VIDEO-BASED SOLUTIONS FOR SMART RETAIL · VIDEO-BASED SOLUTIONS FOR SMART RETAIL Both Stores & Shoppers Gain D-Link’s smart cameras and video management software help retailers

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

2VIDEO-BASED SOLUTIONS FOR SMART RETAIL | pg.

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


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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$


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)


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


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


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)


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


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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19VIDEO-BASED SOLUTIONS FOR SMART RETAIL | pg.1 2 3 4 65

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

D-Link and the D-Link logo are trademarks or registered trademarks of D-Link Corporation or its subsidiaries in the United States and other countries. All Rights Reserved. All other company or product names mentioned herein are trademarks or registered trademarks of their respective companies. Copyright © 2018 D-Link Corporation/D-Link Systems, Inc. All Rights Reserved.

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VIDEO-BASED SOLUTIONS FOR SMART RETAIL · VIDEO-BASED SOLUTIONS FOR SMART RETAIL Both Stores & Shoppers Gain D-Link’s smart cameras and video management software help retailers