INSIGHT: The smartphone retailing revolution

With the ubiqitiousness of smartphones, consumers in Asia have everything they need in their pockets to compare item prices and service, pull up ratings, log onto sites that capture consumer sentiments and even make payments for goods, without going anywhere near a till.

“It’s taken brands and retailers a very long time to recognise they are no longer at the centre of the retail journey,” says Andrew Knott, regional head of digital at Euro RSCG. “Consumers are multiple steps ahead of retailers, and brands are failing to embrace the technology. Every year has been ‘the year of the mobile’, but I believe 2011 really will be.” Knott also says brands should now ask what role they can play in the mobile space to capture sales, and consumer information.

Knorr and Maggi’s approach was to develop an app for smartphones, which recognised the role the devices can play with retail point of sales. An app was developed that allows shoppers to pull up a simple recipe on their phones while in the supermarket shopping for dinner.

But this is still just the tip of the iceberg and Asia remains very much behind other markets.
Manita Khuller, regional director of strategy at Ogilvy Action, says Asia is nowhere near the US and Europe in this regard. “China, India and Indonesia still remain far behind the game even though a recent study revealed 79 per cent of users were using smartphone touch services.”

Knott predicts that location-based services will inevitably play a part in the revolution. He believes Google map and visual search, which come together with smartphones so people can search on location and price, could have a big part to play in driving customers into the retail outlets.

Jane Perry general manager of Proximity shop also believes smartphone accessible price comparison websites will be a game-changer for the retail market. Information can be shared or saved for future re-evaluation and product searches can be performed by typing in text or speaking the item’s name into the handset.

“I think Google Shopper is going to hit Asia like a storm,” says Perry. “The smartphone app allows shoppers to learn about products, as well as read reviews. It lets shoppers compare prices for an item both online and at local bricks-and-mortar stores.”

Rob MacKenzie, design director brand experience at Start, says near field receiver technology on smartphones has the potential to create a seamless retail experience.

“At the most basic level, this turns smartphones into credit cards,” he says. “But it also allows consumers to touch a product with their phone and bring up information on the product. But it also goes a step further: it flashes up ‘you’ll love this’ about products, and other store-related suggestions.”

This article was originally published in the April issue of Campaign Asia-Pacific.