I don’t know about you, but I often take for granted all of
the actions that go on behind the scenes before I go shopping. I know that when
I buy something, the price is related to a barcode, but I have never really
thought about barcodes and all the information that they contain.
Barcode background:
The concept of barcodes, or Universal Product Codes (UPCs)
has been used for about fifty years. The United States Department of Defense
adopted the use of Code 39 (a barcode system) in 1981 to mark all products sold
to the United States military. Basically, barcodes are used to organize large
amounts of data. They are used to track the location of objects and are able to
contain messages. There are various types of barcodes that exist, and I will
not bore you with all of the different types, but I wanted you to have some
background on the subject before I dove deeper into the topic of things that
have, and will continue to, change the way we shop.
New companies that
are changing the way we shop:
Two new companies, Aisle411.com and FoodEssentials.com, are
trying to make it easier for shoppers to understand what they are buying. The
strategies in improving information flow between consumers, retailers, and
brands rely on collections of big data. The collections of big data are stored
in barcodes.
Aisle411:
Aisle411 has an application that can be used on smart phones
that helps shoppers navigate a particular store. I don’t know if any of you
have been to Hobby Lobby, but this is an app that would be especially useful in
that store! Aisle411’s original idea was to reduce the amount of shoppers that
become frustrated by not being able to find what they want that ultimately
leave the store empty-handed. The maps that Aisle4411 uses are based on data
collections about the location of individual products. The smart phone app
displays a map to the right shelf, helping customers be able to navigate areas
that may seem confusing. This system not only helps customers, but also
retailers. The retailers are able to see what items customers search for and
buy, which will help them better manage inventory. Co-founder of Aisle411, Matt
Kulig has stated “Soon retailers who use our technology will benefit from the
big data intelligence and personalization that it will provide consumers to
customize the information they receive on their devices. Retailers can see the consumers
searching for products in their stores and how frequently they shop for
particular items. This helps them to better manage their inventory and buying
trends.” This is not the only use that retailers have for Aisle411. The
application has also become a recommendation system that is based on what
shoppers commonly look for and buy. The retailers can use this information in
order to provide a more efficient layout to their store.
*Check out this short video about Aisle411 (for some reason it will not insert here).
FoodEssentials:
FoodEssentials collects data from the labels (barcodes) of
numerous food products. The data that is collected is sold to retailers and
others who may be interested. The customer creates the data by buying certain
items. FoodEssentials has compiled what has been called “the largest data
collection of food product information”, which covers about 90 percent of
current food sales. In the past, food researchers had to retrieve food-label
data from several different sources. These sources include the retailers,
analysts, and third parties who track food purchases. Much of this data wasn’t
current, and there were large licensing fees attached. FoodEssentials provides
some food-label information for free, but there is also a version that is $99 a
month to have unlimited queries.
While this sounds like a hefty price to me, it is actually quite
attractive compared to the competitors. One of FoodEssentials’ customers is the
US Food and Drug Administration (more commonly known as FDA). The FDA uses
FoodEssentials’ data as part of its own analysis of consumer purchasing habits.
If one of my customers was the FDA, I would definitely feel accomplished!
Aisle411 and
FoodEssentials together:
Both companies have taken a similar approach to aggregate
their product data online and have made their information available to third-party
developers. The third-party developers are then able to leverage the data for
analysis about the trends of consumer spending. The two companies are
considered to have complimentary approaches and are both located in St. Louis. They
have discussed ways that they can work together, but there is no formal
agreement yet on what will happen. Aisle411 and FoodEssentials are both working
to help us, the consumers, find our way around stores and help us spend our
money. I can’t decide if I think these companies are good (for helping me save
time) or bad (for helping me spend money more easily)!
Sources:
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