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1. MobileCommerceReport2011:MobileinRetail
Mobile in Retail
Mobile Commerce Report 2011
The consumers’ perception of the HotShopper pilot and Opportunities and challenges for brand owners and retailers
2.MobileCommerceReport2011:MobileinRetail2. MobileCommerceReport2011:MobileinRetailA cooperation between:
Mobile in Retail
Mobile Commerce Report 2011
The consumers’ perception of the HotShopper pilot and Opportunities and challenges for brand owners and retailers
MobileCommerceReport2011:MobileinRetail 3. 3.
Table of Contents
TableofContents
01. Executivesummary 4
02. Introduction 6
03. Trialbackground 8
04. Vocabulary 10
05. Theconsumers’perception 12 oftheHotShopperpilot
5.1. Mobilephonesarealreadyapart 12 ofmanyconsumers’shoppingexperience
5.2. HotShopper:wellreceivedasaconcept 12
5.3. Thescanningexperiencemustbeimproved 14
5.4. Moreintegrationrequested 14
5.5. Mobileappsforotherkindsofshopping 16
5.6. Conclusion:Consumerswantintegrationon 17 threelevelsbutwheredoesitstart?
06. Opportunitiesandchallengesfor 18 brandownersandretailers
6.1. Anewmarketingtoolwithmanyadvantages 18
6.2. Whyaremobileappssointerestingforbrand 18 ownersandretailersintheFMCG-sector?
6.3. Potentialbarriersforbrandowners 21 andretailers
07. Extendedpackaginginformation 22 requiresaneffort
7.1. Standardizedandnon-standardized 22 information
7.2. Cooperationandstandardization 23 –competitiveadvantages
08. Areyoureadytogetstarted? 24
09. Contributorstothereport 26
10. Aboutus 28
4. MobileCommerceReport2011:MobileinRetail
01.ExecutiveSummary
Executive Summary
Inordertoseewhatopportunitiesexistforusingthemobilephonetoenhanceconsumers’shoppingexperi-ence,weranalivemobilecommercetrialatICAMaxiLindhagenHypermarketStoreinStockholminSeptember2010.Inthetrial,35consumersequippedwithaAndroid-basedHotShoppermobileappscannedArladairyproductsinordertofindmoredetailedinformationaboutingredi-entsandadditives;togetinspirationforrecipes;andtogetspecialoffers,amongotherthings.
Insummary,therespondentswereconvincedthataHotShoppertypeofservicewouldsoonbecomereality.Theyimmediatelyrecognizedtherelevancefortheirdailyshopping:Simplyput,theyperceivedtheinformationinthephonetobebetterthanonthepackage.
Consumersinthestudyexpressedthefollowingshop-pingexperienceneeds:
1. Aneedforintegrationofallinformationinthegrocerystore:packaging,andpriceinfo,self-scanning,specialoffers,loyaltycardsandpayments.
2. Aneedforbetterintegrationofgroceryshoppingintoeverydaylife:scanningadsathome,writingshoppinglists,in-storeshoppingconvenience,andusingrecipesinthekitchen.
3. Aneedtoextendtheshoppingconven-ienceandcontrolprovidedbytheHot-Shopperappbeyondgroceryshopping.
Thesethreeneedsopeninterestingopportunitiesforbrandownersaswellasforretailers,sincemobileappsareacomparativelycheapwaytocommunicatedirectlywiththeconsumer.Mobileappsalsomovethestoreclosertotheconsumer,bybeingpresenteveniftheconsumeriselse-wherethaninthephysicalstore–andgives“retail”amuchwiderscopecomparedtowhatithasbeenuptonow.
Wewillsee–andhavealreadyseen-someindustryplay-ersmovingrelativelyquicklyintomobileappsandextendedproductinformation.Cooperationarounddistributionofpackagingcontentwouldalreadynowimprovecostef-ficiency,andearlystandardizationwouldimprovescalabilityofsolutions.
OneimportantfocusoftheHotShopper-projecthasbeentoenablebrandowners,retailers,mobileoperators,soft-waredevelopers,serviceandsolutionprovidersandorgani-zationstoworktogether.Theprojecthasclearlyshownthatthisispossible,andthatcollaborationgivesgoodresults.Inaddition,standardizationandtheuseofwidely-spreadandfuture-prooftechnologiesareoftenbothcost-efficientandsustainablewaystogo.Itisnowuptothepartiesineachindustrytomoveforwardwithstandardizationandcollabo-rationinrelevantareas.
Mobilephonesarebecomingpartoftheshoppingexperience.EveninasmallcountrylikeSweden,weseearoundonemillionSMSusersingrocerystoreseverydayoftheweek.Whensmart-phonesbecomeubiquitous,mobileinternetaccesswillchangehowconsumersshopforgroceries.
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6. MobileCommerceReport2011:MobileinRetail
02.Introduction
Introduction
Whataretheopportunitiesforusingthemobilephonetoenhanceconsumers’shoppingexperience?Andhowcanwebenefitfromthefactthatthemobilephoneisalreadyapartofmanyconsumersshoppingexperience?
Europeansshopforgroceryproducts3-5timesaweekonaverage–andforotherthingsonlyonceperweek.AmongEuropeanswhodogroceryshopping,around30%weredailySMSusersalreadyin2008.EveninasmallcountrylikeSweden,thisistranslatedtoaroundonemillionSMSusersingrocerystoreseverydayoftheweek.Wehaveseenindifferentstudiesthatsomeofthatmobilecommu-nicationtakesplaceinstores,meaningthatgoodin-storecoverageformobilephoneshasbeenanimportantmatterforretailersforseveralyearsalready.Giventhatthemobilephonehasbecomeanaturalpartofeverydaylifeforalargemajorityofpeople,havingbadin-storecoveragemeanshavingfewercustomers.Andwithin-storemobilephonecoverage,customersalsocommunicatewithotherfamilymembersabouttheiractualshopping,possiblyincreasingsalesevenmore.
So,itisimportanttounderstandthatthemobilephoneisalreadyanintegratedpartofthegroceryshoppingexperi-ence,anditisalreadyaffectingsales.WhatweareseeingnowinEuropeistheexplosiveriseinpopularityofanewgenerationof“smartphones”thatarefundamentallybuiltaroundhavingmobileinternetaccess(suchastheiPhoneandAndroidphonesliketheSonyEricssonX10)andmobileinternetaccessincreasinglyintegratedintoeverydaylife.
ForamajorityofEuropeanconsumers,theinternetisnowusedona24/7basis,meaningthattherearefewwalksof
lifenotbeingaffectedbytheinternet.Manyanalystspredictthatinternetinmobilephoneswillbecomejustasperva-siveasitnowisoncomputers.Giventhatwehavealreadyseenthishappeninginothermarkets(notablyJapanwhereroughly70%ofallmobilephoneownersnowaccesstheinternetonadailybasis),weagreewiththisprediction.
Whensmartphonesbecomeubiquitous,mobileinternetaccesswillofcourseaffectthegroceryshoppingexperience.Butratherthanjustlettingconsumersbringtheirownmo-bileinternetexperiencesintothestore,shouldtheretailerstakeamoreactivepartinthis?Andifso,whatcantheydotoactivelyenhancetheshoppingexperience?ThosewerethequestionswehadwhenenteringintotheHotShoppertrial.Notonlydidwefindverycompellingreasonsforretail-erstotakeanactivepartinthein-storemobileexperience,wewerealsoabletowitnessfirst-handhowconsumersbydownloadingamultitudeofapps(smallmobilephoneapplications)thataredirectlyrelatedtoallvariouswalksofeverydaylife–shoppingincluded–arenowactivelytakingpartintransformingtheveryfoundationsoftheinternetitself.Wearewitnessingtheriseofaninternetwhereeve-rydaymobilityisbecomingthefundamentalfocusforappdevelopment:Aninternetwheremostifnotallmainstreamusageisfocusedonwhatwedodifferentlyindifferentloca-tions.Thisfactwillofcoursehaveimplicationsonandgivealotofopportunitiesforretailbusiness.
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8. MobileCommerceReport2011:MobileinRetail
Trial background
Aprototypesystemforextendedpackaging,i.e.retriev-ingextendedproductinformationviathemobilephone,wasdevelopedespeciallyforthetrial.Inthetrial,35consumerstriedouttheHotShoppermobileappintheICAMaxiLindhagen-storeduringatimeperiodoftwoweeksperindividual.AllparticipantsweregivenSonyEricssonXperiaX10phonespre-loadedwiththeHot-ShoppermobileappandinstructedtoscanArlaproductsinthedairydepartmentofthestore.
Theconsumersinvolvedinthetestwereyoungcouples(20-30yearsold)andfamilieswithchildrenathome(25-55yearsold).Theparticipantswereratherfrequentmobilephoneusersbutnotallofthemhadusedsmartphonespriortothetest.Thegroupcomprisedamixofmenandwomenwithdifferentlevelsofeducationandincome.AllconsumerswerefrequentcustomersoftheICAMaxiLind-hagenstoreandweremembersofICA’sloyaltyprogram.
ThetechniqueusedintheHotShopperappisbased
onbarcodescanningwiththehelpofthecameraofthemobilephone.
Thetrialhasbeenevaluatedbyanexternalresearchinstitute.AsthestudywaslimitedtoasmallnumberofconsumerslivinginthesametypeofhousingareainStockholm,itwasdecidedtouseaqualitativemethodtoevaluatethetrial.Theresearchinstituteconductedanumberofstudieswiththeconsumersthatparticipatedinthetrial:pre-study,shopalong,post-studyandfocusgroups.Itisnotpossibletomakestatisticalconclu-sionsfromthestudy,asthepopulationwaslimitedto35consumers.Insteadwehaveobtainedanextensiveunderstandingfromaconsumerpointofviewabouthowmobileappscanenrichtheshoppingexperiencetodayandinthefuture.
Thisreportcoversasummaryoftheconsumerstudiesaswellasanalysescarriedoutbytheprojectteamonhowmobileinretailmayaffectbrandownersandretailers.
EricssonResearchandGS1Sweden/ECRSwedenhaveto-getherwithArlaFoodsandICASweden–bothrepresentingECRSweden–runalivemobilecommercepilotinarelativelynewICAMaxiHypermarketStoreinStockholm,ICAMaxiLindhagen,inSeptember2010.Thepurposeofthetrialwastoexploreifandhowmobilephonescanfacilitateshoppingofconsumergoods,primarilygroceryproducts.
03.Trialbackground
9.
FindFindinformationofaproduct’scontents,e.g.ingredients,additivesandeco-labellinginformation
InspireGetinspirationfromrecipesaswellassomeotherinformationabouttheproducts
ShareShareyourexperiencewithfamilyandfriendsthroughFacebookupdates
SaveFindspecialoffers
AvoidAvoidacertainadditive
TheHotShopperappconsistsofthefollowingmainfeatures:
Fig:1 ExamplesofscreenshotsfromtheHotShopperapp.
10. MobileCommerceReport2011:MobileinRetail
4G4Gisthefourthgenerationofmobilenetworkstandards,alsoreferredtoasLTE(Long-TermEvolution).Thenextevolutionarystepofmobiletechnologyallowingdataratesabove100Mbps.
Contentprovider Theplayerthatprovidesthecontenttothemobileapp,forexamplebrandsprovidingproductinformation,recipesetc.
FMCG FastMovingConsumerGoods.
HotShopper Theprototypemobileappdevelopedforthetrialpresentedinthisreport.
Mobileapp Softwareinstalledonthemobilephonethatinteractswiththenetworktodeliveraservicetousers.
Mobilebarcodescanning Barcodescanningusingthecameraonthemobilephoneandsoftwaretodecodethecontentofthebarcode.
MobileInternet Referstoaccesstotheinternetfromamobiledevisesuchasasmartphone.
MobileservicesEverythingyoucandowithamobilephone.Inthisreportwemainlyfocusonappsandmobileweb,butmobileservicesareforexamplealsoSMSandvoice(i.e.thebasicfun-ctionofbeingabletotalkinamobilephone).
NFC–NearFieldCommunication
Awirelessshort-rangecommunicationtechnologythathasanoperatingdistanceofafewcentimetres(simplyholdtwodevicesclosetoeachother).NFCcanbeusedforbothcommunicationandidentification.
Serviceprovider Theplayerthatoffersthemobileservicetotheconsumer,e.g.aretailerorabrandowner.
Shopper Aconsumerinthepurchasingsituation,forexampleinagrocerystore.
SmartphoneAsmartphoneisamobilephonethatoffersmoreadvancedcomputerabilitythananaveragemobilephone.InthistrialasmartphonespecificallymeansaphonethatusestheHotShopperappandscansabarcode.
04.Vocabulary
Vocabulary
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12. MobileCommerceReport2011:MobileinRetail
05.Theconsumers’perceptionoftheHotShopperpilot
The consumers’ perception of the HotShopper pilot
5.1 Mobile phones are already a part of many consumers’ shopping experience
Whentestingaprototypesoftwaresystem“live”onnormalconsumers,theruleofthumbinthemarketresearchindustryisthateverythingthatcangowronginfactwillgowrong.Andevenifusersareabletoactuallytryoutthesystemontheirown,theyarequiteoftenmoreinterestedintalkingaboutthingsthatthetestersarenotinterestedin–suchasthecolourorshapeofthemobilephoneratherthantheapptheyweresupposedtoevaluate.Onlyrarelydoesnotonlythesystemworkasintended,buttheusersalsofocusonwhatthetestersareinterestedinfindingout.
TheHotShoppertrialisoneofthoseraresuccesscases.
Althoughrespondentshadtouseanotherphonethantheirownduringthetrial,thisturnedouttobeverylittleofanissue.Manyalreadyhadasmartphoneandthosewhodidnotyethaveonehadalreadygrownaccustomedtoseeingotherpeopleusingsmartphoneseverywhereandinallkindsofsituations.Thegeneralperceptionofsmartphonesamongtherespondentswasthattheywereeasytouseandthattheysetastandardforwhatonecandowithaphone.
Groceryshoppingtodayinvolvesbalancingalotofinfor-mation.Evenpurchasingasinglebananameansmakingdecisionsaboutorigin,pesticides,ecologicstandard,fresh-ness,fairtradeandsoon.Insuchmildlystressfuleverydaysituationsconsumersfeelanevenstrongerneedtobe
empoweredtomaketherightchoices:Empoweredtobeincontrolandconfidentlymakingactivechoices,whilestillgettingagoodprice.
Withsmartphonesincreasinglybeingperceivedaseasy-to-useinternetinyourpocketdevices,respondentsinourstudyoverwhelminglysawthesmartphoneasfittingquitenaturallyintoshoppingactivities.Themoreadvancedre-spondentsinthetrialwereinfactalreadybuildingtheirownserviceinasimilarveintowhatwetestedwithHotShopper,byusingacombinationofdifferentappsalreadyavailable.Theyarebuildingthis“service”piecebypieceastheneedsoccurandtheylookforspecificappstofillspecificneeds.
Butitturnsoutthatsmartphonesarenotexclusivelyforadvancedusers.Eventheusersofmorebasicmobilephonesinthetrialeasilyadaptedtothesmartphonemind-setandweresurprisinglyabletotakeadvantageoftheHotShopperfunctions.
5.2 HotShopper: well received as concept
TherespondentswereconvincedthataHotShoppertypeofservicewillsoonbecomereality–infactalreadywithinayear.Theyimmediatelyrecognizedtherelevancefortheirdailyshoppingastheyperceivedextendedproductinformationdeliveredthoughthemobilephoneasaddingvalue,comparedtosimilarorsameinformationavailableelsewhere(onpackage,throughadvertisements,etc.)Simplyput,theyperceivedtheinformationinthephonetobebetterthanonthepackage.Notonlywasiteasierto
Whentestingaprototypeoranewconcept,itisoftenmoreinterestingtoincludeasmallerpopulationoftestpilotsratherthanabigone.Asmallpopulationmakesitpossibletogointodepthintoanumberofkeyissuesandconsiderations.Thischapteraimsatsumma-rizingtheresultsoftheHotShoppertrialfromthepointofviewoftheparticipatingconsumers.Whatweretheiropinions?Didtheyfindtheinformationthattheyreceivedintheappuseful?WouldtheyliketouseaHotShopper-likemobileappifitbecamereality?Inwhichsituations?
13.
readduetoitsgenerallylargersizebutitalsobecamemorevaluablesinceitwasstructuredinastandardizedway.Itwaseasiertofindwhatonewaslookingforandtheextendedinformationnotavailableonpackageswasuseful.
AllrespondentsthatwetalkedtoinfactperceivedbenefitsfromusingHotShopper,althoughtheyrepresentedseveraldifferenttypesofshopperprofiles:Structuredandunstructuredshoppers;fastandslowshoppers.Theyalsofounddifferentbenefitsdependingonthetypeofshop-pingactivity:Routineshopping,complementarypurchasesandshoppingforspecialoccasions.
Thus,individualpreferencesinshoppingstyles,lifestylesandambitionsdeterminewhichfunctionsarefoundtobemostvaluableand/ormostlikelytobeused.SowhereashealthconsciousrespondentsfeelstronglyaboutAvoidandFindforavoidingadditives,thosewithallergieswanttoavoidharmfulingredients.Butinterestingly,bothorganizedshop-persandunorganizedshopperswouldliketobenefitfromincreasedorganizationoftheirshopping.AndbothorganizedandunorganizedshoppershadaunanimousinterestinusingtherecipesoftheInspirepartofHotShopperapptogainmoreinspirationaboutwhattocookand,consequently,whattobuy.Newrecipesnotonlycreatedachanceofbreakingtheboredomandroutine,italsosavedtimenormallyspenttryingtothinkofsomethingnewinastressfulandsometimesuninspiringsituation.Infact,therecipesfunctionalityintheHotShopperapphadnodownsidesatall!
AlsotheSavefunctionoftheappwastriedoutandwasappreciatedbymostconsumersinthetrial.Mostrespond-
entsalreadyreceivedpersonalisedoffersfromICAintheirmailboxes.TheconceptofreceivingtheseintheHotShop-perappwasperceivedasaconsiderableimprovement.Notonlywouldtheoffersnotbeforgottenathome.Offerscouldalsobeconsideredintheactualshoppingcontextandcomparedwithalternatives.
“Suggestions of new recipes are just great when you are standing in the store both hungry and clueless of what to buy.”
Mita,43
“I liked it a lot and I tried to scan all the products in the section to find a good offer. It felt a little like a treasure hunt.”
Jenny,29
Therewerenaturallysomeissuesaswell.Manywereconcernedaboutbatteryconsumption–andthisgripeissomethingweseeinbasicallyallsmartphonerelatedstud-ies.Somewhohadpreviouslyneverusedtouchscreensalsohadsomeinitialusabilityproblems,butmanagedtoovercomethem.Touchinterfaceshavealearningcurve,butourstudyshowsthatthisisnotabarrierforadoptionandthattouchinterfacesareintuitivetouseonceonegetsusedtotheconcept.
“The best result you can wish for in a focus group discussion is that respondents sponta-neously have a lot of ideas of how to improve the service they have tested. This means that they have fully accepted the basic service they tested and already to a large extent integrated it with their daily routines. And this is exactly what happened with HotShopper.”
HotShopperfocusgroupmoderator
14. MobileCommerceReport2011:MobileinRetail
05.Theconsumers’perceptionoftheHotShopperpilot
5.3 The scanning experience must be improved
MoreuniquelyrelatedtotheHotShopperapp,how-ever,werebarcodescanningissues.Somecommentswererelatedtothenoveltyofusingone’sphoneforscanning;othershoppersmightwonderwhatyouareupto.Whileusingself-scannersisestablishedasbeinganalternativewayofshoppingandpayingforonesgroceries,scanningwithamobilephonedoesnotcarryanobviousinterpreta-tion.Somerespondentswonderifothershoppersthinktheymightbedoingsomethingsuspiciousliketryingtofindsomethingespeciallycheap(indicatingthattheper-sonscanningispoor)ormaybegatheringdataforsomeexperiment.Butrespondentsrealizedthatthisnoveltyphasewouldsoonfadeawayanddidnotseethisasabarrier.
However,theself-scanningsystemwasusedasapointofreferenceformany,andinthiscomparisonthephonewasseentobelackingsomewhatinergonomicsandscanningspeed.
“It was too difficult to juggle two devices at the same time, the self-scanner and the phone.”
Mita,43
Whenscanning,thephonehastoconstantlybetakenoutof/putbackinpocket/handbag.Self-scannershaveaprop-erhandle,andincomparisonthephonewasregardedasabitunwieldytouseandhardertogrip.Somealsoexpressedfearofforgettingthephoneintheshoppingcart.Whilemostrespondentsfoundthespeedofmobilephonescan-
ningacceptable,itwasstilltooslowtoreplaceself-scannersinaneverydaystressfulshoppingsituation.Scanningbarcodeswiththephonecamerawassomewhatawkward.Ittakestime,feelsimprecise,demandspracticeandisdependentonin-storelightingconditions–andthereisno
“guidingredlight”aswiththeself-scanningsystems.OneshouldhoweverbearinmindthattheHotShoppertrialwasatestandthattheprototypeusedwasnotanoptimalsolu-tionintermsofergonomics.Itisalsoimportanttopointoutthatnewtechnology,suchasNearFieldCommunication(NFC)mayimproveusabilityandeasetouse.
BasedonthespeedofscanningwiththeSonyEricssonX10,respondentsthoughttheywouldusethemobilephonemainlyforextendedproductinformationonspecificprod-ucts,whereastoday’sself-scannersareviableforscanningofallintendedpurchases–indicatingthatsomeoptimiza-tionofthistechnologymaystillbeneeded.Ontheotherhand,ifthespeedandeaseofscanningwasthesame,mostrespondentssaidtheywouldprefertousetheirownphone–especiallyifscanningusingthemobilephoneshowsmoreinformation.
5.4 More integration requested
ManyoftherequestsandwishesforfuturedevelopmentofHotShopperwererelatedtotheissueofintegratingdif-ferentfunctionsintothemobilephone.
EventhosewhohaveassembledsomeoftheHotShop-perfunctionalityusingotherappsintheirphonesrequestextendedintegration–andtheyseeopportunitiesratherthanproblemsiftheretailermakestheintegration.For
15.
most,thisopportunitywasexpressedasachancetointe-gratetheself-scanningsystemnowavailableinmanygro-cerystores,andeveryproductinthestore(notjustArla),aswellastheICAmembershipcard.ButalsopaymentaswellastheintegrationofmoneysavingoffersintoHotShopperwhereseenasgoodopportunitiesratherthanintrusivefunctions.Andasmostgroceryshoppingultimatelyisforfoodtobeprepared,integrationandmanagementofrecipeswasseenasveryimportant,preferablycombinedwithashoppinglistfunction.Respondentsthoughtthataphonebasedshoppinglistwouldnotonlyreplacescrapsofpaperonewriteswhenplanningpurchases,itcouldalsoautomaticallyalignplannedpurchaseswithstorelayouttoavoidunnecessaryrunningbackandforthinthestore;andultimatelyitcouldcoordinatepurchaseswithotherfamilymembers.AlthoughFacebookhadbeenintegratedintheappintheSharefunction,thiswasnotseenasuseful
–insteadcommunicationfunctionalityshouldbefocusedonthefamily,suchasshareableshoppinglists,andpossiblyuserprofilessothatneedsofdifferentpeoplecouldbemet.
“I would like to add a shopping list function so it would be easier to keep track of what to get. It would be good if it was structured according to the layout of the store.”
Jenny,29
Whythen,thisneedforintegration?Theanswerpartlyhastodowithawishforaconvenientwayofhavingevery-thingathandwhenneeded.Butmoreuniquelytherewasalsoanunspokenneedtomakegroceryshoppingandthegroceryshopitselfamoreintegratedpartofactivities
throughouttheday,andnotjustwheninthestore.Withthespreadingubiquityoftheinternet,wehave
seenconsumersbecomingincreasinglywell-informedanddemanding.Astheinternetmakesinformationavailabletoconsumerswherevertheyare,thisseeminglymakesitnaturalforthegrocerystoretoalsobeavailabletoconsum-erswherevertheyare!
Inthistrial,theHotShopperappwouldsavelocationinformationwheneverthescanningfunctionwasused.Whatwesawwhentheinformationcameinastoundedus:AlmosthalfofthescanswherefromlocationsoutsideofICAMaxiLindhagenwherethetrialwasperformed!TherewerescansfromalloverStockholm–infactthereevenweresomescansfromthesouthofSweden!
Furtheranalysisledustotheconclusionthatthesescanswherefollowingtheeverydaymicro-mobilityoftherespond-ents,withclearscanningpeaksnotonlyatICAandotherstoresbutalsoathomeandpossiblyatcommuterstations.
Wewerewitnessinghowrespondentswerealreadyin-tegratingHotShopperintotheireverydayactivities,alreadyperformingsomeoftheactivitiestheyhadexpresslywishedfor:Scanningproductsathometolookatrecipeswhencooking,scanninginotherstoresforcomparison,possiblyscanningina7-Elevenstoreonthewaytoworkinordertostartthinkingaboutwhattogoshoppingforintheafter-noon.Andsoon.
Whatrespondentsthenreallywhereaskingcouldbeinterpretedasaninvitationforthegrocerystoretoentertheireverydaymobilelife.Ratherthanhavinganinternetthatreplacesphysicalstoreswithonlineshopping,wesawthecompleteopposite.Anappthatcomplementsandenhancesthepresenceofthephysicalstorebymobilizingthestoreandmakingitintegratedintherespondents’everydaymobilelife.
HotShopper
HotShopper
Fig:2 Typicalfunctionsthatpeoplewantedtointegrate.
16. MobileCommerceReport2011:MobileinRetail
5.5 Mobile apps for other kinds of shopping
However,consumershoppingneedsarenotlimitedtoasinglegrocerystore:ManyrespondentsalsowantedandexpectedtheHotShopperapptoworkacrossallgrocerystores,andnotjustthoseintheICAchain.
Whenaskedabouthowitwouldbetouseasimilarappwhenshoppingforothergoodsthangroceriesandwhatthosesituationswouldbe,respondentsatfirstfounditabitdifficulttoadjusttotheideagiventhatthedesignofthetrialhadbeenveryfocusedongroceries.Butwhenpromptedwithshoppingexamplesmostrespondentssoonwarmedtotheunderlyingideaoffeelingmoreincontrolofone’spurchasingbehaviour.Furthermore,smartphoneusersamongtherespondentswerealreadyusingtheirphonestoenhanceshoppingviathebrowserorspecificapps–andthusfoundthementalstep-uptoamoreintegratedsolu-tionrelativelyeasytotake.
ForclothesshoppingatplaceslikeH&MandMQ,re-spondentssuggestedcheckingforcountryoforigin,specificdyesandotherchemicalsused,andFairTradecertificates.Manythoughtthatcareinstructionswouldbepracticaltoreadonthephone,aswellasgettinginspirationaboutmatchingapparel.
Thenormalshoppingprocedurewithhomeelectronicsseemstobethatresearchisdoneathome,beforegoingtothestore.However,duetothefactthattheconsumersdonotalwaysfindtheinformationaboutvariousmodelsobjective,therewasanin-storeneedtocheckformodelspecificdetailsandcomparisonsaswellasgettingexplana-tionsfortechnicalterminology.
“I would like to be able to simply compare two TVs that stand next to each other. Why one costs 5 000 SEK and the other 12 000 SEK when I can’t see any difference in the picture.”
Bengt,52
WhenshoppingforplantsatplaceslikePlantagen,therewasaneedtogetwateringinstructionsandotherinforelatedtohowplantsshouldbetreated.
Allergenswerehighonthelistwhenshoppingforcosmetics,togetherwithanimaltestinginfo;andaHotShopper-likeappcouldprovideguidanceindrugstoresingeneralwhenstaffwasnotavailable,aswellassortingthroughallthefineprintandpossiblyalsocheckforharmfulcombinationsofdrugs.
05.Theconsumers’perceptionoftheHotShopperpilot
“I would like to be able to check if a particular item is available in my size in this store and if not, where I could find it. It would save time looking for a clerk.”
Mita,43
“I would like to get help when choosing be-tween different pills for headaches.”
Tova,22
17.
5.6 Conclusion: Consumers want integration on three levels – but where does it start?
Tosumup,weseethreedistinctareasofimprovementthatconsumersarelookingfor:
1. Firstofall,respondentsexpressedaneedforintegrationofallinformationinthegrocerystore:Frompackaginginformation,viapriceinfoandself-scanningtospecialoffers,membershipcardsandpayments.
2. Secondly,consumersexpresstheneedforbetter
integrationofgroceryshoppingintoeverydaylife:Fromtheabilitytocollectoffersathome,writeshoppinglistsandgetinspirationforeveningmealsduringdaytime,tobeingmoreincontroloverone’sactivitiesinthegrocerystore,tousingrecipesinthekitchen.
3. Thirdly,andfinally,therewasalsoaneed–albeitnotasreadilyobvioustorespondents–toextendtheshoppingconvenienceandcontrolhintedatbytheHotShopperappintojustabouteveryothercategoryofshopping.
GiventheoverwhelmingresponsetotheHotShopperappinthistrial,itmaybeeasytoconcludethatgrocerychainscanbuildtheirownbrandedappswithoutfeelingpressureofcompetition.However,asthemostcommonreferencetosimilarappsamongourrespondentswasthePricerun-nertypeofapp,itmaywellbethatpricecomparisonappscouldtakethisspaceifgrocerychainappsarelateordonotliveuptoexpectations.Furthermore,somerespondentswerealreadyawareofindependentbarcodescanningapps
–anditmaywellbethatusergeneratedbarcodeinforma-tioncouldbecomegoodenoughorevenbetterthanwhatmanufacturersorchainstoresprovide,thusobviatingtheneedforchainbrandedappsiftheyaretooslowincoming.
18. MobileCommerceReport2011:MobileinRetail
06.OpportunitiesandChallengesforbrandownersandretailers
Opportunities and Challenges for brand owners and retailers
6.1 A new marketing tool with many advantages
Mobilemarketingisarathernewmarketingtool–especiallytheuseofmobileapps–andhasanumberofadvantagescomparedtotraditionalmarketingpossibilities.
Mobileappsgivethebrandownersandtheretailersthepossibilitytocommunicatedirectlywiththeconsumer.Itisamarketingtoolthatisveryefficientforbuildingcustomerloyalty,inparticularifcombinedwithothermarketingtoolssuchasloyaltyprogramsanddirectmarketingoradvertising.
Amobileappisavailablefortheshopperattheverymomentoftruth–whensheisinthestore,infrontoftheshelf,withtheproductinherhands.Amobileappcanaddvaluetothephysicalproductandmakesitpossibleforthebrandownertocommunicateaspectsthatarehardtocom-municateonthepackaging.Anexampleofthisisextendedpackaginginformationsuchastheexplanationofwhatacertainadditivereallymeans.
Mobileappsarecomparablycheap.Itdoesnotrequireanenormousmarketingbudgettodevelopamobileapp.Also,theappsaredistributedviaforexampleAppStoreorAndroidMarketfreeofcharge.Oneshouldhowevernotunder-estimatethefactthatappsneedtobemaintained.Maintenanceoftencostsbothintermsofmoneyandbraineffort!
Mobileappsarefastandefficient.Oncethebrandowner
ortheretailerhasdecidedtodisseminateamessageoranoffer,itcanbeimmediatelycommunicatedtoconsumers,whoreceiveitatthemomentithasbeenproduced.Thereareinpracticehardlyanydelaysfordistribution.
Amorestrategicadvantage,inparticularforretailers,isthatamobileappcanmovethestoreclosertothecon-sumer,bybeingpresenteveniftheconsumeriselsewherethaninthephysicalstore.Theconsumercanshop,orlookforinformation,24/7,fromhome,onthewaytothephysi-calstoreorbeinganywherewherehecanbeconnected.Consequently,itgives“retail”amuchwiderscopecomparedtowhatithasbeenuptonow.
6.2 Why are mobile apps so interesting for brand owners and retailers in the FMCG-sector?
Theretailenvironmenthasdevelopedenormouslyovertheyears,especiallysinceself-servicestoreswereintroducedmorewidelyonthemarket.Brandownersandretailershavetogethergainedalotofexperienceandinsightsaboutconsumersand,morelately,aboutshoppers.Themostskilfulbusinesspartnersknowratherwellhowtomeettheneedsofacertaintargetgroup,inaspecificcategory,inashopofacertainformat.Theknowledgeisbasedonalotofexperiencegainedfrom“trialanderror”inthestores.Howeverthetechnicalknowledgedeveloped
Thesummaryoftheconsumerstudiespresentedinpreviouschapterclearlyshowthattheconsumersbelievethatmobileappsenrichtheirshoppingexperience.TheHotShopperappwasmainlyfocusedonextendedpackaging,buttherearealsootherareasofinterestfortheconsumer,suchasshoppinglistsandself-scanning.
Thischapteraimsattreatingopportunitiesandchallengesforbrandownersandretailersfromamoregeneralpointofview.Whyaremobileappssointerestingfromabusinessperspective?Howcanmobileappsimprovethecommunicationwiththeconsumer?Whichareasforim-provementcanbenoticed?
19.
overtheyearshasalsocontributedtotheprogress.Thein-troductionofbarcodesmadeitpossibletoachievepointofsaledataderivingfromthescanningofproductsatcheck-outs.Morerecently,thedevelopmentofloyaltyprogramshasgeneratedthepossibilitytolearnmoreaboutshoppers,notatleastintermsofindividualshoppingpatterns.
Therearealreadymanydifferentmarketingtoolsavail-ableforbrandownersandforthetrade,withvariouslevelsofsophistication.Therearehowevertwomajorconstraintslinkedtotraditionalmarketingtools.First,theyonlycom-municatewiththeconsumeratone(orafew)physicalplaceatthetime(e.g.athomeinfrontoftheTV,inthemailbox,oratthestore).Secondly,theyonlypermitonewaycommunication.
Mobilephonescanintheorybeusedbybusinessestoreachconsumersanytime,anywhereandthisfactfunda-mentallychangesthepossibilitiesforbrandownersandretailerstodobusiness.
TheHotShoppertrialclearlyshowedthatnotonlyconsumers,butalsoretailersandbrandownersappreciatethepossibilitiesgivenbyextendedpackaging.Extendedpackagingcangivethebrandownerthepossibilitytopro-videadditionalandmorein-depthinformationcompared
“I used it to find out if there are any additives in some yoghurt. I would also like to use this to scan baby food for our 8 months old son.”
Ola,32
toinformationprintedonthepackaging.Oneexamplecouldbeclearandaccurateinformationaboutadditives.Itcanalsoincludeinspiration,suchasrecipes.Mobileappsincludingextendedpackaginggivethebrandownerapossibilitytocommunicateamessagewhichislimitedintime.Thismayinparticularbeofimportanceduringasitu-ationwhereaproductrecallisneeded,orwherethebrandownerforotherreasonswouldliketocommunicatedirectlywiththeconsumersaboutthecontentsofaproduct.TheHotShoppertrialfurthermoreshowedthattheextendedpackagingpartofthemobileappcanbeagreathelpforthestaffinthestorewhenreplyingtoproductrequestsfromtheconsumers.
AglobalGS1publicationfrom2009hasidentifiedanumberofconsumertouchpoints,i.e.placeswheretheconsumersinteractwiththestore(forexamplepre-storeplanning,outsidestore,inaisle/atshelf,atcheckoutandusageathome).Allthesetouchpointsrepresentanoppor-tunitytocommunicateviaamobileappandthustoenrichtheshoppingexperiencefortheconsumer.Thebusinessperspectivesofthefunctionsmay,inadditiontoextendedpackaging,includeforexamplecouponsanddiscounts,loyaltyprograms,advertisingandpromotion.
20. MobileCommerceReport2011:MobileinRetail20. MobileCommerceReport2011:MobileinRetail
06.OpportunitiesandChallengesforbrandownersandretailers
Couponsanddiscounts:Mobilecouponsanddiscountscanbedirectlylinkedtotheshoppingsituationoreventoacertainlocation.Theyappearonthemobilescreenatthemomentwhentheshopperscansthebarcode(oranothertag)andgivetheretailertheopportunitytoforexamplegivetheshopperanindividual“3for2”-offer.Usingmobilephonesiscostef-ficientastheycanbeusedtocapture,manageandredeemcouponsanddiscounts.
Loyaltyprograms:Mobilephonescanprovidemorepersonalservicesandbeusedinamoretailor-madewaytocommunicatewiththeindividualloyaltyprogrammembers.Thebenefitsandthepossibilitieswiththeloyaltyprogramswillbeabletoex-pandwhencombinedwiththepossibilitiesofthemobilesmartphones.Offersthatarerestrictedintimeortoacer-tainshoppinglocationcanbedistributedtotheconsumerviathemobilephone.Theconsumerisgettingmoreandmoremobilesowhyonlyreachingtheconsumerwhen
sheisdoingherweeklyshoppinginherfavouritestore?Maybeyouwouldliketoattracthertovisitthestoreofyourretailchaininthevillagewhereshespendshervaca-tion?Ortotailormakeacommunicationtotheconsumerswhointendtobuyacertaincategory?Orevenaspecificbrand?Youcanalsobuildinfunctionslikevotinginordertoencourageatwo-waycommunicationwithyourloyalconsumers.Orwhynotusingthepossibilityofaquickresearchtofindoutwhatyourconsumersthinkaboutanewproduct,anewcommercialorsomethingelsethatengagestheconsumerandmakethemfeelbeingapartofyourbrand?Mobilephoneswillreplacephysicalloyaltycardswhencombinedintoonefunction.Thiswillmostlikelydecreasethelikelihoodoftheconsumerforgettingtobringher“card”tothestore.
AdvertisingandPromotion:Themobilephonesencouragemoreefficientanddirectcommunicationwiththeconsumersastheadsaresentdirectlytothemobilephones.Mobileadvertisingalsoincludesthepossibilityoflocationbasedadvertisingand,inparticularifcombinedwithloyaltyprograms,advertisingtargetedtocertaingroups.
Payment:Withmobilephones,theremayinthefuturebeaubiq-uitouspossibilitytomakepaymentsanywhere,anytimeincludingatretailcheck-outs.
Self-scanningandSelf-checkouts:Thecombinationofself-scanningandself-checkoutwiththehelpofthemobilephonestransferthehumaneffortcurrentlymadebythestoretotheconsumer.Onemobiledeviceinsteadoftwowillconsequentlyreducethestores’needtoinvestinandadministerscanningequipment.
Socialmedia:Socialmediaisalreadyconsideredtobeasignificantmarketingchannel.Itmaybeofhigherimportanceinbusinessesotherthangroceries,likedurableorlifestyleproducts.Socialmediagive,justlikethemobileapps,brandownersandretailersthepossibilitytocommunicatedirectlywithconsumers.Thepossibilityofcombiningthetwobyintegratingsocialmediaintotheappswillleadtomanynewandhighlyinterestingintotheappswillleadtonewandhighlyinterestingapplications.
Storelocation,in-storenavigationandshopping-list:Store location,whichcanhelptheconsumertofindthestoresinacertainareawhereacertainproductisstocked,canincreasethepossibilityofdrivingtraffictothestore.In-store navigation,whichfacilitatesfortheconsumertofindaproductinthestore,maytogetherwithashopping-list functionbuildcustomerloyaltyandencouragesrepetitionofapurchase.Thebestresultsforusingstorelocation,in-storenavigationandshopping-listfunctionswillbeachievedifthesemobileappsarecombinedwithotherfunctions.
Consumer Touch PointsPlaceswheretheconsumersinteractwiththestore.
Thenumberofretailrelatedmobileserviceswillcontinuetoincrease.Exactlywhatkindofservicesaredifficult,evenimpossibletoforesee.Whatweknowisthattherewillbeinfinitecombinationsandpossibilitiesavailable.
21.
6.3 Potential barriers for brand owners and retailers
Thecompetitioninthemobileappworldisfierce.Thereisamagnitudeofshoppingappscurrentlyavailableinthedifferentappstores,andtherearemoretocome.Oneobviousrestrictionwithmobileappsisthattheposi-tivebenefitsthatevidentlyexistwillonlybecomerealityifandwhentheconsumerdecidestodownloadyourapp.However,ifcombinedwithothermarketingtools,thepossi-bilitythattheconsumerdecidestodownloadanduseyourappactivelywillincrease.
Apossiblebarrierwithmobileappsisthatquestionsabouttheintegrityoftheconsumermayariseifusinginfor-mationaboutindividualconsumerpatternsasabasisforyourcommunication.IntheHotShoppertrial,itbecameevi-dentthattheintegrityissueswerenotamatterofconcernfortheconsumersthatparticipatedinthetrial.
“I would not mind getting the offers in my
phone. ICA knows everything about my habits anyway.”
Roger,47
Theintegrityissuewasratherwidelydiscussedacoupleofyearsago,butlesssonowadays.ManyexpertsbelieveitispartlyduetothefactthattheconsumersaresousedtomakingfragmentsoftheirdailylivespublicviaFacebookandothersocialmedia.Othersclaimthattheconsumersarereadytomakeatrade-offbetweenprivateintegrityandgoodoffers.Nomatterwhatreason,itisimportanttorememberthatmanycompanieshavefarfromthesamerelationshipwiththeircostumersasICAhaswiththeirs.Theremayfurthermorebelegalaspectsthathavetobeconsidered.Apieceofgoodadviceisthereforetothinkcautiouslythroughhowandwhentousefactsandfiguresabouttheconsumerswhencommunicatingwiththemandtoensurethatthereisconsumerconsent.
In-store coverageisanotherpossiblebarrierforefficientuseofmobileapps.In-storecoverageissuboptimalinmanystores,andcanalsovaryfromoperatortooperator.Inthispi-lot,signalstrengthanddatabitratesweremeasuredbeforethetesttoensuregoodcoverage.Inordertoensuregoodserviceperformanceitisvitalthatthestoreprovidesgoodcoverage.ThisisnotjustimportantformobileserviceslikeHotShopper.Variousstudiesrevealthatconsumersalreadytodayusetheirphonesin-storeforvoicecallsandforsend-ingSMS.Shoppersexpectthatthemobilephoneswillworkinsidethestoreandgoodin-storecoveragecanbeseenasahygienefactorforretailers.
Retailersneedtoinvestigatetheirparticularsituationand,ifrequired,eitherputpressureontheoperatorstoimprovethein-storecoverageorinvestinanownsolutionthatprovidesgoodcoverageforallshoppers.
Threeotherproblematicissuesthatcameupduringthetrialwerethesomewhatawkwardhandlingofthephones,thescanning abilityandthefearofrunning out of batterieswhenscanning.
Asforthehandlingofthephones,ashoppingcartholderformobilephonescouldbeonesolutiontoimprovetheusabilityofmobilephonescanning.
Whenitcomestothescanningability,fullydeveloped(non-prototype)apps,improvedcamerasandpotentiallyalsoNFC-taggingwillincreasescanningspeedconsiderably.
Finally,asforlackofbatteries,asolutioncouldbetooffer“quickcharging”poweroutletsin-storefreeofcharge,i.e.thepossibilitytochargeaphoneforacoupleofminutesinordertobeabletocompletetheshoppingtrip.PhonechargersarecurrentlybeingstandardizedafterpressurefromtheEuropeanUnionandthiswilleliminatetheneedofusingadaptersfordifferentphonemodels.Thebatteryproblemsisageneralissueforthewholemo-bilephoneindustry,implyingthatthereisahighmotiva-tionforfindingimprovedsolutionsandthatdevelopmentiscontinuouslyongoing.
22. MobileCommerceReport2011:MobileinRetail
Extended packaging information requires an effort
Whataretheimplicationsofextendedpackaginginformationfromabusinessperspective?Howwilltheinformationreachtheconsumer?Cantheretailbusinessbenefitfromstandardization?Thereisclearlyadesirefromconsumerstoobtainextendedpackaginginformationviatheirmobilephones.Therearealsofromabusinesspointofviewmanyadvantagesofusingmobileappsasapartofthemarketingmix.Itismostlikelythatextendedpackaginginmanycaseswillbethebasisofthecontentintheretailmobileappsthatareandwillbedeveloped.
7.1. Standardized and non-standardized information
TheHotShoppertrialhasshownthattheconsumersfinditattractivetoreceiveandreadproductinformation–extendedornot–inthemobilephone.Thisrequiresthattheproductinformationthatisavailablefortheconsumerisunivocallycorrect.Anydivergencecanresultinirritationinthebestofcasesbuthavedisastrousconsequencesfortheindividualconsumerintheworstofcases.Thenegativeimpactonthebrandcaninallcasesbesubstantial.Allinformationabouttheproductsthatisavailableintheappsshouldthereforebequalitychecked.Thiscouldinitiallymeananinvestmentbothintermsoftimeandintermsofbudgetaryresources.However,thedisadvantagesofprovidingincorrectinformationaremuchbiggerthantheinitialeffortsthatareneededforthequalitychecks.
Theinformationincludedinamobileappcurrentlyreach-estheconsumerinmanydifferentways.Itcanbetrans-
mittedbytheInternetapplicationproviders(e.g.Google,Microsoft,eBay),orbythebrandownersandretailersthathavedevelopedownmobileapps(e.g.ICA,orArlaFoods).
Onenormallydifferentiatesstandardizedinformation(e.g.productname,manufacturername,productimageandingredients)fromnon-standardizedinformation(e.g.pro-motional,advertising,pricecomparisons).Itisplausiblethatthenon-standardizedinformationwillcontinuetoflowinmanydifferentpipes.Thepriceofaproductis,forexample,hardlyeversetbythebrandowneranditvariesfromoneretailertoanother.Therearehowevermanyadvantagesofhavingstandardizedinformationstoredinonestandard-izeddatapoolandtohavethisstandardizedinformationqualitychecked.
StandardizedbranddatadeliveredbyInternetapplica-tionprovidersisinmanycasesnotdirectlyprovidedandcontrolledbythebrandowners.Theinformationcomesfrommultiplesources(e.g.manualdataentrybyconsumersorbytheInternetprovider,searchesontheinternet,retailers’information,etc.).Someofthesesourcesprovideinaccurateormaliciousinformation.Consumers,brandownersandInternetprovidersarelikewiseveryinterestedinconnectingtoaccuratesourcesoftrusteddata.
“In a world of increasing transparency, inac-curate and incomplete product information reduces consumers’ trust in Brands and Brand owners.”
Source:GS1US/CapGeminiB2CWorkSession
07.Extendedpackaginginformationrequiresaneffort
23.
Content provider Content provider Content provider
App provider App provider App provider
Standardized Technical Interfaces
Standardized Technical Interfaces & Business agreements
A few info brokers
Content provider Content provider Content provider
App provider App provider App provider
No standardized interfaces Info broker
Content provider Content provider Content provider
App provider App provider App provider
A few info brokers
Content provider Content provider Content provider
App provider App provider App provider
No standardized interfaces
Standardized Technical Interfaces
Standardized Technical Interfaces & Business agreements
Info broker
Content provider Content provider Content provider
App provider App provider App provider
Standardized Technical Interfaces
Standardized Technical Interfaces & Business agreements
A few info brokers
Content provider Content provider Content provider
App provider App provider App provider
No standardized interfaces Info broker
Content provider Content provider Content provider
App provider App provider App provider
A few info brokers
Content provider Content provider Content provider
App provider App provider App provider
No standardized interfaces
Standardized Technical Interfaces
Standardized Technical Interfaces & Business agreements
Info broker
ItisinthiscontextthatGS1hasbeengiventhetaskfromtheFMCG-industrytobetheactorthatenablesthedistri-butionofqualitycheckedandcorrectbrandinformationinanefficientandsecureway.
Thereisclearlyaneedforextendedpackaginginforma-tionfromaconsumerpointofview.Itwouldbepossibleintheorythateachandeverybrandownerprovidedtheextendedpackaginginformationtoeachandeveryappproviderthataskedforit.However,thereisanotheroptionwhichwouldbemoresuitableinpractice.GS1Swedenhasalreadyabusinessserviceinplace,Validoo™,thatqualitychecksanddistributesiteminformationfromthebrandownertotheretailer.Thissystemcanbeextendedtoincludealsootherstandardizedinformationsuchasinformationaboutingredientsorthelevelofcarbondioxideemissions.
GS1canthusbetheactorthatqualitychecksanddis-tributesextendedpackaginginformationinastandardizedway.Itishoweveruptocontentprovider(abrandownerorsometimesaretailer)todecidewhatcontenttodistributeandtowhichparties.
7.2 Cooperation and standardization – competitive advantages
Aswithallnewlylaunchedproductsandservices,someplayerswithinthemobileserviceindustrywillbethefastmovers.Itisoftenthecasethattheearlymoversdonothavetimetowaitforastandardizationprocesstobeadopted.Theysimplyprefercreatingtheirownsolutionstoreachthemarketamongthefirst.Thereareofcourseadvantagesconnectedtobeingafastmoverandnewinnovativesolutionscanalsoinspireotherstofollow.Thereverseofthemedalmightthoughbefragmentedand
cost-inefficientsolutionsaffectingboththeindustryandtheconsumersindisadvantageousways.
Goingforward,anumberofkeyquestionshavetobetakenintoaccount.
• How will the content be distributed in a cost-efficient way? By whom?
• How to secure that the infrastructure behind the mobile app becomes scalable and easy to develop further?
Morespecifically,theproblemisthetechnicalintegrationofmanysourcesofcontentthroughnon-standardizedinterfaces,seefigure3.Ifeachsolutionrequiresadifferentdataformat,thiswillbebothcostlyandcumbersomeandifeachaddedcontentproviderhasnewinterfacesandrequiresintegration,therewillbeaneedfordirectcom-municationbetweenacontentproviderandtheproviderofthemobileapp.Thisprocesswillnotscale.
Thereisalsoabusinessaspectasitisbothtime-con-sumingandexpensivetomakeagreementsbetweenallindividualappprovidersandcontentproviders.
Onewaytoaddressthesequestionsisthataresolutionservice(an“infobroker”)keepstrackofwherecontentislocatedandiscapableofdirectingappstothiscontent.(seeFig:4) Asolutionliketheonedescribedaboveneedstobestand-ardizedsothatallactorsinvolvedarecapableofcommuni-catingwitheachother.Preferably,standardizationshouldcoverdataformats(howtheproductdataisencoded),andcommunicationinterfaces(howdataistransportedinthenetwork).Thisisanurgentneedandsomethingthatneedstobedealtwithbeforeextendedpackagingcanbecomereallysuccessful.
Fig:4 Standardized solution with a few central info brokers and standardized interfaces.
Fig:3 Non-standardized solution requiring direct communication between all content providers and all app providers.
24. MobileCommerceReport2011:MobileinRetail
08.Areyoureadytogetstarted?
Are you ready to get started?
Important focus
OneimportantfocusoftheHotShopper-projecthasbeentoenablebrandowners,retailers,mobileoperators,softwaredevelopers,serviceandsolutionprovidersandorganiza-tionstoworktogether.Theprojecthasclearlyshownthatthisispossible,andthatcollaborationgivesgoodresults.Inaddition,standardizationandtheuseofwidely-spreadandfuture-prooftechnologiesaremostoftenalsobothcost-efficientandsustainablewaystogo.
Itisnowuptothepartiesineachindustrytomovefor-wardwithstandardizationandcollaborationinrelevantareas.
Ifyouareabrandowneroraretailer:talktoyournationalGS1orECRorganizationaboutcollaborationandwaystoshareinformationefficientlyrightdowntotheconsumer.Collaboratewithotherstakeholderstofullyunderstandbusi-nessandconsumerissuesandtocreateavaluechainwhereallcanbenefit.
Ormaybeyouarealreadytherebutwouldliketotakethenextstep?Hopefullyyouhavefoundusefulinformationinthisreportthatwillhelpyouwithyourstrategicdecisionswhenconsideringhowtousemobileappsinyourbusiness.
www.gs1.orgwww.gs1.euwww.ecr-all.org
(TheglobalwebpageofGS1)(ThewebpageofGS1inEurope)(ThewebpageofECRinEurope)
Other mobile commerce projects
TherearealsomanyothermobilecommerceprojectsthatarerunindifferentcountriesalloverEurope(andintherestoftheworld).Thereisalotofinsightthatyoucantakepartofbystudyingtheseprojects.Someoftheinformationcanbefoundat:
25.
26. MobileCommerceReport2011:MobileinRetail26. MobileCommerceReport2011:MobileinRetail
Contributors to the report
ProjectTeamMichaelBjörn EricssonConsumerLabCeciliaGyldén GS1Sweden/ECRSwedenJakobSaros EricssonResearchKarinWollbrand EricssonResearch
SteeringCommitteeGerhardBley O.KavliChristoferElofson ECRSwedenPeterJansson ICAMaxiLindhagenAndreasKeymer ICALeifOlausson ArlaFoods
OthercontributorsYlvaHeivert ICAMatsHvalgren ICAJeremyMorton GS1SwedenBoRaattamaa GS1SwedenPeterRipp ArlaFoodsMarikaStålnacke EricssonResearch
ConsumerResearchThefieldwork(pre-andpost-interviews,shopalongandfocusgroups)wasperformedby:AugurMarknadsanalys.
09.Contributorstothereport
27.27.
LiteratureandarticlesMobileinretail–Gettingyour GS1(2009)retailenvironmentreadyformobile
Marknadsföringimobilen JonasMarking(2010)
PhotosOlofHoldar
DesignCabReklambyrå
About us
ECRSwedenisajointtradeandindustrybodythataimsatmakingthegrocerysectorasawholemoreresponsivetoconsumerdemandandpromotestheremovalofunnecessarycostsfromthesupplychain.
ECRSwedenorganizesprojectsinordertoexplorenewareasofwork-ingtogetheranddeepenexistingexperiencesinordertofulfillconsumerwishesbetterfasterandatlesscost.
www.ecr.se
Ericssonistheworld’sleadingprovideroftechnologyandservicestotelecomoperators.Ericssonistheleaderin2G,3Gand4Gmobiletechnologies,andprovidessupportfornetworkswithover2billionsubscribersandhastheleadingpositioninmanagedservices.Thecompany’sportfoliocomprisesmobileandfixednetworkinfrastructure,telecomservices,software,broadbandandmultimediasolutionsforoperators,enterprisesandthemediaindustry.TheSonyEricssonandST-Ericssonjointventuresprovideconsumerswithfeature-richpersonalmobiledevices.
Ericssonisadvancingitsvisionofbeingthe”primedriverinanall-communicatingworld”throughinnovation,technology,andsustainablebusinesssolutions.Workingin175countries,morethan90,000employ-eesgeneratedrevenueofSEK203.3billion(USD28.2billion)in2010.Foundedin1876withtheheadquartersinStockholm,Sweden,EricssonislistedonOMXNASDAQ,StockholmandNASDAQNewYork.
www.ericsson.com
GS1Swedenisapartofaglobalnot-for-profitorganizationthatdevelopsglobalstandardsfortheidentificationofgoodsandservices.GS1helpsbusinessesandorganisationstoimprovetheefficiencyoftheirsupplyanddemandchainsbyaddingusefulinformationtoanyexchangeofgoodsorservices.
Ourstandardsandservicesincludebarcodes,eComstandardsandEPC,ourstandardforRFID.
Around10000companiesandorganizationsinvariousbusinessesarecurrentlycustomerstoGS1Sweden.
www.gs1.se
Mobile Commerce Report 2011: Mobile in Retail