Benefits of Video Analytics in Retail
In 2012, the combined sales revenue of the top 250 retailers worldwide was estimated to be $4.3 trillion, with a compound annual growth rate (CAGR) of 4.9% through 2014. Despite the challenging economic conditions in 2012, leading companies around the world continued to grow and expand. However, with growth comes the need to capitalize on this growth. The benefits of smart solutions in retail are helping global retailers do just that.
As more retailers become aware of the security, marketing, efficiency, and organizational benefits, more retailers are embracing smart solutions like network cameras. In fact, the global smart video surveillance market in the retail industry is expected to grow at a CAGR of 27.1 percent from 2012 to 2016. This is also evident in the increasing adoption of video analytics systems and the increasing number of security system manufacturers targeting the retail industry.
Return on Investment in Retail
For retail stores competing with online businesses, sales and return on investment are of significant importance. In an era where we can buy anything from clothing to home appliances and groceries with just a click and have it delivered to our doorstep, retailers are even more aware of the importance of proper marketing, loss prevention and operational efficiency. According to the Global Retail Theft Index, compensation due to shoplifting, employee fraud or theft, etc., resulted in $112 billion in losses for the global retail market in 2012. When legacy security systems fail to prevent losses and optimize marketing strategies, smart solutions step in and prove their worth.
The retail market often lacks the capital to invest in full-blown technologies. As the cost of smart solutions decreases, some retailers are finding that the investment is worth the cost. While smart technology is more likely to be adopted by retailers operating in the more upscale markets, mid-market retailers looking to boost their sales are also turning to smart solutions. However, smart systems are not all the same. Different stores require different functions, and since the price often depends on the features of the system, even medium-sized businesses will be able to find a solution that fits their budget. Mid-sized retailers do not require much in the way of advanced functionality and may therefore opt for cost-effective systems that combine NVR systems and surveillance cameras. This solution allows retailers to benefit from some of the benefits of smart technologies without incurring high costs.
Regardless of the level of technology selected by retailers, the ability to optimize physical space, improve warehouse monitoring, track shop status, and monitor shopper behavior, line lengths, and staffing levels are just some of the benefits retailers can expect from smart video solutions.
Benefits of Video Analytics Systems
Video surveillance software with video analytics offers retailers many benefits in the form of business intelligence. Whether as a standalone system or integrated with video management systems, this software provides a quick return on business investment through information obtained from the system, such as data related to facial recognition, people counting, customer waiting time in line, etc. How this is done is described as follows: “Business intelligence technology is a set of technologies that collect a wide range of different information, such as video data, transactional data, structured and unstructured data, and transform them into easily understandable business intelligence-related data.” Through this technology, video data is transformed into content beyond mere images and information becomes of double value, and thus, video analytics transforms a store’s security camera system into a system beyond mere video surveillance.
While it is easy to talk about the benefits of video analytics, it is more difficult to see and experience these benefits in practice. However, many chain stores have not only understood the benefits of this system, but have managed to implement it in the best possible way.
Those chain stores that prioritize security systems and have installed surveillance cameras in all their branches since their inception have succeeded in making their businesses benefit from the abundant benefits of this system. Today, many retailers, aware of the benefits of video analysis systems and their effects on marketing, have added smart cameras to their surveillance equipment. These cameras not only enhance the store’s existing security systems, but the ability to count the number of customers helps optimize marketing activities and better design the sales space. Many stores have gained valuable and important information through this capability. By counting the number of customers,