Vending machines become part of the retail industry
The retail industry is growing and the automatic retailing form is also gradually becoming popular in the current era. The form of automatic retail aimed at is the vending machine. So how was the vending machine applied and what effects did it bring? Let's find out together!
1. Retail industry and application of vending machines
Automated retail is one of the oldest forms of retailing. Consumer trends and recent developments in vending technology are paving the way for vending machines. As a result, vending machines have become a viable option for retailers.
Vending machines are the forefather of the auto retail movement with the modern vending machine appearing in the early 1880s. Customers just need to put coins in and the goods will be brought out. The fact that vending machines have appeared for a long time and are still popular today is probably because it is hard to beat due to the convenience that it brings.
The vending machine has not changed too much these days but it is more upgraded with diverse payment options instead of cash. According to research by Mastercard, more than three-quarters of shoppers across 19 countries are now using contactless payments for daily purchases, citing safety and cleanliness as the main reason.
Vending machines usually have a compact size and are installed in crowded areas. Instead of opening an expensive convenience store that lacks premises, installing a vending machine is essential. For example, schools, offices, train stations, sports venues, parks, etc. With automatic 24/24 operation time, simple usage without the need of staff or large premises.
Vending machines have a long history of providing a convenient way for people to buy goods, especially soft drinks and snacks. Nowadays, the sale of clothes, cosmetics, accessories, ... are also new directions that some retailers are aiming for.
Smart vending machines are a useful alternative utility for retailers, imagine when a business opens a store, if one day the number of actual customers coming to the store decreases for a long time, the company will have the option to close or stop the business, leaving executives with few options to bring their products to consumers. One solution is to apply vending machines into the retail industry to be able to sell goods automatically, without the need of a supervisor, physical store, reducing costs and business risks.
We increasingly prefer convenience and speed. The appearance of vending machines made it possible. Instead of having to spend time searching for stores, customers can buy goods right at public areas and also do not need to contact sales staff. The vending machine will help solve the needs immediately and it is really convenient.
2. Benefits of applying vending machines to the retail industry
The application of vending machines will bring many benefits for both businesses and customers. So what benefits will businesses get when applying the vending machine model?
Cost savings: Applying vending machines to the retail industry is an optimal solution. The initial investment cost for a vending machine is significantly lower than opening a convenience or grocery store. Your enterprise will save the cost of renting space, decorating the store display shelves, and hiring sales staff. You just need to place the machine in the right place, let it work, and bring back profit.
Access to a large customer network: Vending machines are located in crowded places, reaching a large number of customers. Therefore, the application of vending machines makes it easy for businesses to identify brands and reach new customers.
Easily expand distribution channels: For retail customers, retail companies need to expand their distribution channels, applying a vending machine system is an inexpensive and effective solution. Instead of having to spend money to operate multiple points of sale. These days, enterprises just need to purchase or rent a vending machine and place it at the point of sale. This will help the business's distribution channel expansion strategy become simple, economical, and effective.
3. Disadvantages of vending machine
The obvious drawback of vending machines is security and keeping goods safe inside the device. But this limitation can also be overcome because there are measures that can be taken to prevent damage to the machinery.
It can be seen that vending machines bring many benefits and gradually become an indispensable part of the retail industry. Society is gradually entering the 5.0 era, and the application of vending machine technology is a smart direction for businesses.