Itoen Conducts Demonstration Experiment of Facial Expression Analysis Vending Machine
Facial Recognition Payment System Also Expected to Be Installed
A 'facial expression analysis vending machine' that reads people's expressions and recommends drinks accordingly has emerged in Japan, attracting attention. As the trends of low birthrate and aging population deepen, there is growing expectation that vending machines could transform into a new platform for demand creation, and various vending machines equipped with advanced technologies are set to be introduced.
On the 4th, Nihon Keizai Shimbun (Nikkei) reported that Japanese beverage company Ito En has started a pilot test of a vending machine that analyzes people's facial expressions to recommend drinks. Ito En is famous for its green tea beverage brand 'Oi Ocha,' which is also widely known in Korea.
When a user looks at a tablet PC installed on the vending machine for 5 seconds, the tablet PC captures the movement of facial muscles with a camera and analyzes it. If a tired expression is detected, it recommends about three energy drinks or carbonated beverages.
Conceptual diagram of the 'Facial Expression Reading Vending Machine' developed by Ito En. (Photo by Ito En website)
To develop this facial expression analysis vending machine, Ito En partnered with an Israeli startup. The company is developing software that uses artificial intelligence (AI) to analyze unconscious facial expressions appearing on people's faces.
Additionally, a facial recognition payment service will be introduced. Through this, they plan to access not only information such as gender, age, and purchase frequency but also consumer psychology. Yukitaka Tamura, a planning official at Ito En, said, "Sometimes it analyzes emotions that humans themselves are not aware of, so the vending machine surprisingly tells you the products you really need."
Not only Ito En but also other Japanese companies are rushing into new vending machine businesses. Coca-Cola Japan has also embarked on vending machine innovation. They developed a linked application (app) called 'Coke ON,' which allows customers to accumulate stamps when purchasing drinks from vending machines and exchange them for products. As of last month, the app has surpassed 47 million downloads. A Coca-Cola Japan official said, "It has evolved from a vending machine where you just wait to a retail store capable of customer service."
The vending machine-linked application 'Coke ON' developed by Coca-Cola Japan. (Photo by Coca-Cola Japan website)
Although the vending machine market itself is gradually shrinking, Japanese companies are undeterred and are diving into vending machine innovation projects. According to the Japan Beverage Comprehensive Research Institute, a coalition of beverage companies, the number of operating vending machines last year was 2.15 million, down 2% from 2021, marking the eighth consecutive year of decline.
Nevertheless, Nikkei analyzed the reason companies persist with vending machines as "because vending machines have high profit margins," adding, "Even for the same product, prices in supermarkets can drop nearly by half due to sales, but vending machines sell at the manufacturer's suggested price, allowing profit margins to be maintained."
In fact, Japanese vending machines handle a variety of products beyond beverages. According to the Japan Vending Machine Manufacturers Association, the number of food vending machines reached 77,000 last year, a 7% increase from the previous year, driven by increased sales of frozen foods. An official stated, "Due to labor shortages, many restaurants want to install vending machines to gain profits from takeout or sales outside business hours."
Startups are also entering the vending machine market. Japan's Preno developed a cosmetics vending machine equipped with a camera. Some models even allow testing the scent of cosmetics. The vending machine developed by the Skima department store specializes in wireless communication functions, enabling live commerce. It can create unmanned stores and is praised for introducing products that consumers have never encountered before. Consequently, e-commerce operators and local companies also use it as a platform for trial sales. Additionally, Fuji Electric is advancing digitalization by introducing 'dynamic pricing' in vending machines, where prices change according to demand.
In Japan, which is experiencing severe labor shortages due to low birthrate and aging population, vending machines are becoming more than just simple machines. Nikkei added, "Vending machines are playing a new role as saviors of labor shortages and as platforms for creating new demand."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
