Sephora finds promise in focus on mobile commerce
Mobile commerce has been a very strong boon to the retail industry. Beauty products specialist Sephora has seen major gains through its focus on mobile commerce and consumers with mobile devices. Sephroa director of mobile and digital store marketing Johnna Marcus notes that the company saw a significant increase in mobile orders over the past year, as well as an increase in mobile traffic. The company is expected to see similar results in 2013 as it continues its focus on mobile commerce.
Company sees 167% spike in mobile orders
According to Marcus, Sephora saw a 167% increase in mobile orders in 2012 and a 75% increase in online traffic from mobile devices. The company attributes these results to its ongoing campaign to engage consumers through a variety of mobile initiatives and services tailored for mobile commerce. One of the measures Sephora has taken to engage mobile consumers comes in the form of an application, which provides users with an array of “personal assistant” features that could be useful in shopping.
Retail mobile commerce expected to account for $37 billion in 2013
A recent report from eMarketer, a leading market research organization, predicts that consumers will purchase more than $37.44 billion in retail goods this year. All of these purchases will be done from either a smart phone or tablet, thanks to the growing variety of mobile commerce services being made available to consumers. Sephora expects to see a significant number of its sales come from the mobile space.
Sephora not alone in focus on mobile commerce
Sephora is not the only retail company that has high hopes hinging on mobile commerce. Indeed, mobile commerce seems to be all the rage within the retail industry, with many companies working on ways to directly engage mobile consumers and encourage mobile shopping and spending. Much of the interest surrounding mobile commerce in the retail industry may come from the strong results retailers saw during the 2012 holiday shopping season, when many of their most ambitious mobile commerce initiatives paid off.
Today’s businesses must not only go mobile, but must do it while keeping up with other trends.
Shopping via mobile commerce is undergoing exponential growth, and as smartphones become increasingly popular and customer awareness of how to take part in the many different forms of the sector – from information to discounts to purchasing – it is only expected to skyrocket further.
eBay and Nielsen have each released the retail trends that start with smartphones and work outward.
The latest eBay Online Business Index (OBI) has shown that approximately half of all of the participating businesses had stated that they would be optimizing their online content for mcommerce. Nearly another quarter – 24 percent – stated that they would be developing a site meant specifically for mobile, while over 20 percent said that they would be creating an app.
The reason is that consumers want to be able to interact with their favorite companies through mobile commerce.
The most recent annual Nielsen Retail and Shopper Trends Report identified a wide list of trends that represent the way that the marketplace is shifting. Top among them is mcommerce, but it is clear that many of the other trends are closely linked to this sector and must be woven into its strategies.
Among these trends are the following:
• Mcommerce – this holds the top spot because its growth and hype is simply unmatched. It is a trend that is acting like a craze, as consumers find themselves equipped with everything they need once they purchase a smartphone. eBay, itself, just experienced its 100 millionth download of its app, and has now recorded 100 million mobile listings.
• Private labels sliding – Nielsen’s report showed that there has been a slip of 0.7 percent in the overall penetration of private labels. This is especially true in the grocery sector. Branded products emphasis by top retailers has been a primary driver in this trend. It shows that price wars are fierce and that shoppers are looking for the best deal and not necessarily the store they used to automatically choose. Mcommerce can benefit greatly by this knowledge, as can those who are marketing over mobile channels.
• Price importance – the latest report from Nielsen showed that the awareness of price among shoppers has risen significantly. Two years ago, fewer than 50 percent of consumers felt that they felt confident that they knew the prices of the products that they purchased the most frequently. This leapt to 60 percent this year. Price is a key factor in purchasing decisions, particularly with the movement away from private labels. As mobile commerce is a sphere where a consumer can comparison shop among dozens, if not hundreds of different shops for the same or a similar product, prices must be competitive and easy to obtain, while value must be clearly demonstrated.
