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

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 [email protected]

http://www.dmc.de/

http://www.embitel.com/


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

4

X ≈2


Media access in emerging markets

9%

19%

45%

65%

PC TV FM Radio mobile phone

0%

10%

20%

30%

40%

50%

60%

70%

People access to …

PC

TV

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

9%

19%

45%

65%

PC TV FM Radio mobile phone

0%

10%

20%

30%

40%

50%

60%

70%

People access to …

PC

TV

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

Ava

ilab

ility

of

Re

al-T

ime

Dat

a


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



Recommended Link

Trend Predictions in 140 Characters

http://www.slideshare.net/TrendsSpotting/2010-mobile-influencers-trend-predictions-in-140-characters-by-trendsspotting

Mobile Trends 2020

http://www.slideshare.net/rudydw/mobile-trends-2020



























Summary

It’s the right time – even in India – to start now!

Find the right product portfolio in combination with the right services.

Mobile will lead to even more transparency.Don’t try to block it, use it!

Start thinking about location based services.How can this fit to your business?


“You can't see the future through a rear view mirror.”

(Peter Lynch)


Our Company

• E-Commerce service company

since 1995

• e-commerce and e-business

projects in 30+ countries (incl.

Europe, US, Australia, Japan)

• Responsible for …

– 75+ Webshops

– 1.000.000.000+ USD

E-Commerce Order Volume/year

– 5.000.000+

E-Commerce Transactions/year

• 300+ employees in

Stuttgart (HQ) and Berlin, Germany

• 80+ employees in Bangalore

• Offering Online Commerce services

in India and overseas

– consulting

– design

– technology

– hosting

– shop management

– online marketing (SEO, SEM, SMM)


List of webinars

• Webinar 1: E-Retailing - A perfect storm in India

• Webinar 2: Essence of Retail e-Commerce and its optimization

• Webinar 3:SEO - More Visibility, More Traffic & More Sales for free?

• Webinar 4:Social Media Marketing

• Webinar 5:Customer Acquisition & Retention


Thank you for your interest!

Any questions?Daniel Rebhorn

[email protected]

www.xing.com/profile/Daniel_Rebhorn

www.linkedin.com/in/danielrebhorn

embitel / dmc systems India Pvt Ltd.

www.embitel.com

www.smarte-commerce.com

www.linkedin.com/companies/embitel

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