Significant Increase in Intelligent Vending Machines in the Asian Region

As reported by the Nikkei Asian Review. This surge is attributed not only to the widespread adoption of mobile payments in the region but also to the increased demand for contactless shopping due to the COVID-19 pandemic. The rise in labor costs has also played a role, positioning Asia at the forefront of unmanned vending globally.

 

In the streets of Bangkok, there is a notable addition of automatic beverage vending machines with large displays called "Tao Bin." People can select their desired beverages on the screen, make payment through their smartphones, and retrieve the drink from the bottom in approximately 80 seconds. As of the end of May, around 6,000 "Tao Bin" vending machines have been installed nationwide in Thailand, reportedly selling up to 200,000 cups per day.

 

What makes these vending machines popular is the variety of beverages offered at affordable prices. The menu includes 25 types of coffee, 20 types of tea, and a single machine can sell up to 170 different drinks. The prices are less than half of those at regular coffee shops, and sweetness levels can be adjusted based on customer preferences. A first-time American visitor exclaimed, "It's eye-opening."

 

In China, there is a growing presence of intelligent vending machines in places like stations. People can make payments using programs such as Alipay and WeChat, and some machines even support facial recognition payments. In addition to beverages, products sold include toys and mystery boxes.

 

According to the research company Euromonitor International, in the five years leading up to 2022, vending machine sales increased by 70% in Malaysia, 40% in China, and around 10% in Singapore and Thailand.

 

Apart from beverages, vending machines in the streets of Singapore and Malaysia also sell prescription drugs and nutritional supplements.

 

The development of vending machines is closely tied to the high prevalence of mobile payments. According to FIS, a U.S. financial technology services operator, 44% of transactions in Asia-Pacific region shops are conducted through mobile payments, surpassing North America and Europe.

 

In contrast, vending machines in developed countries are predominantly traditional models that only accept cash, and their popularity is declining. According to statistics, from 2017 to 2022, the market size of traditional vending machines decreased by 14% in Japan, 17% in the United States, and gradually dwindled in Germany, France, and other European countries.

 

This is partly due to the relatively good public safety in Asia, with fewer incidents of theft and vandalism. In Gallup's global "Law and Order Index," East Asia scored 94 points, and Southeast Asia scored 86 points, both higher than Europe and America.

 

China, as a major producer of intelligent vending machines in Asia, has overshadowed Japan, often referred to as the "Vending Machine Nation."

 

Kenichi Shimomura, an expert from Roland Berger International Management Consulting, pointed out that intelligent vending machines, through small investments, can grasp consumer behavior and purchasing intentions in various regions, making them valuable assets for the retail industry.