Tech, ExplainedE-commerce, travel and logistics
Product

Shelf image recognition

One photo checks every product on the shelf.

BEFORE ITAFTER ITShelf image recognitionInfilect and Snap2InsightVision Group RetailPARTPlanogram+COVERSShelf photosProductrecognitionPrice checksShare of shelfField sales software↗ B2B SALESsendsshelf photosflags stockto reorderDistributor managementsystem (DMS)↗ B2B E-COMMERCEaddsshelf dataRetail measurement↗ DATA PROVIDERSconfirms anempty shelfOut-of-stock detectionCONCEPTS IT USESComputer visionBEFORE ITAFTER ITShelf image recognitionInfilect and Snap2InsightVision Group RetailPARTPlanogram+COVERSShelf photosProductrecognitionPrice checksShare of shelfFieldsales software↗ B2B SALESsendsshelf photosflags stockto reorderDistributormanagementsystem (DMS)↗ B2B E-COMMERCEaddsshelf dataRetailmeasurement↗ DATA PROVIDERSconfirms anempty shelfOut-of-stockdetectionCONCEPTS IT USESComputer visionBEFORE ITField sales software↗ B2B SALES↓ sends shelf photosShelf image recognitionInfilect and Snap2InsightVision Group RetailPlanogram+Shelf photosProduct recognitionPrice checksShare of shelfAFTER IT↓ flags stock to reorderDistributor management system (DMS)↗ B2B E-COMMERCE↓ adds shelf dataRetail measurement↗ DATA PROVIDERS↓ confirms an empty shelfOut-of-stock detectionCONCEPTS IT USESComputer vision
Shelf image recognition reads a representative's photo of a noodle shelf in an Indore kirana store, and reports 6 packs facing against 10 agreed, a missing flavour and a ₹15 label on a ₹14 pack.
opens a page inside this one a page in the same scene a page in another scene a concept page a label only, with no page

Shelf image recognition is software that reads a photo of a shop shelf and checks each product on it: whether it is in stock, placed as agreed with the shop, and priced correctly. The photo is taken by a company's sales representative on a phone, or by a camera fixed in the store. The software uses computer vision, software that recognises objects in images. Checking shelves in this way is called retail execution, or a shelf audit.

The buyers are mostly consumer-goods companies. In India they are called FMCG companies, for fast-moving consumer goods, such as biscuits, soap and shampoo. Retailers use the software too. A product that is not on the shelf does not sell. So these companies send sales representatives to lakhs of shops every week.

Consider a sales representative of a noodles brand who visits a kirana store in Indore, a small neighbourhood shop. She photographs the shelf, which holds noodles from four brands. Within seconds, the app on her phone shows the result. Her brand has 6 packs facing the shopper, against 10 agreed with the shopkeeper. Its new masala flavour is missing. And one pack is marked ₹15, while the MRP printed on it is ₹14. MRP, the maximum retail price, is the highest price a shop may charge. The representative corrects the price label and takes an order for the missing flavour. Her field sales software sends the order to the brand's distributor management system (DMS). The local distributor uses that system to deliver the stock.

To do this, the model must be trained on photos of every pack the brand sells, and of its rivals' packs, at many angles and in many kinds of light. Packs change often, for example for a festival offer. So the model is retrained regularly. The agreed layout that each photo is compared with is called a planogram.

The data has a second use. When a brand collects thousands of photos a day, it can measure its share of the shelf in each city, and against each rival. Companies that sell retail measurement data, which shows what sells where, use data of a similar kind.

Photos are not the only way to find a gap on the shelf. Out-of-stock detection software finds the same problem from a store's sales data. In large supermarkets, cameras fixed on the shelves, or robots that move around the store, can check every shelf every hour. But in India, millions of small shops sell most consumer goods. A photo on the representative's phone is the method that can reach all of them.

Tech, Explained is a part of ingrid.fyi. Every page explains one piece of technology in plain words.