mobile in retail 2011

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1. Mobile Commerce Report 2011: Mobile in Retail MOBILE IN RETAIL Mobile Commerce Report 2011 The consumers’ perception of the HotShopper pilot and Opportunities and challenges for brand owners and retailers

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Taken from the dutch blogpost at GS1http://www.gs1.nl/opinie/rubriek/geselecteerd/205-tips-voor-een-succesvolle-mobiele-strategie.html

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1. MobileCommerceReport2011:MobileinRetail

Mobile in Retail

Mobile Commerce Report 2011

The consumers’ perception of the HotShopper pilot and Opportunities and challenges for brand owners and retailers

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2.MobileCommerceReport2011:MobileinRetail2. MobileCommerceReport2011:MobileinRetailA cooperation between:

Mobile in Retail

Mobile Commerce Report 2011

The consumers’ perception of the HotShopper pilot and Opportunities and challenges for brand owners and retailers

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MobileCommerceReport2011:MobileinRetail 3. 3.

Table of Contents

TableofContents

01. Executivesummary 4

02. Introduction 6

03. Trialbackground 8

04. Vocabulary 10

05. Theconsumers’perception 12 oftheHotShopperpilot

5.1. Mobilephonesarealreadyapart 12 ofmanyconsumers’shoppingexperience

5.2. HotShopper:wellreceivedasaconcept 12

5.3. Thescanningexperiencemustbeimproved 14

5.4. Moreintegrationrequested 14

5.5. Mobileappsforotherkindsofshopping 16

5.6. Conclusion:Consumerswantintegrationon 17 threelevelsbutwheredoesitstart?

06. Opportunitiesandchallengesfor 18 brandownersandretailers

6.1. Anewmarketingtoolwithmanyadvantages 18

6.2. Whyaremobileappssointerestingforbrand 18 ownersandretailersintheFMCG-sector?

6.3. Potentialbarriersforbrandowners 21 andretailers

07. Extendedpackaginginformation 22 requiresaneffort

7.1. Standardizedandnon-standardized 22 information

7.2. Cooperationandstandardization 23 –competitiveadvantages

08. Areyoureadytogetstarted? 24

09. Contributorstothereport 26

10. Aboutus 28

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01.ExecutiveSummary

Executive Summary

Inordertoseewhatopportunitiesexistforusingthemobilephonetoenhanceconsumers’shoppingexperi-ence,weranalivemobilecommercetrialatICAMaxiLindhagenHypermarketStoreinStockholminSeptember2010.Inthetrial,35consumersequippedwithaAndroid-basedHotShoppermobileappscannedArladairyproductsinordertofindmoredetailedinformationaboutingredi-entsandadditives;togetinspirationforrecipes;andtogetspecialoffers,amongotherthings.

Insummary,therespondentswereconvincedthataHotShoppertypeofservicewouldsoonbecomereality.Theyimmediatelyrecognizedtherelevancefortheirdailyshopping:Simplyput,theyperceivedtheinformationinthephonetobebetterthanonthepackage.

Consumersinthestudyexpressedthefollowingshop-pingexperienceneeds:

1. Aneedforintegrationofallinformationinthegrocerystore:packaging,andpriceinfo,self-scanning,specialoffers,loyaltycardsandpayments.

2. Aneedforbetterintegrationofgroceryshoppingintoeverydaylife:scanningadsathome,writingshoppinglists,in-storeshoppingconvenience,andusingrecipesinthekitchen.

3. Aneedtoextendtheshoppingconven-ienceandcontrolprovidedbytheHot-Shopperappbeyondgroceryshopping.

Thesethreeneedsopeninterestingopportunitiesforbrandownersaswellasforretailers,sincemobileappsareacomparativelycheapwaytocommunicatedirectlywiththeconsumer.Mobileappsalsomovethestoreclosertotheconsumer,bybeingpresenteveniftheconsumeriselse-wherethaninthephysicalstore–andgives“retail”amuchwiderscopecomparedtowhatithasbeenuptonow.

Wewillsee–andhavealreadyseen-someindustryplay-ersmovingrelativelyquicklyintomobileappsandextendedproductinformation.Cooperationarounddistributionofpackagingcontentwouldalreadynowimprovecostef-ficiency,andearlystandardizationwouldimprovescalabilityofsolutions.

OneimportantfocusoftheHotShopper-projecthasbeentoenablebrandowners,retailers,mobileoperators,soft-waredevelopers,serviceandsolutionprovidersandorgani-zationstoworktogether.Theprojecthasclearlyshownthatthisispossible,andthatcollaborationgivesgoodresults.Inaddition,standardizationandtheuseofwidely-spreadandfuture-prooftechnologiesareoftenbothcost-efficientandsustainablewaystogo.Itisnowuptothepartiesineachindustrytomoveforwardwithstandardizationandcollabo-rationinrelevantareas.

Mobilephonesarebecomingpartoftheshoppingexperience.EveninasmallcountrylikeSweden,weseearoundonemillionSMSusersingrocerystoreseverydayoftheweek.Whensmart-phonesbecomeubiquitous,mobileinternetaccesswillchangehowconsumersshopforgroceries.

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02.Introduction

Introduction

Whataretheopportunitiesforusingthemobilephonetoenhanceconsumers’shoppingexperience?Andhowcanwebenefitfromthefactthatthemobilephoneisalreadyapartofmanyconsumersshoppingexperience?

Europeansshopforgroceryproducts3-5timesaweekonaverage–andforotherthingsonlyonceperweek.AmongEuropeanswhodogroceryshopping,around30%weredailySMSusersalreadyin2008.EveninasmallcountrylikeSweden,thisistranslatedtoaroundonemillionSMSusersingrocerystoreseverydayoftheweek.Wehaveseenindifferentstudiesthatsomeofthatmobilecommu-nicationtakesplaceinstores,meaningthatgoodin-storecoverageformobilephoneshasbeenanimportantmatterforretailersforseveralyearsalready.Giventhatthemobilephonehasbecomeanaturalpartofeverydaylifeforalargemajorityofpeople,havingbadin-storecoveragemeanshavingfewercustomers.Andwithin-storemobilephonecoverage,customersalsocommunicatewithotherfamilymembersabouttheiractualshopping,possiblyincreasingsalesevenmore.

So,itisimportanttounderstandthatthemobilephoneisalreadyanintegratedpartofthegroceryshoppingexperi-ence,anditisalreadyaffectingsales.WhatweareseeingnowinEuropeistheexplosiveriseinpopularityofanewgenerationof“smartphones”thatarefundamentallybuiltaroundhavingmobileinternetaccess(suchastheiPhoneandAndroidphonesliketheSonyEricssonX10)andmobileinternetaccessincreasinglyintegratedintoeverydaylife.

ForamajorityofEuropeanconsumers,theinternetisnowusedona24/7basis,meaningthattherearefewwalksof

lifenotbeingaffectedbytheinternet.Manyanalystspredictthatinternetinmobilephoneswillbecomejustasperva-siveasitnowisoncomputers.Giventhatwehavealreadyseenthishappeninginothermarkets(notablyJapanwhereroughly70%ofallmobilephoneownersnowaccesstheinternetonadailybasis),weagreewiththisprediction.

Whensmartphonesbecomeubiquitous,mobileinternetaccesswillofcourseaffectthegroceryshoppingexperience.Butratherthanjustlettingconsumersbringtheirownmo-bileinternetexperiencesintothestore,shouldtheretailerstakeamoreactivepartinthis?Andifso,whatcantheydotoactivelyenhancetheshoppingexperience?ThosewerethequestionswehadwhenenteringintotheHotShoppertrial.Notonlydidwefindverycompellingreasonsforretail-erstotakeanactivepartinthein-storemobileexperience,wewerealsoabletowitnessfirst-handhowconsumersbydownloadingamultitudeofapps(smallmobilephoneapplications)thataredirectlyrelatedtoallvariouswalksofeverydaylife–shoppingincluded–arenowactivelytakingpartintransformingtheveryfoundationsoftheinternetitself.Wearewitnessingtheriseofaninternetwhereeve-rydaymobilityisbecomingthefundamentalfocusforappdevelopment:Aninternetwheremostifnotallmainstreamusageisfocusedonwhatwedodifferentlyindifferentloca-tions.Thisfactwillofcoursehaveimplicationsonandgivealotofopportunitiesforretailbusiness.

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Trial background

Aprototypesystemforextendedpackaging,i.e.retriev-ingextendedproductinformationviathemobilephone,wasdevelopedespeciallyforthetrial.Inthetrial,35consumerstriedouttheHotShoppermobileappintheICAMaxiLindhagen-storeduringatimeperiodoftwoweeksperindividual.AllparticipantsweregivenSonyEricssonXperiaX10phonespre-loadedwiththeHot-ShoppermobileappandinstructedtoscanArlaproductsinthedairydepartmentofthestore.

Theconsumersinvolvedinthetestwereyoungcouples(20-30yearsold)andfamilieswithchildrenathome(25-55yearsold).Theparticipantswereratherfrequentmobilephoneusersbutnotallofthemhadusedsmartphonespriortothetest.Thegroupcomprisedamixofmenandwomenwithdifferentlevelsofeducationandincome.AllconsumerswerefrequentcustomersoftheICAMaxiLind-hagenstoreandweremembersofICA’sloyaltyprogram.

ThetechniqueusedintheHotShopperappisbased

onbarcodescanningwiththehelpofthecameraofthemobilephone.

Thetrialhasbeenevaluatedbyanexternalresearchinstitute.AsthestudywaslimitedtoasmallnumberofconsumerslivinginthesametypeofhousingareainStockholm,itwasdecidedtouseaqualitativemethodtoevaluatethetrial.Theresearchinstituteconductedanumberofstudieswiththeconsumersthatparticipatedinthetrial:pre-study,shopalong,post-studyandfocusgroups.Itisnotpossibletomakestatisticalconclu-sionsfromthestudy,asthepopulationwaslimitedto35consumers.Insteadwehaveobtainedanextensiveunderstandingfromaconsumerpointofviewabouthowmobileappscanenrichtheshoppingexperiencetodayandinthefuture.

Thisreportcoversasummaryoftheconsumerstudiesaswellasanalysescarriedoutbytheprojectteamonhowmobileinretailmayaffectbrandownersandretailers.

EricssonResearchandGS1Sweden/ECRSwedenhaveto-getherwithArlaFoodsandICASweden–bothrepresentingECRSweden–runalivemobilecommercepilotinarelativelynewICAMaxiHypermarketStoreinStockholm,ICAMaxiLindhagen,inSeptember2010.Thepurposeofthetrialwastoexploreifandhowmobilephonescanfacilitateshoppingofconsumergoods,primarilygroceryproducts.

03.Trialbackground

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FindFindinformationofaproduct’scontents,e.g.ingredients,additivesandeco-labellinginformation

InspireGetinspirationfromrecipesaswellassomeotherinformationabouttheproducts

ShareShareyourexperiencewithfamilyandfriendsthroughFacebookupdates

SaveFindspecialoffers

AvoidAvoidacertainadditive

TheHotShopperappconsistsofthefollowingmainfeatures:

Fig:1 ExamplesofscreenshotsfromtheHotShopperapp.

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4G4Gisthefourthgenerationofmobilenetworkstandards,alsoreferredtoasLTE(Long-TermEvolution).Thenextevolutionarystepofmobiletechnologyallowingdataratesabove100Mbps.

Contentprovider Theplayerthatprovidesthecontenttothemobileapp,forexamplebrandsprovidingproductinformation,recipesetc.

FMCG FastMovingConsumerGoods.

HotShopper Theprototypemobileappdevelopedforthetrialpresentedinthisreport.

Mobileapp Softwareinstalledonthemobilephonethatinteractswiththenetworktodeliveraservicetousers.

Mobilebarcodescanning Barcodescanningusingthecameraonthemobilephoneandsoftwaretodecodethecontentofthebarcode.

MobileInternet Referstoaccesstotheinternetfromamobiledevisesuchasasmartphone.

MobileservicesEverythingyoucandowithamobilephone.Inthisreportwemainlyfocusonappsandmobileweb,butmobileservicesareforexamplealsoSMSandvoice(i.e.thebasicfun-ctionofbeingabletotalkinamobilephone).

NFC–NearFieldCommunication

Awirelessshort-rangecommunicationtechnologythathasanoperatingdistanceofafewcentimetres(simplyholdtwodevicesclosetoeachother).NFCcanbeusedforbothcommunicationandidentification.

Serviceprovider Theplayerthatoffersthemobileservicetotheconsumer,e.g.aretailerorabrandowner.

Shopper Aconsumerinthepurchasingsituation,forexampleinagrocerystore.

SmartphoneAsmartphoneisamobilephonethatoffersmoreadvancedcomputerabilitythananaveragemobilephone.InthistrialasmartphonespecificallymeansaphonethatusestheHotShopperappandscansabarcode.

04.Vocabulary

Vocabulary

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05.Theconsumers’perceptionoftheHotShopperpilot

The consumers’ perception of the HotShopper pilot

5.1 Mobile phones are already a part of many consumers’ shopping experience

Whentestingaprototypesoftwaresystem“live”onnormalconsumers,theruleofthumbinthemarketresearchindustryisthateverythingthatcangowronginfactwillgowrong.Andevenifusersareabletoactuallytryoutthesystemontheirown,theyarequiteoftenmoreinterestedintalkingaboutthingsthatthetestersarenotinterestedin–suchasthecolourorshapeofthemobilephoneratherthantheapptheyweresupposedtoevaluate.Onlyrarelydoesnotonlythesystemworkasintended,buttheusersalsofocusonwhatthetestersareinterestedinfindingout.

TheHotShoppertrialisoneofthoseraresuccesscases.

Althoughrespondentshadtouseanotherphonethantheirownduringthetrial,thisturnedouttobeverylittleofanissue.Manyalreadyhadasmartphoneandthosewhodidnotyethaveonehadalreadygrownaccustomedtoseeingotherpeopleusingsmartphoneseverywhereandinallkindsofsituations.Thegeneralperceptionofsmartphonesamongtherespondentswasthattheywereeasytouseandthattheysetastandardforwhatonecandowithaphone.

Groceryshoppingtodayinvolvesbalancingalotofinfor-mation.Evenpurchasingasinglebananameansmakingdecisionsaboutorigin,pesticides,ecologicstandard,fresh-ness,fairtradeandsoon.Insuchmildlystressfuleverydaysituationsconsumersfeelanevenstrongerneedtobe

empoweredtomaketherightchoices:Empoweredtobeincontrolandconfidentlymakingactivechoices,whilestillgettingagoodprice.

Withsmartphonesincreasinglybeingperceivedaseasy-to-useinternetinyourpocketdevices,respondentsinourstudyoverwhelminglysawthesmartphoneasfittingquitenaturallyintoshoppingactivities.Themoreadvancedre-spondentsinthetrialwereinfactalreadybuildingtheirownserviceinasimilarveintowhatwetestedwithHotShopper,byusingacombinationofdifferentappsalreadyavailable.Theyarebuildingthis“service”piecebypieceastheneedsoccurandtheylookforspecificappstofillspecificneeds.

Butitturnsoutthatsmartphonesarenotexclusivelyforadvancedusers.Eventheusersofmorebasicmobilephonesinthetrialeasilyadaptedtothesmartphonemind-setandweresurprisinglyabletotakeadvantageoftheHotShopperfunctions.

5.2 HotShopper: well received as concept

TherespondentswereconvincedthataHotShoppertypeofservicewillsoonbecomereality–infactalreadywithinayear.Theyimmediatelyrecognizedtherelevancefortheirdailyshoppingastheyperceivedextendedproductinformationdeliveredthoughthemobilephoneasaddingvalue,comparedtosimilarorsameinformationavailableelsewhere(onpackage,throughadvertisements,etc.)Simplyput,theyperceivedtheinformationinthephonetobebetterthanonthepackage.Notonlywasiteasierto

Whentestingaprototypeoranewconcept,itisoftenmoreinterestingtoincludeasmallerpopulationoftestpilotsratherthanabigone.Asmallpopulationmakesitpossibletogointodepthintoanumberofkeyissuesandconsiderations.Thischapteraimsatsumma-rizingtheresultsoftheHotShoppertrialfromthepointofviewoftheparticipatingconsumers.Whatweretheiropinions?Didtheyfindtheinformationthattheyreceivedintheappuseful?WouldtheyliketouseaHotShopper-likemobileappifitbecamereality?Inwhichsituations?

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readduetoitsgenerallylargersizebutitalsobecamemorevaluablesinceitwasstructuredinastandardizedway.Itwaseasiertofindwhatonewaslookingforandtheextendedinformationnotavailableonpackageswasuseful.

AllrespondentsthatwetalkedtoinfactperceivedbenefitsfromusingHotShopper,althoughtheyrepresentedseveraldifferenttypesofshopperprofiles:Structuredandunstructuredshoppers;fastandslowshoppers.Theyalsofounddifferentbenefitsdependingonthetypeofshop-pingactivity:Routineshopping,complementarypurchasesandshoppingforspecialoccasions.

Thus,individualpreferencesinshoppingstyles,lifestylesandambitionsdeterminewhichfunctionsarefoundtobemostvaluableand/ormostlikelytobeused.SowhereashealthconsciousrespondentsfeelstronglyaboutAvoidandFindforavoidingadditives,thosewithallergieswanttoavoidharmfulingredients.Butinterestingly,bothorganizedshop-persandunorganizedshopperswouldliketobenefitfromincreasedorganizationoftheirshopping.AndbothorganizedandunorganizedshoppershadaunanimousinterestinusingtherecipesoftheInspirepartofHotShopperapptogainmoreinspirationaboutwhattocookand,consequently,whattobuy.Newrecipesnotonlycreatedachanceofbreakingtheboredomandroutine,italsosavedtimenormallyspenttryingtothinkofsomethingnewinastressfulandsometimesuninspiringsituation.Infact,therecipesfunctionalityintheHotShopperapphadnodownsidesatall!

AlsotheSavefunctionoftheappwastriedoutandwasappreciatedbymostconsumersinthetrial.Mostrespond-

entsalreadyreceivedpersonalisedoffersfromICAintheirmailboxes.TheconceptofreceivingtheseintheHotShop-perappwasperceivedasaconsiderableimprovement.Notonlywouldtheoffersnotbeforgottenathome.Offerscouldalsobeconsideredintheactualshoppingcontextandcomparedwithalternatives.

“Suggestions of new recipes are just great when you are standing in the store both hungry and clueless of what to buy.”

Mita,43

“I liked it a lot and I tried to scan all the products in the section to find a good offer. It felt a little like a treasure hunt.”

Jenny,29

Therewerenaturallysomeissuesaswell.Manywereconcernedaboutbatteryconsumption–andthisgripeissomethingweseeinbasicallyallsmartphonerelatedstud-ies.Somewhohadpreviouslyneverusedtouchscreensalsohadsomeinitialusabilityproblems,butmanagedtoovercomethem.Touchinterfaceshavealearningcurve,butourstudyshowsthatthisisnotabarrierforadoptionandthattouchinterfacesareintuitivetouseonceonegetsusedtotheconcept.

“The best result you can wish for in a focus group discussion is that respondents sponta-neously have a lot of ideas of how to improve the service they have tested. This means that they have fully accepted the basic service they tested and already to a large extent integrated it with their daily routines. And this is exactly what happened with HotShopper.”

HotShopperfocusgroupmoderator

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05.Theconsumers’perceptionoftheHotShopperpilot

5.3 The scanning experience must be improved

MoreuniquelyrelatedtotheHotShopperapp,how-ever,werebarcodescanningissues.Somecommentswererelatedtothenoveltyofusingone’sphoneforscanning;othershoppersmightwonderwhatyouareupto.Whileusingself-scannersisestablishedasbeinganalternativewayofshoppingandpayingforonesgroceries,scanningwithamobilephonedoesnotcarryanobviousinterpreta-tion.Somerespondentswonderifothershoppersthinktheymightbedoingsomethingsuspiciousliketryingtofindsomethingespeciallycheap(indicatingthattheper-sonscanningispoor)ormaybegatheringdataforsomeexperiment.Butrespondentsrealizedthatthisnoveltyphasewouldsoonfadeawayanddidnotseethisasabarrier.

However,theself-scanningsystemwasusedasapointofreferenceformany,andinthiscomparisonthephonewasseentobelackingsomewhatinergonomicsandscanningspeed.

“It was too difficult to juggle two devices at the same time, the self-scanner and the phone.”

Mita,43

Whenscanning,thephonehastoconstantlybetakenoutof/putbackinpocket/handbag.Self-scannershaveaprop-erhandle,andincomparisonthephonewasregardedasabitunwieldytouseandhardertogrip.Somealsoexpressedfearofforgettingthephoneintheshoppingcart.Whilemostrespondentsfoundthespeedofmobilephonescan-

ningacceptable,itwasstilltooslowtoreplaceself-scannersinaneverydaystressfulshoppingsituation.Scanningbarcodeswiththephonecamerawassomewhatawkward.Ittakestime,feelsimprecise,demandspracticeandisdependentonin-storelightingconditions–andthereisno

“guidingredlight”aswiththeself-scanningsystems.OneshouldhoweverbearinmindthattheHotShoppertrialwasatestandthattheprototypeusedwasnotanoptimalsolu-tionintermsofergonomics.Itisalsoimportanttopointoutthatnewtechnology,suchasNearFieldCommunication(NFC)mayimproveusabilityandeasetouse.

BasedonthespeedofscanningwiththeSonyEricssonX10,respondentsthoughttheywouldusethemobilephonemainlyforextendedproductinformationonspecificprod-ucts,whereastoday’sself-scannersareviableforscanningofallintendedpurchases–indicatingthatsomeoptimiza-tionofthistechnologymaystillbeneeded.Ontheotherhand,ifthespeedandeaseofscanningwasthesame,mostrespondentssaidtheywouldprefertousetheirownphone–especiallyifscanningusingthemobilephoneshowsmoreinformation.

5.4 More integration requested

ManyoftherequestsandwishesforfuturedevelopmentofHotShopperwererelatedtotheissueofintegratingdif-ferentfunctionsintothemobilephone.

EventhosewhohaveassembledsomeoftheHotShop-perfunctionalityusingotherappsintheirphonesrequestextendedintegration–andtheyseeopportunitiesratherthanproblemsiftheretailermakestheintegration.For

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most,thisopportunitywasexpressedasachancetointe-gratetheself-scanningsystemnowavailableinmanygro-cerystores,andeveryproductinthestore(notjustArla),aswellastheICAmembershipcard.ButalsopaymentaswellastheintegrationofmoneysavingoffersintoHotShopperwhereseenasgoodopportunitiesratherthanintrusivefunctions.Andasmostgroceryshoppingultimatelyisforfoodtobeprepared,integrationandmanagementofrecipeswasseenasveryimportant,preferablycombinedwithashoppinglistfunction.Respondentsthoughtthataphonebasedshoppinglistwouldnotonlyreplacescrapsofpaperonewriteswhenplanningpurchases,itcouldalsoautomaticallyalignplannedpurchaseswithstorelayouttoavoidunnecessaryrunningbackandforthinthestore;andultimatelyitcouldcoordinatepurchaseswithotherfamilymembers.AlthoughFacebookhadbeenintegratedintheappintheSharefunction,thiswasnotseenasuseful

–insteadcommunicationfunctionalityshouldbefocusedonthefamily,suchasshareableshoppinglists,andpossiblyuserprofilessothatneedsofdifferentpeoplecouldbemet.

“I would like to add a shopping list function so it would be easier to keep track of what to get. It would be good if it was structured according to the layout of the store.”

Jenny,29

Whythen,thisneedforintegration?Theanswerpartlyhastodowithawishforaconvenientwayofhavingevery-thingathandwhenneeded.Butmoreuniquelytherewasalsoanunspokenneedtomakegroceryshoppingandthegroceryshopitselfamoreintegratedpartofactivities

throughouttheday,andnotjustwheninthestore.Withthespreadingubiquityoftheinternet,wehave

seenconsumersbecomingincreasinglywell-informedanddemanding.Astheinternetmakesinformationavailabletoconsumerswherevertheyare,thisseeminglymakesitnaturalforthegrocerystoretoalsobeavailabletoconsum-erswherevertheyare!

Inthistrial,theHotShopperappwouldsavelocationinformationwheneverthescanningfunctionwasused.Whatwesawwhentheinformationcameinastoundedus:AlmosthalfofthescanswherefromlocationsoutsideofICAMaxiLindhagenwherethetrialwasperformed!TherewerescansfromalloverStockholm–infactthereevenweresomescansfromthesouthofSweden!

Furtheranalysisledustotheconclusionthatthesescanswherefollowingtheeverydaymicro-mobilityoftherespond-ents,withclearscanningpeaksnotonlyatICAandotherstoresbutalsoathomeandpossiblyatcommuterstations.

Wewerewitnessinghowrespondentswerealreadyin-tegratingHotShopperintotheireverydayactivities,alreadyperformingsomeoftheactivitiestheyhadexpresslywishedfor:Scanningproductsathometolookatrecipeswhencooking,scanninginotherstoresforcomparison,possiblyscanningina7-Elevenstoreonthewaytoworkinordertostartthinkingaboutwhattogoshoppingforintheafter-noon.Andsoon.

Whatrespondentsthenreallywhereaskingcouldbeinterpretedasaninvitationforthegrocerystoretoentertheireverydaymobilelife.Ratherthanhavinganinternetthatreplacesphysicalstoreswithonlineshopping,wesawthecompleteopposite.Anappthatcomplementsandenhancesthepresenceofthephysicalstorebymobilizingthestoreandmakingitintegratedintherespondents’everydaymobilelife.

HotShopper

HotShopper

Fig:2 Typicalfunctionsthatpeoplewantedtointegrate.

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5.5 Mobile apps for other kinds of shopping

However,consumershoppingneedsarenotlimitedtoasinglegrocerystore:ManyrespondentsalsowantedandexpectedtheHotShopperapptoworkacrossallgrocerystores,andnotjustthoseintheICAchain.

Whenaskedabouthowitwouldbetouseasimilarappwhenshoppingforothergoodsthangroceriesandwhatthosesituationswouldbe,respondentsatfirstfounditabitdifficulttoadjusttotheideagiventhatthedesignofthetrialhadbeenveryfocusedongroceries.Butwhenpromptedwithshoppingexamplesmostrespondentssoonwarmedtotheunderlyingideaoffeelingmoreincontrolofone’spurchasingbehaviour.Furthermore,smartphoneusersamongtherespondentswerealreadyusingtheirphonestoenhanceshoppingviathebrowserorspecificapps–andthusfoundthementalstep-uptoamoreintegratedsolu-tionrelativelyeasytotake.

ForclothesshoppingatplaceslikeH&MandMQ,re-spondentssuggestedcheckingforcountryoforigin,specificdyesandotherchemicalsused,andFairTradecertificates.Manythoughtthatcareinstructionswouldbepracticaltoreadonthephone,aswellasgettinginspirationaboutmatchingapparel.

Thenormalshoppingprocedurewithhomeelectronicsseemstobethatresearchisdoneathome,beforegoingtothestore.However,duetothefactthattheconsumersdonotalwaysfindtheinformationaboutvariousmodelsobjective,therewasanin-storeneedtocheckformodelspecificdetailsandcomparisonsaswellasgettingexplana-tionsfortechnicalterminology.

“I would like to be able to simply compare two TVs that stand next to each other. Why one costs 5 000 SEK and the other 12 000 SEK when I can’t see any difference in the picture.”

Bengt,52

WhenshoppingforplantsatplaceslikePlantagen,therewasaneedtogetwateringinstructionsandotherinforelatedtohowplantsshouldbetreated.

Allergenswerehighonthelistwhenshoppingforcosmetics,togetherwithanimaltestinginfo;andaHotShopper-likeappcouldprovideguidanceindrugstoresingeneralwhenstaffwasnotavailable,aswellassortingthroughallthefineprintandpossiblyalsocheckforharmfulcombinationsofdrugs.

05.Theconsumers’perceptionoftheHotShopperpilot

“I would like to be able to check if a particular item is available in my size in this store and if not, where I could find it. It would save time looking for a clerk.”

Mita,43

“I would like to get help when choosing be-tween different pills for headaches.”

Tova,22

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5.6 Conclusion: Consumers want integration on three levels – but where does it start?

Tosumup,weseethreedistinctareasofimprovementthatconsumersarelookingfor:

1. Firstofall,respondentsexpressedaneedforintegrationofallinformationinthegrocerystore:Frompackaginginformation,viapriceinfoandself-scanningtospecialoffers,membershipcardsandpayments.

2. Secondly,consumersexpresstheneedforbetter

integrationofgroceryshoppingintoeverydaylife:Fromtheabilitytocollectoffersathome,writeshoppinglistsandgetinspirationforeveningmealsduringdaytime,tobeingmoreincontroloverone’sactivitiesinthegrocerystore,tousingrecipesinthekitchen.

3. Thirdly,andfinally,therewasalsoaneed–albeitnotasreadilyobvioustorespondents–toextendtheshoppingconvenienceandcontrolhintedatbytheHotShopperappintojustabouteveryothercategoryofshopping.

GiventheoverwhelmingresponsetotheHotShopperappinthistrial,itmaybeeasytoconcludethatgrocerychainscanbuildtheirownbrandedappswithoutfeelingpressureofcompetition.However,asthemostcommonreferencetosimilarappsamongourrespondentswasthePricerun-nertypeofapp,itmaywellbethatpricecomparisonappscouldtakethisspaceifgrocerychainappsarelateordonotliveuptoexpectations.Furthermore,somerespondentswerealreadyawareofindependentbarcodescanningapps

–anditmaywellbethatusergeneratedbarcodeinforma-tioncouldbecomegoodenoughorevenbetterthanwhatmanufacturersorchainstoresprovide,thusobviatingtheneedforchainbrandedappsiftheyaretooslowincoming.

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06.OpportunitiesandChallengesforbrandownersandretailers

Opportunities and Challenges for brand owners and retailers

6.1 A new marketing tool with many advantages

Mobilemarketingisarathernewmarketingtool–especiallytheuseofmobileapps–andhasanumberofadvantagescomparedtotraditionalmarketingpossibilities.

Mobileappsgivethebrandownersandtheretailersthepossibilitytocommunicatedirectlywiththeconsumer.Itisamarketingtoolthatisveryefficientforbuildingcustomerloyalty,inparticularifcombinedwithothermarketingtoolssuchasloyaltyprogramsanddirectmarketingoradvertising.

Amobileappisavailablefortheshopperattheverymomentoftruth–whensheisinthestore,infrontoftheshelf,withtheproductinherhands.Amobileappcanaddvaluetothephysicalproductandmakesitpossibleforthebrandownertocommunicateaspectsthatarehardtocom-municateonthepackaging.Anexampleofthisisextendedpackaginginformationsuchastheexplanationofwhatacertainadditivereallymeans.

Mobileappsarecomparablycheap.Itdoesnotrequireanenormousmarketingbudgettodevelopamobileapp.Also,theappsaredistributedviaforexampleAppStoreorAndroidMarketfreeofcharge.Oneshouldhowevernotunder-estimatethefactthatappsneedtobemaintained.Maintenanceoftencostsbothintermsofmoneyandbraineffort!

Mobileappsarefastandefficient.Oncethebrandowner

ortheretailerhasdecidedtodisseminateamessageoranoffer,itcanbeimmediatelycommunicatedtoconsumers,whoreceiveitatthemomentithasbeenproduced.Thereareinpracticehardlyanydelaysfordistribution.

Amorestrategicadvantage,inparticularforretailers,isthatamobileappcanmovethestoreclosertothecon-sumer,bybeingpresenteveniftheconsumeriselsewherethaninthephysicalstore.Theconsumercanshop,orlookforinformation,24/7,fromhome,onthewaytothephysi-calstoreorbeinganywherewherehecanbeconnected.Consequently,itgives“retail”amuchwiderscopecomparedtowhatithasbeenuptonow.

6.2 Why are mobile apps so interesting for brand owners and retailers in the FMCG-sector?

Theretailenvironmenthasdevelopedenormouslyovertheyears,especiallysinceself-servicestoreswereintroducedmorewidelyonthemarket.Brandownersandretailershavetogethergainedalotofexperienceandinsightsaboutconsumersand,morelately,aboutshoppers.Themostskilfulbusinesspartnersknowratherwellhowtomeettheneedsofacertaintargetgroup,inaspecificcategory,inashopofacertainformat.Theknowledgeisbasedonalotofexperiencegainedfrom“trialanderror”inthestores.Howeverthetechnicalknowledgedeveloped

Thesummaryoftheconsumerstudiespresentedinpreviouschapterclearlyshowthattheconsumersbelievethatmobileappsenrichtheirshoppingexperience.TheHotShopperappwasmainlyfocusedonextendedpackaging,buttherearealsootherareasofinterestfortheconsumer,suchasshoppinglistsandself-scanning.

Thischapteraimsattreatingopportunitiesandchallengesforbrandownersandretailersfromamoregeneralpointofview.Whyaremobileappssointerestingfromabusinessperspective?Howcanmobileappsimprovethecommunicationwiththeconsumer?Whichareasforim-provementcanbenoticed?

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overtheyearshasalsocontributedtotheprogress.Thein-troductionofbarcodesmadeitpossibletoachievepointofsaledataderivingfromthescanningofproductsatcheck-outs.Morerecently,thedevelopmentofloyaltyprogramshasgeneratedthepossibilitytolearnmoreaboutshoppers,notatleastintermsofindividualshoppingpatterns.

Therearealreadymanydifferentmarketingtoolsavail-ableforbrandownersandforthetrade,withvariouslevelsofsophistication.Therearehowevertwomajorconstraintslinkedtotraditionalmarketingtools.First,theyonlycom-municatewiththeconsumeratone(orafew)physicalplaceatthetime(e.g.athomeinfrontoftheTV,inthemailbox,oratthestore).Secondly,theyonlypermitonewaycommunication.

Mobilephonescanintheorybeusedbybusinessestoreachconsumersanytime,anywhereandthisfactfunda-mentallychangesthepossibilitiesforbrandownersandretailerstodobusiness.

TheHotShoppertrialclearlyshowedthatnotonlyconsumers,butalsoretailersandbrandownersappreciatethepossibilitiesgivenbyextendedpackaging.Extendedpackagingcangivethebrandownerthepossibilitytopro-videadditionalandmorein-depthinformationcompared

“I used it to find out if there are any additives in some yoghurt. I would also like to use this to scan baby food for our 8 months old son.”

Ola,32

toinformationprintedonthepackaging.Oneexamplecouldbeclearandaccurateinformationaboutadditives.Itcanalsoincludeinspiration,suchasrecipes.Mobileappsincludingextendedpackaginggivethebrandownerapossibilitytocommunicateamessagewhichislimitedintime.Thismayinparticularbeofimportanceduringasitu-ationwhereaproductrecallisneeded,orwherethebrandownerforotherreasonswouldliketocommunicatedirectlywiththeconsumersaboutthecontentsofaproduct.TheHotShoppertrialfurthermoreshowedthattheextendedpackagingpartofthemobileappcanbeagreathelpforthestaffinthestorewhenreplyingtoproductrequestsfromtheconsumers.

AglobalGS1publicationfrom2009hasidentifiedanumberofconsumertouchpoints,i.e.placeswheretheconsumersinteractwiththestore(forexamplepre-storeplanning,outsidestore,inaisle/atshelf,atcheckoutandusageathome).Allthesetouchpointsrepresentanoppor-tunitytocommunicateviaamobileappandthustoenrichtheshoppingexperiencefortheconsumer.Thebusinessperspectivesofthefunctionsmay,inadditiontoextendedpackaging,includeforexamplecouponsanddiscounts,loyaltyprograms,advertisingandpromotion.

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06.OpportunitiesandChallengesforbrandownersandretailers

Couponsanddiscounts:Mobilecouponsanddiscountscanbedirectlylinkedtotheshoppingsituationoreventoacertainlocation.Theyappearonthemobilescreenatthemomentwhentheshopperscansthebarcode(oranothertag)andgivetheretailertheopportunitytoforexamplegivetheshopperanindividual“3for2”-offer.Usingmobilephonesiscostef-ficientastheycanbeusedtocapture,manageandredeemcouponsanddiscounts.

Loyaltyprograms:Mobilephonescanprovidemorepersonalservicesandbeusedinamoretailor-madewaytocommunicatewiththeindividualloyaltyprogrammembers.Thebenefitsandthepossibilitieswiththeloyaltyprogramswillbeabletoex-pandwhencombinedwiththepossibilitiesofthemobilesmartphones.Offersthatarerestrictedintimeortoacer-tainshoppinglocationcanbedistributedtotheconsumerviathemobilephone.Theconsumerisgettingmoreandmoremobilesowhyonlyreachingtheconsumerwhen

sheisdoingherweeklyshoppinginherfavouritestore?Maybeyouwouldliketoattracthertovisitthestoreofyourretailchaininthevillagewhereshespendshervaca-tion?Ortotailormakeacommunicationtotheconsumerswhointendtobuyacertaincategory?Orevenaspecificbrand?Youcanalsobuildinfunctionslikevotinginordertoencourageatwo-waycommunicationwithyourloyalconsumers.Orwhynotusingthepossibilityofaquickresearchtofindoutwhatyourconsumersthinkaboutanewproduct,anewcommercialorsomethingelsethatengagestheconsumerandmakethemfeelbeingapartofyourbrand?Mobilephoneswillreplacephysicalloyaltycardswhencombinedintoonefunction.Thiswillmostlikelydecreasethelikelihoodoftheconsumerforgettingtobringher“card”tothestore.

AdvertisingandPromotion:Themobilephonesencouragemoreefficientanddirectcommunicationwiththeconsumersastheadsaresentdirectlytothemobilephones.Mobileadvertisingalsoincludesthepossibilityoflocationbasedadvertisingand,inparticularifcombinedwithloyaltyprograms,advertisingtargetedtocertaingroups.

Payment:Withmobilephones,theremayinthefuturebeaubiq-uitouspossibilitytomakepaymentsanywhere,anytimeincludingatretailcheck-outs.

Self-scanningandSelf-checkouts:Thecombinationofself-scanningandself-checkoutwiththehelpofthemobilephonestransferthehumaneffortcurrentlymadebythestoretotheconsumer.Onemobiledeviceinsteadoftwowillconsequentlyreducethestores’needtoinvestinandadministerscanningequipment.

Socialmedia:Socialmediaisalreadyconsideredtobeasignificantmarketingchannel.Itmaybeofhigherimportanceinbusinessesotherthangroceries,likedurableorlifestyleproducts.Socialmediagive,justlikethemobileapps,brandownersandretailersthepossibilitytocommunicatedirectlywithconsumers.Thepossibilityofcombiningthetwobyintegratingsocialmediaintotheappswillleadtomanynewandhighlyinterestingintotheappswillleadtonewandhighlyinterestingapplications.

Storelocation,in-storenavigationandshopping-list:Store location,whichcanhelptheconsumertofindthestoresinacertainareawhereacertainproductisstocked,canincreasethepossibilityofdrivingtraffictothestore.In-store navigation,whichfacilitatesfortheconsumertofindaproductinthestore,maytogetherwithashopping-list functionbuildcustomerloyaltyandencouragesrepetitionofapurchase.Thebestresultsforusingstorelocation,in-storenavigationandshopping-listfunctionswillbeachievedifthesemobileappsarecombinedwithotherfunctions.

Consumer Touch PointsPlaceswheretheconsumersinteractwiththestore.

Thenumberofretailrelatedmobileserviceswillcontinuetoincrease.Exactlywhatkindofservicesaredifficult,evenimpossibletoforesee.Whatweknowisthattherewillbeinfinitecombinationsandpossibilitiesavailable.

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6.3 Potential barriers for brand owners and retailers

Thecompetitioninthemobileappworldisfierce.Thereisamagnitudeofshoppingappscurrentlyavailableinthedifferentappstores,andtherearemoretocome.Oneobviousrestrictionwithmobileappsisthattheposi-tivebenefitsthatevidentlyexistwillonlybecomerealityifandwhentheconsumerdecidestodownloadyourapp.However,ifcombinedwithothermarketingtools,thepossi-bilitythattheconsumerdecidestodownloadanduseyourappactivelywillincrease.

Apossiblebarrierwithmobileappsisthatquestionsabouttheintegrityoftheconsumermayariseifusinginfor-mationaboutindividualconsumerpatternsasabasisforyourcommunication.IntheHotShoppertrial,itbecameevi-dentthattheintegrityissueswerenotamatterofconcernfortheconsumersthatparticipatedinthetrial.

“I would not mind getting the offers in my

phone. ICA knows everything about my habits anyway.”

Roger,47

Theintegrityissuewasratherwidelydiscussedacoupleofyearsago,butlesssonowadays.ManyexpertsbelieveitispartlyduetothefactthattheconsumersaresousedtomakingfragmentsoftheirdailylivespublicviaFacebookandothersocialmedia.Othersclaimthattheconsumersarereadytomakeatrade-offbetweenprivateintegrityandgoodoffers.Nomatterwhatreason,itisimportanttorememberthatmanycompanieshavefarfromthesamerelationshipwiththeircostumersasICAhaswiththeirs.Theremayfurthermorebelegalaspectsthathavetobeconsidered.Apieceofgoodadviceisthereforetothinkcautiouslythroughhowandwhentousefactsandfiguresabouttheconsumerswhencommunicatingwiththemandtoensurethatthereisconsumerconsent.

In-store coverageisanotherpossiblebarrierforefficientuseofmobileapps.In-storecoverageissuboptimalinmanystores,andcanalsovaryfromoperatortooperator.Inthispi-lot,signalstrengthanddatabitratesweremeasuredbeforethetesttoensuregoodcoverage.Inordertoensuregoodserviceperformanceitisvitalthatthestoreprovidesgoodcoverage.ThisisnotjustimportantformobileserviceslikeHotShopper.Variousstudiesrevealthatconsumersalreadytodayusetheirphonesin-storeforvoicecallsandforsend-ingSMS.Shoppersexpectthatthemobilephoneswillworkinsidethestoreandgoodin-storecoveragecanbeseenasahygienefactorforretailers.

Retailersneedtoinvestigatetheirparticularsituationand,ifrequired,eitherputpressureontheoperatorstoimprovethein-storecoverageorinvestinanownsolutionthatprovidesgoodcoverageforallshoppers.

Threeotherproblematicissuesthatcameupduringthetrialwerethesomewhatawkwardhandlingofthephones,thescanning abilityandthefearofrunning out of batterieswhenscanning.

Asforthehandlingofthephones,ashoppingcartholderformobilephonescouldbeonesolutiontoimprovetheusabilityofmobilephonescanning.

Whenitcomestothescanningability,fullydeveloped(non-prototype)apps,improvedcamerasandpotentiallyalsoNFC-taggingwillincreasescanningspeedconsiderably.

Finally,asforlackofbatteries,asolutioncouldbetooffer“quickcharging”poweroutletsin-storefreeofcharge,i.e.thepossibilitytochargeaphoneforacoupleofminutesinordertobeabletocompletetheshoppingtrip.PhonechargersarecurrentlybeingstandardizedafterpressurefromtheEuropeanUnionandthiswilleliminatetheneedofusingadaptersfordifferentphonemodels.Thebatteryproblemsisageneralissueforthewholemo-bilephoneindustry,implyingthatthereisahighmotiva-tionforfindingimprovedsolutionsandthatdevelopmentiscontinuouslyongoing.

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Extended packaging information requires an effort

Whataretheimplicationsofextendedpackaginginformationfromabusinessperspective?Howwilltheinformationreachtheconsumer?Cantheretailbusinessbenefitfromstandardization?Thereisclearlyadesirefromconsumerstoobtainextendedpackaginginformationviatheirmobilephones.Therearealsofromabusinesspointofviewmanyadvantagesofusingmobileappsasapartofthemarketingmix.Itismostlikelythatextendedpackaginginmanycaseswillbethebasisofthecontentintheretailmobileappsthatareandwillbedeveloped.

7.1. Standardized and non-standardized information

TheHotShoppertrialhasshownthattheconsumersfinditattractivetoreceiveandreadproductinformation–extendedornot–inthemobilephone.Thisrequiresthattheproductinformationthatisavailablefortheconsumerisunivocallycorrect.Anydivergencecanresultinirritationinthebestofcasesbuthavedisastrousconsequencesfortheindividualconsumerintheworstofcases.Thenegativeimpactonthebrandcaninallcasesbesubstantial.Allinformationabouttheproductsthatisavailableintheappsshouldthereforebequalitychecked.Thiscouldinitiallymeananinvestmentbothintermsoftimeandintermsofbudgetaryresources.However,thedisadvantagesofprovidingincorrectinformationaremuchbiggerthantheinitialeffortsthatareneededforthequalitychecks.

Theinformationincludedinamobileappcurrentlyreach-estheconsumerinmanydifferentways.Itcanbetrans-

mittedbytheInternetapplicationproviders(e.g.Google,Microsoft,eBay),orbythebrandownersandretailersthathavedevelopedownmobileapps(e.g.ICA,orArlaFoods).

Onenormallydifferentiatesstandardizedinformation(e.g.productname,manufacturername,productimageandingredients)fromnon-standardizedinformation(e.g.pro-motional,advertising,pricecomparisons).Itisplausiblethatthenon-standardizedinformationwillcontinuetoflowinmanydifferentpipes.Thepriceofaproductis,forexample,hardlyeversetbythebrandowneranditvariesfromoneretailertoanother.Therearehowevermanyadvantagesofhavingstandardizedinformationstoredinonestandard-izeddatapoolandtohavethisstandardizedinformationqualitychecked.

StandardizedbranddatadeliveredbyInternetapplica-tionprovidersisinmanycasesnotdirectlyprovidedandcontrolledbythebrandowners.Theinformationcomesfrommultiplesources(e.g.manualdataentrybyconsumersorbytheInternetprovider,searchesontheinternet,retailers’information,etc.).Someofthesesourcesprovideinaccurateormaliciousinformation.Consumers,brandownersandInternetprovidersarelikewiseveryinterestedinconnectingtoaccuratesourcesoftrusteddata.

“In a world of increasing transparency, inac-curate and incomplete product information reduces consumers’ trust in Brands and Brand owners.”

Source:GS1US/CapGeminiB2CWorkSession

07.Extendedpackaginginformationrequiresaneffort

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Content provider Content provider Content provider

App provider App provider App provider

Standardized Technical Interfaces

Standardized Technical Interfaces & Business agreements

A few info brokers

Content provider Content provider Content provider

App provider App provider App provider

No standardized interfaces Info broker

Content provider Content provider Content provider

App provider App provider App provider

A few info brokers

Content provider Content provider Content provider

App provider App provider App provider

No standardized interfaces

Standardized Technical Interfaces

Standardized Technical Interfaces & Business agreements

Info broker

Content provider Content provider Content provider

App provider App provider App provider

Standardized Technical Interfaces

Standardized Technical Interfaces & Business agreements

A few info brokers

Content provider Content provider Content provider

App provider App provider App provider

No standardized interfaces Info broker

Content provider Content provider Content provider

App provider App provider App provider

A few info brokers

Content provider Content provider Content provider

App provider App provider App provider

No standardized interfaces

Standardized Technical Interfaces

Standardized Technical Interfaces & Business agreements

Info broker

ItisinthiscontextthatGS1hasbeengiventhetaskfromtheFMCG-industrytobetheactorthatenablesthedistri-butionofqualitycheckedandcorrectbrandinformationinanefficientandsecureway.

Thereisclearlyaneedforextendedpackaginginforma-tionfromaconsumerpointofview.Itwouldbepossibleintheorythateachandeverybrandownerprovidedtheextendedpackaginginformationtoeachandeveryappproviderthataskedforit.However,thereisanotheroptionwhichwouldbemoresuitableinpractice.GS1Swedenhasalreadyabusinessserviceinplace,Validoo™,thatqualitychecksanddistributesiteminformationfromthebrandownertotheretailer.Thissystemcanbeextendedtoincludealsootherstandardizedinformationsuchasinformationaboutingredientsorthelevelofcarbondioxideemissions.

GS1canthusbetheactorthatqualitychecksanddis-tributesextendedpackaginginformationinastandardizedway.Itishoweveruptocontentprovider(abrandownerorsometimesaretailer)todecidewhatcontenttodistributeandtowhichparties.

7.2 Cooperation and standardization – competitive advantages

Aswithallnewlylaunchedproductsandservices,someplayerswithinthemobileserviceindustrywillbethefastmovers.Itisoftenthecasethattheearlymoversdonothavetimetowaitforastandardizationprocesstobeadopted.Theysimplyprefercreatingtheirownsolutionstoreachthemarketamongthefirst.Thereareofcourseadvantagesconnectedtobeingafastmoverandnewinnovativesolutionscanalsoinspireotherstofollow.Thereverseofthemedalmightthoughbefragmentedand

cost-inefficientsolutionsaffectingboththeindustryandtheconsumersindisadvantageousways.

Goingforward,anumberofkeyquestionshavetobetakenintoaccount.

• How will the content be distributed in a cost-efficient way? By whom?

• How to secure that the infrastructure behind the mobile app becomes scalable and easy to develop further?

Morespecifically,theproblemisthetechnicalintegrationofmanysourcesofcontentthroughnon-standardizedinterfaces,seefigure3.Ifeachsolutionrequiresadifferentdataformat,thiswillbebothcostlyandcumbersomeandifeachaddedcontentproviderhasnewinterfacesandrequiresintegration,therewillbeaneedfordirectcom-municationbetweenacontentproviderandtheproviderofthemobileapp.Thisprocesswillnotscale.

Thereisalsoabusinessaspectasitisbothtime-con-sumingandexpensivetomakeagreementsbetweenallindividualappprovidersandcontentproviders.

Onewaytoaddressthesequestionsisthataresolutionservice(an“infobroker”)keepstrackofwherecontentislocatedandiscapableofdirectingappstothiscontent.(seeFig:4) Asolutionliketheonedescribedaboveneedstobestand-ardizedsothatallactorsinvolvedarecapableofcommuni-catingwitheachother.Preferably,standardizationshouldcoverdataformats(howtheproductdataisencoded),andcommunicationinterfaces(howdataistransportedinthenetwork).Thisisanurgentneedandsomethingthatneedstobedealtwithbeforeextendedpackagingcanbecomereallysuccessful.

Fig:4 Standardized solution with a few central info brokers and standardized interfaces.

Fig:3 Non-standardized solution requiring direct communication between all content providers and all app providers.

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08.Areyoureadytogetstarted?

Are you ready to get started?

Important focus

OneimportantfocusoftheHotShopper-projecthasbeentoenablebrandowners,retailers,mobileoperators,softwaredevelopers,serviceandsolutionprovidersandorganiza-tionstoworktogether.Theprojecthasclearlyshownthatthisispossible,andthatcollaborationgivesgoodresults.Inaddition,standardizationandtheuseofwidely-spreadandfuture-prooftechnologiesaremostoftenalsobothcost-efficientandsustainablewaystogo.

Itisnowuptothepartiesineachindustrytomovefor-wardwithstandardizationandcollaborationinrelevantareas.

Ifyouareabrandowneroraretailer:talktoyournationalGS1orECRorganizationaboutcollaborationandwaystoshareinformationefficientlyrightdowntotheconsumer.Collaboratewithotherstakeholderstofullyunderstandbusi-nessandconsumerissuesandtocreateavaluechainwhereallcanbenefit.

Ormaybeyouarealreadytherebutwouldliketotakethenextstep?Hopefullyyouhavefoundusefulinformationinthisreportthatwillhelpyouwithyourstrategicdecisionswhenconsideringhowtousemobileappsinyourbusiness.

www.gs1.orgwww.gs1.euwww.ecr-all.org

(TheglobalwebpageofGS1)(ThewebpageofGS1inEurope)(ThewebpageofECRinEurope)

Other mobile commerce projects

TherearealsomanyothermobilecommerceprojectsthatarerunindifferentcountriesalloverEurope(andintherestoftheworld).Thereisalotofinsightthatyoucantakepartofbystudyingtheseprojects.Someoftheinformationcanbefoundat:

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Contributors to the report

ProjectTeamMichaelBjörn EricssonConsumerLabCeciliaGyldén GS1Sweden/ECRSwedenJakobSaros EricssonResearchKarinWollbrand EricssonResearch

SteeringCommitteeGerhardBley O.KavliChristoferElofson ECRSwedenPeterJansson ICAMaxiLindhagenAndreasKeymer ICALeifOlausson ArlaFoods

OthercontributorsYlvaHeivert ICAMatsHvalgren ICAJeremyMorton GS1SwedenBoRaattamaa GS1SwedenPeterRipp ArlaFoodsMarikaStålnacke EricssonResearch

ConsumerResearchThefieldwork(pre-andpost-interviews,shopalongandfocusgroups)wasperformedby:AugurMarknadsanalys.

09.Contributorstothereport

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LiteratureandarticlesMobileinretail–Gettingyour GS1(2009)retailenvironmentreadyformobile

Marknadsföringimobilen JonasMarking(2010)

PhotosOlofHoldar

DesignCabReklambyrå

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About us

ECRSwedenisajointtradeandindustrybodythataimsatmakingthegrocerysectorasawholemoreresponsivetoconsumerdemandandpromotestheremovalofunnecessarycostsfromthesupplychain.

ECRSwedenorganizesprojectsinordertoexplorenewareasofwork-ingtogetheranddeepenexistingexperiencesinordertofulfillconsumerwishesbetterfasterandatlesscost.

www.ecr.se

Ericssonistheworld’sleadingprovideroftechnologyandservicestotelecomoperators.Ericssonistheleaderin2G,3Gand4Gmobiletechnologies,andprovidessupportfornetworkswithover2billionsubscribersandhastheleadingpositioninmanagedservices.Thecompany’sportfoliocomprisesmobileandfixednetworkinfrastructure,telecomservices,software,broadbandandmultimediasolutionsforoperators,enterprisesandthemediaindustry.TheSonyEricssonandST-Ericssonjointventuresprovideconsumerswithfeature-richpersonalmobiledevices.

Ericssonisadvancingitsvisionofbeingthe”primedriverinanall-communicatingworld”throughinnovation,technology,andsustainablebusinesssolutions.Workingin175countries,morethan90,000employ-eesgeneratedrevenueofSEK203.3billion(USD28.2billion)in2010.Foundedin1876withtheheadquartersinStockholm,Sweden,EricssonislistedonOMXNASDAQ,StockholmandNASDAQNewYork.

www.ericsson.com

GS1Swedenisapartofaglobalnot-for-profitorganizationthatdevelopsglobalstandardsfortheidentificationofgoodsandservices.GS1helpsbusinessesandorganisationstoimprovetheefficiencyoftheirsupplyanddemandchainsbyaddingusefulinformationtoanyexchangeofgoodsorservices.

Ourstandardsandservicesincludebarcodes,eComstandardsandEPC,ourstandardforRFID.

Around10000companiesandorganizationsinvariousbusinessesarecurrentlycustomerstoGS1Sweden.

www.gs1.se

Mobile Commerce Report 2011: Mobile in Retail