PRAGUE, Czech Republic - AI Startup Incubator's latest investment to startup AssetFloow introduces a new sensorless AI technology software that enables retailers to understand customers' behavior and movement in the store. Their solution provides analysis, prediction, and workflow improvement, making current retailers' decision-making more efficient. Headquartered in Lisbon, Portugal, AssetFloow currently operates in Europe, plans to enter the Czech market, and expands its technology overseas.
No sensors. No cameras.
AssetFloow is the first sensorless software that combines AI technology and game theory to develop a model of human behavior inside a store. Using anonymous sales data and the store layout, it can measure and analyze with high precision how different types of shoppers move and interact with products in a physical store.
The average customer spends 13 minutes in a medium-size store. However, the solution to increasing sales isn't prolonging shopping time but optimizing the placement of products customers see on their path.
The advanced retail analytics market presents opportunities to companies such as AssetFloow, with expected growth from USD 4.3 Billion (2020) to USD 11.1 billion by 2025, at a CAGR of 21.2%, according to MarketsandMarkets. AssetFloow strategically focuses on food & grocery retailers that are over 1.6 million worldwide.
Without relying on sensors or cameras, AssetFloow's AI software provides visual insights on how changes in the category and product locations or promotions would influence the flow of different types of customers and their impact on sales.
80% of today's retail decision-making is based on gut instinct, experience, and spreadsheets rather than data.
With the current approach, retailers use a "trial-and-error" method for layout changes and strategic promotions. Such operations take over three months, ending up with up to 75% of incorrect decisions. This problem represents 30% of their revenue.
Present sensor-based technologies, such as cameras, Wi-Fi, and Beacons, fail to provide insights directly correlated with sales data. Additionally, they raise privacy concerns.
Other companies in the industry focus on providing heat maps without a context, leading to even more data to analyze manually. For example, a sensor-based solution cannot distinguish if all people inside a store are actual buyers or only companions.
AssetFloow's AI software represents the solution for inefficient and lengthy decision-making of retailers. After winning 1st place in a Worldwide AI hackathon, AssetFloow proved that its technology could beat sensors or cameras, with a 94% accuracy, in analyzing the flow of people.
Leveraging AssetFloow's technology on decision-making processes allows retailers to increase sales by 2-4% by doing strategic listing, improve procurement conditions by decreasing its costs by 1%-3%, and reduce working capital costs of Category Management from more than 3 months to less than a day.
The AI technology creates layouts that enhance merchandise, space performance, increase shopper traffic and average transaction values.
AssetFloow is empowering all levels of decision-makers from across the retail departments, including Merchandising, Category Management, Layout planning, Sales, Marketing, with the efficacy of data-driven decisions at their fingertips.
From the customer's point of view, Assetfloow improves a shopping experience and enhances loyalty by optimizing the organization of the store.
"Our solution enables retailers to capitalize on their data as efficiently and quickly as possible. Our investor AI Startup Incubator recognizes and understands the importance and future of AssetFloow's data-driven approach. Their expertise in the field will enable us to extend our reach, help more retail companies, and improve their in-store operations towards higher productivity and profitability."Katya Ivanova, Co-Founder and CEO of AssetFloow
AssetFloow's goal is to be a global leader in supporting retailers.
AssetFloow helps retailers across Europe and the UK from their headquarters in Portugal and plans to enter the Czech market. They also expand to new markets, partnering with companies from Brazil and other South American countries.
"We combine our extensive retail knowledge and expertise with a passion for innovation, people, and enterprise software to help retailers build resilience and excellence. With investment from AI Startup Incubator, we are certainly one step closer to becoming a market leader in retail behavioral analytics," adds Katya.
The legal framework of the transaction was managed by a law firm Kocián Šolc Balaštík, particularly by Josef Kříž and Ota Mach.