Voice shopping using speakers, apps starting to gain traction
Voice-activated artificial-intelligence based tech may be next big retail disrupter
Voice shopping using smart speakers and smartphone apps is starting to gain traction among consumers, opening up a new "conversational commerce" channel and potentially disrupting the retail sector.
Devices such as Amazon's Alexa-powered speakers and Google Home, which use artificial intelligence to respond to voice commands, offer new choices to consumers who are looking for more convenient ways to get goods and services.
Voice shopping is expected to jump to US$40 billion (S$54b) a year in 2022 in the US, from US$2b now, according to a survey by OC&C Strategy Consultants.
A recent eMarketer survey found 36 per cent of US consumers liked the idea of using a home-based assistant like Amazon Echo for making a purchase.
Amazon's devices hit the market in 2015 and Google Home was launched a year later.
The use of smart speakers has expanded the options available through smartphone chatbots or text-based systems including those from Facebook and Apple.
"This is growing exponentially," said Mr Mark Taylor, an executive vice-president at consultancy Capgemini and co-author of a study on conversational commerce.
Capgemini research shows consumers are satisfied with voice interactions. This is growing for search and information as well as for purchases and this is likely to become a "dominant" mode of consumer action within a few years.
The most commonly shopped categories through voice are groceries, entertainment, electronics and clothing, said strategy consultancy OC&C.
An important element is the personality established by intelligent assistants that will help companies establish a brand.
The "conversational interface" is a tremendous advantage, said Mr Manlio Carrelli, executive vice president at LivePerson, which provides technology for firms in online platforms.
"This is like 'Star Trek,'" Mr Carelli told AFP. "I can just say what I want and get it.
According to OC&C, Amazon Echo speakers are in around 10 per cent of US homes, with four per cent for Google Home.
Apple is lagging because Siri lacks the AI capabilities of Google, and the new HomePod has only just hit the market.
"Voice commerce represents the next major disruption in the retail industry, and just as e-commerce and mobile commerce changed the retail landscape, shopping through smart speaker promises to do the same," said Mr John Franklin of OC&C. - AFP
Get The New Paper on your phone with the free TNP app. Download from the Apple App Store or Google Play Store now
