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
Better eCommerce 2010 Embitel
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]
Better eCommerce 2010 Embitel
You have 6,480,000 possible
answers to this question.
Better eCommerce 2010 Embitel
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
Better eCommerce 2010 Embitel
Mobile E-Commerce, Hype or reality?
Better eCommerce 2010 Embitel
Why will Mobile Commerce not only be accepted, but be a driver?
Because (smart) mobile devices will be part of our daily life!
Better eCommerce 2010 Embitel
Source: Morgan Stanley
4
X ≈2
Better eCommerce 2010 Embitel
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
Better eCommerce 2010 Embitel
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
Better eCommerce 2010 Embitel
Market trends
Better eCommerce 2010 Embitel
Source: Morgan Stanley
Better eCommerce 2010 Embitel
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
Better eCommerce 2010 Embitel
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.
Better eCommerce 2010 Embitel
Mobile samples
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How is the evolution concerned ?
Better eCommerce 2010 Embitel
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.
Better eCommerce 2010 Embitel
Better eCommerce 2010 Embitel
M-Commerce samples
Better eCommerce 2010 Embitel
Opportunities and threats
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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
Better eCommerce 2010 Embitel
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
Better eCommerce 2010 Embitel
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
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Multi channel approach
Brick & Mortar Channel
E-Commerce
M-Commerce can drive b&m sales:
- store locator
- availability reporting
- order mobile, pickup in store
- …
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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
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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”
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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, …)
Better eCommerce 2010 Embitel
Mobile Commerce and E-Commerce compatibility
Better eCommerce 2010 Embitel
Building blocks of successful Online Commerce
E-Commerce M-Commerce
Product Management
Online Marketing
Management
Shop Management
Logistics / Fulfillment
Management
Customer Management
Better eCommerce 2010 Embitel
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.
Better eCommerce 2010 Embitel
Increased challenge on IT maturity
Brick&Mortar /Mailorder
E-Commerce M-Commerce
Ava
ilab
ility
of
Re
al-T
ime
Dat
a
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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
Better eCommerce 2010 Embitel
Case studies
Better eCommerce 2010 Embitel
Amazon case
• Mobile shopping apps available for – Android
– Blackberry
– Nokia
– Iphone
– Ipad
• Sales exceeded in 1 billion USD in June 2010
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Ebay case
• 6 Million downloads of Iphone app
• 1,5 mio products have been purchased
• Mobile transaction volume in 2009: 600 mio USD
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What can be the approach?
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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
Better eCommerce 2010 Embitel
Our vision of Mobile Commerce
Better eCommerce 2010 Embitel
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
Better eCommerce 2010 Embitel
Better eCommerce 2010 Embitel
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
Better eCommerce 2010 Embitel
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?
Better eCommerce 2010 Embitel
“You can't see the future through a rear view mirror.”
(Peter Lynch)
Better eCommerce 2010 Embitel
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)
Better eCommerce 2010 Embitel
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
Better eCommerce 2010 Embitel
Thank you for your interest!
Any questions?Daniel Rebhorn
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