m-Commerce: Coming to a Phone Near You
Last year, the question was asked: Will apparel embrace m-commerce, shopping via wireless Internet or mobile devices? The answer appears to be “yes”—but we’re not quite there yet.
At the Internet Retailer Conference and Exhibition in June, the Nielsen Co. shed some more light on the future of m-commerce and mobile shopping. According to Nielsen, 9 million U.S. mobile subscribers claim to have used the mobile Web to pay for goods and services, but that number only represents 3.6 percent of U.S. mobile subscribers, which shows that m-commerce is still in the early stages.
In August, Polo Ralph Lauren became the first luxury retailer to launch a mobile commerce site. The apparel maker places special codes in print ads, mailings and store windows. Shoppers can scan these codes using their camera phones and be directed to a phone-friendly version of the Ralph Lauren Web site where they can purchase their chosen items and other products from the Ralph Lauren collection. (For more information, visit www.m.ralphlauren.com.)
In August, French fashion house Chanel introduced a Web application for the Apple iPhone in which users can receive runway looks, video and accessories of the Fall/Winter ’08/’09 Haute Couture collection for free.
Some Web sites are offering price-comparison capabilities through mobile devices. In July, Google announced the SmartShop iPhone application. It allows users to text an item name and price, and Google will text back with the price of that item located at different stores to the user’s proximity.
Other Web sites add a social-networking element to consumer cell phones. Pittsburgh-based retailer American Eagle Outfitters offers a “send to phone” service that allows users to send American Eagle product images and descriptions to any phone using a special text code. Users can send items to a friend’s phone, and a message goes to a mobile Web page featuring that item, its description, pricing and locations where it can be found.
Still, it will take some time before independent e-tail sites can further develop mobile functionality.
“From our research, the mobile e-commerce market in the United States, especially in the apparel market, is still very small and immature,” said Catherine Chow, co-owner of San Francisco–based fashion e-tail site Tobi (www.tobi.com). “But we are starting to look at some ideas for next year because the penetration of larger-screen ’smart phones’ in the consumer market is definitely gaining momentum, primarily driven by iPhone sales.”
There are still some concerns regarding mobile shopping. At the Internet Retailer Conference, Nic Covey, director of insights for Nielsen Mobile, said users are concerned with security, airtime charges and the reliability of buying through a mobile phone.
If retailers can prove that these mobile transactions are “safe, affordable and efficient, more consumers will come to view mobile shopping as a compelling and viable option,” Covey said.
Retailers can use mobile services for marketing and ad campaigns. Buena Park, Calif.–based streetwear retailer The Attic employed Trumpia—a marketing firm that uses mobile, e-mail and text-messaging capabilities—for a July 4 sale promotion. The Attic text-messaged 1,200 customers from its mobile list two days prior to the sale.
According to Trumpia’s results, 20 percent of the mobile-list customers came to the sale and $20,000 worth of merchandise was sold in three hours. The Attic solely relied on the mobile text-messaging campaign and no other type of promotion. Trumpia found mobile-text marketing to be more effective than e-mail because the consumer could be reached more quickly.
