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MOBILE COMMERCE IN RETAIL
Opportunities provided by Mobile Commerce in Retail Industry
By: Mini Siddhartha Gautam
CONTENT
OBJECTIVE
COMMERCE
E
COMMERCE
M
COMMERCE
RETAILING
M COMMERCE
IN RETAILING
(Brick and
mortar)
OBJECTIVE
โ€ข OBJECTIVE
โ€ข Reason for study:
โ€ข B and M retailing that contributes to a large part of GDP are closing down, due to
โ€ข Weak economic climate
โ€ข Competition from online retailers
โ€ข Out of town destination centers
โ€ข As services and shopping move online, people are having less personal interaction,
affecting there sense of wellbeing
โ€ข Untapped potential in retailing for Mobile operators
โ€ข Aim of study:
โ€ข Provide a vision as to how mobile operators (with the help of govt.) can deliver value
added services, content and resources to support retailers and town centres
COMMERCE
WHAT IS COMMERCE
โ€ข Commerce - division of trade or production
โ€ข Deals with exchange of goods and services from producer to final consumer
โ€ข Comprises of trading economic value such as goods, services, information and
money between 2 or more entities
ELECTRONIC
COMMERCE
WHAT IS ELECTRONIC COMMERCE
โ€ข Commonly know as E Commerce/Marketing
โ€ข Is a part of Commerce
โ€ข Deals with buying and selling of goods and services over an electronic medium such
as internet
Commerce
E Commerce
MOBILE
COMMERCE
WHAT IS MOBILE COMMERCE
โ€ข Commonly know as M Commerce
โ€ข Is a part of E Commerce
โ€ข Deals with buying and selling of goods and services through wireless handheld
devices such as mobile phones, Personal Digital Assistant โ€“ PDA (smart phones,
tabloids, etc)
โ€ข History: 1997 โ€“ first 2 mobile phone enabled Coca Cola
vending machine were installed in Helsinki, Finland
Commerce
E Commerce
M Commerce
โ€ข SERVICES AND APPLICATIONS
โ€ข Mobile Banking
โ€ข Mobile Money Transfer โ€“ Use of wallets
โ€ข Mobile Purchases
โ€ข Mobile Browsing
โ€ข Mobile Marketing, Advertising and Re-advertising
โ€ข Information services โ€“ News, stock quotes, sports scores, financial reports, etc.
โ€ข Mobile vouchers, coupons and loyality cards
โ€ข Content purchase and delivery โ€“ sale of ring tones, wallpapers, games, etc.
โ€ข Mobile Brokage
โ€ข PAYMENT METHODS
โ€ข Premium rate telephone numbers
โ€ข Mobile operator billing
โ€ข Credit cards and debit cards
โ€ข Mobile Wallets โ€“ PayU, Paytm, etc.
โ€ข Micro Payment โ€“ for small amount payments โ€“ billed to phone bills, paypal, etc.
โ€ข Stored-value cards โ€“ e.g. iTunes
RETAILING
WHAT IS RETAILING
โ€ข Retailing is a business process
โ€ข It involves selling consumer goods and/or services
โ€ข Types : Brick And mortar (B and M) retailing and online retailing
โ€ข Involves channels of distribution
โ€ข Aim is to earn maximum profit
M COMMERCE
IN RETAILING
(B and M)
M COMMERCE
IN RETAILING
(B and M)
Mobile commerce today
Scale and diversity of retail
Opportunities for mobile operators
Challenges for retailers
MOBILE COMMERCE IN B AND M RETAILING TODAY
Consumer Demand for M Commerce in local retailing
What Mobile Operators are Supplying or can supply
โ€ข MOBILE COMMERCE IN B AND M
RETAILING TODAY
Consumer
Demand
Consumers willing to engage with retailers through mobile phones
Will adopt if it is easy to use and offer seamless experience across multiple channels (such as parking providers, restaurants, entertainment providers, etc.)
Alerts work best for location based deals and related to to products and services customer professed interest in
Interested in digital connect โ€“ product recommendation, demo videos, virtual โ€˜try onโ€™ simulations, etc.
Would be interested in mobile wallets (if it meant carrying no cash or credit card)
Better, simpler ways to complete payments
Want solutions that make the most of their budget โ€“ great deals, rewards, vouchers, etc
Appreciate information about products and interactive shopping guides
MOBILE COMMERCE IN B AND M RETAILING TODAY
Mobile
Operator
Supplies
or can
supply
Sim based NFC (Near field Communication) services
Mobile network can be used to send vouchers to be redeemd using NFC at checkout
Sim cards are used to secure payments
NFC, Quick Response (QR) codes and Barcodes to be aligned with existing checkout procedure
Interoperable Collaboration between mobile industry and other sectors (retail, transport, etc)
Creating a common framework across all service providers
Engaging with national/local govt., transportation bodies, banks, retailers and other stake holders
Building a common marketing platform
Wallet and payment focused with some loyality and couponing
MOBILE COMMERCE IN B AND M RETAILING TODAY
MOBILE OPERATOR
STATUS
SCALE AND DIVERSITY OF B AND M RETAIL
โ€ข SCALE AND DIVERSITY OF B AND M RETAIL
โ€ข Retailing segmentation
โ€ข Tier 1: Annual sales exceeding US $1billion
โ€ข Tier 2: Annual sales between US $100 million - US $1billion
โ€ข Tier 3: Annual sales below US $100 million
โ€ข Retail sector typically accounts for a large part of countryโ€™s GDP
โ€ข Retail is linked with 3 key sectors : tourism, night time economy (restaurants,
entertainment and bars) and parking
โ€ข Retailers plays vital role in providing social cohesion
RETAIL REVENUE
(USD $BILLION)
FACTORS
INFLUENCING THE
SUCCESS OF TOWN
AS RETAIL
DESTINATION
EXAMPLE OF EVIDENCE
OF CONSUMER
EXPERIENCES
UNDERSTANDING
HOW CONSUMER
MAKE DECISION
CONCERNS OF B
AND M RETAILERS
โ€ข Bringing more consumers and potential
consumers into stores
โ€ข Sell more products and services
โ€ข Optimise their business processes
PROPOSITION
ELEMENTS FOR
CONSIDERATION
CREATING A
COMPELLING
CONSUMER JOURNEY
OPPORTUNITIES FOR MOBILE OPERATORS
โ€ข To create individual or framework of secure end-to-end proposition for tier 1
retailers โ€“ individually or in collaboration with other operators
โ€ข Collaborate with other mobile operators to develop framework infracture for M
Commerce services for tier 1, 2 and 3
โ€ข Provide cross sector integration of wallets, payments, coupons and loyality
โ€ข Use sim card to authenticate consumers
โ€ข Increase security of M commerce services
CHALLENGES
in supporting wide range of value added services provided by m commerce
โ€ข CHALLENGES
โ€ข Technology Deployment:
โ€ข Mobile services need to integrate retailerโ€™s existing online and PoS systems and solutions
โ€ข NFC requires complex IT infrastructure which is expensive
โ€ข Some retailers already have different expensive IT infracture that would need to be changed to have cross ecosystem
standards to support interoperability
โ€ข Maintaining and leveraging joined up multi channel experience
โ€ข Services need to be secured enough to protect consumers, banks, payment schemes and retailers
โ€ข Education:
โ€ข Educating staffs to help customers use M Commerce is expensive
โ€ข Constant messages and icons needed to educate customers
โ€ข Business Model:
โ€ข Common network across multi mobile operators
โ€ข Interested in promoting their own in house app than wallet based on mobile operator solution
โ€ข Need full access to consumer data generated by M Commerce services
โ€ข Sharing transaction details with mobile operators is perceived as encroachment
โ€ข Doubt on return on investment on NFC
THANK YOU!!

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M commerce in retail

  • 1. MOBILE COMMERCE IN RETAIL Opportunities provided by Mobile Commerce in Retail Industry By: Mini Siddhartha Gautam
  • 4. โ€ข OBJECTIVE โ€ข Reason for study: โ€ข B and M retailing that contributes to a large part of GDP are closing down, due to โ€ข Weak economic climate โ€ข Competition from online retailers โ€ข Out of town destination centers โ€ข As services and shopping move online, people are having less personal interaction, affecting there sense of wellbeing โ€ข Untapped potential in retailing for Mobile operators โ€ข Aim of study: โ€ข Provide a vision as to how mobile operators (with the help of govt.) can deliver value added services, content and resources to support retailers and town centres
  • 6. WHAT IS COMMERCE โ€ข Commerce - division of trade or production โ€ข Deals with exchange of goods and services from producer to final consumer โ€ข Comprises of trading economic value such as goods, services, information and money between 2 or more entities
  • 8. WHAT IS ELECTRONIC COMMERCE โ€ข Commonly know as E Commerce/Marketing โ€ข Is a part of Commerce โ€ข Deals with buying and selling of goods and services over an electronic medium such as internet Commerce E Commerce
  • 10. WHAT IS MOBILE COMMERCE โ€ข Commonly know as M Commerce โ€ข Is a part of E Commerce โ€ข Deals with buying and selling of goods and services through wireless handheld devices such as mobile phones, Personal Digital Assistant โ€“ PDA (smart phones, tabloids, etc) โ€ข History: 1997 โ€“ first 2 mobile phone enabled Coca Cola vending machine were installed in Helsinki, Finland Commerce E Commerce M Commerce
  • 11. โ€ข SERVICES AND APPLICATIONS โ€ข Mobile Banking โ€ข Mobile Money Transfer โ€“ Use of wallets โ€ข Mobile Purchases โ€ข Mobile Browsing โ€ข Mobile Marketing, Advertising and Re-advertising โ€ข Information services โ€“ News, stock quotes, sports scores, financial reports, etc. โ€ข Mobile vouchers, coupons and loyality cards โ€ข Content purchase and delivery โ€“ sale of ring tones, wallpapers, games, etc. โ€ข Mobile Brokage
  • 12. โ€ข PAYMENT METHODS โ€ข Premium rate telephone numbers โ€ข Mobile operator billing โ€ข Credit cards and debit cards โ€ข Mobile Wallets โ€“ PayU, Paytm, etc. โ€ข Micro Payment โ€“ for small amount payments โ€“ billed to phone bills, paypal, etc. โ€ข Stored-value cards โ€“ e.g. iTunes
  • 14. WHAT IS RETAILING โ€ข Retailing is a business process โ€ข It involves selling consumer goods and/or services โ€ข Types : Brick And mortar (B and M) retailing and online retailing โ€ข Involves channels of distribution โ€ข Aim is to earn maximum profit
  • 16. M COMMERCE IN RETAILING (B and M) Mobile commerce today Scale and diversity of retail Opportunities for mobile operators Challenges for retailers
  • 17. MOBILE COMMERCE IN B AND M RETAILING TODAY
  • 18. Consumer Demand for M Commerce in local retailing What Mobile Operators are Supplying or can supply โ€ข MOBILE COMMERCE IN B AND M RETAILING TODAY
  • 19. Consumer Demand Consumers willing to engage with retailers through mobile phones Will adopt if it is easy to use and offer seamless experience across multiple channels (such as parking providers, restaurants, entertainment providers, etc.) Alerts work best for location based deals and related to to products and services customer professed interest in Interested in digital connect โ€“ product recommendation, demo videos, virtual โ€˜try onโ€™ simulations, etc. Would be interested in mobile wallets (if it meant carrying no cash or credit card) Better, simpler ways to complete payments Want solutions that make the most of their budget โ€“ great deals, rewards, vouchers, etc Appreciate information about products and interactive shopping guides MOBILE COMMERCE IN B AND M RETAILING TODAY
  • 20. Mobile Operator Supplies or can supply Sim based NFC (Near field Communication) services Mobile network can be used to send vouchers to be redeemd using NFC at checkout Sim cards are used to secure payments NFC, Quick Response (QR) codes and Barcodes to be aligned with existing checkout procedure Interoperable Collaboration between mobile industry and other sectors (retail, transport, etc) Creating a common framework across all service providers Engaging with national/local govt., transportation bodies, banks, retailers and other stake holders Building a common marketing platform Wallet and payment focused with some loyality and couponing MOBILE COMMERCE IN B AND M RETAILING TODAY
  • 22. SCALE AND DIVERSITY OF B AND M RETAIL
  • 23. โ€ข SCALE AND DIVERSITY OF B AND M RETAIL โ€ข Retailing segmentation โ€ข Tier 1: Annual sales exceeding US $1billion โ€ข Tier 2: Annual sales between US $100 million - US $1billion โ€ข Tier 3: Annual sales below US $100 million โ€ข Retail sector typically accounts for a large part of countryโ€™s GDP โ€ข Retail is linked with 3 key sectors : tourism, night time economy (restaurants, entertainment and bars) and parking โ€ข Retailers plays vital role in providing social cohesion
  • 25. FACTORS INFLUENCING THE SUCCESS OF TOWN AS RETAIL DESTINATION
  • 26. EXAMPLE OF EVIDENCE OF CONSUMER EXPERIENCES
  • 28. CONCERNS OF B AND M RETAILERS โ€ข Bringing more consumers and potential consumers into stores โ€ข Sell more products and services โ€ข Optimise their business processes
  • 32. โ€ข To create individual or framework of secure end-to-end proposition for tier 1 retailers โ€“ individually or in collaboration with other operators โ€ข Collaborate with other mobile operators to develop framework infracture for M Commerce services for tier 1, 2 and 3 โ€ข Provide cross sector integration of wallets, payments, coupons and loyality โ€ข Use sim card to authenticate consumers โ€ข Increase security of M commerce services
  • 33. CHALLENGES in supporting wide range of value added services provided by m commerce
  • 34. โ€ข CHALLENGES โ€ข Technology Deployment: โ€ข Mobile services need to integrate retailerโ€™s existing online and PoS systems and solutions โ€ข NFC requires complex IT infrastructure which is expensive โ€ข Some retailers already have different expensive IT infracture that would need to be changed to have cross ecosystem standards to support interoperability โ€ข Maintaining and leveraging joined up multi channel experience โ€ข Services need to be secured enough to protect consumers, banks, payment schemes and retailers โ€ข Education: โ€ข Educating staffs to help customers use M Commerce is expensive โ€ข Constant messages and icons needed to educate customers โ€ข Business Model: โ€ข Common network across multi mobile operators โ€ข Interested in promoting their own in house app than wallet based on mobile operator solution โ€ข Need full access to consumer data generated by M Commerce services โ€ข Sharing transaction details with mobile operators is perceived as encroachment โ€ข Doubt on return on investment on NFC