M commerce becomes critical for retail industry


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M commerce becomes critical for retail industry

  1. 1. ©2012 by EliNext GroupM-commerce becomes critical forretail industryThe expansion of wirelesscommunications servicesand ubiquity of mobiledevices alter the retaillandscape, creating anarray of opportunities formerchants. An increasingnumber of retailers launchmobile sites and apps,which leads to theproliferation of m-commerce sales.
  2. 2. ©2012 by EliNext GroupThe quantity of people using web-enabled handheld devices isgrowing. This implies that shoppers can be engaged wherever theyare – both in the store and out of the store. According toEuromonitor International, world Internet retail sales are expectedto expand by 62.6% in real terms over 2011-2015, making up60.6% of total non-store retail sales by 2015. If to take the USmarket, Forrester forecasts that m-commerce in this country isexpected to reach $31 billion by 2016.In addition to that, 56 of the top 100 retailers in the US in 2011already had an Android, iPad, or iPhone m-commerce application.However, mobile commerce is typical not only of big brands withhuge budgets. Both large and small merchants can harness themobile channel without incurring heavy costs.Mobile technologies to a great extent augment the traditionalshopping experience. Consumer mindsets and expectations todayare that they should be able to find and purchase anything with thehelp of a smartphone or a tablet. Many retailers often start with amobile-optimized web site to reach the audience, and then developrich apps for iPhones, Android-based devices, other smartphonesand tablets. The sophistication of such apps can range greatly –from basic store finders and deal-of-the-day tools to engaging,interactive platforms that immerse consumers deep into the brandexperience.Therefore, mobile devices can be considered as a browsing channel
  3. 3. ©2012 by EliNext Groupand as a transactional channel. For a growing number of consumerssmartphones and mobile apps are turning into real shoppingcompanions. Consumers can use them to scan QR codes incatalogs and retail stores and get product information, read ratingsand reviews, compare prices, check for promotions, as well asmake purchases. In addition to that, retailers nowadays implementin stores NFC-based (near field communication) mobile paymentterminals.Figure 1: Mobile commerce sales forecast in the US ($B)Source: Forrester, June 2011The beauty of m-commerce is that retailers can leverage mobilesolutions to increase sales and customer loyalty, and also useconsumer analytics to get a better understanding of shoppers’interests, desires and buying behavior. For these purposes, m-
  4. 4. ©2012 by EliNext Groupcommerce professionals at retail companies cautiously considermany questions, such as how many devices to bet on, whether topartner with third parties, what functionality should apps have,how to effectively integrate mobile solutions into store operations,and what is the impact of mobility on overall sales.Furthermore, the most innovative retailers are engaging theirconsumers inside social networks with promotional activities andother strategies that build loyalty and goodwill. The data exchangebetween retailers and social networks can bring merchantsbusiness-critical information and offer new insights into the psycheof shoppers. Some researchers predict that by 2015, circa 50% ofthe leading retailers will be creating and executing real-timepersonalized offers for their best consumers.In order to keep customers engaged, merchants need to provide
  5. 5. ©2012 by EliNext Groupthem with value, convenience and innovation. This can beachieved with the help of m-commerce, which is expected tofurther stimulate the development of the retail industry.Industries and Technology Areas:Industries: retail, m-commerce, online shoppingTechnology Areas: mobile application development, smartphones,iPhone, iPad, iOS, Android, BlackBerry, Windows Mobile, tablet,PDA, NFC, QR codes
  6. 6. ©2012 by EliNext GroupELINEXT GROUPWebsite: http://www.elinext.comEmail: info@elinext.comBlog: http://software-topics.comFacebook: http://www.facebook.com/elinextTwitter: https://twitter.com/elinextDelicious: http://delicious.com/elinextgroupIreland officeMarina House, Adelphi QuayWaterford, Republic of IrelandPhone: +353 (51) 347 477Belarus Development Center155b Bogdanovich St.220040 Minsk, BelarusPhone: +375 (17) 237 53 65Vietnam Development Center37A Phan Xich Long St.Ward 3, Phu Nhuan DistrictHo Chi Minh City, VietnamPhone: +84 (8) 3995 6849Suggested citation: EliNext Group.2012.“M-commerce becomes critical for retail industry”<http://www.elinext.com/m-commerce-becomes-critical-for-retail-industry>