As another year draws to a close, we’re reflecting on significant happenings in the mobile and retail technology spaces for 2013.
This year more stores remained opened on Thanksgiving Day, making Black Friday itself less impactful. Brick-and-mortar retail remains a large part of commerce, although showrooming is still a top concern. The term for the opposite of showrooming, webrooming, is coined and grows in popularity. Stores get creative as competition heats up. Even drugstores are bringing in baristas, eyebrow waxing, and health clinics to stay ahead of the game.
Online moves to mobile
In 2013, 75% of smartphone owners accessed their phones in-store. And for 31% of smartphone owners, mobile is the primary way they access the internet everyday. Mobile accounts for at least 28% of all web traffic, with some sites like Yelp reporting much higher percentages. Retailers and advertisers who adjusted to this dramatic switch in traffic profited, while those that continued to prioritize online spending jeopardized precious ad revenue.
Big data is the buzzword of the year
Big data has overtaken last year’s “omnichannel.” In 2013, data collection of all kinds was a hot topic with the NSA and privacy issues the top story, setting the stage for mobile data collection concerns. This year Nordstrom discontinued a program that secretly collected shoppers’ smartphone data via wifi due to complaints. Not only do physical stores need to be more transparent about collection, they also need work on their data engines. While online channels have had years to refine their analysis, physical stores need some more time to analyze, develop actionable insights, and optimize based on these. It will take a few years for in-store retailers to catch up with their ecommerce competitors.
In-store pick-up gets big
This year retailers had great success with implementing click and collect programs – where shoppers buy online and pick-up in-store. Retailers using this omnichannel strategy include Neiman Marcus, Gap, Sears, Lowe’s, Staples, and more. With over 80% of customers researching products online before they head out to a store, this is a no brainer. Plus, it gives retailers the opportunity to cross and upsell more products in-store.
Ship from store fulfillment is a competitive advantage
Retailers such as Macy’s Nordstrom, Gap, Saks, and Ann Taylor have started shipping from stores instead of solely from distribution centers. This approach allows retailers to control their inventory across the chain, compete with online retailers, and fulfill customers’ needs quicker. Retailers using ship from store then have the ability to pull inventory from both brick-and-mortar and online stocks. About a third of all retailers already use brick-and-mortar stores as fulfillment centers for online orders with another 26% planning to do so soon.
Beacons build interest for indoor location
In 2013 Apple launched iOS 7, introducing iBeacons. This holiday season Apple launched this functionality all of their retail stores to help customers find products, display product reviews, and get personalized messages. While initial usage for iBeacons overall has been slow, they have enormous potential for all indoor spaces, utilizing low energy Bluetooth technology found in most mobile devices.
Mobile payments lack traction
You know the story. First, 2011 was the year of the mobile payment. Then, it was 2012, and 2013. Mobile payments continue to lag behind. Mobile transactions only accounted for about 2% of all credit and debit card volume in the U.S. this year. With the potential of widespread NFC payments diminishing, Beacon type technologies look promising.
Mobile point-of-sale gains popularity
This year stores increasingly replaced their cash registers with smartphones and tablets, allowing for store associates to be mobile and more accessible. Taking out the check stand also frees up more valuable space that can be used for merchandising instead of check-out lines. Urban Outfitters, Anthropologie, JC Penney, and Nordstrom have all jumped on board.
Retailers explore pop-up stores
Physical stores such as Target, Toys R Us, Kate Spade, L’Oreal have opened up seasonal pop-up shops with a focus on a specific selection and/or demographic. These allow retailers to be more flexible, reach more shoppers, and take advantage of cheaper spaces. Even online only retailers such as Warby Parker, Etsy, and Baublebar have also joined the pop-up shop bandwagon, reaping the benefits of physical presences.
In 2013, we continued to get more mobile, more digital, and more personalized, but there weren’t “aha” moments like we’ve had in other years. The lines between digital and physical continue to be blurred into 2014 and beyond.
Do you have any 2013 highlights we missed?