Your phone...the new store - Change Agent

Your phone…the new store

In an age where mobile ownership veers on being a necessity rather than an accessory, mobile shopping is the next best bling.

    July 2011

By Andre Cooray

It won’t be long before mobile shopping is something busy modern consumers can’t live without. Especially when it allows consumers to literally get in touch with the brands they love.

According to Rohit Dadwal, Managing Director of the Asia-Pacific branch of the Mobile Marketing Association (MMA), in places like Hong Kong and Singapore there are more mobile phones than people. A study earlier this year by the MMA in conjunction with InMobi found that 80 percent of mobile web users in the Asia-Pacific region made a mobile shopping purchase recently, and shoppers between ages 15 to 64 prefer shopping with mobiles to shopping on computers by more than a two to one ratio.

Savvy consumers with raised expectations, not to mention a growing appetite for apps, want a one-stop shopping site via their smartphones, tablets and laptops that adds value and is as informative as it is engaging and interactive. Retailers that can deliver the goods in these terms will tap into levels of brand loyalty and consumer interest like never before.

Mark Berry, Head of Shopper Insights for Synovate, says: “Mobile technology can be a great benefit to retailers, but they need to experiment in this new mobile world to make sure they are on the right strategic track. There is much at stake.  For example, if I am shopping in a consumer electronics store and can easily use my phone to compare the price of a product I am considering at other stores or online (and potentially purchase that product from my phone), the phone then becomes the store…and the store becomes a showroom. This kind of transparency in price and mobility of purchase fundamentally changes the game. Previously retailers could count on having a shopper’s exclusive attention while in the store…the not-to-distant future looks quite different.”

“Brands need to differentiate their product from their competitors’ with new mobile technology, be it through QR codes, Location-Based Services (LBS) or Augmented Reality. Consumers want to interact with the brand and not depend on ‘Big Brother’ type marketing,” says Dadwal. He goes on to explain that customised and targeted messaging will enable brands to create a sense of loyalty. However, this can only be achieved through continued engagement with consumers, such as having them opt-in to receive regular mobile notifications about promotional offers, products and events. Once permission is granted, patrons of a brand become more receptive to marketing efforts and willing to give personal information, in exchange for special deals. At the same time brands will also have to come up with innovative ways to feature their products through mobile devices.

Dadwal recalls a recent Converse campaign in which users could virtually try on shoes on their mobiles before making a purchase. “This innovative use of augmented reality allowed consumers to see how the product would look on them,” he said. It also addressed a major concern with mobile and online shopping - people not being able to see what products will look like on them.

“This level of interactivity and engagement will make the whole process of mobile shopping much more interesting, and ensure that consumers get accustomed to and welcome it on their mobile devices,” Dadwal enthuses. That said, for campaigns to be truly successful they need to integrate mobile technology with other traditional and digital media. The beauty of the mobile platform is that it is both a channel and a connector of other channels.

Another example that enables consumers to be more involved in brands is last year’s ‘Catch-a-Choo’ campaign by Jimmy Choo. The promotion gave patrons an opportunity to win pairs of their latest shoes. “Mobile users could get clues from Twitter, Facebook and Foursquare as to where a specific Catch-a-Choo person is. This brought real world engagement from a brand on mobile,” Dadwal notes.

Creating interesting, fresh content is another way to drive traffic to mobile and online sites, holding consumers there for longer and selling products. Fashion labels, for instance, may collaborate with high profile editors, designers and filmmakers to produce content related and authentic to the brand.

One company going full steam ahead on the m-commerce train is Chic Outlet Shopping, a collection of nine shopping villages by Value Retail. The malls are dotted across Europe in places such as Paris, Milan and London, and feature big discounts on top brands in its 900 boutiques. Available in 11 languages, its website www.ChicOutletShopping.com includes Google maps, web TV, online coach booking service, newsletters, seasonal and regional guides, digital calendars and magazine style content. They also have their own mobile site, free downloadable apps for the iPhone and Android, and a blog. “Our customer wants a site that is relevant, easy to use, and easy to load in their selected language,” says Andres Sosa, Senior Digital Manager at Chic Outlet Shopping.

The innovative company is setting an example by looking for new ways to get closer to its customers and ensuring that they can access the latest information about the brand, whenever and wherever they need it. “The introduction and development of digital initiatives to our marketing campaign provides us with a wealth of opportunities to engage directly with our global audience,” Sosa points out. He also highlights that their strategy, which offers the right balance of functionality and exclusive content, is literally putting the brand in the hands of consumers.

Today people communicate via mobile, social media and online, which are arguably the shopping centres of the future. Dadwal says that when it comes to technology, all too often marketers are playing ‘catch up’ with consumers. So to remain relevant and take advantage of the mobile user demographic, brands need to generate cutting-edge shopping solutions that are intelligent, engaging and compelling to use.

“With the total number of mobile subscriptions in Asia exceeding 2.65 billion and the readiness of consumers to engage with brands on the platform, it would be foolish for brands to not keep up with changing technology, especially on the mobile device,” Dadwal says. 

 

Contact Mark Berry, Head of Shopper Insights for Synovate, at mark.berry@synovate.com for more information.

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