This document discusses how computer vision technologies are coming to retail stores. It outlines several trends driving this, including new data sources and the goal of frictionless commerce. It then provides examples of use cases that computer vision can enable, such as Amazon Go's checkout-free store and Alibaba's facial recognition payments. Overall computer vision can improve operational efficiencies, customer experiences, and reduce fraud and shrinkage. Foundational requirements for these use cases include an enterprise data platform to ingest and process streaming video data.

1. COMPUTER VISION:
COMING TO A STORE
NEAR YOU
Brent Biddulph,
Managing Director,
Retail & Consumer Goods
Cloudera

2. © 2019 Cloudera, Inc. All rights reserved. 2
TOPICS TO BE
COVERED
• Retail Trends
• Business Drivers
• Use Cases
• Potential Impact

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86%

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Mobile
Apps
ESLs,
Robots
Autonomous
Vehicles
Magic
Mirrors+
Shelf, Bin,
& Rack
Sensors
Surveillance
CamerasCompetitive
PricingSatellite
Images
Logistics &
Asset
TelematicsIn Home
Devices Frictionless
Checkout
RFID
Streams
SINGLE VIEW
OF CUSTOMER
FRICTIONLESS
COMMERCE
UBIQUITOUS
FULFILLMENT
RELEVANT
INTERACTIONS
OPERATIONAL
EFFICIENCY
Streaming Capabilities Enable New Insights, Right-Time Response
NEW DATA SOURCES EXTEND RETAIL INTELLIGENCE

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BUSINESS IMPROVEMENT
OPPORTUNITIES FOR
COMPUTER VISION IN-STORE
• Enabling Frictionless Commerce
• Improving Operational Efficiencies
• Improving Customer Experiences
• Reducing Fraud & Shrink
$410B
“AI / IOT ECONOMIC VALUE-
ADD IN RETAIL BY 2025, WITH
SOME OF THE MOST
VALUABLE USE CASES
DRIVEN BY STREAMING
VIDEO ANALYTICS.”
(MCKINSEY)
REAL-TIME PROCESSING –IMPROVED ACCURACY – DEEPER INSIGHTS

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Amazon Go Store
• Computer Vision (100s
of cameras on shelves, ceiling)
• Sensor Fusion (cameras,
shelf scales)
• Deep Learning (advanced
pattern recognition, 100s of
algorithm’s)
ENABLING
FRICTIONLESS
COMMERCE

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ENABLING
FRICTIONLESS
COMMERCE
Alibaba’s HEMA store
• Robots, apps, facial
recognition and
overhead conveyor
belts for fulfillment
delivery
• Using facial recognition
customers can pay
using their face - no QR
code nor credit card
swipe required

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IMPROVING
OPERATIONAL
EFFICIENCIES
Improve Footfall
Precision, Insights
• Improve in-store traffic
(footfall) accuracy
• Capture exterior ‘walk-
by’ (e.g. mall) traffic
• Capture anonymous
demographics (gender,
age, families)
• Enhance conversion
and customer service
measurement, actions
Insert foot traffic graphic

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OPPORTUNITY: IMPROVE OUT OF STOCK RESPONSE
24%

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IMPROVING
OPERATIONAL
EFFICIENCIES
Out-of-Stock &
Merchandising
Execution
• Out-of-Stock
Notifications
• Price and Promotion
Compliance
• Schematic & Display
Compliance
Photo Source: Retail Technology Corp.

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OPPORTUNITY: IMPROVE MERCHANDISING EXECUTION INSIGHTS
$174B

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Advertising &
Promotional
Execution:
• Proximity Marketing
• Audience and Shelf
Conversion Insights
• Day-Part Promotional
Execution
IMPROVING
OPERATIONAL
EFFICIENCIES

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IMPROVING
CUSTOMER
EXPERIENCES
In-Store Customer
Engagement:
• Identify VIPs, ensure
high-touch experience
(aka ‘clientel-ing’)
• Understand, respond
(anonymously) with
proactive customer
service opportunities

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OPPORTUNITY: REDUCING MERCHANDISE RETURNS
…IN MERCHANDISE IS RETURNED TO
RETAILERS EACH YEAR. AS MUCH AS 40%
OF ONLINE CLOTHING PURCHASES ARE
RETURNED.
SOURCE: NRF
$260B

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“Help Me, Help You”
• Simplifying the dressing
room experience
• Assist to complete the
‘look’ via cross-sell of
matching shoes,
accessories
• Reduce likelihood of
returns
IMPROVING
CUSTOMER
EXPERIENCES

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OPPORTUNITY: REDUCING FRAUD & SHRINK
“IN RETAIL INDUSTRY SHRINK,
(LOSS OF INVENTORY RELATED
TO THEFT, SHOPLIFTING, ERROR, FRAUD)”
…DIRECTLY IMPACTING THE
BOTTOM LINE.
SOURCE: NRF
$46.8B

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Loss Prevention in
Self Checkout
• Combining streaming
video with live POS
data (sensor fusion) to
determine if all items
are properly scanned…
• …send alerts to the
central cashier where
exceptions occur –
ultimately reducing
fraud / shrink.
REDUCING
FRAUD AND
SHRINK

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The use cases for CV are
promising…driving
meaningful business
impact, even creating new
revenue models
Frictionless Checkout
Loss Prevention
Customer Insights Customer Engagement
Dynamic Merchandising
Source: Ahold/Delhaize
Source: Caper
Source: Orbital Insight
Source: Aura visionSource: Trigo-vision
Neighborhood Insights Traffic & Conversion Autonomous Delivery

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Data Sources
Enterprise Data Platform…from the Edge to AI
Data Ingest
Data Process,
Refine, Prep
Data
Discovery
Advanced
Analytics (ML/AI)
Enterprise Security, Governance, Controls (On Premise, Hybrid, Cloud)
Applications
Connected
Consumers
COMPUTER VISION: FOUNDATIONAL REQUIREMENTS
Third –party

20. THANK YOU…

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CLOUDERADATAFLOWPLATFORM
Edge
Management
Edge data collection,
Routing and monitoring
MiNiFi
Edge Flow Manager
NiFi Registry
Flow
Management
Enterprise data ingestion,
transformation and
enrichment
Apache NiFi
NiFi Registry
Enterprise Services
Provisioning, Management
and Monitoring
Unified Security
Edge-to-Enterprise Governance
Single Sign-On
Streams
Messaging
Enterprise-grade, durable
message delivery platform
Apache Kafka
Schema Registry
Streams Messaging Manager
Streams Replication Manager
Stream
Processing
Apache Flink
Spark Streaming
Kafka Streams
Real-time stream processing
at IoT scale