Image Recognition in Retail Market Trends

Growth Drivers

• Growing Focus on Customer Satisfaction

Retail, both online and offline, has the potential to undergo a full transformation owing to image analytics. It entails classifying images based on features or objects in the image. In image analytics, image recognition software is crucial for identifying things such as faces, animals, objects, and colors which eventually increases the satisfaction level of the customers since it becomes easy to find products. Moreover, researchers are working on facial emotion detection in order to recognize the satisfaction level of the customers.

• Rise in the Establishment of Physical Retail Stores

Even though of growing online retail, the presence of physical stores is estimated to sustain or grow in near future. For instance, while physical storefronts continue to account for about 86% of sales, e-commerce only makes up approximately 12% of all retail sales in the United States. However, to boost the growth of physical stores, a large number of retailers are adopting digitalization. Therefore, the adoption of image recognition in retail is rising.

• Surge in Adoption of Smartphones

With the help of image recognition software that uses artificial intelligence, users deploy their smartphones every day to scan a variety of items and access a number of applications.

Challenges

• High Installation Cost
• Risk of Data Theft - The user receives the intended results as a result of the image recognition technology's processing of the image data. It also needs complementary technologies to improve its functionality, such as facial recognition, deep learning, natural language processing, machine learning, and natural language processing (NLP) to process the stored data and produce useful results. With the use of these technologies, organizations are able to extract valuable information from vast amounts of data and utilize it to inform important choices. Therefore, one of the major threats that many online customers currently face is data theft.
• Quality Issues of the Image