Consumers don’t think drones will become mainstream
Survey question to consumers: thinking about shopping online; I think that ‘drone deliveries’ will become mainstream within:
Source: Retail Economics/CMS, 2019
In-home delivery
Not so long ago, a well-known supermarket chain hit the headlines when a delivery driver entered a customer’s home to deliver and store away groceries that a customer had ordered online. Sentiments on this were polarised. Some thought it was terrifying, while others saw it as convenient; and in the future, this may be more commonplace. However, the key here is customer trust. This can be partially satisfied with AI-implemented security techniques to identify faces, vehicles and behaviours.
Only one in six customers polled were comfortable with the concept of in-home delivery, but discomfort is often high with new technologies until they are proven to be safe and non-invasive.
In-home delivery… the jury’s still out with consumers
Survey question to consumers: I would trust a delivery driver to have ‘controlled and monitored’ access to my home (using an AI-powered delivery service) to ensure my package was delivered on time if I was out.
Source: Retail Economics/CMS, 2019
In-home delivery… companies are more bullish than consumers
Survey question to retailers: I think consumers would trust an AI-driven, home delivery service whereby authorised delivery drivers would have controlled and monitored access to their homes in order to ensure packages were delivered on time.
Source: Retail Economics/CMS, 2019
The importance of retailers getting fulfilment right cannot be understated, and AI-related applications within supply chains and logistics will continue to cause disruption in the immediate future, particularly around distribution and inventory management.
Distribution is being revolutionised with autonomous vehicles and self-driving freights, such as Uber trucks operating in Arizona. 36% of retailers said they believed autonomous vehicles would have the greatest impact on the consumer retail industry in general.
Lastly, fully automated inventory management processes also provide advantages over systems that rely partially or solely on human diligence. Next generation inventory management systems are using AI for image recognition and real-time data sensing to more accurately manage stock levels as well as predict future demand.
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This insight article forms part of a thought leadership report entitled “Disruption 2.0 – Here we go again: AI in Consumer and Retail”. It was produced by Retail Economics in partnership with CMS and looks at consumers across all age groups in the UK and explores their attitudes regarding AI technologies they currently interact with, and the cutting-edge applications emerging. To contrast this, the research also includes a business survey of senior leaders from Consumer and Retail organisations, FMCG manufacturers and fashion and luxury brands, to gauge their sentiments towards disruptive technologies and the opportunities and challenges they currently face.
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