Intelligent Shopping Solution Expands Access to Product Inventory

executive summaryLarge-scale discount and warehouse retailers provide consumers with an extremely wide choice of products. Carrying large and diverse product inventories in thousands of stores makes cost-effective inventory management especially challenging.

Many consumers visit stores to experience products fi rst-hand, look up online prices on a smart phone, and then make their purchases elsewhere. Because of this, retailers are also intently focused on bridging the gap between online and in-store shopping.

One innovative answer to this problem is to use large interactive visual retail displays to engage consumers and amplify brands through social media applications on their smart phones or other mobile devices, and use social media to incentivize purchases with in-store promotions, coupons and other premiums.

Intel has worked closely with augmented reality specialist YDreams* to create intelligent and interactive in-store visual retail signage systems that bring products to life with full-size images on multiple interactive high-defi nition displays.

The goal is to let consumers experience products, gain information, and make product comparisons in a high-defi nition video display in the store, without the need for physical inventory. Sales associates can use tablet devices to answer consumer questions and provide additional information to ensure that shoppers fi nd the right products.

In its fi rst implementation, the solution is focused on merchandising electronics white goods, such as refrigerators, washing machines, and TVs. The virtual shopping solution enables consumers to experience these products fi rst-hand, even in store locations that do not have a physical inventory. These solutions are a powerful tool to help minimize inventory distortion while revolutionizing the in-store experience for retail consumers.

solution BluePrintintelligent

shopping solutionMass Market Retail

INTELLIGENCE IN. AMAZING OUT.

Key Business oBjectivesDevelop a cost-effective solution that provides customers access to large and diverse product inventories across thousands of stores.

Who Will Benefit from this solutionThe virtual shopping solution helps retailers sell products, including electronics white goods, without needing to stock and manage large physical inventories. The solution can lead to sales uplift, enhanced in-store shopping experiences, heightened brand awareness, convenient implementation, and reduced inventory-related costs.

sales uplift

The solution also helps in-store sales associates ensure that customers get the right information to select the products that best meet their needs. By using tablet applications linked to the store’s database, assistants have instant access to a wealth of detailed product information, which is essential in dealing with today’s knowledgeable and demanding consumers.

extending Product range

The virtual shopping solution helps retailers extend their inventory of online white goods into stores where such sales have not been possible before. Virtual shopping displays provide customers with a powerful combination of engaging experiences and information.

Brand Building through social media

Wireless communications with customer smart phones and social media integration enables merchants to market products to vastly wider audiences at no additional cost, while benefitting from the analytic tools available from leading social media sites.

convenient implementation

In addition to easy integration with existing back office systems, virtual shopping solutions based on Intel® architecture provide powerful display performance, built-in security, and remote manageability that simplifies software updates and enables energy savings.

reduced in-store inventory

By reducing inventory display and handling requirements, the virtual shopping solution reduces the need for physical floor space to display products and minimizes the potential for damage to out-of-box display products. These benefits can contribute to higher margins for retailers.

meeting neW marKet DemanDThe virtual shopping solution is designed to integrate with the retailer’s middleware, which integrates with back-end systems for order fulfillment, inventory management, and customer information. The solution uses multiple networked computing systems in the store to provide shoppers with product images, specifications, information on features and benefits, pricing, and other data for products contained in the retailer’s inventory database.

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table of contents

executive summary . . . . . . . . . . . . . . . . . 1

Key Business objectives . . . . . . . . . . . . . 2

Who Will Benefit From This Solution . . 2

meeting new market Demand . . . . . . . . 2

the Business challenge . . . . . . . . . . . . . 3

solution overview . . . . . . . . . . . . . . . . . . 3

user experience . . . . . . . . . . . . . . . . . . . . 3

Brand Amplification Through social media . . . . . . . . . . . . . . . . . . . . . . . . 4

technology . . . . . . . . . . . . . . . . . . . . . . . . . 5

summary . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

resources . . . . . . . . . . . . . . . . . . . . . . . . . . 8

intelligent shopping solution expands access to Product inventory

figure 1 . Virtual Shopping Solution Kiosk with Touch Interface Lets Consumers View and Interact with Life-Size, High-Definition Images of Products

the Business challengeWhen customers are looking for just the right refrigerator, washer, or TV, out-of-stock products can lead to consumer frustration and lost sales. And stocking the right white goods products in just the right quantities can be extremely challenging.

The challenge gets even greater when you consider that the electronics white goods market segment is ever-changing. New products are constantly being introduced, and consumer brand preferences can shift quickly.

Inventory costs for white goods are significant. Larger products, such as refrigerators, can have an extended shelf life, remaining on the store floor or in local inventory storage for up to 100 days. This adds to increased capital cost of inventory, in addition to higher overhead due to the consumption of valuable floor space and the higher risk of product damage, in addition to logistical and transportation costs.

These inventory dynamics can lead to over-stock situations which can impact the retailer’s bottom line and profit margins.

According to recent research by IHL*, the combined annual cost of over-stocks and under-stocks, known collectively as inventory distortion, is currently estimated at $818 billion, and may be growing by as much as $50 billion each year.1

The virtual shopping solution is revolutionizing inventory logistics and management. Without floor inventory at the store, products can ship either directly from central storage or from the point of manufacture, removing overhead associated with floor space, product damage, staff training costs and transportation.

solution overvieWThe virtual shopping solution consists of a series of stacks of 55-inch interactive high-definition video displays. Each HD display column is powered by a media player based on the Intel® Core™ i5 processor. Each column which consists of a stack of three displays is connected via the store’s Ethernet network to the retailer’s inventory management system. The media players run an interactive touch screen interface developed by YDreams.

user exPerienceThe solution creates a high-impact, visually immersive experience designed to engage consumers and involve them in the process of examining products and comparing features. Shoppers can use the system to call up life-size product images.

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Text content on a particular point-of-interest

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intelligent shopping solution expands access to Product inventory

Prospective buyers can virtually look inside refrigerators, learn about TV controls, and evaluate color combinations and other product features. Consumers can easily make side-by-side product comparisons and make filter selections based on price, capacity data, energy ratings, and other parameters.

At the same time, sales associates get the information they need to close sales using tablet computers that provide them with accurate pricing and stock level data. Early results indicate that virtual shopping solutions are especially useful for helping sales associates inform consumers about the benefits of products with features and service packages that fit their needs.

All of this is now possible with less physical inventory in the store. Once they have compared products and features, customers can order a product on the spot for delivery to the store or home delivery where available.

BranD amPlification through social meDiaIn addition to providing product information, the in-store display is designed to amplify brand messages and retail promotions by harnessing the power of social media. The in-store display can include QR codes, SMS text messages or short URLs that offer incentives for consumers to sign-in to web sites using their smart phones or other mobile devices. Incentives can include loyalty points, discount coupons and prize drawings to win a product.

Intel worked together with social media application developer Betapond (www .betapond .com) to develop this solution.

After scanning, texting or signing-in with the short URL, consumers see a landing page displayed on their mobile device. The page shows the product as it is shown on the signage display. The screen repeats the incentive offer and includes buttons that enable the consumer to recommend the product or ask friends for advice.

A ‘My Products’ home screen shows the product the consumer has viewed on the virtual shopping solution in-store display, along with a history of previously browsed products, each with a recommend/ask button. Consumers can engage in social interactions while they are inside or out of the store.

To amplify brand messages, interactions relating to the product and the store are displayed in a timeline on the consumer’s social media account, where they can be viewed by others in the consumer’s network, along with ‘likes’ and comments. The user’s timeline also includes links back to the retailer and to the product. A “Thanks” screen confirms rewards relating to in-store promotions, discounts, coupons, and loyalty program points.

Social interactions like this can provide a valuable source of data through the use of analytical tools that enhance understanding of customer behavior and help maximize ROI on social media. These include the ability to track and attribute media spending, measurement of social viral performance, social campaign and message tracking, and identification of key influencers.

figure 3 . The Virtual Shopping Solution Mobile Landing Screen Lets Customers Add Recommendations to Social Media

figure 2 . The Kiosk Lets Customer Browse Additional Images to Explore Product Features and Points of Interest

intelligent shopping solution expands access to Product inventory

technologyKiosks

Interactive virtual shopping kiosks bring products to life with full-size images that bridge the gap between online and in-store shopping experiences. Shoppers can now experience products and make product comparisons in a high-definition video display in the store, without the need for physical inventory.

As shown in Figure 1, the system configuration consists of parallel columns of three 55” NEC* HD video displays in landscape mode with touch screen frames that span each display stack. Each HD display is powered by a media player based on the Intel® Core™ i5 processor, and the display columns are connected via the store’s Ethernet network to the retailer’s inventory management system.

The hardware platform includes support for Intel® Clear Video HD Technology, for rich, high-resolution 3D performance that meets the requirements of graphics-intensive signage applications.

Graphics and video display capabilities include high-definition playback with support for Blu-ray* with dual-video hardware decode, hardware decode acceleration for AVC, VC1, and MPEG-2 formats, 24-Hz refresh, and digital display support for HDMI* 1.3, along with dual simultaneous HDMI support, DisplayPort* 1.1 with audio support and up to 2560x1600 resolution to support very high-resolution monitors.

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emPoWering a neW WorlD of retail innovationThe retail industry is in the midst of a dramatic information revolution that is laying the groundwork for new consumer experiences, enhanced productivity, reduced inventory distortion and brand optimization. Intel is addressing this transformation with the Intel® Intelligent Systems Framework, a set of interoperable solutions designed to facilitate connecting, managing and securing devices in a consistent and scalable manner.

What can emerging intelligent retail systems do? Imagine an intelligent store where incoming weather data indicates a severe storm approaching. The store’s digital signs and kiosks immediately begin promoting items commonly purchased during storms, like umbrellas, and prices are adjusted to reflect the predicted increase

in demand. Price updates are transmitted to electronic shelf labels and the back office. Data from checkout confirms umbrella sales are increasing, causing immediate alerts to the stockroom. The store’s warehouses and key suppliers send shipments to replenish the shelves.

The Intel Intelligent Systems Framework helps simplify the deployment of intelligent systems and enables retail OEMs to shift their investments from achieving interoperability to unlocking the value of data. The framework features fundamental capabilities, delivered by components that address connectivity, manageability and security, including software and middleware from Wind River* and McAfee*.

For more information, visit www .intel .com/content/ www/us/en/embedded/intelligent-systems .html.

Sales

Retail Terminal

Stock Room

Server

Supplier

Warehouse

ElectronicShelf Label

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intelligent shopping solution expands access to Product inventory

figure 4 . Virtual Shopping Solution Tablet Interface Provides Detailed Information for Sales Assistants

interface

For the kiosks, Intel created a graphical user interface designed to be intuitive and user friendly, while appealing to customers of all ages and computer skill levels. The interface drives the sale by enabling customers to experience products life size in high definition, and by providing information they need to make informed choices, including making side-by-side comparisons of multiple products.

To further enhance the consumer experience the interface includes an optional “virtual assistant,” an on-screen avatar designed to engage with consumers and make the shopping experience fun, while providing customers with a sense of comfort and assistance throughout the purchase process. The on-screen assistant establishes a dialog between the customer and the merchant.

The Intel software is designed for easy integration with the merchant’s existing web content resources, with no additional content production required. The system is designed for versatile content management, including fast and easy content edits, updates, and deletions.

tablets

The virtual shopping solution includes a tablet application for sales assistants that includes a product inventory browser, news updates on products, customers’ browsing history on the kiosks, customer support alerts, and detail views of product features.

Static content is displayed on tablets the same as the content displayed on the kiosk, except that on tablets, all of the merchant’s supported products will be available.

anonymous viewer analytics

Intel® Audience Impression Metrics Suite (Intel® AIM Suite) harnesses the power of anonymous analytics to measure the effectiveness of visual retail messages. The solution adds data collection and audience measurement tools to the visual retail signage network, with privacy protection built in.

Merchants can use the data to better understand the number of impressions associated with particular product messages, length of impressions, potential audience size, and the characteristics of interactions, among other factors. These metrics help users determine the best locations for displays, match inventory to shifts in consumer demand, and understand audience engagement levels to maximize return on investment (ROI).

intelligent shopping solution expands access to Product inventory

Windows Server 2008

Web Server / PHP .NETReport Logger Services Router

Intel AIMReporting

HD Media

Smart Phone& SocialMedia

Integration

Social Media Analytics

& ReportingIntegration

Adapter

SQL Express

SOAP

Database

Edge Server

Windows 7Browser

.NET

Assets HTML5 ApplicationIntel AIM

VideoAnalytics

HTML5 Adapter

Analytics Engine(Kiosk Usage)

Synchronizer

Back Office

Analytics Reporting(Kiosk Usage)

Digital Signage / Kiosk / Tablet

Retailer Database

Retailer Database Mirror

functional concept

As shown in Figure 3, the edge system integrates with the retailer’s headquarters (HQ) back-end using a web service-based integration adapter that connects to the database managed by the client application. This web service provides a neutral layer that enables additional integration adapters to be developed to meet a variety of requirements.

Virtual shopping solutions (kiosks) and tablets have their application and content updated overnight using the synchronizer application. This provides the client devices with local content, enabling for low latency without placing additional demands on the network for core functions. These assets include text (such as within a XML file), image, and video files, in addition to the application HTML/CSS/JS code packaged as a ZIP archive.

Statistics events are stored locally if no network is available. Events include items such as ping (heartbeat), start interaction, stop interaction, and all other actions during the interaction, such as key entries. Report graphs are generated on demand and then cached, so if client devices have a network connection, the report graphs can immediately contain the latest data.

services

Tablets and kiosks connect to a services router using WebSockets*, an arrangement that provides a real-time bi-directional communications channel. If external information such as stock availability is required, the services router will request this data from the back office via a web service.

Services are supported by an API that includes authentication, request for assistance, and inventory stock status.

hQ Back-end system

Back-end infrastructure provides core data including product availability, prices, product codes, and descriptions indirectly through the client application.

In-store Edge Server

2nd Cache Level

Kiosk / Tablet

HQ Back End

1st Cache Level Client BrokersIntegration

Services

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figure 5 . Data Synchronization

figure 6 . Virtual Shopping Solution System Configuration

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intelligent shopping solution expands access to Product inventory

edge servers

Data synchronization – in response to client synchronizer application requests, edge servers provide synchronized static content (such as the appropriate section of the product catalog, images, and videos) for virtual shopping displays (kiosks) and tablets using the HTTP REST web service from the PHP (hypertext pre-processor) back office. Elements of the back office database are synchronized with the HQ Server via integration adapters.

services – real-time requests are made by kiosks and tablet applications via the services router which accepts HTML5 WebSocket connections to allow direct integration within the client application. This is implemented on the edge server using a C# application running as a Windows* service. Example scenarios include:

• Communications such as requests for assistance – the kiosk can make a request that the edge server then routes to all available tablets, and the response can be indicated on the kiosk to indicate that “a sales associate will be with you in a few moments.”

• Remote commands – when the sales associate uses a tablet to command the kiosk to display a specific product.

statistics – this function accepts events sent by the kiosk and tablet, stores them and allows them to be viewed in graphical form via the back office.

in-store front-end systems

Kiosks

Data synchronization – static content is synchronized periodically (typically overnight) using the C# Synchronizer application. In general this application is configured to download only selected product content, such as HD TVs for a kiosk that supports that product category.

services – real-time data is exchanged with the services router on the edge server via WebSockets. This is implemented directly in the HTML5

application and consumes native JSON formatted data for efficiency. Functionality may include:

• Request for assistance

• Accept command from a tablet to display a specific product

• Send current status to the tablet, such as what product is being viewed.

statistics – data is sent by the prophet router to the prophet logger on the edge server for storage in the back office database. In the event of local network failure, the events are stored locally until the network becomes available.

tablets

Real-time data will be handled like the kiosks, but with these functional exceptions:

• Responding to requests for assistance such as accept/decline

• Sending a command to the kiosk to display a selected product or products

• Display the product that a kiosk is currently showing and the recent browsing history, using the data sent by a kiosk.

Statistics data is sent by the prophet router to the prophet logger on the edge server for storage in the back office database. In the event of local network failure, the events are stored locally until the network becomes available.

summaryIntel’s virtual shopping solution provides a new and highly engaging in-store experience for shoppers that cannot be equaled on the smaller screens of home PCs or tablets. The immersive shopping experience helps retailers combine the instant information and product comparisons provided by web-based shopping with the impact and realism of an in-store shopping experience aided by a knowledgeable and service-oriented sales consultant.

Consumers can use the in-store displays to browse the retailer’s product catalog, obtain information on energy ratings, feature options and pricing, and at the same time see products life size, with a sales associate available to answer questions.

Up to date product data is imported to the virtual shopping solutions from the retailer’s back-office database. When not directly engaged by customers, the kiosks can display messaging to promote sales of selected products.

Anonymous data, such as which products are attracting the greatest consumer attention, enables advanced analytics for vastly improved inventory management and significant cost benefits for retailers.

resourcesintel® retail solutions Partner network

Redefining what’s possible, leading solution providers have come together to address the specific needs of retailers, whether it’s consulting, content creation and management, retail systems, hardware customization, deployment support, network management, or cloud-based services.

The Intel® Retail Solutions Partner Network provides one-stop shopping for cutting-edge technologies that deliver new consumer experiences, enhanced productivity, reduced inventory distortion, brand optimization, and more.

To learn more, visit www .intel .com/retailsolutions

YDreams specializes in interactive and immersive augmented reality solutions www .ydreams .com

Information about social media applications is available from Betapond www .betapond .com

1 IHL Group Report: $818 Billion Lost Annually in Global Retail “Inventory Distortion”; 2012

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