Companies
that are willing to grow and expand in the future take into account the
customer needs and problems. One thing that is becoming particularly popular
among the consumers is the cell phone or popularly known as the smart phone.
This is one of the technologies that are set to change not only the way we
connect to people but also how people conduct business. Smartphone’s have
brought great ease into the lives of both the consumers as well as the
retailers. The consumers can quickly open their Smartphone and look for the
product they wish to buy rather travelling for a physical inspection of
products. Retailers get the advantage of ease in promotional activities with
reduced cost plus the benefit of wider reach which allows them to explore
beyond their local market.
The
overall penetration of smart phones has been increasing rapidly throughout the
globe due to decreasing cost and improving interface which allows more and more
users to easily use these devices. This is one of the key drivers of growth for
the retail mobile phone industry. Other factors contributing growth include
changing lifestyles followed by improved spending ability. According to the
study, ‘Mobile
In Retail - Thematic Research’, some of the major companies that are
taking advantage of the rising Smartphone penetration include Amazon, Alibaba
group,JD.com, ASOS Shop Direct, Best Buy, Otto group, Suning Electronics,
Macys, Apple, Tesco, Home Depot, Sainsburys. There are numerous number of
companies that are working in mobile retail throughout the globe, however only
some of the major firms that possess financial capabilities are able to
aggressively expand in this domain. Hence, the competition landscape turns out
to be slightly consolidated in terms of market share, but the number of firms
would be huge. Mobile Retail is a type of retail industry in which many
companies can easily set up their business operations without making great
capital investment or maintaining huge inventories in order to meet rising
demands.
Another
usage of Mobile Retail involves the usage of algorithms to make the shopping
experience more interactive and helpful for the consumers. When the consumer
initially uses the Smartphone, the algorithm keeps note of the product or
category that is most favored by the consumer and the algorithm then shall
focus the application or website into promoting the product that is most favored
by the consumer. Smartphone technology has the potential of realising an Omni
channel platform where a buyer can easily buy all types of goods and services
which is driven by multiple factors that include rising Smartphone penetration,
improved adoption by buyers for sales completion and improved mobile
functionality for retail users.
The
growth in mobile phone industry will lead to a simultaneous increase in the
mobile retail industry. New innovations are completely changing the already
dynamic industry of mobile retail. With introductions such as Virtual
Assistance and Chat bots, this industry is set to expand in the future. The
companies that wish to enter the market would have to bring in further
innovation which enhances the consumer experience and is relatively cost
effective as well. The future of this industry is extremely bright with major
potential still unexplored.
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Contact Us:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
0124-4230204