Smartphones were first introduced in the late 1990s but were originally regarded as business tools, mainly because of their high cost prices (Mintel, July 2010). However, contracts have made Smartphones cheaper, and therefore more accessible to the mass market, which explains the “growth in internet access via mobiles between 2007 and 2009, almost quadrupling to 7.5% of adults” (Mintel, July 2010). 2010 has seen a rise in the number of specialised branded shopping applications which will enable consumers to have access on the go (Mintel, July 2010). “This will enable retailers to take advantage of ‘dead time’ encouraging mobile internet users to shop while waiting for a bus, for example” (Mintel, July 2010).
Apple is clearly the market leader, as the store accounts for 25% of the smart phone market in the U.S., and globally in 2009 the iPhone had a 14.4% market share (Ali, 2010). This is reflected in that fact that most mobile apps produced by UK retailers are specific to the iphone. For example, shoe retailer Barratts has an iphone app:
“Featuring all our latest footwear collections and must haves for Spring 2010. We have also created a dedicated website so that you can give us your feedback on what you want to see and how we can tailor it your needs”.
This is fantastic way to encourage more interaction between the consumer and the retailer. The app allows users to take a picture of the outfit that they want to match their shoes, use a fast search engine to find the right pair, with a wide range of brands, styles and colours. There is also a feature that enables users to find a personalised pair of shoes based on their birth month. The app displays the store’s latest collections, new styles, and fashion trends (featuring 5 of the latest trends with ideas on how to wear them). This is a particularly interesting mobile app and its wide range of features makes it very attractive to users, who can be up to date with style trends on-the-move (i.e. on a shopping trip!).
However, not everyone can afford the iphone, but most still want a smartphone, and so they miss out on many fashion apps. This is an opportunity missed for retailers. “Apps may be flashier and more fashionable, but retailers should consider a mobile website as a starting point for their mobile commerce strategy” (econsultancy). Thus if retailers produced mobile sites as opposed to just iphone apps, then they could reach a much wider audience.
US vs UK
Furthermore, a recent multichannel retailing survey conducted by BT Expedite found that while 23% of US retailers have mobile commerce presence, and 47% plan to, only 5% of UK retailers have m-commerce apps, while just 24% are planning to (econsultancy 2010). This shows that America is way ahead of the UK in embracing the new technological platform that consumers are now showing an interest.
The CEO of ‘Mobile Flow’, Ade Bamigboye, commented on the reasons why m-commerce has not been as widely used in the UK as the US:
“One of the reasons why mobile commerce has been slow to take off in the UK is that the early and still widely promoted mobile payment schemes revolve around Premium SMS and PayforIt. Both of these schemes and other well known alternatives are known for their high transaction costs and limits on the “basket size” which make it totally unattractive for most retailers.
Given the predictions in growth for mobile commerce all retailers will have more than a passing interest in mobile commerce. For retailers to adopt mobile commerce more readily and more broadly, secure, cost effective transactional capability must be readily available.”
Not everyone is convinced
Undoubtedly the biggest drawback to shopping on a mobile phone is the inability to view items as clearly as you could on a website, and especially not being able to touch the item or try it on like in-store. Some retailers are attempting to combat this with zoom features, but it is still a far cry from website viewing.
Moreover, Stephen Thair, Director at Seriti Consulting, does not believe m-commerce is worth the hassle:
“Developing a slick mobile experience takes a substantial amount of time and effort... and for many of the clients I have talked to with the traffic and the sales revenue generated is so trivial that the ROI is highly negative.”
However, mobile commerce is still a new feature and dimension to fashion retailing, and so sales and traffic may increase considerably in the future. As with all multi-channel platforms for retailers, when developing the mobile applications, they must ensure that they are consistent with the brand image. Net-a-porter is a good example of a retailer ensuring that this is the case, as the app is classy and chic:
“We are delighted to bring you the NET-A-PORTER WHAT'S NEW APP, a fashion shopping application for the iPhone and iPod touch”
They do iphone, ipod touch and ipad apps, and so clearly think m-commerce is a platform worth investing in. Net-a-porter advocate that with their app, consumers will “never miss the latest arrivals and fashion news with the ‘WHAT’S NEW’ feature. Users can scroll through a list of designers as well as:
· Buy wherever you are
· Create wish lists on the move
· Read the weekly fashion news
· Shop new arrivals twice a week
· Share everything you see with your friends and family
“It's fabulous fashion in the palm of your hand.”
Net-a-porter’s app is sophisticated to look at and navigate, and well-developed in comparison to many fashion retailer’s apps. However, it does have a limited amount of stock displayed, which is letting this otherwise advanced app down.
Mobile summary
So, m-commerce is still an up-and-coming feature for the UK fashion market. Success in the US is considerably higher and only tells of things to come in the UK. Currently, fashion retailers have mainly launched specific iphone apps, limiting their audience, and so an expansion to all smart-phones would be an effective way forward. Features on apps include the ability to browse products on the move, view trends or latest collections, see videos, locate the nearest store, and receive news/ updates. However, the apps are generally still in the launching phase, and so if they are to be a huge success, they need to be developed further. In order for this to be so, they should look to include at least all of the following, and more unique, individual features on top:
· Ability to view all products in-store/ on website
· Ability to purchase all products
· Catwalk and video features will items modelled, as well as fashion shows
· News updates and discount vouchers
· Latest collection
· Store locater
· Interaction with the retailer via text format
These are a few ideas that could see the mobile application be the “next big thing”- if social media was the noughties, then m-commerce could be the ‘10s. The platform to succeed is in place now, it just needs tweaking and widespread acceptance by retailers, then consumer interest is bound to follow... watch this space..
