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Indoor Positioning in Retail

Parik Chopra, Philips Lighting

Philips Lighting

#1 in connected lighting systems and services

#1 in LED 48% of lighting sales are LED (Q4 2015)

€7.5 billion in sales in 2015

33,000 people employed worldwide in 60 countries

~75% of sales are B2B

Systems & Services Light sources Luminaires 2

Lighting systems and services

Intelligent buildings Landmark shopping destinations Alive and Bespoke architecture

Indoor Positioning Inspiring mall experience Enhance guest comfort Catwalk experience in store

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Millennials Sustainability Connected

Mega trends we see in retail

5B x 50B 1/3rd 50%

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Footfall alone has become outdated

Shopper journey has radically changed

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Idea of a store is becoming fuzzy

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Physical space is getting more personal

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and more digital

self-scanning … online-offline-online … endless aisles … click & collect … self check-out 10

What is Philips indoor positioning trying to solve?

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• 8 in 10 smartphone shoppers use their mobile in-store to help with shopping1

• 8 in 10 smartphone shoppers prefer to use their mobile for assistance in-store vs. an associate2

• 50% of shoppers are happy if retailers send them content on the basis of their location3

Sources: 1) Google Shopper Marketing Council, 2014; 2) Deloitte Digital, 2016; 3) Cisco IBSG, 2013

“Seamless” mobile experience

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60

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80

90

100

2008 2010 2012 2014 2016 2018 2020 2022

% o

f sa

les

infl

uen

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by

Dig

ital

Digital Influence Projection

+/- 10% sensitivity range

90% sales still happen in

physical stores

September 20152 – 64%

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Column1

90%

What happens in the physical store?

Online store

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Physical Store

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How does Philips system works?

Location, Authentication and

Analytics Server

Analytics The position of the fixtures

is stored in a location

database in the cloud.

LED fixtures send a

unique VLC code that is

detected by the

smartphone camera

Visible Light Communication

Philips software determines the real-time and exact position of the phone.

The software is available as SDK for integration into the customers mobile app.

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Retailer data, cloud and applications

Benefits of Philips indoor positioning • Hyper accurate: less than 30 cm and orientation accurate

• Low latency: 10x per sec refresh rate

• Savings: 40-60% electricity saving from LED

• Hybrid: Bluetooth integrated (powered by LED drivers) for notifications

• Mainstream: works with iOS and Android

• Easy to get started with: SaaS model, with SDK design-in service

• Complimentary partners: e.g. product mapping from Aisle411

• Data enabled services: heatmaps, time-stamps, shopper journey

• Privacy: privacy-by-design principles

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Carrefour Lille The world’s first supermarket with Philips indoor positioning Carrefour Hypermarket in Lille, France

• 8,000m2 ; 3.2 million shoppers a year

• 200-300 products on promotion/day

• 800 LED lighting fixtures

C’ou app allows shoppers to

• locate themselves on store map

• select and find promotions; like promotions

• see promotions “around me”

• signal out of stock items

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Carrefour Lille

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Power of “location-aware” mobile apps Shopper convenience

Show me where I am

Way finding: products, Pol

Dynamic (optimal) shopping route

Location relevant information

Ask for associate to come over

Shopper engagement

Location based (personal) promotions

Location based information/notification - Product suggestions - Inform while queuing

Location based interaction - Trigger survey

- Trigger social interaction

Entertainment /gaming

- Treasure hunt - Visit and collect points

Staff/store efficiency

Location tag products or issue reports

Way finding: products, issues, staff

Dynamic routing for order picking

Location based staff instructions

Location based sales/service support

Data/Analysis

Enriched personalized multi-channel marketing

Store/staff effectiveness assessment: - Heat maps

- Customer flow/dwelling

Marketing impact assessment

Partnering with brands

Location based compliance notification

Brand-sponsored convenience and

engagement

Analytics based brand co-operation

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Why invest in “location-aware” apps?

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Why invest in “location-aware” apps?

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Why invest in “location-aware” apps?

Country surveyed

Current app usage

47

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28

16

24

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Indented app usage with location services

54

57

57

60

32

35

22

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Partnering to enrich shopper apps

+ Hyper accurate indoor positioning Platform

Product mapping, search and analytics platform

Making retailers’ investment measurable

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Unraveling the black box of big box

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Growth in location-enabled venues…

Source - ABI Research, 2014

Food, DIY, Electronics

Clothing

Shopping malls

Dinning/ Beverages

Number of Indoor location technology installations

100,000

50,000

25,000

2010 2020 2015

125,000

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…Opening up business value

Source: ABI “Location Technologies Market Data” (2016)

Global location based services revenues in retail (EUR millions)

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To summarize

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• Physical store is here to stay : approx. 90% sales happen in-store

• Where are stores heading: fuzzing boundaries, personal touch, digitization

• Stores can be benefit from new ways to engage with Omnichannel shoppers

• Mobile apps is one way to do so

• Usage of mobile apps increase by 50-100% if location-enabled

• 100s of use cases possible; start with 1-2 quick wins

• LED lighting can provide hyper accurate location : imagine “pixel of the store”

• Huge potential to unlock business value, with partners

Light = “central nervous system of retail”

IP backbone

Location IDs

Central Brain

Sensors

Q&A

Disclaimer

The presenter has use images, facts and statistics from publicly available sources and studies conducted by reputable research company solely for

the purpose of knowledge sharing and idea exchange. Neither the presenter (Parik Chopra) nor his employer (Philips Lighting BV) takes

responsibility for the forecasts, facts or claims made in this presentation. For any questions on the materials shared in the presentation please

consult the presenter himself.

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19th century

20th century

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