Commentary

The Retailers Who Don't Buy into Mobile Commerce

It appears that some retailers don’t yet accept many aspects of mobile commerce.

While research studies generally identify viewpoints to help forecast where something is going, they also illustrate minority viewpoints, since it’s beyond rare that everyone agrees on everything.

In a study I wrote about yesterday, (Holiday Shopping & the Rise on Mobile Commerce) I pointed out that the majority of retailers are expecting higher sales this holiday season with many looking at mobile as a significant revenue source.

I’ve since spent time going through some of the details in the 2013 Holiday Research Survey conducted by the e-tailing group for Baynote and thought it might be interesting to look at how many retailers are not on board the mobile commerce train.

For example, almost a fourth (22%) disagree that mobile’s influence will drive renewed in-store interest with revenue following suit.

For the coming holiday season, more than a third (38%) say that mobile will not be a significant part of their revenue.

Almost one in 10 (8%) of retailers anticipate no revenue coming from the mobile channel.

While the sample size of 77 retailers surveyed is not large, the negative mobile view could be an indicator that some are not yet buying in, for which there could be various reasons.

“They may not be there yet,” said Lauren Freedman, president of the e-tailing group. “They may not yet know how to do it best.”

Whatever the reasons, consumers at a number of retailers this holiday season will not see any mobile-related activities that may influence their shopping behavior.

When it comes to testing, 17% of retailers plan none and 12% will make no investment in testing this year. An even larger number (57%) plan no investment in alternative payment methods, such as digital wallets.

Promotions that retailers will not include as part of their holiday plan:

  • 40% -- Mobile promotions
  • 12% -- Coupons
  • 73% -- Rewards points
  • 18% -- Flash sales, limited time promotions
  • 19% -- Other incentives

We’ll have to see where these retailers end up long term.

5 comments about "The Retailers Who Don't Buy into Mobile Commerce".
Check to receive email when comments are posted.
  1. Jerry Shereshewsky from GrownUpMarketing, August 6, 2013 at 1:53 p.m.

    Walking the streets of NYC or virtually anywhere else where people are on foot (don't get me started about people with their noses in their phones while driving), convinces me that the percentage of time and attention now devoted to the phone (or other mobile device is even greater than usually cited. Our entire culture has been changed by this revolution and so has our shopping.

  2. Chuck Martin from Chuck Martin, August 6, 2013 at 1:57 p.m.

    Yes, that is for sure, at least for the majority in most studies conducted, Jerry. But then there is that minority group...

  3. Paula Lynn from Who Else Unlimited, August 6, 2013 at 3:12 p.m.

    Every time there is another facet to advertising, it adds to costs. Sure there is a case for investment for the advertiser but what continues to be overlooked, especially for smaller retailers, is that they may not have the resources to invest, predicting ROI is not so predictable and they will have to pass the cost of the increased investment on to their customers who may jump ship because of those costs. Large advertisers can pulverize their competition via mobile even if they have a precipitous on line presence.

  4. John Vail from PrizeLogic, August 7, 2013 at 12:22 p.m.

    To add to Jerry's comment...take note of people watching TV, at the bar, on the train...it's all mobile baby. Was travelling with a team member last week who left both her purse and backpack in a Starbucks and an hour later gasped OMG. But she had her phone in her hand the entire time as we travelled an hour by car to a meeting. I don't drive and text/email for the record!

  5. Chuck Martin from Chuck Martin, August 7, 2013 at 8:19 p.m.

    Couldn't agree with you more, John. And glad about the not texting and driving, of course.

Next story loading loading..
About the Author

Chuck Martin is Editor of the AI & IoT Daily at MediaPost and writes the daily Connected Thinking column. He is a NY Times Business bestselling author and his latest book is “Digital Transformation 3.0” (The New Business-to-Consumer Connections of The Internet of Things.) He is CEO of Net Future Institute and a frequent keynote speaker internationally. Follow him on Twitter @chuckmartin and contact him at Chuck@MediaPost.com.