What is IoT in retail?
The Internet of Things is a system of interconnected devices that collect and transmit data in real time. In the context of supermarkets, it can be anything from “smart” shelves to temperature sensors, artificial intelligence cameras and carts that scan goods themselves.
IoT in action: how it works in Chinese supermarkets
1. Hema (Freshippo) is the supermarket of the future from Alibaba
The Hema network, owned by Alibaba, is one of the best examples of “new retail”, where IoT is the basis of the entire operating model.
- smart shelves with rfid tags: the system automatically updates prices, monitors the availability of goods and transmits data to the ERP system in real time.
- buyers scan QR codes on productsto see freshness, provenance, testimonials and recipes — all data comes from sensors and internal IoT network.
- 80% of orders from the Hema app are processed automatically, and the goods are collected by employees directly from the trading room for instant delivery within a radius of 3 km in 30 minutes.
According to Alibaba, Hema supermarkets have 30% higher product turnover compared to traditional models.
2. JD.com and 7Fresh Supermarkets
JD.com is another e-commerce giant that has opened the 7Fresh supermarket chain, where IoT and AI provide complete control over quality and logistics.
- “smart” scales and scanners in the shopping hall automatically read barcodes, weight and display product information on the display
- Cameras with AI analytics determine the behavior of buyers: what they take into their hands, where they stop, what they ignore.
- refrigeration equipment with temperature sensors guarantees the quality of storage — the system notifies the manager in case of the slightest deviations.
JD reports that thanks to IoT they have managed to reduce losses from spoilage products by 40% compared to traditional stores.
3. Suning and full shop automation
Suning is experimenting with fully automated stores without staff, where:
- camera with face readingand Weight Sensorsdetermine which product the customer takes.
- payment is made automatically at the exit — via the app or face scan.
- system AI Analytics and IoTallows you to optimize the layout of goods and identify “dead zones” in the store.
How IoT is changing the efficiency of supermarkets
1. Inventory management
Thanks to the sensors on the shelves and in the refrigerators:
- shortages and overspending are reduced;
- automatically generated orders to suppliers;
- stocks are replenished according to real demand
According to iResearch, the implementation of IoT can reduce logistics and warehousing costs by up to 20%.
2. Analysis of buyer behavior
IoT + AI = a new level of customer understanding:
- detection of “hot zones” of the store;
- A/B testing of the presentation of goods;
- personalized offers right in the app at the time of purchase.
3. Quality control
- automated monitoring of temperature and humidity;
- cold supply chain tracking;
- push-notification of violation of storage conditions.
What does this mean for retailers outside of China?
China is not just an example, but a real technological breakthrough. What now looks like a “miracle” in Europe has long been a daily practice in Beijing or Shanghai.
For retailers, this is a signal:
- without accurate data collection, the business will not be able to compete;
- investments in IoT are paid for by reducing costs, increasing the accuracy of forecasts and better service;
- You need to look not only at hardware, but at integrating IoT into the entire retail system — from warehouse to in-app advertising.
Conclusion
IoT is not just a technology, but a strategic infrastructure that is transforming retail. China shows that the future has already arrived. And the best way to prepare is to study these cases, adapt to your market and act ahead.
