Video Analytics Case Studies
Three examples of companies within the convenience store space in China that use video analytics in their video cameras include Jian24, Tao Cafe, and JD.
- Use of Analytics: Jian24 uses video analytics to register its customers’ facial data by scanning them at the entrance. In addition, in-store cameras make a note of the items picked up by customers and the payment is processed with another smartphone scan at the exit.
- Benefit: The use of video analytics enabled Jian24 to open its first staffless shop in Shanghai, China.
- Downsides/Issues: Jian24’s store in Shanghai closed in 2018 for repair works due to technical kinks.
2. Tao Cafe
- Use of Analytics: Tao Cafe, a shop owned by Alibaba, uses cameras with video analytics for tracking customers using facial recognition. In addition, all products in the cafe are digitized and monitored including their placement on the shelf and purchase by customers using the cameras.
- Benefit: The use of video analytics enabled Tao Cafe to minimize the number of staffs including cashiers and thereby reducing the resulting queues.
- Downsides/Issues: The technology is limited only to Chinese citizens and the cost of building such store is huge compared to traditional convenience stores.
- Use of Analytics: In JD’s unmanned convenience store, video analytics using the cameras placed throughout the store recognizes customers’ movement and generates heat maps of their activities. In addition, its advanced computer vision technology tracks a range of shopping behaviors.
- Benefit: With the use of video analytics, JD is able to monitor product selection, traffic flow and customer preferences which helps in optimizing inventory, product displays and all other facets of store management.
- Downsides/Issues: JD’s unmanned convenience stores still require humans for cleaning and stocking products. In addition, many customers still require human touch provided by regular convenience stores during payments.
YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY:
We started our research by looking for information on video analytics to gain insights on how it is used for motion detection and facial recognition. In addition, we also checked the definition of convenience stores to ensure appropriate examples were provided.
Subsequently, we started searching for examples of convenience stores in China making use of video analytics for applications such as motion detection and facial recognition on various media sources including but not limited to Asia Nikkie, DIPOL Weekly Review, Walk the Chat, JD Corporate Blog, and DigiDay.
From these sources, we were able to identify three examples of convenience store companies making use of video analytics in China namely, Jian24, Tao Cafe, and JD. In addition, we were able to provide the requested information on 'how they use analytics, how it benefits them, and any downsides to its use' from sources Walk the Chat and Digiday.