M commerce in retail

MOBILE COMMERCE IN RETAILOpportunities provided by Mobile Commerce in Retail Industry

By: Mini Siddhartha Gautam

CONTENT

OBJECTIVE

COMMERCE E COMMERCE

M COMMERCE RETAILING

M COMMERCE

IN RETAILING(Brick and

mortar)

OBJECTIVE

• OBJECTIVE• Reason for study:

• B and M retailing that contributes to a large part of GDP are closing down, due to• Weak economic climate• Competition from online retailers• Out of town destination centers

• As services and shopping move online, people are having less personal interaction, affecting there sense of wellbeing• Untapped potential in retailing for Mobile operators

• Aim of study: • Provide a vision as to how mobile operators (with the help of govt.) can deliver

value added services, content and resources to support retailers and town centres

COMMERCE

WHAT IS COMMERCE

• Commerce - division of trade or production

• Deals with exchange of goods and services from producer to final consumer

• Comprises of trading economic value such as goods, services, information and money between 2 or more entities

ELECTRONIC COMMERCE

WHAT IS ELECTRONIC COMMERCE

• Commonly know as E Commerce/Marketing

• Is a part of Commerce

• Deals with buying and selling of goods and services over an electronic medium such as internet

CommerceE Commerce

MOBILE COMMERCE

WHAT IS MOBILE COMMERCE• Commonly know as M Commerce

• Is a part of E Commerce

• Deals with buying and selling of goods and services through wireless handheld devices such as mobile phones, Personal Digital Assistant – PDA (smart phones, tabloids, etc)

• History: 1997 – first 2 mobile phone enabled Coca Cola vending machine were installed in Helsinki, Finland

CommerceE CommerceM Commerce

• SERVICES AND APPLICATIONS

• Mobile Banking• Mobile Money Transfer – Use of wallets• Mobile Purchases• Mobile Browsing• Mobile Marketing, Advertising and Re-advertising• Information services – News, stock quotes, sports scores, financial reports,

etc.• Mobile vouchers, coupons and loyality cards• Content purchase and delivery – sale of ring tones, wallpapers, games, etc.• Mobile Brokage

• PAYMENT METHODS• Premium rate telephone numbers

• Mobile operator billing

• Credit cards and debit cards

• Mobile Wallets – PayU, Paytm, etc.

• Micro Payment – for small amount payments – billed to phone bills, paypal, etc.

• Stored-value cards – e.g. iTunes

RETAILING

WHAT IS RETAILING• Retailing is a business process

• It involves selling consumer goods and/or services

• Types : Brick And mortar (B and M) retailing and online retailing

• Involves channels of distribution

• Aim is to earn maximum profit

M COMMERCE IN RETAILING

(B and M)

M COMMERC

E IN RETAILING

(B and M)

MOBILE COMMERCE IN B AND M RETAILING TODAY

Consumer Demand for M Commerce in local retailing

What Mobile Operators are Supplying or can supply

• MOBILE COMMERCE IN B AND M RETAILING TODAY

Consumer Demand

Consumers willing to engage with retailers through mobile phones

Will adopt if it is easy to use and offer seamless experience across multiple channels (such as parking providers, restaurants, entertainment providers, etc.)

Alerts work best for location based deals and related to to products and services customer professed interest in

Interested in digital connect – product recommendation, demo videos, virtual ‘try on’ simulations, etc.

Would be interested in mobile wallets (if it meant carrying no cash or credit card)

Better, simpler ways to complete payments

Want solutions that make the most of their budget – great deals, rewards, vouchers, etc

Appreciate information about products and interactive shopping guides

MOBILE COMMERCE IN B AND M RETAILING TODAY

Mobile Operator Supplies or can supply

Sim based NFC (Near field Communication) services

Mobile network can be used to send vouchers to be redeemd using NFC at checkout

Sim cards are used to secure payments

NFC, Quick Response (QR) codes and Barcodes to be aligned with existing checkout procedure

Interoperable Collaboration between mobile industry and other sectors (retail, transport, etc)

Creating a common framework across all service providers

Engaging with national/local govt., transportation bodies, banks, retailers and other stake holders

Building a common marketing platform

Wallet and payment focused with some loyality and couponing

MOBILE COMMERCE IN B AND M RETAILING TODAY

MOBILE OPERATOR STATUS

SCALE AND DIVERSITY OF B AND M RETAIL

• SCALE AND DIVERSITY OF B AND M RETAIL• Retailing segmentation

• Tier 1: Annual sales exceeding US $1billion• Tier 2: Annual sales between US $100 million - US $1billion• Tier 3: Annual sales below US $100 million

• Retail sector typically accounts for a large part of country’s GDP• Retail is linked with 3 key sectors : tourism, night time economy

(restaurants, entertainment and bars) and parking• Retailers plays vital role in providing social cohesion

RETAIL REVENUE (USD $BILLION)

FACTORS INFLUENCING THE SUCCESS OF TOWN AS RETAIL DESTINATION

EXAMPLE OF EVIDENCE OF CONSUMER EXPERIENCES

UNDERSTANDING HOW CONSUMER MAKE DECISION

CONCERNS OF B AND M RETAILERS

• Bringing more consumers and potential consumers into stores

• Sell more products and services

• Optimise their business processes

PROPOSITION ELEMENTS FOR CONSIDERATION

CREATING A COMPELLING CONSUMER JOURNEY

OPPORTUNITIES FOR MOBILE OPERATORS

• To create individual or framework of secure end-to-end proposition for tier 1 retailers – individually or in collaboration with other operators

• Collaborate with other mobile operators to develop framework infracture for M Commerce services for tier 1, 2 and 3

• Provide cross sector integration of wallets, payments, coupons and loyality

• Use sim card to authenticate consumers

• Increase security of M commerce services

CHALLENGES

in supporting wide range of value added services provided by m commerce

• CHALLENGES• Technology Deployment:

• Mobile services need to integrate retailer’s existing online and PoS systems and solutions• NFC requires complex IT infrastructure which is expensive• Some retailers already have different expensive IT infracture that would need to be changed to have

cross ecosystem standards to support interoperability• Maintaining and leveraging joined up multi channel experience• Services need to be secured enough to protect consumers, banks, payment schemes and retailers

• Education:• Educating staffs to help customers use M Commerce is expensive• Constant messages and icons needed to educate customers

• Business Model:• Common network across multi mobile operators• Interested in promoting their own in house app than wallet based on mobile operator solution• Need full access to consumer data generated by M Commerce services• Sharing transaction details with mobile operators is perceived as encroachment• Doubt on return on investment on NFC

THANK YOU!!