According to Kantar Worldpanel, over half of the UK population now have a smartphone. But will people ever use it as a market place that could challenge the traditional retail environment?
Internet and application access on mobiles has empowered customers to make purchases in almost any place at any time; should they wish to. According to the IAB and PWC, the percentage of mobile visits to online retail sites rose from 2.6% in 2010 to 8.2% in 2011 while the average transaction carried out on a mobile device rose from £12.20 to £17.49.
However, claims of mobile retail replacing the high street are exaggerated. Shopping online is complementary to the retail experience, not competition. Purchasing on a 3 inch screen as an experience barely compares with going into a store to try on clothes, test out the latest gadget or browse interesting books. Even as a proportion of online sales, only 5% are done via mobile.
What mobile is great for is to assist retail, both online and in-store. Whether this is to increase footfall, pay for products in-store, or mobile marketing. Sarah Ballie, Mobile Commerce Manager from Debenhams has made the point “There are many benefits of people engaging on mobile within the store: allowing them to double check prices against the website, read reviews or share products with friends for a second opinion”
Mobile is a platform that is often used in conjunction with other media, it is important to be used with broad mix of media to engage with users. It is an engagement tool, not a market place. At least not yet.
Paul Barnes
Media Analyst
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