VIDEO-BASED SOLUTIONS
FOR SMART RETAILBoth Stores & Shoppers Gain
D-Link’s smart cameras and video management software help retailers improve store security and sharpen their customer service and product marketing, leading to a better experience for shoppers and generating bigger profits.
October 2018
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Smart Retail, Continuing to Attract Shoppers to Physical Stores
01
02
The Potential of Smart Retail
03
Intelligent Retail Support
04
Usage Scenarios
05
D-Link’s Products and Solutions
06
Future Trends
TABLE OF CONTENTS
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SMART RETAIL, CONTINUING TO ATTRACT SHOPPERS TO PHYSICAL STORES
01.
Growth in online shopping has come to pose a significant challenge to the business of traditional physical outlets, whether they be supermarkets or hypermarkets, department stores or smaller specialist outlets. The shopper is now wondering, “Is it worthwhile my going down to the store for a couple of hours, or can I order online?”
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“Offline” store owners and managers are
looking to attract shoppers to their
establishments through sound marketing
initiatives such as loyalty programs and reward
schemes, as well as great window displays
and a wide variety of relevant products in well-
organized, secure, entertaining environments.
Now, more than ever before, technology can
help maximize the physical shopping
experience. Smart retail solutions, based on
networks of increasingly intelligent video
cameras, managed through powerful software
and algorithms, are not just a way of preventing
theft and monitoring the conduct of people in
the store, they also form a channel collecting
data for business analysis, the conception of
marketing promotions, and improving store
operations.
This is why video-based solutions are sparking
a new wave of innovation in the retail industry.
Not least of these is facial recognition
technology, which can be used to identify
shoppers who have previously visited the store,
linking them to their preferences and loyalty
schemes, even allowing them to pay for their
purchases via facial recognition, without them
needing to make a stop at the checkout.
Video cameras, and the new generation of
business analytics software tools that can
make use of the images and film from these
devices, bring a whole new realm of possibilities
to the physical store, and will certainly prove
to be a serious engine of further economic
growth in the sector.
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74%
42%
of US retailers believe a more engaging in-store customer
experience is going to be critical to keeping hold of offline shoppers
of sales will come from online sites by 2023
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THE POTENTIAL OF SMART RETAIL02.According to the market intelligence firm, Tractica - which focuses on human interaction with technology - video analytics hardware, software and services revenue will more than triple to nearly US$ 3 billion in 2022, from US$ 858 million in 2015.
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$
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While many of the early use cases for video
analytics have related to security and
surveillance, the applications are rapidly
diversifying to include a broader range of
business intelligence and situational awareness
use cases, such as retail, Tractica says.
Advancement in technology such as 4K
resolution, edge-based video analytics and
penetration of H.265 high-efficiency video
encoding, is also poised to stimulate demand
for cameras, says another research company
Global Market Insights.
Growing demand for CCTV in non-security
applications, such as integration with e-Point
of Sale (POS) terminals, improved sensor
availability, new video analytics capabilities,
wider adoption of thermal imaging, mobile
access, 360-degree vision and de-warping,
are contributing immensely towards penetration
of the network camera market.
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40%
25%
US$20BN
of video analytics revenue will come from the
retail sector in 2022 (Tractica)
use of Internet Protocol (IP) cameras,
in new applications such as retail,
is growing at 25% a year (Global Market Insights)
Global IP camera market will exceed
US$ 20 billion by 2024 (Global Market Insights)
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INTELLIGENT RETAIL SUPPORT03.D-Link’s Smart Retail solutions consist of sophisticated cameras which provide a range of cutting-edge tools to enhance business operations. These include facial recognition, which not only allows users to recognize their best customers and provide better service, but also auto-detects threats, determines the store display areas and products that are most popular with hot spot analysis, and automatically keeps track of visitors and guests via business analytics software.
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Until now, traditional retail has lacked the
computerized tools to collect and visualize
data, making it difficult for managers and staff
to make decisions on the spot. This is where
the Smart Retail Solution comes in:
1. Prov id ing comprehensive v ideo
surveillance security to protect staff and
customers and assist loss prevention.
2. Supplying data collection and analytics
for enhancing business value.
These solutions increasingly incorporate deep
learning technology, using algorithms.
Intelligent functions for retail support include:
» People-counting, to track customer traffic
and volume
» Heat mapping, to learn which goods are
popular in the shopping area
» Queue detection, to monitor delays to
purchasing in real-time
» Smart advertising, using screens to target
customers according to their profile, age,
gender, purchasing history, etc.
» Surveying customers on camera about
their experiences, contributing toward a
database of trends, emotions, feelings
and satisfaction from which the retailer
can learn while preparing future marketing
campaigns.
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People-counting
Heat mapping
Queue detection
Smart advertising
Surveying customers
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D-Link’s Smart Retail solutions are designed
to help retailers gather data to support store
management and day-to-day operations. They
help enhance profits through sharper
operations and higher sales. The use of
innovative retail technology – powered by
Artificial Intelligence (AI) – is making “brick-
and-mortar” stores highly competitive again.
“In the store of the future… computer vision
cameras will essentially act as data-generating
‘eyes’, feeding an AI ‘brain’ which can
proactively respond to stimuli and predict
trends at the micro and macro level,” explains
Nick Finill, a senior analyst at ABI Research.
Smart retail solutions allow retailers to:
1. Plan marketing and promotion campaigns
2. Enhance customer service
3. Optimize sales performance
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US$34BN
29%
+44,000
In 2025, “brick-and-mortar” retailers will spend US$34 billion
on AI technologies, up from US$4 billion in 2018
checkout-free stores will be deployed worldwide by 2023, most of
them in Asia-Pacific
Computer “vision” will account
for 29% of spending on AI technologies
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USAGE SCENARIOS04. » People counting » Heat mapping » Facial recognition
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PEOPLE COUNTING
(also known as Footfall)
With FOOTFALL DATA, area managers can:
1. Find out if marketing initiatives delivered
more traffic to stores
2. Discover which shops provide the greatest
opportunity for growth
3. Measure the effect new service training
programs have on improving conversion
rates
4. Evaluate loyalty card events (Do they drive
additional traffic? When should you have
them? Are shoppers buying or just
enjoying the event?)
People-counting cameras provide accurate
customer counting and, through business
analytics software, customer flow trends can
be analyzed to evaluate performance and come
up with new strategic initiatives. How many
customers enter the store? How many leave
the store without buying anything?
With FOOTFALL DATA, Head Office can:
1. Plan with confidence for the future
2. Understand customer trends (including
gender percentage and age group)
3. Assess the real impact of a new store
concept or refit
4. Use data for discussions during lease
negotiations
5. Evaluate and optimize store layout
performance
6. Measure effectiveness of changes to the
marketing mix
7. Understand the impact of store promotions
( interact with hol idays, weather
information, etc.)
8. Measure the effectiveness of marketing
spend
9. Find out how you are performing against
your competitors
10. Identify brand strength – do your stores
follow the same footfall patterns as your
competitors?
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HEAT MAPPING
(also known as Hot Spot Mapping)
1. Heat maps display so-called ‘hot spots’,
‘dead areas’ or ‘bottlenecks’, helping
retailers gain a clear idea about the store.
2. This helps them get up-to-date knowledge
about the store’s performance, how
customers are behaving, and whether staff
are satisfying customers effectively.
3. This year’s data can be compared with
last year’s, to get an idea of whether the
store is running at a loss or profit.
4. Heat mapping uses different colors to
demarcate values such as traffic flow, in
one color, and products attracting more
customers in another.
Heat Mapping is used to monitor and measure
the size of traffic in an area of the store. It is
a graphical representation of data represented
by colors and is usually used to analyze the
visit times and dwell times of customers in a
specific area. With Heat Mapping, retailers can
identify hot spots and dead zones, and
measure the number of people who are actually
looking for a specific product, compared to
those that are just casually walking by.
The Heat Map function is perfect for shopping
malls and supermarkets, because it reveals
customers’ preferences over time, offering
insights into how and where to best place
items. It can make an important contribution
to the design of the store layout and teach the
retailer how to generate more interest and
create more sales.
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FACIAL RECOGNITION
First it was a password, then a fingerprint. Now
it’s your face that is quickly becoming the new
digital identity.
Amazon Go recently opened a supermarket
without tills in Seattle, northwestern United
States. This has a large array of cameras and
sensors that follow customers through the
store, detecting the products they take from
the shelves and place in their shopping carts.
The system automatically updates what’s in
the trolley and calculates the running bill, so
that when the customer has finished shopping,
all he or she has to do is accept the ticket that
has been created. As the store does not have
cash registers, the bill is paid through facial
recognition connected to the customer’s
Amazon account.
Facial recognition could be one of the
most revolutionary technologies ever to
be implemented by retailers.
French retailer Carrefour has also opened a
till-free supermarket in Shanghai, China, where
shoppers can use a facial recognition payment
system. Again, the technology links the
customer’s face to his or her digital identity.
When they reach checkout, customers look
into a screen which simply recognizes them
and validates the operation through the
customer’s account with the WeChat mobile
app.
The option of paying via facial recognition is
becoming more and more frequent in China.
Alibaba (through its mobile payment system
Alipay) and Kentucky Fried Chicken (smile&pay)
are other companies that have begun to
introduce the possibility.
With facial recognition, a retailer can
collect multiple information at a single
sensor point and use it for different
business insight analyses simultaneously.
CCTV footage using facial recognition:
» identifies high-spend customers for
preferential treatment
» uses data to trigger personalized offers
in distinct areas of the store
» tracks customer movements and
shopping patterns, so retailers can also
improve store layout.
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US$7.7BNPayments by facial recognition will reach
US$ 7.7 billion worldwide by 2022 (MarketsandMarkets)
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D-LINK PRODUCTS & SOLUTIONS05. » D-Face » D-ViewCam Plus » Cameras » Network Video Recorders
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D-FACE (Blacklisting/Whitelisting)
D-Face is D-Link’s advanced facial recognition
technology. It is capable of recognizing 64
faces in a single screenshot.
D-Face can :
» Detect human faces
» Recognize different faces
» Recognize different genders
» Recognize age
» Tell how long visitors have stayed in
an area
Blacklisting
For security reasons, D-Face can blacklist
people who have perhaps stolen from the store
before or behaved in an unruly manner on a
previous occasion.
Whitelisting
Whitelisting is the opposite of blacklisting,
where visitors are identified as being
trustworthy and with whom interaction is
desirable for the retailer. It involves segmenting
through face, gender and age recognition.
D-Face can detect and segment visitors in real
time and can also recognize multiple faces
simultaneously across many cameras all at
once.
How D-link facial recognition solution helps
improve retailer value :
» Helps understand customer sentiment in
real time, so staff can provide support to
alleviate situations that would otherwise
harm a customer’s experience, as well as
their longer-term loyalty
» Gains greater customer feedback in-store
and processes the information productively
» Allows managers to identify VIPs, so their
experience can be highly personalized
» Moves beyond analyzing customer needs
to anticipating them.
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D-ViewCam plus video management
software
D-Face integrates with D-ViewCam Plus
network camera surveillance software.
D-ViewCam Plus can be used as part of a
private LTE network, set up under D-Link Edge
Cloud Services (DECS). It centrally manages
8, 32 or 64 network cameras and is compatible
with current D-Link network cameras, video
servers and a large range of third-party network
cameras*.(*Subject for project integration
discussions.)
D-Link Edge Cloud Services support Smart
Retail by enabling:
1. People counting, heat mapping and facial
recognition
2. Customer traffic pattern analytics
3. VIP, White and Black Lists
4. Real-time gender, age and emotion data
analytics
D-ViewCam works with Microsoft Azure
Platform, which are fully compliant with the
General Data Protection Regulation that
became law in the European Union on 25 May
2018.
THE CONTROL CENTER
Although D-Link’s video management software
can manage networks of up to 64 cameras,
enough, say, to monitor a 6,000 square-meter
hypermarket, control centers in the biggest
national retailers are able to monitor more than
one store. They thus need a Central
Management System (CMS) to receive, analyze
and respond to data from cameras and network
video recorders (NVRs) in several outlets
simultaneously.
The CMS will have a video wall display for
group viewing and intuitive maps for site
management. It can support an unlimited
number of cameras and NVRs.
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CAMERAS
The number and type of cameras a retailer will
select for their store will depend on the size
and nature of the outlet. You might only have
three cameras in a store of less than 200 square
meters: one at the entrance, another at the
checkout counter, and one at the product
shelves, all connected to a video management
platform.
In bigger stores, perhaps up to 2,000 square
meters (sqm), the retailer might have 20
cameras monitoring the product shelves, three
at the checkout counter and one at the exit.
For a 6,000-sqm hypermarket, D-Link can
manage up to 64 cameras through its
D-ViewCam Plus network camera surveillance
software, supporting multiple-channel video
playback for a comprehensive analysis of
shoppers’ interactions with products on the
shelves.
The DCS-4622 Fisheye camera is a versatile
device that gives 360-degrees coverage
allowing the monitoring of a large area. It has
a built-in microphone and two-way audio so
that staff can converse with customers and
managers with staff. It can also be used to
monitor the outer premises 24/7.
The DCS-D4624 Full HD Dome Network
Camera is an IP surveillance camera with a
wealth of features that enhance its surveillance
capabilities, making it ideal for any situation.
The DCS-D4221 Full HD Cube Network Camera
is a complete system with a built-in CPU and
web server that transmits high-quality video
images for security and surveillance. It includes
support for Power over Ethernet (PoE), so the
camera can be placed in areas where no power
outlet is nearby. The DCS-D4221 offers simple
installation, an intuitive web-based interface,
and remote monitoring and motion detection
features for a complete and cost-effective retail
store security solution.
NETWORK VIDEO RECORDERS
The DNR-322L Network Video Recorder is a
standalone storage device that can record
video simultaneously from up to 16 network
cameras. It can be used to record footage from
a range of D-Link business cameras, which
makes it an ideal DIY security solution for retail
businesses.
DCS-4622
DCS-D4624
DCS-D4221
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DNR-322L
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06.
More Artificial Intelligence will be built into cameras, increasingly leading to them being known as Software-Defined Cameras (SDC). SDCs are currently reshaping the security industry and will come to play an important role in facilitating Smart Retail, by virtue of the algorithms in the cameras, which interact with algorithms in the centralized management and control software and/or cloud enterprise system.
FUTURE TRENDS IN VIDEO-BASED SMART RETAIL SOLUTIONS
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Next-generation cameras defined by software
will be able to work with other cameras through
device-cloud synergy, improving analysis
accuracy and supporting practical applications.
Such cameras will become self-aware and
adapt to scenarios to satisfy retailers’ business
scenario requirements. The camera will evolve
from a single video collection device to a smart
data collection platform.
The use of data might be subject to stricter
controls as countries introduce more data
protection regulation, e.g. the European
Union’s General Data Protection Regulation,
which came into force on 25 May 2018. Thus,
the implementation and utilization of data
collection technology in retail and other mass
areas such as entertainment (e.g. spectators
in stadia), as well as by governments and
security agencies, will come to be structured
three ways:
HIGHLY SENSITIVE
Only local data processing.
HYBRID-BASED
Most data kept in local cloud, only facial
tagging sent to main cloud for comparison,
feedback and results.
CLOUD-BASED
Can be subscription-based service, so only
initial camera investment needed.
SUBSCRIPTION SERVICE
Monthly payment to provider, flexible from
service deployment viewpoint, unlimited choice
of applications from main cloud.
Both Stores & Shoppers Gain
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