That means working closely together-diving into store operations to observe how the systems are functioning and what can be improved. Then you have to ensure the technology generates real value for your clients. McKinsey: What is the biggest hurdle that you face when it comes to customer adoption?įeng: First of all, you need to educate the market and let potential clients know the technology exists. Now, digital signage, audio and video systems allow retailers to create personalized content-you can even create instore avatars on screens to act as virtual customer guides. Without the technology, operations staff had too many things to do to offer personalized service. McKinsey: What about from the customer’s perspective?įeng: Previously, purchasing a good product at a competitive price would have been sufficient to satisfy most customers, but AI allows them to demand higher quality services and new experiences. This also allows you to vary your promotions more regularly, and precisely target different customer segments. Such intelligent decision-making saves a lot of time and human resources. For example, data can predict which products will likely sell best in a particular kind of weather, and then technology can design appropriate instore advertising. Meanwhile, technology can reduce costs by improving marketing. Now, in addition to improving the performance of online platforms, AI helps optimize shelving arrangement, product assortment, and other instore operations, which also helps raise revenue. In the past, without digital technologies, they could not even sell online. McKinsey: What about the impact on revenue and costs?įeng: From the revenue generation side, retailers have more ways to sell. Moreover, computer vision can also understand shopping behavior-how consumers interact with products in the store- allowing us to analyze habits and respond with improved store layouts and promotions. For example, technology can replace checkout cashiers,who scan products and credit cards and check information for consumers. Jeff Feng: Many retail jobs are very time consuming and repetitive, and can definitely be replaced by computer vision and AI algorithms. McKinsey: What are the benefits of digital technologies for retailers and consumers? In their conversation, Feng explores how Cloudpick’s solutions can boost store earnings and cut costs, while enhancing the instore experience for customers and employees. Expanded Cloudpick’s footprint to more than 100 retailers across more than 800 stores in 20 countries.Īlex Sawaya, a senior partner in McKinsey’s Hong Kong office and leader of QuantumBlack in Asia, recently sat down with Cloudpick CEO Jeff Feng to discuss the outlook for the deployment of artificial intelligence (AI) solutions in retail stores in Asia. Received his PhD in the areas of computer vision, pattern recognition, machine learning, and human-computer interaction.įounded Cloudpick, a smart retail solutions provider that uses computer vision to improve the efficiency of instore operations, in 2017.Īttracted investment from leading international investors, including Intel Capital, Cathay Innovation, Seiko Epson Corp., Global Brain, and UB Ventures.
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