Smartphones set to transform retailing business

LAHORE: Smartphones will completely transform the retailing business in Pakistan, experts said on Saturday, much like they are doing in the developed world by replacing the brick-and-mortar stores.
Presently, the penetration of smartphone in Pakistan is very low at 17 percent of all mobile phones. “However, this is not bad as now 90 percent of all new mobiles being imported in the country are smart phones,” marketing executive Saad Syed said. South Koreans are the leading users of smart phones as two-third of its mobile users have smartphones and sale of goods purchased through mobile devices in the country has increased to about $9.8 billion from a little over 2.3 billion in 2012, Syed said. Pakistanis can take heart from the fact that 47 percent of Americans and 52 percent of Britons have smartphones. Studies have shown that consumers who turn to their phones for the first time spend more than the shoppers using other channels, like personal computer. Currently, one-third of all web-based sales in Korea are conducted through smartphones.
Syed said it is not as simple as it looks to grow m-commerce. All digital channels share the same information technology infrastructure, such as order management and logistics. M-commerce needs different approaches to identifying, reaching and satisfying consumers. There is a difference in smartphone shopping and normal online shopping
Another marketing executive Yusuf Ahmad said demographics play an important role in mobile channel shopping. Generally, 60 percent of the smartphone shoppers are women. Majority of shoppers are housewives and not young college girls. Working mothers, however, mostly do online shopping through personnel computers. “Whatever the case may be, young mobile shoppers irrespective of their age or genders are determined to shun traditional stores in favour on online outlets,” Ahmad said.
Small mobile screen does not allow buyers to study details of a product and they buy impulsively mostly the same day they find an attractive product. m-commerce consumers also visit few sites than the online shoppers, he said, adding that price is also of less importance for these impulsive buyers.
m-commerce consumers are not bargain-hunters. They prefer ease of navigation and convenient shopping experiences. Taking advantage of this tendency of mobile buyers, retailers are providing less information on their mobile sites. Quick delivery of products is preferred by m-commerce shoppers, particularly those who buy groceries and other staples. Mobile shoppers are also faithful to their retail outlets. Once they are satisfied by the service they do not change their retailers.