Mobile Commerce for Retailers - embitel.com...Trends on M-Commerce •Approx. 75% of retailers in...

transcript

Better eCommerce 2010 Embitel

Mobile Commerce for Retailers

6th webinar of the retail ecommerce series

an embitel initiative

16th Sep 2010

Speaker

• Studied Computer Science at University of Stuttgart

• Entrepreneur since 1992

• Working in retail e-Commerce for last 15yrs

• Responsible for development of e-retail sites like Neckermann, Kodak

Founder

dmc digital media center GmbH, Germany

www.dmc.de

Chairman

Embitel, India

www.embitel.com

Daniel Rebhorndr@dmc.de

You have 6,480,000 possible

answers to this question.

Agenda

• Mobile Commerce, Hype or reality?

• Market trends

• Opportunities and threats

• Mobile Commerce and E-Commerce compatibility

• Case studies

• What can be the approach?

• Our vision of Mobile Commerce

Mobile E-Commerce, Hype or reality?

Why will Mobile Commerce not only be accepted, but be a driver?

Because (smart) mobile devices will be part of our daily life!

Source: Morgan Stanley

X ≈2

Media access in emerging markets

PC TV FM Radio mobile phone

People access to …

FM Radio

mobile phone

Driving factors

1. People: Mobility, Freedom, Time,Need for Information, Fun

2. Hardware- : Intense Competition, Need toIndustry offer new, innovative devices

to increase sales

3. Software- : Opportunities for new business Industrymodels, new devices are allowing new kind of applications,more sales

4. Network : Increased ARPU (Average Revenue per user),

operators more sales

Market trends

Source: Morgan Stanley

Usage pyramid in India

# Population in India:

approx. 1.1 billion

# Mobile phones:

approx. 500 million

# Mobile phones w/ internet feature:

approx. 125 million

# Smartphonesw/ internet feature:

approx. 2 million

Other trends

• More available 3G networks in India will boost mobile internet usage (more fast, more convenient, more acceptance)

• In 2010, approx. 1.25 billion mobile phone will be sold worldwide. About 1/5 (= 250 mio.) will be smartphones.

• Usage of social networks is a perfect match with mobile internet devices/smartphones.

Mobile samples

How is the evolution concerned ?

Trends on M-Commerce

• Approx. 75% of retailers in Europe see M-Commerce as real opportunity for their business.

• Today, in US less than 1% of online retail transactions are done on mobile channel. 65%+ retailers think it will be half within next 10 years.

• 60% of UK retailers expect M-Commerce as part of their online strategy.

• All major retailers in US and Europe already launched mobile services/applications.

M-Commerce samples

Opportunities and threats

Opportunities

• Increase user coverage

• New device capabilities supporting new features

• Access to your service anywhere, anytime

• Support for you other channels (multi channel

approach)

• New business models

Media access in emerging markets

PC TV FM Radio mobile phone

People access to …

FM Radio

mobile phone

ACTIVE INPUT

• Keys (12, 20, ....)

• QWERTY

• Softkeys

• Scrollwheels

• Touch Screen

• Touch Surfaces

• Force Sensors

• Microphone

• Camera (Mono/Stereo)

• ...

PASSIVE INPUT

• Clock

• GPS

• Bluetooth, NFC

• Accelerometer

• Biometrics

• Distance sensor

• Light sensor

• Compass

• Temperature

• ...

OUTPUT

• 1-4 Displays

• QCIF (Video) up to HDMI

• Hardware acc. graphics

• Sound/Speach

• Haptics/Vibration

• Soft Screens/e-ink

• Autostereoscop. displays

• Projected UIs

Device capabilities

Multi channel approach

Brick & Mortar Channel

E-Commerce

M-Commerce can drive b&m sales:

- store locator

- availability reporting

- order mobile, pickup in store

Search Online Purchase Offline (SOPO)

Case Study, Oct 2009, Germany

Product segment: Apparels

Local stores

Online shop

13,9 %

13,9 % of Online sales is

initiated through local store

( = 0.6 bil. EUR)

10,7 %

10,7 % of Offline sales is

initiated through online shop

( = 5.3 bil. EUR)

+ 4.7 bil. EUR

New business models

• Subscription based shopping

– Groceries

– Drugstore goods

• Real time market screening

• Support for “translated” shopping for tourists

• Mobile marketing/advertisement

• Shopping profile “stock exchange” / “banking”

Challenges & Threats

• Challenges

– Expectations of users increase

– Increased maturity of systems and processes

– It’s a new channel to be explored

– Many platforms, many technologies, many players

• Threats

– “anytime, anywhere” increases transparency• Price comparison (incl. barcode scanning) makes the market even

more transparent, reaching full transparency (in B2C)

– Oligopols/Cartels might appear• as whole system is much more controlled by tech companies

(providers of hardware, software, network, …)

Mobile Commerce and E-Commerce compatibility

Building blocks of successful Online Commerce

E-Commerce M-Commerce

Product Management

Online Marketing

Management

Shop Management

Logistics / Fulfillment

Management

Customer Management

Building blocks of successful Online Commerce

E-Commerce M-Commerce*

Product Management Full portfolio, even larger

than b&m portfolio

Full portfolio, focus on

convenience products

(Online) Marketing

Management

Full range of activities,

including SEM, SEO,

Newsletter.

Integration in offline

communication

Integrated

communication in all

channels.

Little mobile marketing

(SMS, etc.)

Shop Management Sales focused

placements and

promotions.

Mobile specific

management

Logistics / Fulfillment

Management

Fast, reliable, consumer

friendly.

Even faster.

Customer Management Fast, reliable, consumer

friendly.

Even more reliable.(remember: anytime!)

*) today.

Increased challenge on IT maturity

Brick&Mortar /Mailorder

E-Commerce M-Commerce

Mail order companies

Brands / Manufacturer

Brick & mortarretailers

Pure internetretailers

New Venture Retailers

Aggregators & Marketplaces

Competitive advantages of Internet retail players

++… in E-Commerce … in M-Commerce

Case studies

Amazon case

• Mobile shopping apps available for – Android

– Blackberry

– Nokia

– Iphone

– Ipad

• Sales exceeded in 1 billion USD in June 2010

Ebay case

• 6 Million downloads of Iphone app

• 1,5 mio products have been purchased

• Mobile transaction volume in 2009: 600 mio USD

What can be the approach?

Approach

• Start your own mobile services. 3 different options:

– web-based mobile services

– app-based mobile services

– a hybrid version

• Integrate into (mobile) Marketplaces

• Easier to sell commodity products

– repeating purchases

– those with less explanation

Our vision of Mobile Commerce

Our vision of M-Commerce

• Mobile Commerce will be – more convenient

– much faster

– something to be done anywhere, anytime

– and: only those with great user experience (services and features) will succeed

• Mobile Commerce will be predominant in shopping of non-physical goods and services in 2013 only

• Mobile Commerce will even more integrate social networks with online commerce

Mobile Commerce for Retailers - embitel.com...Trends on M-Commerce •Approx. 75% of retailers in...

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