A recent job for an international drinks manufacturer led Prospect to do some in-depth research on automated retailing. In this article, Richard Eisermann discusses the latest trends.

Vending machines are back and they are bigger than ever. Literally. Where once they were modest glass containers filled with gumballs perched atop a hand-cranked coinbox, they have become store-sized behemoths whose robotic arms pick from an array of products and deliver them to consumers who use the latest cashless systems to pay. This is the result of the convergence of consumer lifestyles (convenience), technology trends (connectivity) and business opportunities (kiosking) that are changing the face of traditional vending - so much so, that it is now referred to as 'automated retailing'.

By 2007, the worldwide spend for vending will be 61.8 billion GBP, with Japan leading the way. Convenience is king in Japanese retailing. A true vending culture has developed, where the purchase of just about anything necessary for day to day survival is possible through a machine. The UK, by comparison, is in fourth place overall, spending only a sixth of the Japanese total. Looking at spend per person reveals another story, however. The Japanese are, of course, in the lead, annually spending over £200 per person. Germany and Spain round out the top three, but this is due in large part to the purchase of tobacco products from machines. As tobacco vending is banned in the UK, this means that Brits are consuming far more vended beverages and snacks than their continental counterparts. No surprise, really, given the alarming rise in the British rate of obesity. Perhaps it's time to reconsider the true meaning of 'convenience'.

As expected, technological developments, particularly in mobile telephony, have also spurred the renaissance in vending. Almost a third of the world's six billion people have a mobile phone, which means they are able to interact with most other silicon chip-based life forms on the planet, including vending machines. Mobiles will allow for cashless payments and various pilots have been conducted around the world. In Mumbai, a Cadbury's Dairy Milk bar can be purchased by texting the appropriate number displayed on the vending machine's LCD panel. When the chocolate has been dispensed, the customer receives an SMS confirming the transaction.

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