Vending machines have been around in India for nearly half a century now. However, the industry still hasn’t quite taken off when we consider the vast population of India. The lack of retail outlets for a majority of this population. Although vending machines have now gathered a significant reputation in the metro cities, their penetration in tier 2 and tier 3 cities is still very low. But these are regions which hold the maximum potential for installing and scaling a vending machine business. In this blog, we will analyze why vending machines are not popular in India. Also how this trend is going to change in the future. How is it going to be more visible among the population.
Threat Of Vandalism And Theft Of Vending Machines
Vending machines are expensive to manufacture or acquire. Thus, starting a vending machine business requires a huge capital investment initially. Unfortunately, we live in a society where these machines are at risk of vandalism due to poor civic sense among people. Thus, seeing a vending machine which is not working due to broken glass is a common sight in cities. Sometimes, the vandalists go a step further and steal the machine altogether. Due to these incidents of theft and vandalism, the vending machine operators lose out on sales during the time they repair or replace the vending machine.
Slow Tech Adoption In Vending Machines
For most entrepreneurs, a vending machine is still seen as a cash accepting metal box with no connection to digital technology. But today’s reality is much different. The futuristic looking smart vending machines are no longer just limited to Japan. With many players in the IoT based and cloud managed “smart” vending machines are the next big thing for a successful and profitable vending machine business.
However, the current players in the vending machine business don’t provide technology solutions to the vending machine operators. They either provide their own machines on lease to the operators to start a business under their franchise or give a physical space to the vending machine operator to install the machines. No player currently provides a technology solution to vending machine operators. Which these entrepreneurs can incorporate into their machines and create a business with their own branding. Now with an IoT SaaS provider like Vendify, this is set to change. You can learn more about such novel technologies in the vending machine business here – https://www.youtube.com/watch?v=7un_tJX0edQ
Employing Manpower For Vending Machines
For the current standalone vending machines, there is no way that a vending machine operator can know which products on which vending machines have run out and need to be refilled. Thus, with such vending machines, the operator needs to employ a person who can check periodically which products are sold out and then alert the warehouse. A delivery executive then comes and refills the machines.
Furthermore, many customers face problems when inserting currency notes or coins into the vending machine. As a solution, many vending machine business owners have to deploy a full time employee near the vending machine who can help customers with such issues. And this cash also needs to be collected by another employee periodically. All this requirement of manpower increases the expenses of vending machine business owners significantly. Therefore, they feel a vending machine business is not a profitable venture which also discourages new entrepreneurs from entering into the market.
How Vendify Can Disrupt Vending Machine business
Vendify is an IoT SaaS solution provider which automates the entire supply chain of a vending machine business. Our Enterprise Resource Planning solution includes both hardware and software solutions which can fit into any existing vending machine and make it “smart”. The customers get an interactive touch interface and a digital payments option, making it easier for them to transact with the vending machines. The machine operators, on the other hand, get a real time inventory status of vending machines through a cloud-managed IoT infrastructure and thus can initiate refilling of these machines on time.
Moreover, the software solution also includes an app for customers which uses artificial intelligence to recommend new products from the vending machines based on their previous purchases. Also,the delivery executive app recommends arefilling plan and route so that vending machines are always full. The digital payments gateway provided as part of the solution obviates the need to collect cash from the vending machines periodically. Thus, the only manpower requirement is for the delivery personnel to refill the machines from the stock in the warehouse.
What we provide
In case a vending machine at a specific location malfunctions. The IoT solution alerts the operator immediately,allowingit to diagnose and resolve the issue asquickly aspossible. In case someone tries to break into the vending machine an alarm goes off. Which alerts both the business operator and the nearby people to prevent theft.
With our technology solution, the vending machine operators can install their machines with their own branding, use our in-house technology. Save themselves from the hassle involved with constant software upgrades. Therefore, they don’t need to buy a franchise of another company. They can operate their business according to their own business plan and goals.
What’s more? Our end to end solution starts at a very low monthly subscription fee. A digitally smart vending machine increases sales significantly and can even help small retailers expand the reach of their products. By selling them through an existing vending machine business and remotely monitoring their own inventory within the machine. This business model can lead to an increase in installations of vending machines in rural areas. Where the cost of setting up a physical store may prove prohibitive. The unmet demand of retail purchases for the inhabitants of these regions will act as an incentive for entrepreneurs. To look beyond the metro cities and tap into tier 2 and tier 3 cities. To know more about how Vendify can help you in this journey, contact our team at sales@vendify.in
