Indoor Positioning in Retail1zkq0n152z6rnp4v81tnk1zh.wpengine.netdna-cdn.com/... · The world’s...
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Indoor Positioning in Retail
Parik Chopra, Philips Lighting
Philips Lighting
#1 in connected lighting systems and services
#1 in LED 48% of lighting sales are LED (Q4 2015)
€7.5 billion in sales in 2015
33,000 people employed worldwide in 60 countries
~75% of sales are B2B
Systems & Services Light sources Luminaires 2
Lighting systems and services
Intelligent buildings Landmark shopping destinations Alive and Bespoke architecture
Indoor Positioning Inspiring mall experience Enhance guest comfort Catwalk experience in store
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Millennials Sustainability Connected
Mega trends we see in retail
5B x 50B 1/3rd 50%
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Footfall alone has become outdated
Shopper journey has radically changed
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Idea of a store is becoming fuzzy
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Physical space is getting more personal
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and more digital
self-scanning … online-offline-online … endless aisles … click & collect … self check-out 10
What is Philips indoor positioning trying to solve?
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• 8 in 10 smartphone shoppers use their mobile in-store to help with shopping1
• 8 in 10 smartphone shoppers prefer to use their mobile for assistance in-store vs. an associate2
• 50% of shoppers are happy if retailers send them content on the basis of their location3
Sources: 1) Google Shopper Marketing Council, 2014; 2) Deloitte Digital, 2016; 3) Cisco IBSG, 2013
“Seamless” mobile experience
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2008 2010 2012 2014 2016 2018 2020 2022
% o
f sa
les
infl
uen
ced
by
Dig
ital
Digital Influence Projection
+/- 10% sensitivity range
90% sales still happen in
physical stores
September 20152 – 64%
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Column1
90%
What happens in the physical store?
Online store
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Physical Store
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How does Philips system works?
Location, Authentication and
Analytics Server
Analytics The position of the fixtures
is stored in a location
database in the cloud.
LED fixtures send a
unique VLC code that is
detected by the
smartphone camera
Visible Light Communication
Philips software determines the real-time and exact position of the phone.
The software is available as SDK for integration into the customers mobile app.
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Retailer data, cloud and applications
Benefits of Philips indoor positioning • Hyper accurate: less than 30 cm and orientation accurate
• Low latency: 10x per sec refresh rate
• Savings: 40-60% electricity saving from LED
• Hybrid: Bluetooth integrated (powered by LED drivers) for notifications
• Mainstream: works with iOS and Android
• Easy to get started with: SaaS model, with SDK design-in service
• Complimentary partners: e.g. product mapping from Aisle411
• Data enabled services: heatmaps, time-stamps, shopper journey
• Privacy: privacy-by-design principles
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Carrefour Lille The world’s first supermarket with Philips indoor positioning Carrefour Hypermarket in Lille, France
• 8,000m2 ; 3.2 million shoppers a year
• 200-300 products on promotion/day
• 800 LED lighting fixtures
C’ou app allows shoppers to
• locate themselves on store map
• select and find promotions; like promotions
• see promotions “around me”
• signal out of stock items
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Carrefour Lille
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Power of “location-aware” mobile apps Shopper convenience
Show me where I am
Way finding: products, Pol
Dynamic (optimal) shopping route
Location relevant information
Ask for associate to come over
Shopper engagement
Location based (personal) promotions
Location based information/notification - Product suggestions - Inform while queuing
Location based interaction - Trigger survey
- Trigger social interaction
Entertainment /gaming
- Treasure hunt - Visit and collect points
Staff/store efficiency
Location tag products or issue reports
Way finding: products, issues, staff
Dynamic routing for order picking
Location based staff instructions
Location based sales/service support
Data/Analysis
Enriched personalized multi-channel marketing
Store/staff effectiveness assessment: - Heat maps
- Customer flow/dwelling
Marketing impact assessment
Partnering with brands
Location based compliance notification
Brand-sponsored convenience and
engagement
Analytics based brand co-operation
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Why invest in “location-aware” apps?
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Why invest in “location-aware” apps?
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Why invest in “location-aware” apps?
Country surveyed
Current app usage
47
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Indented app usage with location services
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Partnering to enrich shopper apps
+ Hyper accurate indoor positioning Platform
Product mapping, search and analytics platform
Making retailers’ investment measurable
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Unraveling the black box of big box
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Growth in location-enabled venues…
Source - ABI Research, 2014
Food, DIY, Electronics
Clothing
Shopping malls
Dinning/ Beverages
Number of Indoor location technology installations
100,000
50,000
25,000
2010 2020 2015
125,000
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…Opening up business value
Source: ABI “Location Technologies Market Data” (2016)
Global location based services revenues in retail (EUR millions)
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To summarize
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• Physical store is here to stay : approx. 90% sales happen in-store
• Where are stores heading: fuzzing boundaries, personal touch, digitization
• Stores can be benefit from new ways to engage with Omnichannel shoppers
• Mobile apps is one way to do so
• Usage of mobile apps increase by 50-100% if location-enabled
• 100s of use cases possible; start with 1-2 quick wins
• LED lighting can provide hyper accurate location : imagine “pixel of the store”
• Huge potential to unlock business value, with partners
Light = “central nervous system of retail”
IP backbone
Location IDs
Central Brain
Sensors
Q&A
Disclaimer
The presenter has use images, facts and statistics from publicly available sources and studies conducted by reputable research company solely for
the purpose of knowledge sharing and idea exchange. Neither the presenter (Parik Chopra) nor his employer (Philips Lighting BV) takes
responsibility for the forecasts, facts or claims made in this presentation. For any questions on the materials shared in the presentation please
consult the presenter himself.
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19th century
20th century
21st century: are we window-dressing?