Retailers in Canada might have trouble engaging mobile consumers
Canadian retailers may be in for a turbulent holiday season. Price wars and consumers skittish about mobile and e-commerce may put retailers under significant strain this year during the months of November and December. The growing prevalence of mobile commerce, in particular, may make it harder for some retailers to find traction with many people. These retailers have been investing heavily in their mobile infrastructure, but they may not see returns due to the fact that many consumers are not yet comfortable with the idea of shopping online with a mobile device.
WalMart sees troubling trends emerge in the retail market
WalMart has big plans for the holiday season, as usual, but the company notes that it is seeing trends emerge in the global market that could be trouble for the retail industry. According to David Cheesewright, president of WalMart’s international division, growing competition from companies like Amazon may present problems for traditional retailers. Traditional retailers are having price skirmishes with online companies, and consumers are beginning to favor the latter because of the digital services they offer.
Consumers comfortable with mobile shopping are visiting physical stores less frequently
Many people are still uncomfortable about mobile commerce, but those that are not are spending more money when shopping online from a mobile device. Companies like Amazon are taking steps to provide these people with an enjoyable online shopping experience and as consumers become more involved in digital commerce, they are beginning to shop online more than they visit physical stores.
It may be too late for retailers to adopt mobile initiatives to connect with consumers before the holidays
Mobile commerce has proven to be quite powerful during the holiday season. Shopping from a mobile device helps people avoid long lines and they can benefit from having products delivered to their homes relatively quickly. Retailers that have avoided the mobile space, or have a relatively small presence therein, could find it difficult to connect with consumers in a significant way, and it may be too late for them to introduce effective mobile initiatives before the holidays are here.
The report also shows that consumers are more willing to spend money on optimized sites. Mobile shoppers spent an average of 70% more money on a mobile optimized site than on non-optimized sites. Smartphone users are also spending more money than those shopping from a PC or laptop, according to the report. Impulse purchases may be part of the reason behind this, as mobile shoppers are more inclined to make a seemingly spontaneous purchase than those shopping on a PC or laptop.