Limitations of manual price listing
Traditionally, supermarkets have primarily used a manual method, meaning that whenever a product's price needs changing, an employee simply replaces the printed price tags on the shelves. One of the few technologies adopted by the retail industry is electronic price boards, which allow supermarkets to update prices more quickly. However, the problem with electronic price boards is their high initial cost, while the listed prices rarely change, resulting in low return on investment.
This is where AI comes into play. Instead of manual, inflexible, and error-prone pricing strategies, AI offers the ability to optimize product pricing based on real-time data. This not only helps retailers maximize profits but also creates a fairer and more attractive shopping environment for customers.
According to an estimate by the National Council on Weights and Measures (NCWM), an average supermarket has around 30,000 different products on display. If prices were listed on cardboard, an employee could only update prices for about 60-80 pounds per hour.
This makes supermarkets reluctant to change product prices because it is too time-consuming. Not to mention, the manual process is prone to errors. A 2024 NCWM report showed that approximately 1.7% of price tags in supermarkets were inaccurate, equivalent to an average of 510 products with incorrect pricing. Meanwhile, a study by global management consulting firm McKinsey indicated that supermarkets could lose up to 2% of their revenue due to pricing errors.
Clearly, traditional price listing methods not only slow down supermarkets and stores from adjusting prices accordingly, but also make them prone to errors and erode customer trust.
Supermarkets' new "weapon"
Integrating AI into pricing strategies can provide retailers with a range of competitive advantages. First, AI tools automate processes and accelerate market response times. They can continuously monitor the prices of thousands of competitors and automatically adjust pricing to ensure retailers don't miss opportunities to increase sales. Major players like Walmart and Amazon have demonstrated the effectiveness of this approach, with sales increasing by 5-10% after implementing AI-integrated pricing systems.
Secondly, AI enables profit optimization based on accurate market demand forecasting – one of the biggest challenges in the retail industry. AI can analyze vast amounts of data to predict demand, helping retailers avoid overstocking or out-of-stock situations, while maximizing profit margins during peak and off-peak periods. For example, a website selling outdoor gear, if it detects a sudden surge in the keyword "camping gear," will increase its inventory or raise prices to anticipate peak demand.
Ultimately, AI provides retailers with detailed, in-depth market insights. Large-scale linguistic models (LLMs) can extract and structure data from multiple sources, enabling comparisons not only of identical products but also of similar products from different brands. This allows retailers to gain a holistic view and maintain competitiveness across their entire product portfolio.
Consumers benefit.
The shift to AI-powered pricing benefits not only businesses. Consumers also benefit from a shopping environment that better suits their individual needs.
The most obvious benefit is that prices will become more competitive as retailers use AI to track competitors. Furthermore, pricing based on real-time data eliminates errors caused by manual processes, ensuring customers don't pay extra due to system failures.
Furthermore, AI offers a personalized shopping experience. Instead of a single price for everyone, AI can analyze each customer's purchase history to provide tailored offers and discounts. A study by financial consulting firm BCG showed that personalized pricing strategies can increase customer loyalty by up to 15%. This not only makes customers feel valued but also helps them save money on products they truly care about.
Ultimately, AI helps price products based on perceived customer value. By analyzing reviews, social media comments, and other online feedback, AI can determine a product's perceived value and adjust the price accordingly. This ensures that the price reflects not only the production cost but also the quality and customer satisfaction the product provides.
With technological advancements, AI is not only changing how supermarkets and stores list prices, but also changing how they think to increase both business efficiency and competitiveness. In the not-too-distant future, the price of an item will no longer be a fixed number but a continuous stream of optimized data, creating a fairer market that benefits both buyers and sellers. To some extent, AI promises to be a "magic wand" that will breathe new life into the retail industry.
Source: https://baotintuc.vn/khoa-hoc-cong-nghe/dua-than-ai-cham-vao-nganh-ban-le-20251005070606498.htm
Comment (0)