For many, the main purpose of installing a surveillance camera is to prevent theft and strengthen security.
But the closed-circuit TVs can now play a significant role beyond such a purpose, as the latest models connected with artificial intelligence software help retailers develop data-driven strategies and increase sales by using video-based analytics.
According to Hanwha Techwin, a South Korean total security solutions provider that manufactures surveillance cameras for video analytic solutions and software, demand for retail business intelligence solutions by using video footage has expanded rapidly in recent years.
“As various industries are trying to apply AI and big data technologies to different sectors, surveillance cameras and video analytic programs have also evolved to work along with specialized software programs, away from (the previous purpose of CCTVs of) simply recording footage real-time,” Kim Kyung-hyun, Hanwha Techwin’s retail solutions project manager told The Korea Herald.
(Hanwha Techwin)
“Korea is still far behind the global level of using CCTVs as a tool for retail analytic systems. There are similar products abroad, but we are the only company in the country that develops products from hardware CCTVs to software programs,” Kim said.
Some of Hanwha Techwin products are integrated with the company’s software programs called Retail Insight. The program shows data such as Heat Mapping. When a camera is connected to the internet and transmits videos to devices such as smartphones and computers real-time, Retail Insight identifies the congested areas inside the store by analyzing the time customers spend in different sections and what products are being picked up the most. Store managers are notified with the data as such areas are highlighted in red.
Retail Insight data also allows retailers to make decisions on how many employees to hire and what time of the day requires more staff. Store operators are updated with the number of customers in the queue as the camera counts customers inside the store and sends it to the screen real-time. This helps them to decide whether to open more cashiers to reduce store congestion, according to Hanwha Techwin.
(Hanwha Techwin)
“Having cameras analyze various store information is very useful especially for franchise stores as they can compare store management data and sales growth figures more accurately and efficiently through this kind of one-stop solution,” Kim said, adding that all this had to be done and tracked by humans until recently.
To make the most suitable CCTVs for retail stores -- the smaller the better -- Hanwha Techwin has developed and recently launched a super-compact 99 millimeter-sized Wisenet Q mini series.
“We wanted to reduce the size (of the camera) and made it 40 percent smaller than the previous model. This has led our Q mini model to be easily installed according to customers’ desired direction and angles, as well as blend well into the store interior,” said Kim Hee-kyung, a project manager for Wisenet Q mini series.
(Hanwha Techwin)
Hanwha Techwin viewed the popularity of surveillance cameras at retail stores and the significance of its role at brick-and-mortar stores will only grow, despite the rise of e-commerce around the world.
According to PwC report 2019 Global Consumer Insights Study, physical retail stores still account for about 85 percent of global business-to-consumer commerce. It also showed that unlike 36 percent of customers who shopped in a physical store in 2014, the number rose to 49 percent in 2018.
“Although digital retail is growing, so is in-store retail,” said Kim.
Hanwha Techwin’s sales in the United States rose by 40 percent on-year, following its penetration into local franchise operators and making them the company’s major clients.
“Brick-and-mortar stores can grow their competitiveness and retail analytics play a key part. We are going to offer high-level video-based analytic solutions by converging technologies from AI and big data sectors, and apply them to high resolution cameras that we develop,” he added.
By Kim Da-sol (
ddd@heraldcorp.com)