Voice commerce is set to be a game changer for tech retailers

Driving online business through Artificial Intelligence

The benefits of AI to retail are far reaching. At this stage, it is acknowledged that it will impact how CE retailers will benefit retail across four areas.

Firstly, with the advent of voice shopping, virtual assistants and chatbots will fundamentally change the way retailers communicate with customers. 

Secondly, new experiences can be enabled through AI: face recognition to identify customers and inform store associates about their preferences or turning the mobile into a tool for customers to gain more information about products and pricing through tools like Google Lens. 

Thirdly, sophisticated pricing applications are becoming available to more traditional retailers that enable them to rapidly respond to changes in competitors’ pricing and consumer demand.

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Finally, AI apps are having an impact on inventory management helping retailers identify gaps, forecast inventory and place orders, but also help reduce excess stock buildup, making retail more efficient.

So, the question is how will voice commerce change retailing?

Let’s first take a closer look at the value share of 2018 (Jan-Sept 2018) in Europe*. According to GfK, the overall value share of online sales has passed for the first time ever, the 25%. The TCG category with highest online share is the Information Technology (38.3%), followed by Photo (32.5%) and Small Domestic Appliances (27.6%). The “lowest” online share possesses the Major Domestic Appliance category but with a remarkable 20.8%. 

Considering the rising importance of online sales, voice commerce is set to be a game changer for CE retailers. The launch of Amazon’s Echo and Dot and Google’s Home and Home hub clearly illustrate that voice and home will be the next battleground for retail. Voice commerce is applicable across the consumer journey from providing inspiration and helping selection in partnerships right through to replenishment and discovery through easy account linking and intelligent recommendations.

The big concern for electrical retailers will be how voice commerce select the retailer or will Amazon, Google and others bypass traditional retailers?

It the general opinion, that stores will always have a role in providing the experience, educating and inspiring customers as well as providing convenience. Shoppers often want to experience, they want to touch the product before they purchase. This will also be valid in the future. However, in an increasing omnichannel retail world, voice commerce will have a growing role to play, particularly in providing convenience. In the long term these two retail channels will work together and tech retailers that create frictionless experiences across platforms, devices and channels will be the winners.

Saturn store, Ingolstadt/Germany

At the upcoming TCG Summit, the leading international conference in CE retail, taking place from April 2-4, Geneva, Dan Ramsay, Senior Executive, Google Inc., will discuss with the sector′s top executives how AI will effect CE retail and talk about the last insights.

From left to right: Nilesh Khalkho (CEO, Sharaf UAE), Steve Shakepeare (Sales Director EMEA, Intel), Karl Trautmann (Board Member ElectronicPartner), Franjo Bobinac (CEO Gorenje) Declan Curry (conference host).

*Europe 18: Austria, Belgium, Switzerland, Czech Republic, Germany, Denmark, Spain, Finland, France, Great Britain, Hungary, Italy, The Netherlands, Poland, Portugal, Russia, Slovakia, Ukraine