The retail industry continues to be a hotbed of patent innovation. Activity is driven by product visibility and personalized shopping experience, and the growing importance of technologies such as artificial intelligence, cloud, 3D visualization augmented reality, and virtual reality. In the last three years alone, there have been over 156,000 patents filed and granted in the retail industry, according to GlobalData’s report on Virtual and augmented reality in retail: virtual planogram optimization. Buy the report here.
According to GlobalData’s Technology Foresights, which uses over 115,000 patents to analyze innovation intensity for the retail industry, there are 50+ innovation areas that will shape the future of the industry.
Virtual planogram optimization is a key innovation area in virtual and augmented reality
Virtual planogram optimization refers to the method of planning and refining the allocation of product placement on store shelves within a retail setting through computer-generated simulations. The innovative technology harnesses algorithms and computer modeling to analyze sales data, customer behavior, and various influencing factors. It aims to ascertain the most lucrative strategy for organizing and showcasing products.
GlobalData’s analysis also uncovers the companies at the forefront of each innovation area and assesses the potential reach and impact of their patenting activity across different applications and geographies. According to GlobalData, there are 30+ companies, spanning technology vendors, established retail companies, and up-and-coming start-ups engaged in the development and application of virtual planogram optimization.
Key players in virtual planogram optimization – a disruptive innovation in the retail industry
‘Application diversity’ measures the number of applications identified for each patent. It broadly splits companies into either ‘niche’ or ‘diversified’ innovators.
‘Geographic reach’ refers to the number of countries each patent is registered in. It reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.
Patent volumes related to virtual planogram optimization
Source: GlobalData Patent Analytics
Leading patent filers in the virtual planogram optimization space include Nuro, Cox Enterprises, Walmart, Nant, and Trax Technology Solutions. Walmart is making strategic investments in advanced capabilities, including augmented reality, to elevate the shopping experience for consumers. Augmented reality plays a pivotal role in Walmart's approach to designing and refining shelf space for product placement. Through augmented reality, Walmart effectively analyzes sales data, consumer behavior patterns, and corporate standards to pinpoint the most profitable approach to arrange and showcase its products.
In terms of application diversity, OPTIMUM is the leading company in the virtual planogram optimization space, while Cox Enterprises and Nio are in the second and third positions, respectively.
By geographic reach, Nuro leads the pack, followed by Nio and Walmart.
A major advantage of virtual planogram optimization within virtual and augmented reality is that it simplifies the process of designing store layouts and product arrangements by offering a virtual testing ground, thus reducing both time and costs. The technology helps in decision-making through data-driven insights, fine-tuning store setups via simulations to enhance the shopper experience and consequently drive sales.
To further understand the key themes and technologies disrupting the retail industry, access GlobalData’s latest thematic research report on Virtual & Augmented Reality in Retail.