As of the end of 2021, there are approximately 2.7 million vending machines in Japan. While they are a familiar sight, this field has recently been evolving rapidly with the introduction of IT. AI-supported vending machines have become a hot topic, and examples of pursuing IT transformation to increase revenue and improve operational efficiency are also attracting attention. Let's look at the latest trends.
Vending Machines Evolving with IT
By incorporating digital technologies such as AI and IoT, a wide variety of vending machines are emerging. A wave of change is coming to vending machines, including handling products that traditional vending machines did not offer and enabling cashless payments.
New Innovations in Vending Machines with AI Technology
By utilizing AI, it has become possible to suggest products tailored to each user's preferences on vending machines and make adjustments to prevent unsold inventory.
"KATE iCON BOX", developed jointly by Kanebo Cosmetics and Toppan Printing, uses an AI camera to analyze facial shape and skin brightness to suggest suitable colors. The salad vending machine "SALAD STAND" predicts demand by combining data obtained from AI cameras with expiration dates, time, weather, and other data, automatically lowering prices to prevent unsold inventory.
The AI café robot "root C" allows users to order coffee through a dedicated smartphone app and pick up freshly brewed coffee from a locker-style vending machine at a specified time. When ordering, AI suggests coffee that matches the user's preferences.
Supporting Cashless Payments
Cashless payment refers to methods of completing payments without using cash. There are various types, including credit cards, debit cards, transportation and retail electronic money, QR code payments • barcode payments, and more. Even in Japan, where cash payments have been preferred, cashless adoption is accelerating due to increased demand for contactless payments during the COVID-19 pandemic.
In response to this trend, vending machines, which traditionally had a strong image of cash payments centered on coins, are increasingly supporting cashless payments. Beverage manufacturers and vending machine manufacturers are providing machines with built-in card readers and gradually expanding their installation. Payment terminals that can be retrofitted to existing vending machines are also emerging, advancing cashless payment support.
Network-Distributed Digital Signage
Digital signage functionality, which uses vending machine displays to transmit information, is also attracting attention. Displays range from small ones embedded in traditional vending machines to large touchscreen LCDs. Because they are connected to networks, services that transmit not only product advertisements but also disaster prevention • disaster information in real time have become possible.
Recently seen in large shopping centers and Stations, there is a type with a large LCD display with touchscreen positioned on the front of the vending machine. The section where beverage samples were traditionally lined up is gone, and instead, product images and information are displayed on the LCD screen, with products selected via touchscreen. The display also functions as digital signage.
Furthermore, in types equipped with AI cameras, display content for digital signage can be optimized based on data obtained from cameras (foot traffic, user attributes, etc.).
DX to Save the Vending Machine Industry
Beverage manufacturers and the vending machine industry face challenges in vending machine management • operations, such as deteriorating profit margins and overwork of route personnel (drivers). Currently, the solution being pursued is the utilization of IT such as AI and IoT, which is expected to lead to DX that transforms the entire industry.
Acquiring Marketing Data with AI Cameras
Vending machines equipped with AI cameras can estimate user attributes such as gender and age, and combined with purchase information, enable trend analysis by attribute. This data is used to optimize product offerings, aiming to increase revenue and reduce waste.
Real-Time Monitoring of Malfunction and Inventory Information
By being connected to a network, information about vending machine malfunctions and inventory status can be monitored remotely in real time, enabling quick response for maintenance and replenishment operations. Lost sales opportunities due to malfunctions or stockouts are reduced, leading to increased revenue.
AI-Based Optimization of Replenishment Operations
From various data collected by vending machines, AI predicts the optimal number of units to replenish, product assortment, inventory levels, etc. for each vending machine. Because highly accurate predictions are possible, optimization • efficiency of replenishment operations can be achieved. Profit margins improve through inventory optimization.
Furthermore, there is a new service (600 Corporation "Vending Hero") where AI automatically creates visit schedules and daily routes. Route personnel can visit at optimal times via optimal routes, improving the efficiency of replenishment operations.
Cashless Payments
As cashless payment support advances in vending machines, it not only improves convenience for users. The burden on route personnel who collect sales revenue and prepare change is reduced, contributing to more efficient replenishment operations.
Summary
We have introduced the current state of vending machines advancing with IT from two perspectives: the vending machines themselves and vending machine operations. When vending machine convenience improves, users are pleased, leading to increased sales and benefits for both parties. Through the utilization of IT, a new landscape appears to be unfolding in the vending machine industry as well.