Image Recognition For Retail Shelf Monitoring

With the e-commerce boom, CPG/FMCG brands have realized that the traditional methods of retail shelf monitoring or sales promotions are not enough to sustain profits in the cut throat CPG industry. Many retailers are already implementing AI and image recognition to deliver the next level of customer experience.

According to Gartner, by 2020, 85% of customer interactions in the retail industry will be managed by AI. In this blog, we discuss how image recognition can be implemented by retail & CPG companies to improve their shelf monitoring techniques.

1. Auditing Product Placement

2. Observing Trends in Product Placement

3. Compliance and Competition Assessment

It also helps track the competitor brands, their product placements and brand presence. This helps develop an idea about the possible strategies that our competitors employ. If a certain product does not perform well when placed beside a competitor’s product, a new placement strategy can be devised for it.

In a nutshell, image recognition technology can effectively help retailers and manufacturers understand their marketplace and react in real-time. Aspects such as compliance or product placement and performance compared to its competitor can be projected in a better manner with the aid of artificial intelligence. AI lessens the chance of human error. As a result, the whole process becomes much faster to carry out in comparison to manual methods.

Monitoring Retail Shelf With Image Recognition

ShelfWatch helps consumer brands to standardize store checks and get consistent results from all the sales channels. This allows them to make business decisions based on shelf data confidently.

1. Auditing the placement of Product

Image Recognition solution detects SKUs within images of shelves and classifies them at manufacturer, brand or SKU level. Depending upon the accuracy and speed of the solution, the auditor can get real-time feedback on their handheld device. This helps them take corrective actions while they are still in store.

2. Detecting Inventory Distortion.

With the COVID-19 pandemic in tow, massive out-of-stock situations prompted users to engage in e-commerce. This resulted in drop in sales for retailers. This situation called for intervention by technology like Image Recognition.

Retailers can leverage Image Recognition using fixed cameras in their store to alert the store staff whenever a shelf is found to be empty. The store staff can get an instant alert on their phone along with the accurate description of the SKU missing from the shelf and the location of the shelf.

3. Competition Assessment

ParallelDots image recognition solution, ShelfWatch, eliminates all the bottlenecks in the traditional retail audit process that are currently eating into the time of the sales rep or merchandisers during their store visit. Using Image recognition, ShelfWatch empowers reps to collect photos with a click of a button and generate actionable, real-time store insights. It is reliable, free of human biases, and fast. The algorithm controls the data quality at the collection level to bring out the standard and objective analysis.

Want to see how your own brand is performing on the shelves? Click here to schedule a free demo.

Co-founder at ParallelDots