If some of my readers have experienced the 70s and 80s, they would instantly connect with what I am talking about. Vending machines were very popular during that era, even in the 90s. But their popularity started to subside after the advent of the Internet and e-commerce. It became necessary to go to the place where the vending machine is installed to get your desired product.
The Internet made life easier for many companies, and small businesses and startups especially flourished during the initial years. There are still many ways in which it will help all of us, but this makes the workforce in Jeopardy. Now that AI is working in our favour, we are again on the brink of losing many jobs as computers, or simply software can do a lot of tasks. And in some ways, better than an average worker.
So, now that you can get everything on your fingertips and within a few minutes, why is the vending machine having a comeback? And I am not talking about poor and underdeveloped nations as Europe and USA are now the regions where vending machines are very successful.
Read on as I discuss the suspect in detail and what is the future of retail business concerning apt marketing and the use of the Internet. Go through the following example so that you can understand my viewpoint easily.
Smyth’s Milk Shack sells his Wholey Cow Brand to people in County Louth, Ireland. It has turned out to be a huge success, and during the lockdown era, long queues of people were seen. And even now there is still good interest among people. Mr Tomas Smyth is the person behind this idea as selling half-litre and litre recycled glass bottles became a rage. He started the business in March 2021 when not many people thought of starting a new venture. But Mr Smyth has something else in his mind.
Mr Smyth started the project with 180 cows and his two brothers, and many customers liked the product. With a guarantee that the milk will never be more than one day old, people like the idea of getting the milk from a vending machine in their neighbourhood and like the taste. With various flavours available like Chocolate, Banana, and Salted Caramel, it became a rage in the sleepy town, and now it has become a big success.
Look at some of the examples that I have for you, and this will give you a good idea about whether vending machines are here to stay or not. In 2019, the revenue from the global vending machine market was 18.2 8 billion dollars. The figure is estimated to reach 25.25 billion dollars by 2027. This is a compound annual growth rate of 6.7 %, and it is pretty healthy.
I am sure that this will clear the thoughts of people who think that vending machines is not good business. Just from the above stats, it is confirmed that it has growth potential. And one of the best features is that it is a great marketing tool. Like billboards or outdoor advertising, vending machines attract people to them even if they don’t want the product marketed.
Which places do businesses need to put a vending machine to get the best results? Read on as I discuss this and other important factors.
The location matters a lot as this can make the chances bright for any product. Prominent places for a vending machine include an apartment complex, medical facilities, gas stations, offices, and supermarkets. Any company can be sure of getting the eyeballs and also increase the chance of the usage. In fact, machines at the entrance of most buildings and facilities will get the attention as vending machines cannot be ignored by anyone, even with weak eyesight!
According to the latest report by Forbes that was published on vending.com, the future of vending machines is smart. Like many other machines, facial recognition will be a part of it, which will solve many problems and offer apt solutions. Example smart vending machines will be able to greet customers and remember their preferences. And when it can be connected to a database, many other aspects Related to the customer’s preference can be taken care of, like when was the last time we purchased a candy bar or a fizzy drink.
The last sentence you just read is important to what vending machines can do. It can even refuse to sell an item to a customer based on his age and also related to his medical condition. Furthermore, AI facial recognition will work big time favouring businesses as they can cherry-pick customers who are more interested in their products than others. Then they can target them through many social media channels and apps and ensure to get the maximum benefit out of it.
A significant change that is on the way is about the payment options. For the time being, most machines are accepting only cash, but this trend will change very quickly. For example, in Britain, 47% of transactions are cashless transactions, around double the percentage just a year ago. So, change is on the way, and that is why the usage of vending machines will start to increase rapidly.
In April, a Pizza vending machine was installed in Rome, proving to be a success. Some people may not agree on this as eating a red-hot pizza is the preference, and you might think that the pizza may not be perfect through a vending machine. But this is not the case as you have to try it and taste the difference.
Similarly, there will be several other vending machines operating in your city or region shortly. With the expected growth of over 6%, this is bound to happen. And it is also very good news for the manufacturers of vending machines as their demand will increase exponentially.
What do you think about the future of vending machines, and do you agree with everything mentioned in this blog? Don’t be shy and have your say by offering your point of view as you can discuss anything related to this blog with the other readers too.
If you want to ask a question or just want to offer your feedback, please use the comments section below.
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