Canon Hongkong and NTT Communications (NTT Com) announced today a partnership to launch a new Video Analytics Cloud Solution (VAS) that will reinforce and strengthen the retail market in Hong Kong by providing state-of-the-art digital technology that merchants need to hone their competitive edge and respond more quickly to market trends.

The new Video Analytics Cloud Solution is unique as it combines the best-in-class technologies of two global leaders – Canon’s advanced network camera technology and video analytics software, and NTT Communications’ robust and secure Enterprise Cloud services, to capture and deliver a high volume of business intelligence on a single platform, in real time with exceptional visibility, reliability and security.

Speaking of the collaboration, Mr. Shunichi Morinaga, President and CEO of Canon Hongkong Co., Ltd. said, “Canon is delighted to partner with NTT Communications, the global ICT solutions provider, to introduce a smart and reliable business solution for retailers in Hong Kong that will enable them to increase revenue as they face the dual challenges of increasing competition and an uncertain economic climate. We believe that real-time business intelligence can be a game changer for the Hong Kong market, especially in the retail industry.”

“In today’s lightning-fast marketplace, retailers are racing the clock every day to understand and respond to customers’ demand with increasing speed and agility. By offering the Canon’s Video Analytics Solution on our Enterprise Cloud, we provide Hong Kong retailers with secure access to critical business data and intelligence anytime, anywhere in a secure and flexible way. NTT Com’s top-tier data center infrastructure and network connectivity, has made us a reliable partner to both Canon and other retailers in delivering a fast and winning customer experience.” Mr. Hideaki Ozaki, President and CEO of NTT Com Asia said.

For example, one technology called a people counter can analyse roughly 1,600 customers in a specified area using surveillance video, which then converts the data into useful business metrics.

Another technology uses facial recognition to analyze a consumer’s age, gender, and ethnicity. This approach can help businesses to assess demographic distribution and develop consumer profiles.

Anther approach uses heat-mapping technology to enable shopping malls managers and real estate developers to track foot traffic. The tool can be used to identify popular areas and attain rent optimization or be used to better allocate resources.

For retail shops, a heat-mapping solution provides insight on peak shopping periods, and seasonality, enabling shop owner to improve manpower management and resource allocation.

Fast food chains can also use the technology to improve the consumer experience and reduce waiting times.

The data derived from the system can also be used to improve product displays and marketing campaigns.

The data is hosted on NTT Communications’ cloud and data center infrastructure in Hong Kong. Clients can access the cloud through desktops and mobile devices.

When asked if the service would spark privacy concerns, a Canon spokesman said companies must define how they use the data and bear all legal responsibilities.

“The service aims to analyse general patterns,” said Philip Chan, Canon Hong Kong’s director and general manager. “In terms of providing better service to customers, clients have to sort out arrangements with their customers.”

According to Technavio, the global video analytics market is expected to grow rapidly and will post a compound annual growth rate of close to 34% over the next few years.