Top 5 Vending Machine Trends Every Retailer Should Know About

It was in the early 1880s when the first retail coin-operated modernised vending machine was set up to dispense postcards. This efficient mode of retail gradually made it into the 21st century while undergoing countless changes and through multiple vending machine trends.

The findings from PepsiCo Foodservice’s consumer study on unattended retail show that consumer spending rose from 20% to 40% with unattended vending machines highlighting how post-pandemic, consumers are preferring unattended retail, digital transactions and hassle-free shopping experience. Hence, it is only right to say that the market size of vending machines and their acceptability will only expand in the coming years. And with this expansion will come countless upgrades, some of which are already shaping the upcoming trends for vending machine businesses. Let’s take a look at them in detail.

Top vending machine trends you must not miss

The thriving vending industry will experience a positive push for the following vending machine trends:

• Cashless payments
• Sustainability in vending
• Interactive and immersive experience
• Multi-function operations
• More product variation

These are described in detail below.

Cashless Payment: Providing convenience and security 

Right off the bat, the biggest shift in vending machine trends is the increase in the usage of digital payment gateways. With 48 billion digital payment tractions in the previous years, India topped the list with the most real-time transactions. This, in 2021 resulted in a cost saving of $12.6 billion for businesses.

The growing number of cashless and smart vending machines has led to increased consumer satisfaction with improved hygiene, and seamless, quicker, efficient and more secure transactions.

Additionally, this vending machine trend will efficiently ease the refund process for businesses and consumers likewise. Ensuring that cashless and automatic vending machines stay in the retail industry for the long run.

Support Sustainability: Making automatic vending eco-friendly

The next vital vending machine trend is the rise of eco-friendly and more sustainable ways to vend. The solution to it comes with the best vending machine software and hardware technologies that can provide sustainable solutions in the future.

Under this, the rise of upcycling old vending machines with smarter vending machine software will gain great attention. Vendekin’s RetroBox is one such sustainable solution. This plug-and-play device can be installed and ready to use in under 2 minutes.

It converts a regular vending machine into an automated vending machine by enabling touchless and easy mobile payments. Furthermore, it allows the consumer to purchase multiple products in one transaction, meaning they do not have to pay individually for each item.

Additionally, businesses would focus on advanced vending machine software that provides a deeper analytical insight into restocking and product status. Sensors that aid perfect temperature for products are in for a win among all vending machine trends as they reduce the risk of product spoilage.

Interactive and Immersive: Personalised experience with smart vending machines

“Consumers prefer unattended retail more than ever because they want to shop at their own pace. Consumers want control over their transactions, something that unattended retail gives them without the hassle of feeling pressured by an outside party”, shared Greg Herman from PepsiCo Foodservice in an interview.

Their experiment showcased how consumers now demand unattended and cashless retail experiences where they can physically feel the product and enjoy instant gratification with the least interactions.

This vending machine trend has already begun to shape consumer behaviour with vending machine software driven by algorithms that curate more personalised experiences.

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Buying vs Renting a Vending Machine – Which Option is Better?

To buy vending machines or rent that is the question!

It is no news that with cashless and automatic vending machines your business can thrive in the US$ 55 Billion vending machine industry. With a mobile inventory, backend data that evolves with your consumer, product-specific customisation and brand labelling, smart vending solutions can give your retail business a positive push.

But, many businesses keep circling around when it comes to the price of vending machines and are in a dilemma of whether to buy or rent a vending machine.

Unravel this conundrum with us.

Buy vs Rent a Vending Machine: A road not taken

A smart vending machine will turn out to be an efficient and future-proof business investment in India. And with the growth of the phygital environment, micro-marketing is becoming a need for every retail business. The consumer expects a contactless, immersive and quicker retail experience, which is effortlessly provided by smart vending machine solutions.

As a business, now is the time to evaluate the pros and cons of renting a vending machine vs buying one.

Buy a vending machine

As mentioned, investing in smart and cashless vending machine solutions will help you establish your business strongly in the upcoming phygital spaces. With over 750 million smartphone users alone in India, owning a cashless vending machine will only enhance the benefits you reap.

Find out all the pros and cons of buying a vending machine:

Pros of buying a vending machine

1. Low investments and ownership of profit:

Most businesses demand high investments, but you can buy a vending machine equipped with the best vending machine software for an average amount of ₹1 lakh to ₹10 lakhs, depending upon its size, private labelling and product-specific customisation.

Buying a vending machine comes with all ownership of the machine and all the profits. Without the periodic deduction of rent, you can further use the earned margin for more efficient business development activities.

With Vendekin’s cashless and smart vending solutions, you start earning profit anywhere between 18 to 36 months. This depends on the product, business strategy, location, the discount provided, etc.

2. More flexibility

Another benefit of buying an automatic vending machine comes as flexibility in product selection, inventory stocking and even pricing. When you rent a vending machine, your choices are limited by what is available with your nearest dealers. This limits the choice of the products you can vend, as different product categories might require different customisations to a vending machine.

Additionally, when it comes to restocking, you need not depend on individual service providers or other supply chains that may turn out to be unreliable in the long run.

3. Better quality of service

Providing cashless and quicker transactions to your consumer is one among multiple reasons your business requires an automatic vending machine. And when you buy vending machines there is a higher chance that you would invest in a brand-new machine with the best vending machine software. In relation to this, the performance and service provided will be way better than a previously used rented machine.

Cons of buying a vending machine

With the whole and sole ownership of vending machines comes the responsibility for their timely maintenance, repair, cleaning and restocking.

With Vendekin’s smart and cashless vending machine, you get free vending machine repairs and fixes for the first year as a part of our warranty.

Rent a vending machine

For many local businesses, the up-front cost of buying a vending machine is the biggest concern before venturing into the vending business. Hence they prefer to rent vending machines instead of buying them. Explore the advantages of renting an automatic vending machine below:

Pros of renting a vending machine

1. Lower Up-Front Cost

The most significant advantage of obtaining a vending machine on rent is that you would have made a minimal investment. The average rental cost starts from around ₹5,000 per month and can go up to ₹15,000. This effectively eliminates the intensity of expenses by cutting the sum cost over smaller periods of time.

This will however depend on the location, product type and size of the automatic vending machine along with the quality of vending machine software it is equipped with. In simple maths, you would have paid over 3-5 lakh in around three years depending on what is available to your nearest vending machine operator.

2. No expense over restocking or maintenance

It is natural that when you rent a smart vending machine the responsibility of restocking, regular maintenance, care and proper functioning of the machine is on the vending machine operators. When you rent a vending machine, these expenses are generally covered by the service provider as mentioned in the rental agreement over a monthly service charge. In most cases, the vendors will offer to stock the vending machine themselves depending on the product type.

You save a significant sum by reducing the cost of maintenance and cleaning when you rent vending machines over a period of time.

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So How Does a Smart Vending Machine Work Anyway?

Placed mindfully in parks, cafes, gyms, schools and housing apartments, there is a high chance, a smart vending machine will turn out to be a delight box for someone. Often stocked with goodies like snacks, refreshments as bizarre as paan, and even t-shirts, cashless vending machines in India are gaining more popularity.

Reports estimate that by 2032, the global retail vending machine market will reach an estimated value of US$ 130 Billion, attracting multiple businesses towards it.

And within this mesh of changes surrounding smart vending solutions, is an unanswered question, “how does a smart vending machine work?”

Let us dive a bit deeper to understand how a smart vending machine works.

Within the mysteries of vending machine operations:

To understand how a vending machine works one has to take into account its type, customised features and the specific technology used while making it. However, on an all-around spectrum, there are two types of vending machines in India:

1. Traditional cash or coin-operated vending machine
2. Smart and cashless vending machines.

This divergence stems from the user perspective or the way the customer interacts with the vending machine to complete a transaction.

How are Smart Vending Machine Operations Different from the Traditional?

In the case of a traditional vending machine, it is all about the spare change. The consumer is required to insert coins as per the product cost, press the right button and collect the product at the end. With little advancement in technology, these machines were soon customised to accept cash payments as well.

Some of the earlier vending machines like tea and coffee vending machines or soda vending machines in the early 90s were coin-operated. These machines mostly had spiral holders that would move in order to dispense the product.

Such vending machines worked unsatisfactorily as the coin often got stuck within the machine and made it a nil transaction. Moreover, it was difficult to refund the amount to the consumer instantly.

Then arrived the smart-cashless vending machines. These technology-driven smart machines permitted cashless transactions via multi-channel payment methods. Currently, digital payment gateways like credit/ debit cards and UPI are available on all smart vending machines in India powered by Vendekin Technologies.

The consumer needs to scan a QR code which will direct them to a web app page, where a catalogue of products appears. After selecting the product/s through the web page, they can simply proceed to pay digitally by scanning a QR code on the vending machine.

Making Life Easier: Smart Vending Machines

This wave of advancement has also allowed the customer to experience a more inclusive retail experience with minimal physical contact and shopping time, giving rise to contactless vending commerce.

Additionally, it allows the consumer to select multiple orders and pay a cumulative sum in the end instead of purchasing one product at a time.

Smart vending machine software like vNetra by Vendekin, also helps businesses track inventory levels, vending machine operating status and collect data on consumer buying patterns and much more. These kinds of benefits have made many big FMCG players like Coca-Cola and Haldiram switch and buy smart vending machines.

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How Vending Machines are Reshaping Retail & F&B

1st century A.D., Roman Egypt.

People eagerly wait with a token in hand to experience an engineering marvel called the vending machine.

It might seem unlikely but with a massive history of over centuries, vending machines have been a part and parcel of human civilization. From the holy water vending machine in ancient Egypt to the smart snack vending machine in India, it has left a great impact on the global consumer, particularly in the retail sector.

So much so that the market size of global retail vending machines was estimated at USD 51.91 billion in 2021. Moreover, the beverage retail segment contributed 43% of the global revenue with smart coffee vending machines and energy drinks in the lead.

Another modern impact of the vending machine is seen in the way it continues to reshape the retail and F&B sector, especially through new-age smart vending machines. Retailers and FMCG brands are keen to understand how vending machine companies in India are moulding the retail sector by tapping into contemporary consumer behaviour, which expects immediate solutions and instant gratification.

Understanding the role smart vending machines play in retail and F&B, therefore, starts with understanding consumer purchasing trends and behaviour.

What Is Consumer Buying Behavior in FMCG?

The vending market is expected to grow at a  CAGR of 8.7%  between 2020-2026 in India, anchoring the vending machine strongly in the Indian retail market. This massive growth results from the unique consumer purchasing behaviour in the F&B sector. The traditional neighbourhood kirana stores, malls and hypermarkets are now facing a push from the upcoming micro markets of smart vending machines in India.

Earlier the consumer would wait in line, and go through the bothersome process of finding spare change. Then a shift in consumer behaviour was seen with liberalisation and digitalisation, but the biggest wave of change came forth with the pandemic.

Post 2019 the same consumer is conscious about:

• making physical contact
• traditional payment methods
• the time consumed
• finding the exact product all the time, everywhere.

In other words, the buyer is more aware of the consumer experience. Today consumers demand a personalised experience with minimum human interaction. Thus making the Indian retail segment all about convenience. This micro-market has evolved to be interactive, immediate and immersive. 

And at the centre of this touchless, cashless and convenient experience is the smart vending machine.

Smart Vending Machine: The heart of retail and F&B sector.

As per the India Digital Payment Report for the third quarter of 2022, there were over  19.65 billion UPI transactions made, accounting for a sum of Rs 32.5 trillion. This, along with the growth rate of 71.7% for digital payment (by 2025) makes for a massive shift towards a cashless retail experience. In addition to this, the consumer demands for unmanned yet inclusive retail experience.

Adhering to the shifts in consumer behaviour, the retail market has turned towards micro markets of unmanned and cashless vending machines solving the following concerns:

Less physical contact

The consumer wants to have an inclusive and immersive shopping experience while maintaining minimum physical contact. A position that is rare to achieve in a traditional retail setup, especially in F&B retail as the consumer shops around various products to compare the prices and specifications.

Smart vending solutions address this concern in just one tap. By scanning a customised QR code, the consumers now can check out all the products on their devices and proceed to pay. This in turn is building a repetitive habit of lesser and lesser contact while shopping.

Vendekin, one of the top vending machine companies in India, provides an intelligent machine controller framework, including hardware and both a mobile app and web interface, that can help minimise physical contact by up to 95 per cent.

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In Conversation with Habib, Head, Machine Delivery

Vendekin Technologies is reshaping the unattended retail industry with its smart vending machine software. Taking its contribution one step ahead is its new Machine Delivery department. This In Conversation series explores this new wing of Vendekin with Habib Rajbar, Head of Machine Delivery.

Previously heading the R&D Electronic department at Vendekin, Habib and his team of 6 were responsible for designing, developing and testing smart vending machine management and softwares to suit the best needs of businesses and vending machine operators. With the same motivation, Habib now takes over as the head of the newest branch at Vendekin, the Machine Delivery department, as shared in excerpts from our conversation below.

What exactly is Machine Delivery in smart vending technology?

As the name goes, the Machine Delivery department ensures that the smart vending machines are 'delivered' to the customer as per their requirements, customisations and in the perfect condition. And to execute this to perfection, we identify the various requirements, abilities, capacities and limits of different types of vending machines, and help the customers in strategising more specific, more efficient, and more holistic smart touchless vending solutions for their products.

Our goal is that of transforming the Indian vending landscape by converting traditional vending machines into smart and automated vending machines alongside providing smart vending machine management software like vNetra and solutions like the Retrobox. This will enable existing and upcoming businesses to look at Vendekin as their one stop destination to identify and acquire unmanned vending machines customised as per their product requirements, and powered by Vendekin's smart, touchless and cashless vending solutions.

What gave rise to the creation of this department?

Heading the Research and Development wing at Vendekin for around 6 years made it clear how many of our clients had some very specific requirements to vend their products and even faced minor hiccups in their everyday operations because of some or the other technical difficulties with the machine they acquired directly from other manufacturers.

Though Vendekin’s vending machine management software ran efficiently, improper machines can sometimes cause unwanted hiccups. On several occasions the team has to brainstorm effective solutions even with limited information about the vending machines brought in by the client.

With all this in mind, we felt a need to widen the understanding of smart and touchless vending machines.

Which departments does Machine Delivery work with at Vendekin?

Currently Machine Delivery collaborates with the Research and Development department, the Operations team and the Consumer Success wing at Vendekin. From researching to sourcing the machine and from defining its requirements to testing, every task is carried out by Machine Delivery to help these departments.

Since the Machine Delivery department is fairly new it does not directly interact or deal with clients yet. All the client-communication is currently taken care of by the Consumer Success at Vendekin.

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