Sense 2.0

AI Camera tech service for Retail Store Management.

Research

Service design

Tangible design

UX / UI

Institutions : National institute of design x Avairsense [oureye.ai ]

Duration : 4months

Overview

In the dynamic landscape of the Indian retail sector, there exists a notable market gap that stems from the limitations of existing safety and security camera systems. The current products, while serving their primary function, have inadvertently unveiled an unmet need within the retail domain, particularly in the largely unorganized and semi-organized sectors. Recognizing the evolving nature of retail industries and their rapid digitization, an opportunity arises to introduce a transformative AI-based camera technology tailored explicitly for Retail management.

About the company

The Y Combinator winner for the year 2022 is working on developing an AI smart camera for homes.

"As part of our expansion and scalability plans, we are now planning to develop an AI camera for the retail sector, which is a rapidly growing market in India with a large demand for smart camera technology."

Project Brief

Sense For Retail [ Sense 2.0 ]

The aim of this project is to design, develop, and implement an Assistive AI-Based Smart Camera Technology for Retail Stores in India, with a primary focus on enhancing Frontend Retail Management. The goal is to improve safety and security, optimize customer and staff management, and streamline store operations and maintenance through innovative AI-driven solutions, ultimately contributing to an elevated and efficient retail experience.

Sense 2.0

Simply scalable Security & Management

Sense 2 Camera
A Smart Retail management Assistant.

A Dual lens smart camera with 1080p with 16 x optical zoom and adaptive IR Night vision and can operate wireless.

Features

Dual Camera

Wide lens - short focal length 8mm to 35 mm.

Ideal for overview shots - 2MP to 8MP

zoom lens - longer focal length < 50 mm

Enabling precise magnification and detailed imaging of distant subjects. - 8MP or higher

Real time talk back

Two-way communication between the camera system and users

Both Wired & Wireless

The flexibility to choose the most suitable networking method, based on their specific requirements and environment. [ Larger space and small spaces]

Storage

SD card, local storage for minimum 7 day data storage and cloud storage with long storage limits.

Night vision

Utilizing infrared (IR) illumination and specialized image processing algorithms

AvairSense Interface
with seamless camera integration : A data driven security

A responsive web platform enables seamless monitoring across various devices while supporting multiuser management.

Features

Customer data

Profile Identification
location tracking,
Activity tracking,
Object recognition and
CRM & POS integration.

Staff data

Profile Identification
location tracking,
Activity tracking,
Object recognition.
Staff interaction.

Store operation and

maintenance data

Multistore management
Zone definition,
Activity recognition,
staff & customer identification,
Object recognition.
Timestamping

Safety and Surveillance

Remote Monitoring,
Profile presence,
Location/Zone Identification,
Activity Identification,
Gesture recognition.
Instant multimodal notification.

Process & Project objective

Identify Retail target segment.
Define opportunity area.
Conduct primary and secondary
research.
Identify pain points.

Insights Gathering.
Ideating possible solutions.
Defining service.
Product based services.
Software as a service [ SaaS].

Retail camera Form design.
Retail Application / Dashboard Design.

My scope of work

1 Identify Retail target segment.

Conduct a comprehensive analysis to categorize the specific retail establishments in India that will benefit most from the AI-Based Smart Camera Technology.

2Define opportunity Area.

Clearly outline the market gaps and unmet needs within the identified retail target segment that the Assistive AI-Based Smart Camera Technology aims to address, ensuring a strategic alignment with market demands.

3Conduct primary and Secondary research .

Undertake in-depth primary research, involving direct interactions with stakeholders, and secondary research to gather insights into the current state of retail management in India, technological trends, and competitor landscapes.

4 Identifying Pain Points

Pinpoint and analyze the specific challenges and pain points faced by retail establishments in the target segment, ranging from security concerns to operational inefficiencies, guiding the development of AI solutions.

5 Insights

Systematically collect and distill insights obtained from research activities, ensuring a comprehensive understanding of customer behaviors, operational dynamics, and emerging trends in the Indian retail sector.

6 Ideation

Facilitate brainstorming sessions to generate innovative ideas and potential solutions that directly address the identified pain points.

7 Defining service:

Product-Based Services

Clearly outline the features, specifications, and functionalities of the AI-Based Smart Camera Technology, ensuring a product that aligns with the needs of the retail target segment, enhancing safety, and operational efficiency.

Software as a Service (SaaS)

Articulate the software-based elements of the solution, including cloud-based storage, analytics dashboards, and user interfaces, ensuring seamless integration and user-friendly interactions.

8 Retail Camera Form Design :

Design the physical form of the retail cameras, considering aesthetics, practicality, and functionality, ensuring they seamlessly integrate into various retail environments while maintaining a modern and unobtrusive appearance.

9Retail Application /
Dashboard Design:

Develop intuitive and user-friendly designs for the retail application and dashboard interfaces, considering the needs of store owners, managers, and staff, ensuring efficient monitoring, analytics, and control functionalities.

Identified Retail Target Segment

Market Overview

Retail market value
Indian market in
year 2025F

US$ 1000 Billion

Consumer spending
in 2021 - 1.92 B$

Consumer spending
in 2022 - 2.05 B$

Increase in
consumer spending
in 2022.

approx. 6.45%

In global retail destination Rank.

India - 5th Global destination

India’s Direct selling
Industries By
FY 22.

US$ 2.51 Billion

Unorganized Retail :

Currently, the Indian retail market continues to be dominated by the unorganized retail (traditional kirana stores)

Accounting for about 88% of the total retail market.

Organized Retail :

On the other hand, organized retail like Big Bazar, D’Mart, Malls, Showrooms etc,

Contributing only about 9% of the total retail market.

E- Commerce :

E-Tail like Flipkart, Amazon, Big Basket etc,

Accounts for only 3% of the total retail market in India.

The Retail transition

Organized > Semi organized <Unorganized

Transition from unorganized to organized retail is indeed a significant trend in the Indian retail sector. Creating a bracket semi organized retailing

The Indian retail sector is highly fragmented with 90% of its business being run by the unorganized retailers like the traditional family run stores and corner stores.

The organized retail however is at a very nascent stage

FMCG

FY21 FMCG market in India. The FMCG sector is one of the fastest-growing sectors in India, with a growing rate of 8.9% in 2022.

US$ 103.70 Billion

Indian online grocery market in 2022 is US$ 6.8 billion

The dominance of grocery retail
contributed as much as 65 percent to India’s retail.

FMCG, apparel & footwear, and consumer electronics are the largest retail segments, constituting 65%, 10% and 9% respectively of the retail market.

Market players competitive study

https://docs.google.com/spreadsheets/d/1_-njK4_cDis0kh1aJhHTonQOak66bD7v4DHPT-GQ3Bw/edit#gid=0

The majority of market players are not based in India, and all services are focused on large-scale organized retail businesses.

Many competitors with camera tech are involved in backend management rather than front-end management.

The majority of front-end management in Indian retail relies on traditional management methods or exclusively uses SaaS products.

So in India, there is indeed a good market scope to target semi-organized retail as a front-end management assistance and safety and security assistance provider with AI camera technology.

Defining Retail service scope

Primary and secondary research .

Retail - Service blueprint - Supermarket store

Challenges in retail business

Space Utilization and Layout Planning.

Shelf management -
Dealing a large volume of products. With ever growing product segments.

Quality Control Measures for Ensured Excellence

Cycle counting,
Expiry management,
Batch management
FIFO And FEFO [first in first out] & [First expires First out]
Identify product trends with Customers.

Order Fulfillment with Precision and Speed

Seamless order processing. WMS Integrated to logistic provider for seamless order processing.

Data-Driven Demand Forecasting for Success

FMGC - Fast-paced environment
Consumer demand fluctuates rapidly.
Accurate forecasting
Anticipate future demand, and plan production and inventory level accordingly redaction ,

Dynamic reporting capabilities

Generating comprehensive reports highlighting key performance indicators (KPIs) and trends.

Include data on sales orders, stock levels, top-performing channels, categories, products, etc.

Crowd and queue managment

Effective crowd and queue management is vital for improving customer satisfaction, enhancing operational efficiency, ensuring safety.

https://www.digitalxplore.org/up_proc/pdf/308-15014804261-6.pdf

Retail - Customer journey mapping - How the retail journey goes

Insights breakdown - Customer > Staff > Store

Insights < Data collection process

Primary Research - Interview

Interview with Sakhir, Shop Manager
Manager's Background and Shop Overview

Q: Can you provide some background information about yourself and the shop you manage?
A: I'm Sakhir, managing the shop, which is a family business where I've been for 12 years. The shop operates from 7:00 AM to 10:30 PM without breaks, with a footfall of around 300 customers daily.

Operational Challenges and Customer Dynamics

Q: What are the main challenges you face in running the shop, and how do you manage them?
A: Our main challenge lies in dealing with government checks and regulations like GST. Evenings are busy as people return from work, so keeping an eye on vegetable areas without assistants is tough. Flexibility with assistants is crucial due to hiring and training constraints.

Staffing and Roles

Q: How do you manage staffing and assign roles within the shop?
A: We have four workers, each with specific roles: one for water delivery, one for vegetable weighing, one for billing/cash handling, and one for customer assistance. Flexibility is necessary due to the hectic nature of business and family commitments.

Procurement and Vendor Relations

Q: Could you describe your procurement process and relations with vendors?
A: Procurement isn't a big challenge as we have dedicated vendors for everything, and we maintain a godown for storage. Vendor reliability is crucial for smooth operations.

Security Measures and Safety Concerns

Q: What security measures do you have in place, and are safety concerns a significant issue?
A: We have CCTV cameras, and the area benefits from watchtower security and neighboring apartment security. Safety isn't a major concern due to these measures.

Adaptability and Business Flexibility

Q: How do you adapt to changes and customer needs within the business?
A: Initially, running the business was difficult, but we learned to be flexible with customer demands and needs over time. Adaptability is key to sustaining and growing the business.

Business Sustainability and Investment Perspectives

Q: What are your thoughts on business sustainability and future investments?
A: We aim to maintain profitability without risking investments. The shop's current scale is acceptable, and we don't plan to invest more at this time.
Interview with Vishnu owner’s son, Store Manager
Owner's Background and Shop Management

Q: Could you provide some background information about yourself and your family's involvement in the shop?
A: I am Vishnu, the owner's son, and our family has been in the grocery business for 36 years. The current shop has been in this location for 23 years. We own the store outright.

Operational Details and Staffing

Q: What are the typical operating hours of your shop, and who assists in its management?
A: The shop operates from 8:00 AM to 10:30 PM without breaks. Footfall ranges from 300 to 400 customers daily. Mani, our shop assistant, helps manage the store and handles deliveries when needed.

Security Concerns and Measures

Q: What are some of the main concerns you face regarding security in the shop, and how do you address them?
A: Shoplifting is a significant concern, especially among school kids, the elderly, and intoxicated individuals. To deter theft, we installed CCTV cameras, serving both as a deterrent and for legal evidence.

Customer Behavior and Product Arrangement

Q: How do you observe customer behavior in your shop, and how do you arrange your products accordingly?
A: We observe customers' eye movements and behavior patterns. Products are arranged strategically, with fast-moving items placed at the front and smaller products kept closer to the staff to prevent theft.

Impact of External Factors and Customer Service

Q: How have external factors such as online delivery services impacted your business, and how do you adapt to changing customer behaviors?
A: Services like Zepto, Dunzo, and Instamart have reduced our business by 30-40% post-COVID. We adapt to various customer personas and tailor our service accordingly.

Procurement Strategies and Home Delivery

Q: Could you elaborate on your procurement strategies and your approach to home delivery services?
A: We procure vegetables daily, and for immediate requirements, we use services like Big Basket. Home delivery, though sometimes irritating, is provided for small items to retain our loyal customer base.

Succession Planning and Business Continuity

Q: How do you plan for business continuity during vacations or absences, and what role does Mani play in this regard?
A: Mani, staying with my family, manages the shop during our absences. However, we avoid extended breaks to ensure continuity.

Customer Preferences and Product Selection

Q: What are some of the main products customers prefer to purchase from your shop, and how do you ensure their availability?
A: Customers mainly purchase edible items and snacks, especially school children. We ensure their availability based on customer demand.
Interview with Ravi , Restaurant Manager .
Q: Could you provide some background information about yourself and the restaurant you manage?
A: I'm Ravi, managing a medium-end, unorganized restaurant. I've been in the restaurant industry for over 10 years. Our restaurant caters to a diverse clientele seeking quality meals at affordable prices.

Operational Challenges and Customer Dynamics

Q: What are the main challenges you face in running the restaurant, and how do you manage them?
A: Operational challenges include managing inventory, coordinating staff, and maintaining consistency in food quality. Understanding customer preferences and adapting to their needs is crucial for our success.

Staffing and Roles

Q: How do you manage staffing and assign roles within the restaurant?
A: We have a team of kitchen staff, servers, and cleaning crew. Each member plays a vital role in ensuring smooth operations. Cross-training is essential to handle busy periods and staff shortages effectively.

Menu Selection and Specialties

Q: How do you decide on the menu selection, and what are some of the restaurant's specialties?
A: Our menu is curated based on popular dishes and customer feedback. We specialize in a variety of cuisines, including local favorites and international flavors, to cater to diverse tastes.

Procurement and Supplier Relations

Q: Could you describe your procurement process and relations with suppliers?
A: Procuring fresh ingredients is essential for maintaining food quality. We have established relationships with local vendors and farmers to ensure timely delivery of quality produce at competitive prices.

Service Quality and Customer Satisfaction

Q: How do you ensure high service quality and customer satisfaction levels?
A: Training our staff in hospitality and service etiquette is paramount. We prioritize prompt service, cleanliness, and addressing customer concerns promptly to ensure a positive dining experience.

Adaptability and Business Flexibility

Q: How do you adapt to changes in the restaurant industry and evolving customer preferences?
A: We stay updated on industry trends, customer feedback, and competitor offerings. Flexibility in menu adjustments and promotional strategies helps us remain competitive and relevant.

Business Sustainability and Investment Perspectives

Q: What are your thoughts on business sustainability and future investments for the restaurant?
A: Sustainability involves maintaining profitability while balancing operational costs and customer expectations. Future investments may include upgrading kitchen equipment, enhancing ambiance, and exploring new marketing channels.
Interview with Salman , Kirana Store owner
Operational Hours and Shop Management

Q: What are your typical operational hours, and how do you manage your shop?
A: My shop operates from 8:00 AM to 2:00 PM, with a break until 5:30 PM, closing at 10:30 PM. We strategically decided on these timings after understanding customer patterns. During the afternoon break, nobody typically visits the store.

Multilingual Skills and Chotu’s Assistance

Q: What languages do you speak, and what types of assistance do you offer to customers?
A: I am fluent in Kannada, Tamil, Telugu, English, Hindi, and can manage Malayalam. He offer various forms of assistance, including packaging, arranging items, cleaning, home delivery, and organizing during opening and closing hours.

Procurement Model and Supplier Relations

Q: How do you procure goods for your store, and what is your relationship like with suppliers?
A: We procure goods through online platforms like Flipkart, Ninja Kart, and Udaan, and also visit the market twice a week for vegetables. Additionally, we maintain relationships with salesmen (dealers) for certain products.

Customer Behavior and Trust Building

Q: How do you handle different types of customer behaviors, and how have you built trust within the community?
A: We are aware of various customer attitudes, including rudeness, softness, professionalism, and inebriation, and we adapt our approach accordingly. We've built trust by being customer-friendly and reliable over time.

Business Operations and Customer Base

Q: How do you manage your shop's operations, and what is your customer base like?
A: Operational tasks include managing lights, refrigeration, and online bill payments. We have a core customer group, but the demographics are constantly changing. About 50 out of fewer than 300 daily footfall customers make repeated visits.

Security Measures and Future Plans

Q: What security measures do you currently have in place, and do you have any plans for future improvements?
A: We handle security discreetly, but I plan to install CCTV cameras soon. While security hasn't been a major issue, proactive measures are necessary to maintain safety and security.