marketing raises privacy concerns,” Anand Ramanathan, partner and leader, consumer industry, Deloitte India, a multinational professional services network, highlighted.
From what it is understood, digitalisation is already being adopted in the Indian retail sector. Online retail companies currently utilise technologies such as predictive analytics and AI across marketing, customer engagement and operations functions, among others. Most brick-and-mortar retail chains are expected to have supply chain management (SCM) solutions with analytics and other tech running at the back end for operations. “The transformation expected in future can be in customer engagement and data collection wherein hyper-personalisation shall be the norm. However, India being a value-driven economy, the adoption can be gradual as the technology scales, investment affordability increases and returns are evident,” Chetan Barapatre, manager, growth advisory, Aranca, a global research and analytics firm, concluded.
