In the last few years, online shopping has become the new way to shop. Studies found that 67% of millennials and 56% of generation X prefer to shop online. This badly affected the retail industry. With industrial edge computing, retail businesses can pull back customers in stores and revive the retail industry. In a previous blog for the internet of things, lots of industries were taking advantage of IoT technology. Similarly, the retail business can use these connectivities of devices and derived data to provide better offerings and streamline customer services also.
What is Edge Computing?
Edge computing is a process done near the data source. This reduces latency issues which is an issue with cloud computing services. So, data can be collected and utilized quicker using IoT and edge computing technology. In retail, the business can use edge computing solutions for the management of inventory to add labels, prices, and procurement of products.
Market Size of Edge Computing
The market size of edge computing hit in the billions with all its advantages. A Yahoo finance report finds that:
The edge computing market size is expected to grow from USD 36.5 billion in 2021 to USD 87.3 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 19.0%
This forecast is expected to shoot up real fast after the pandemic. Digitization of brick and mortar businesses came into focus. Online models of offices and schools were used since the pandemic. McKinsey found that:
Businesses accelerated their development and adoption of digital or digitally enhanced offerings by an astounding seven years. In the short span of one year, we have been witnessing a fundamental shift in the way business is done.
Impact of Edge Computing
IoT and edge computing are being used together. Newer edge technology is speeding things up exponentially. Taking an example of 5G technology; it can process any data under 1 millisecond. Edge computing security features are attractive for retailers. It protects data on both ends. There are no lags or latency issues which is a plus point. Edge computing provides the best customer experience. Customer satisfaction is the top priority for any business, especially retailers.
Advantages of Edge Computing for Retailers
There are many advantages of edge computing. This technology covers several issues of cloud computing. Some of these advantages are discussed below.
Operational Efficiency
A retail business has several moving parts. Traditionally, retailers made use of exclusive applications which were not flexible or adaptable to the ever-changing retail industry. These applications were used for managing the inventory, pricing and labelling of the products.
Using edge computing and IoT devices, operational efficiency can get a boost. Edge computing can make use of artificial intelligence and machine learning algorithms for boost. Using these IoT devices and edge computing technology, communication with customer devices is possible. Shopping lists can be made anywhere and when the customer enters the shop, they get instructions for checkout and product locations in their list.
A great example of edge computing and IoT devices is Amazon Go stores. A customer walks in by scanning the app on the phone, takes what they want and walks out. The store devices read the barcodes and bill the customer’s credit card.
Unique Experience
What if you physically visit a retail store and get the product you want at a promotional price. And that product was not on sale anywhere in the online stores. That is all thanks to IoT devices and edge computing. The system in stores can gather your data when you visit the retail store and present you with competitive prices or a promotional offer. This will make a customer keep going back to stores to buy products.
Customer Trends
An IoT device and edge computing service are not limited to providing unique experiences and boosting operational efficiency. They can predict customer trends and help make business decisions. The IoT device collects real-time data and this data can be used to get business analytics and business analysis.
The data can help decide what items need to be restocked and which need to be shelved depending on the customers’ preferences. This helps in managing the warehouse and restocking. Seasonal trends can be available and this data can help to stock items that were popular in previous years. The current data can help forecast future trends.
Secure System
Interconnectivity is a security risk. If a consumer uses their device then their data could be compromised. Similarly, if a retailer’s device is used then that is a risk as well. Edge computing infrastructure is unique. The transactions are monitored and happen at the source. There is minimum risk involved. The device security needs to be top-notch for further security. The edge computer infrastructure should be calibrated to have multiple layers of security features. This will keep the data of retailers and consumers safe.
Offshore for Edge Computing
Offshoring some roles is beneficial for them. Apart from offshoring customer service and administrative tasks, there are several other roles.
Financial roles can be offshored. Financial analysts, bookkeeping, accountants can all be hired as a team from an offshore vendor. Locally hired talent would be expensive and might not be as skilled.
More importantly, Retail is a sector that does not need an in-house technical team. IT roles can be offshored to a skilled team for a cheaper cost. Strong back-end support is vital for e-commerce. This helps in data handling and decision-making. Cheaper professionals and pre-existing offshore teams are available.
Lastly, a strong marketing team can be outsourced. Once leads are generated, marketing trends and plans need to be implemented. The marketing team will attract customers. Using articles, blogs and social media there will be some asset creation.
Apart from these roles, several other roles can be outsourced to an offshore team. Using the right vendor and strategies, a retail business can use edge computing effectively. It will pull back customers and keep them competitive.
Mashkraft for Edge Computing Retailer Needs
Mashkraft has experience in servicing retail customers across the world. Our offshore team can provide edge computing solutions and services. We have successfully provided edge computing services to clients across Europe, North America, Asia and Africa. Please reach out to us. Our experts will guide you to find the right solutions. It will fit your budget and needs. You can find out more details about our services and read our success stories at www.mashkraft.com.
The Bottom Line
Edge computing and IoT technology can help revive the dying brick-and-mortar retail industry by pulling in customers. Industrial edge computing is being used widely to change the way the industry interacts with its customers directly. This helps in enhancing the business to newer success and makes shopping again in stores convenient for customers.