Importance of Internet of things on retail industry

The IoT buzz is roaring in the technology world. Internet of things has already made its place in the business market. My previous article on 7 ways to improve your business through IoT shed some light on the future role of IoT in the current markets. You don’t need to be a very keen observer to see it already implemented in retail industry. Innovation in IoT will bring some fascinating new concepts in future.
Before moving forward into the details of future significance of IoT in the retail industry, we will see the current scenario. To make it a case study, I will consider open source ERP Openbravo. It is a complete commerce solution from POS to financial management. 

IoT in production management
In Amberg, Germany, Siemens electronics manufacturing plant is 75% autonomous with around 1000 controllers. Every product item is being monitored by a separate code and can be uniquely observed during a manufacturing process.  In one of the General Electric battery plant, there are 10000+ sensors to find different environmental parameters. The information from these production houses is being transferred into the ERP cloud. 

IoT in warehouse management
Warehouse management works on a simple principle of counting of goods, the difference between goods and their update. 

But it is not that simple when it comes to real scenarios, where there are hundreds of products placed in a large area. But thanks to barcode and RFID devices it can monitor everything going out and coming in the warehouse. The data goes to master data and is available to procurement and sales teams.
IoT in sales management
I think everyone knows how IoT is used nowadays in point of sales. Every grocery store has a computer with a barcode scanner which manages cash and product in/out automatically. What if there are many stores in different locations. To overcome these complications cloud based solutions are used.
Significance in Retail industry
In next five years IoT will significantly change the retail industry. There will be monitoring at every stage from back of store to shelve of your store. The predictive models show that the worth of IoT in retail market will reach to 34 billion dollars. And its potential impact on retail industry will be around 4-6 Trillion dollars. Just after three years there will be estimated 24 Billion devices. Major technology companies have already started to invest heavily in it; some of them are Intel, Microsoft, and Amazon. Augmented reality, 3d scanning, 3d printing and artificial intelligence will change the way we shop today. Ecommerce as a form of retailing is becoming very important as well. In last quarter of 2016 ecommerce market in US was 96 Billion dollar. Its year on year growth is not going to stop. It comprises 8.1% of total retail market at the moment. Amazon dash button is simply the best example how we will buy in the future.


The US retail industry comprises of 10+ trillion dollars. The retail industry figure clearly shows the possible spending and significance of IoT if it is adopted in this market segment.

Tags: IoT   retail  

Contact Me


Contact: Abdul Haq

Address: Peshawar, Pakistan

Contact Me Report Abuse

Error 404 - page not found

Ohh... You have requested the page that is no longer there.

View By Countries

We use cookies on our site to improve your experience


We use cookies on our site to improve your experience.This site uses cookies to store information on your computer or device. This policy explains how we use cookies and may be amended, from time to time, without notice. To ensure that you are using this site with full and up-to-date information of how we use cookies please review this policy regularly as any amended policy will be updated on the site. By using this site you agree to the placement of cookies on your computer and or device in accordance with the terms of this policy. If you do not wish to accept cookies from this site please either disable cookies or refrain from using this site.

What are Cookies?

A cookie is a text-only string of information that a website transfers to the cookie file of the browser on your computer's hard disk or other devices so that the website can recognize you when you revisit and remember certain information about you. This can include which pages you have visited, choices you have made from menus, any specific information you have entered into forms and the time and date of your visit.

Types of Cookies

There are two main types of cookies:

Session cookies: these are temporary cookies that expire at the end of a browser session; that is, when you leave the site. Session cookies allow the website to recognize you as you navigate between pages during a single browser session and allow you to use the website most efficiently. For example, session cookies enable a website to remember that a user has placed items in an online shopping basket.

Persistent cookies: in contrast to session cookies, persistent cookies are stored on your equipment between browsing sessions until expiry or deletion. They therefore enable the website to "recognize" you on your return remember your preferences and tailor services to you.

In addition to session cookies and persistent cookies, there may be other cookies which are set by the website which you have chosen to visit, such as this website, in order to provide us or third parties with information.

Our use of Cookies

We currently use, and may use in the future, the following types of cookies on this website.

We use session cookies to:

help us maintain security and verify your details whilst you use the website as you navigate from page to page, which enables you to avoid having to re-enter your details each time you enter a new page.

We use persistent cookies to:

help us recognize you as a unique user when you return to our website so that you do not have to input your details multiple times as you move between our pages or services

remember how you have customised your use of this site, such as your preferred currency and time zone

collect and compile anonymous, aggregated information for statistical and evaluation purposes to help us understand how users use the website and help us improve the structure of our website.

Many cookies are designed to give you optimal usage of the web. For example, we use cookies to enable you to improve your user experience when using our website, e.g. a cookie which recognizes if your browser supports specific technology features. This helps, for example, in enabling web pages to be loaded more quickly when you request the download of a large file.

In addition to cookies which send information to us, we also use cookies which collect information and send it to third parties. An example of this is Google Analytics. Please check the relevant third party website for more information about their use of cookies. Where this site allows such cookies to be set or you access other websites from this site using the links provided, the operators of these websites will use cookies in accordance with their own cookies policy, which may differ from ours.

As with first party cookies, you are able to block third party cookies through your browser settings.

Some of our cookies may collect and store your personal information, such as your name or email address. We are committed to respecting and protecting your privacy and will ensure that all personal information collected by us is kept and treated in accordance with our privacy policy.

Refusing Cookies on this Site

Most browsers are initially set to accept cookies. However, you have the ability to disable cookies if you wish, generally through changing your internet software browsing settings. It may also be possible to configure your browser settings to enable acceptance of specific cookies or to notify you each time a new cookie is about to be stored on your computer or device enabling you to decide whether to accept or reject the cookie. To manage your use of cookies there are various resources available to you, for example the "Help" section on your browser may assist you. You can also disable or delete the stored data used by technology similar to cookies, such as Local Shared Objects or Flash cookies, by managing your browser's "add-on settings" or visiting the website of its manufacturer. As our cookies allow you to access some of our website's essential features we recommend that you leave cookies enabled, otherwise, if cookies are disabled, it may mean that you experience reduced functionality or will be prevented from using this site altogether.