The Most Trending Vending Machine Driven by AI
When traditional vending machine meets AI video technology in Japan, every impossible selling or marketing strategy is now possible.
Besides super influential animations and foods with fascinating cultures, Japan is also known worldwide for its vast trail network and the ubiquity of vending machines.
Why are there so many vending machines? First of all, Japan is infamous for long work hours so the quick transactions offered by automated machines meet the needs of a busy workforce, especially in larger cities where everyone is in a hurry. Even for employees working overtime, vending machines serve as a quick and cheap source of goods and refreshments at any given time of the day, with drinks only costing about 100 to 200 yen. Plus, the unmanned machines skip over the pleasantries that come with the human interaction involved when purchasing from groceries or convenience stores.
The high population density of Japan also contributes to its success. With a population of about 127 million people crammed into a landmass roughly the size of California, space, like labor, can become scarce and costly. As high population density drives up the prices of real estate, Japanese companies would rather stick a vending machine on a busy street corner rather than open up a retail store. And thus, vending machines can produce more revenue from each square meter of land compared to a retail store.
Take JR East as an example, it is the world’s largest train company in terms of passenger kilometers, and there are almost a million vending machines spread across the archipelago. As the vending machines spread across the train stations, providing convenient access to a cool drink in summer or a nice, warm coffee during cold winter, there is a cutting-edge technology innovation blooming behind people’s desires to the next level of convenience.
More and more digital vending machines are installed in transit hubs, shopping areas, commercial buildings, and even some parts of the residential areas featuring a large touchscreen display with a camera mounted at its top for multiple purposes.
If vending machines carrying large amounts of money are installed throughout the city, it is quite easy to imagine them being susceptible to crime. In fact, cases of crime around the world involving vending machines are never-ending, and it’s common to see prevention measures like steel cages around machines. In other words, a safe environment with a low crime rate is absolutely essential for vending machines to be installed and operated effectively.
Japan is known as one of the safest countries on earth, where it is relatively safe for females to walk by themselves in the evening or at night, and where people on the train can have a nap with their smartphones on their laps. It shows that Japan fulfills the criteria for the widespread use of vending machines, which can explain their abundance in the country. Of course, there are still cases where vending machines have been damaged from time to time in Japan, but the number of incidents is only a fraction compared to the rest of the world.
Here is an interesting showcase of the beverage behemoth. One of the biggest players in Japan’s vending machine scene, Coca-Cola Japan, has ever started a drink subscription service earlier this April to reduce cash trading and extend the sales cycle of each shopper who wants to enjoy Coca-Cola everywhere they go.
The service allows people to collect drinks directly from vending machines using only a smartphone app, and no spare change is needed. For a monthly fee of JPY 2700 (about USD 25), users of the Coke On app can redeem one beverage a day from participating vending machines strewn across the country. It is not just exclusive to soda, either. Coca-Cola Japan offers a wide range of drinks from soda, to green tea, and even ginger ale.
Back to the next-generation vending machines, the equipped camera at the top area is designed for much more beyond the security purpose of preventing burglary or vandalism.
TECO, one of SkyREC’s business partners TECO Electric & Machinery Co., Ltd. known as the third biggest medium-voltage motor producer in the world (with around 8% market share) and also ranked top 5 in global low-voltage A/C motor market (representing 4% of the world), presented an easy-to-understand concept of the advanced vending machine at the exhibition.
With the support of SkyREC AiMS Autonomous Intelligent Management System, TECO Smart Vending Machine Solution detects the shopper approaching the device and recognizes the person as a particular demographics including gender and age within milliseconds to trigger the next action of the vending machine system.
That is, with the built-in machine learning algorithm, the sensory data is interpreted by an internal processor to recognize the gender and estimate the age of an individual who approaches the device. Based on the analyzed data of the potential buyer, the vending machine can therefore display recommendations to fulfill precision marketing.
Even when not in use by a customer, this new type of vending machine creates more business opportunities by displaying advertising imagery appropriate to the time of day, temperature, and season than a regular vending machine. So, it is very likely for you to see the product showcased shown on a cold morning as a hot coffee, while on a sunny summer afternoon, a glass of ice water or a soda with lime.
Thanks to face analytics technology, it is not difficult for us to picture that in the near future, there will be more and more vending machines selling drinks targeted to particular groups like women, with healthier selections, room temperature drinks, or smaller bottles designed to fit into purses. Digital devices that hold a selection of local and international favorites, including green tea, Aomori Apple Juice, and many rare beverages, will deliver multiple functions to human beings more than just coin collectors.
