A recent Gartner reports states that image recognition can increase productivity, improve shelf insights, and help drive sales. We couldn’t have said it better.
On February 21, 2017, Gartner Research Director, Ed Porter, and Principal Research Analyst, Tuong Huy Nguyen, published their report entitled “Image Recognition Can Help Consumer Goods Manufacturers Win at the Retail Shelf.” In the nine-page report, Porter and Nguyen discuss current uses of Image Recognition technologies for consumer goods manufacturers and retailers, as well as potential benefits and interests.
Numerous industry analysts have estimated that lost sales to retailers globally could exceed $1.75 Trillion. Inventory distortion, the combined cost of overstocks and out-of-stocks, accounts for $1.1 Trillion. Additionally, internal process failure and personal issues account for about 50% of inventory distortion. In terms of revenues, the total cost of internal inefficiencies that lead to overstocks and out-of-stocks is equivalent to increasing same store sales by 7.3%.
Gartner estimates that within the next 30 months 20% of consumer goods manufactures will be routinely using image recognition to provide critical metrics such as out-of-stock, share-of-shelf, planogram and pricing compliance and more. Additionally, insights from image recognition data can be used to improve trade promotions and other selling activities.
The report provides detailed explanations of key aspects of image recognition such as deep recognition and neural networks, and the reasons these technologies are important when evaluating and selecting an image recognition solution. As is typical of the in-depth research we have come to expect from Gartner, this report provides excellent performance and accuracy data one can expect to see, as well as numerous recommendations for further research.
To access the entire report, visit Gartner’s website, or use the link above.
(1) Gartner, “Image Recognition Can Help Consumer Goods Manufacturers Win at the Retail Shelf” Ed Porter, Tuong Huy Nguyen, 21 Feb 2017