Beruflich Dokumente
Kultur Dokumente
Momentum
The mobile revolution in retailing
Marcos Gouvêa de Souza - CEO, GS&MD - Gouvêa de Souza
One issue that had an increasing importance in the 100th NRF’s Annual Convention, this month in New York, was
the revolutionary prospect the mobile technologies bring to retail. Recently, Starbucks announced it has implemented
mobile payment in 7,800 shops in the US, adding some caffeine to the issue.
After testing the technology in pilot projects in Japan, Korea and Brazil, as well as in other countries, Starbucks
shook the media with the announcement, as this move makes tangible many forecasts made by analysts. Even if, by
now, the process is available only for iPhone and Blackberry and linked to the chain’s payment and loyalty card, that
amounts for close to 20% of total transactions.
The speed of this process is remarkable, turning into dust the most ambitious forecasts made in the past. In
2005, estimates said mobile payment had reaches US$ 155 million in the world, expected to rise to US$ 10 billion
in 2010. NRF data released recently point to a volume of US$ 100 billion in mobile payments worldwide last year,
ten times the forecasts. And shall double in 2011 to grow to US$ 630 billion in 2014. And the reality may step over
forecasts, as happened in the past.
But the mobile revolution in retail has much broader aspects than payment, as this is only one of the possible
integration possibilities in the business scenario. Promotions, communications, relationships, sales, post-sales shopping
experience and real-time analysis and price comparison are other elements of a changing process.
Worldwide, the speed to which mobile will reshape retail businesses will
depend on the evolution of the smartphone base; of the post-paid phone share;
of the availability of solutions for the several platforms; of a cheaper access; of
each country’s regulations; and of retail’s and suppliers’ innovation capacity to
bring new alternatives in products, services and experiences.
One must argue on the speed of this revolution, but it is inevitable and
irreversible. And the most important factor is the number of mobile devices
available in the market, that in many countries, as in Brazil, with more than 200
million phone lines, has gone above one per person. In less developed countries,
as India, there is one phone for two people, but it amounts to “only” 700 million
phones!
The technology is available for all platforms and apps. The issue now relies
on bringing in, start using and spread the use of these alternatives. From the
more promotional and experiential to the more hands-on and operational, apps
will be launched by millions in the market and gradually used by customers and
companies, creating new personal relations with brands, products and stores,
in a more individual and customized perspective, favouring and speeding up its
daily use and rationalizing activities.
Momentum
Some of these apps will adapt to the mobile environment what has been available on the internet and it, alone,
has a relevant transformation power, allowing, for instance, real-time price comparison, inside a store, with other
channels and brands, before the actual purchase, giving more negotiation power to customers.
The same way it allows customers to look for new ways to use the desired goods when shopping or by updating
and supporting a consumer’s personal shopping list in a supermarket, bringing more convenience to consumers.
In this first age of the mobile revolution in retailing, the promotional and personal relationship elements are the
ones most likely to be added to the consumers’ habits and wishes. Offers, gifts, promotions and activations done
through mobile phones tend to be well received if offered in an innovative way, with real added value to customers.
The operational apps, bringing in or replacing functions before done in other ways, in the in-store price capture
and change; inventory management; monitoring of physical elements of the stores and distribution centers; performance
measure; shopper evaluation; traffic, conversion and satisfaction measures, and much more, bringing a new dynamic
to the entire retail business.
In a short time, to provide a mobile website, useful, updated, interactive and running in all platforms, as Grupo
Pão de Açúcar has launched recently in Brazil, will be the least consumers will demand. With the challenge of turning
it into an innovative and pivotal element in the relationships of brands, products and services with consumers.
Mobile coupons, directing consumers’ attention to some product or service in a store, tend to be a hit among
new apps, due to its real-time and measurable return characteristic, with some initiatives already in place in Brazil.
And in this aspect, the retail (and industry) advertising will be affected by the budget redirected from brand
awareness initiatives to other more targeted and able to be promptly measured, reshaping a new scenario in the
advertising and promotion media mix.
It’s not hard to imagine that, due to its transformation power, many large companies will have a CMOO, or Chief
Mobile Officer, coordinating and integrating all these mobile activities.
Brazil deserves a bright spot in this scenario, once it has gradually become a benchmark in this revolution,
with more than one mobile line per person (although 80% of the base is made of pre-paid phones); the presence
of younger consumers, more prone to try new things; the creativity of developers and mobile operators; and the
dynamism of the Brazilian market.