Mobile shopping, the next it!

For this holiday season, in-store purchases and e-commerce have found a fierce competitor in the form of a small gadget, that we all are addicted to, our mobile phones!

First, you had to go to them, then they came to you, on your desktop, and now, closer than ever, they are in your palm; retailers, anytime, anywhere!

All surveys show that 2010 will be the first holiday season where mobile shopping will make a huge impact on sales in US.  It’ll be a year to remember; a year to learn from, and it’ll be the year that changed the future of commerce.  Mobile shopping is going to make a big hit in commerce this holiday season, it’ll definitely became very important in Canada as it constantly adds value for consumers in their shopping practices.

Consumers today are being spoiled with push updates and information directly to their mobile devices.  The conveniences offered at the touch of their fingers is spreading faster than expected and now consumer expectations from retailers have gone up with the practice and freedom of buying products whenever and wherever they want. Mobile shopping is the next big thing.

Consumers who?

Consumers riding a bus, sitting in a waiting room, working in the office, or between classes at school, they all have two things in common; a mobile phone which is no longer just a communication device, and great expectations from retailers to respond to this fast growing new shopping channel, Mobile !  Same way that e-commerce changed holiday shopping for good, Mobile shopping will revolutionize the holiday shopping for ever.

More than half of US consumers are planning to use mobile devices for holiday shopping this year, according to Mobile Marketing Association and Luth Research’s survey. Retailers can now interact with consumers, in this case “ Mobile holiday shoppers” category, directly through their mobile phone at anytime. Sooner or later all retailers, both in Canada & US have to bring their brands to consumers’ palms in order to maintain their position in this competitive market.

Evolution of shopping

Each & everyday consumers use their mobile phones more and more for purchasing products; therefore, the number of “Mobile holiday shoppers” will increase and smart retailers should take advantage of this trend going into the 2010 holiday season. Especially with current economy, companies, which send out SMS’s that contain discounts, promotions, free shipping, and other forms of loyalty programs, will gain higher transaction rates that will lead to more revenues this year.

Consumers use their mobile devices to research, find out about new arrivals, discounts, and promotions, see the catalogs, and find out a store’s location. Not only is everything made easy for them via mobile shopping, but also it allows consumers to make more informed purchase decisions.

What the heck caused this high number of mobile transactions?

According to Deloitte’s 25th annual holiday survey, Shoppers 18-29 are going to form a significant portion of mobile usage this holiday season, with 37 percent planning to use their mobile phones during the shopping process.  “The devices become capable of even more functionality, mobile will become even more mainstream,” said Alison Paul, vice chairman and retail sector leader at Deloitte, New York.

Two major factors have driven this high number: adoption and sophistication. People adapt to Smartphones more & more with each new device introduced to the market.  Another important factor is the increase in sophistication and features on these smartphones that make mobile shopping less painless.

Make it a great experience!

• Push out gift ideas to the mobile users
• Simplify the shopping experience
• Have a one-click checkout process
• Allow for order tracking
• Remain consistent across channels in terms of promotions from online to mobile, and store to mobile device

Attention retailers!

1. In both delivery models for mobile commerce, mobile Web and mobile applications, product catalog, pricing, promotions and inventory must be consistent and updated in real-time due to selling volume.
2. Don’t just focus on revenue earned by mobile shopping this holiday; mobile medium has other capabilities too. It influences purchasing heavily through other channels such as in-store transactions. The key is how to inform consumers of stores locations, promotions, and discount’s.
3. As of this holiday season, the challenge for retailers both in US & Canada will be how to either embrace or try to hold off the mobile shopping trend.  Mobile shopping will become a common consumer practice and consumer practices once learned, become very hard to change. Retailers must ensure they provide their customers with the right experience right out of the door.
   

What now?

As it has been predicted by experts in US this year, mobile will be the break away channel to reach consumers for the holiday shopping season. As Canada always follows in the footsteps of the US, retailers better start planning & investing in a sound mobile strategy, since we are clearly headed in that direction. Retailers should look at mobile as a great new medium for their sales, advertising and marketing & ensure they benefit from early entrance into the arena.

It is essential to build a strong mobile strategy for 2011 because 2010 holiday season will be remembered as the turning point for consumer acceptance of mobile as a viable shopping outlet.