Mobile commerce experiencing strong growth in retail
IBM has issued a new report concerning the growth of mobile commerce in the retail sector. The report — “Online Retail Index” — shows that mobile commerce has been growing in popularity among mobile consumers that favor their smartphones and devices over traditional means of shopping. Many of these consumers have become very comfortable with the concept of shopping online but are becoming less likely to remain tethered to stationary computers while doing so. Mobile technology has allowed these tech-savvy consumers to shop wherever they are, enabling them to shop more frequently and, in some cases, spend more money.
Tablets contributing to expansion of mobile shopping
According to the IBM report, mobile commerce grew by 31% in the first quarter of this year, up from where it had been in the same period of 2012. The report notes that growing tablet use is a major contributing factor to the growth mobile commerce is experiencing. Many consumers consider tablets to be convenient mobile shopping platforms. Larger screens offer better functionality with conventional e-commerce sites, making these sites easier to navigate removing some of the problems consumers have had with purchasing products.
Online sales are becoming increasingly mobile
The report indicates that mobile commerce now accounts for 17.4% of all online retail sales. This is expected to grow in the future as more consumers become acclimated to the concept of mobile shopping and purchasing products with nothing more than their smartphones or tablets. IBM predicts that growth will be sustained by retailers’ ability to provide consumers with a positive shopping experience and their ability to cater to tablet users.
Interactive technologies help attract consumers to mobile commerce
The IBM report notes that the use of interactive technologies, such as augmented reality and QR codes, has helped boost the adoption of mobile commerce. These technologies have been able to engage consumers in a new and dynamic way, encouraging them to make purchases of products that they are most interested in. In the case of QR codes, consumers have been able to make use of retailer discounts at a higher frequency, as long as they purchase products from a mobile device.
IBM data shows that the companies that stand to benefit the most are not taking advantage of the opportunity.
According to data from IBM, manufacturers and retailers could take advantage of tremendous opportunities being offered by m-commerce, but are not prepared to do so to its fullest extent.
These organizations are not adequately positioned for effective movements within this environment.
According to IBM global electronics leader for global business services, Paul Brody, “I don’t think that either of them is well positioned to have a leadership position in the pocket of the consumer.” He expressed this opinion at the Consumer Electronics Show (CES) this year. He gave the m-commerce example of Square, which is a technology provider that allows consumers to make mobile payments at stores using their smartphones. This would allow for a hands free transaction.
For m-commerce this is the “prototype for the always-on, zero user-interface experience,” said Brody.
He took the mobile payments example to the next level by saying “Now imagine this technology for comparison shopping,” and added that “You are in the grocery store and they send you a message saying, ‘Why don’t you grab that roll of toilet paper because it is cheaper than anywhere else.’ I’m not sure that the retailers and typical OEMs have the technology and experience to focus on mobile vehicles to do that.”
According to another speaker at CES, the interactive marketing firm, SapientNitro’s chief experience officer, Donald Chestnut, explained that the behaviors consumers while both online and in-store is quite different from the way that they shop when they are sitting at their home computers.
He elaborated by pointing out that there are big box retailers that are now looking into this behavior and that are making efforts to leverage it by providing their associates with iPads so that customers within the store will be able to gain more information from the employees.
A recent m-commerce survey conducted by SapientNitro and GfK Roper showed that 70 percent of American retailers would like to be able to boost their shopping experience in-store. That said, when smartphone owning consumers were asked what they wanted, their response was that they would like more mobile friendly store flyers, to have downloadable in-store navigation apps, and the ability to use their devices for making payments.
