New services and disappearing services arising in the retail industry with the advent of the 5G era
and DX
5G is also becoming more popular in Thailand. It is said that the service platform of each industry will change with 5G, which achieves a communication speed that is about 20 times faster than the current mainstream 4G. 5G itself is a network technology that enables high speed, large capacity, low latency, and simultaneous connection, but if IoT, AI, and devices make good use of 5G, DX (digital transformation) will occur, and new products and services will permeate the world. In addition,
some services will eventually disappear.
What kind of future do you envision for each industry in the 5G / 6G era
when the actual arrival is approaching? This time, we would like to introduce
“the future of [retail] that 5G will change”.
Retail services made possible using 5G
Self-Service Cash Register / Unmanned Store
Even in Japan and Thailand, the implementation of self-service cash registers and unmanned stores at convenience stores and supermarkets has already begun.
We analyzed the purchase contents and realized unmanned cash register based on behavior data by AI cameras and sensors, barcode data scanned by customers themselves, data identified by devices attached to dedicated shopping carts, products, etc. Also, there are a wide variety of payment methods, including electronic payments and payments using facial recognition systems.
AI and IoT will also play an active role in replenishing products. By implementing a system in which AI and sensor cameras work together, the camera recognizes the moment the customer picks up the product, counts the number of items in stock on the product shelves, and AI determines when replenishment is necessary and replenishes the product and give instructions for replenishment. Since the timing of replenishment and the number of replenishments can be known remotely, it is possible to operate the store even if there are no people in the store.
Such efforts to save labor will lead to reductions in labor costs, improvement of operational efficiency, and avoidance of shortages, so it is thought that the implementation of self-service cash registers and unmanned stores will be further accelerated for implementation.
Livestream e-commerce "Purchase in online virtual space"
Livestream e-commerce is content marketing on e-commerce sites “where you can buy what you see in an online virtual space”. It is a service that has already penetrated in China and other countries, but it is said that “Sales promotion using online delivery” will accelerate further because the video distribution and viewing environment will be stable due to 5G high-speed communication.
By utilizing “5G + VR (Virtual Reality) / AR (Augmented Reality)”, which is expected to develop technology in the future, the number of companies that increase sales more than stores or even without stores may increase in the future.
Toward the future of 5G x retail industry : Case studies of use in Japan and Thailand where DX is being implemented
MUJI - Ryohin Keikaku Co., Ltd. (Case of Japan)
The company, which was active in implementing DX, launched the service of the smartphone application “MUJI passport” in 2013 in order to integrate online and offline.
App users can collect points (granted by check-in /shopping/posting product reviews when visiting the store), receive coupons, shop within the app, and use online consultation when purchasing products. It is useful for “improving customer satisfaction”.
Data such as customer behavior history collected through the app is utilized in marketing and also leads to the acquisition of fixed fans.
McDonald's Thailand
At McDonald's Thailand, you can order using the over-the-counter system. Select the item you want to order from the menu displayed on the screen and place an order.
Currently, it is not equipped with functions such as guidance by AI and service provision for each customer based on data, but the ordering system through machines at such stores gradually spread. There may come the day when all cashier work will be robbed by machines in the future.
What retailers should do to leverage 5G and DX
How to proceed with DX
The utilization of 5G, AI, and IoT is indispensable for survival in the DX society in the future.
However, there are many companies that “do not know what to do” in the “possibility of achieving anything”.
First, you need to calmly re-examine your current position in the industry and the level of digitalization you have reached, and seriously consider what kind of service you should provide.
For that purpose, we have a clear image of what DX is and the way to DX.
Think together about what kind of DX service will be your company's strengths
CSI, which has supported the digitization of the retail industry with abundant experience for more than 30 years in Thailand, can explore a solution together with customers and propose how to utilize 5G and how to proceed with DX.
Please feel free to contact us as an IT partner who will carry out DX and increase corporate value.
