Five ways 5G is changing retail

5G is a hot topic - like Web 3.0 and the Metaverse. But like other technologies, 5G is not a specific solution, but an enabler. What matters most is what you use it for.

So what can retailers do with 5G? The answers are almost limitless, but all in all, 5G will enable merchants to perform complex digital tasks faster and at a larger scale.

"5G is really three things -- speed, latency, and massive connectivity," said Michael Colaneri, who has worked at AT&T for 30 years and now leads the telecom vertical retail business. "Speed ​​is how fast the connection is; What kind of friction you have at speed; and massive connectivity is about being able to distribute it to more people more efficiently.”

According to Ericsson, 5G is still in its infancy at the consumer and enterprise level, but is expected to grow rapidly and become the dominant mobile access technology by 2027, when penetration in North America will reach 90%.

This ultra-fast connectivity -- when combined with other technologies such as the Internet of Things, computer vision or cloud computing -- will enable everything from virtual-enhanced personalized in-store shopping, to real-time on-shelf item detection, to supply chain tracking . Not to mention that it will be an important part of the Metaverse.

Lisa Collins, Head of Enterprise Partnerships and Product Strategy at Verizon 5G Labs, said: "5G will dramatically change the way we shop, the way businesses operate, and the way retailers gain real-time insights from data in a way that's exciting. Incredible operational efficiency drives business decisions".

What exactly is 5G? ​

Simply put, 5G is the next generation of public mobile networks. Before it arrives:

• 1G - the first mobile phone
• 2G - SMS came along
• 3G - Bringing the Internet to Our Handheld Devices
• 4G - The era of smartphones, devices that can perform multiple functions at the same time, are now dominating our lives.

Then in 2019, 5G hit the market (in case you were wondering, 6G is expected to arrive around 2030). Steve Gurney, global head of department store retail at Amazon Web Services (AWS), said: “5G includes new capabilities not available in previous generations of mobile networks. Connecting 100x more devices than 4G/LTE - and virtually segmenting networks to provide different categories of users [such as retail stores] with their own customized network. These new capabilities make 5G more attractive to businesses than previous mobile technologies .5G upgrade is similar to home broadband moving from copper to fiber.”

So what does all this mean for retail?

"Today, our retail customers have a deep understanding of 5G, but also a lot of misunderstandings," Colaneri said. "My customers often talk to me about the urgency of migrating to 5G because they think it will be a huge cost saving. Maybe Okay. I can't even tell you if that's the case unless you know what to do with it."

Here's the problem - narrowing down the huge potential of 5G into a set of concrete business investments can be challenging, especially as inflationary pressures tighten retail budgets.

One common denominator is digitization. Here are five places where 5G experiences/solutions are being tested or already deployed in retail stores.

1. Real-time fraud prevention, customer support, and more

When the speed of 5G is combined with mobile edge computing (where data processing and storage occurs at the "edge" of data collection, such as retail stores), real-time data analysis and response becomes a reality. This is often closely related to cloud computing (data processing happens in the cloud, not on-site servers).

"5G and mobile edge computing can transform the business experience," said Verizon's Collins. "Previously, you needed to make a room in a store to deploy servers, which was expensive, difficult to maintain, and prone to theft. Think about space constraints. Right. Right now, we're working with companies like Google, Microsoft, and Amazon that manage data processing in the cloud to power whatever retailers want to do."

In addition, AWS' Gurney explained: "5G provides more bandwidth, especially upload bandwidth, which means retailers can more easily and quickly upload video from the store to the cloud. 5G also reduces the cost of end-device and cloud This allows retailers to use advanced services such as artificial intelligence and machine learning to analyze video content and respond in real time – think in-store customer traffic, customer profile analysis, unusual customers, intelligent staff scheduling, threat detection and Leak detection, etc."

2. Fast and smooth checkout

The higher bandwidth/lower latency combination will also lead to an enhanced smoother checkout experience. Verizon's 5G lab has been testing this with computer vision partner AiFi. AiFi's solution is similar to Amazon's Just Walk Out technology, which uses cameras and artificial intelligence to track what consumers buy in stores, providing a true "grab and go" experience.

Verizon and AiFi have deployed the solution at many recent events, including concerts, the Indy 500, Brickyard NASCAR games, the Express Shop at Hard Rock Stadium in Miami, and a partnership with food and beverage provider Levy at Ford Field in Detroit. “We compared same-day sales from a store to AiFi store sales, and on the first day alone, we doubled our revenue, cut transaction times in half, and doubled the number of items purchased,” Collins said. Fan."

3. Enhanced Personalized In-Store Shopping Experience

AWS' Gurney noted that more bandwidth and the ability to support more devices "opens opportunities for innovative solutions that anticipate customer needs and use customized mobile applications such as in-store navigation and consumer-based shopping. historical promotional offers) to create hyperlocal experiences, or provide AR experiences that overlay data in real-time on customers’ mobile devices.”

With 5G equipment expected to reach saturation in the U.S. around 2025, "things will start to get really interesting," Colaneri said. In fact, the possibilities at this point seem endless, with AT&T highlighting applications such as "magic mirrors" that would be able to identify the item someone is trying on via RFID tags and display them in the fitting room Related ads and related accessories. In fact, COS, which is owned by H&M Group, recently announced the launch of smart mirrors in its U.S. stores — the future is here.

4. In-Store Inventory Management

When combined with technologies such as IoT-embedded sensors, 5G will enable retailers to view store inventory in real-time to replenish shelves when items are running low.

"Verizon has been using AWS Smart Shelf technology to test missing items on the shelf, and we've found that just by sending back real-time data, we've been able to drive revenue growth of 12% to 13%," Collins said. "In addition, we've been able to understand which areas have the most foot traffic. , to deploy or optimize staffing”.

5. Supply chain optimization

According to Colaneri, 5G has become commonplace in two areas of retail - distribution and supply chain.

He explained: “The retail distribution center is a large technology platform where you can bring goods in by truck, rail and boat, and then use a forklift to bring the goods into the warehouse and distribute it. In a 4G world, the signal is very unstable, Because retail distribution centers are often in suburban areas. If you want continuous, real-time data on the location of items, the stability of the signal becomes very valuable, especially when items are temperature sensitive.”

Colaneri added: “With 5G and the Internet of Things, we can tag items and then track their temperature, location, availability, etc. across the area, and deliver them into stores. We can also keep an eye on the supply chain, which becomes very Important, especially given the many challenges the supply chain has faced in recent years.”

Gurney said AWS is providing reliable network service at Amazon fulfillment centers through its dedicated 5G offering, which allows Amazon to move guided trailers more efficiently, safely and accurately across these expansive areas.

"From stores to stadiums to warehouses, one thing is clear - none of this can exist until 5G and mobile edge computing," Collins said. "5G and mobile edge computing will not only enhance, but change the A generation of experiences, and this is just the beginning."