Mobile Growth and The Future of Store

Mobile device has been growing rapidly. In 2011, with more than 5 billion mobile subcribers worldwide and 1,08 billion smartphones, the usage of mobile devices in term of accessing the internet seems now even much higher than personal computer. People tend to use mobile devices anytime and anywhere. It is predicted that mobile devices will increase 5 times in 2015 while personal computer only 1,6 times. Thus it means that mobile devices will soon take over the personal computer (http://www.youtube.com/watch?v=kk-2Ag8QV4o , Jan 2012).

(Source: http://www.onbile.com/info/where-do-people-use-their-smartphones/ , accessed on Nov 24, 2012) 

As shown in the above figures, highest common use of smartphones is for accessing the internet and about 96% of people use their smartphones at home. In July 2012, Davantidigital.com on http://www.youtube.com/watch?v=SmB_lzXcgVE reported that 48% of people use mobile devices to find products or promotions, 51% is likely to make a purchase from a mobile and 74% of them would make a purchase based on a Smartphone’s search to finding retailers, comparing prices, getting products review, finding coupons, or searching in-store inventories. People now tend to use their mobile devices in their daily life in everything they do.

Based on those new habits of people regarding the use of mobile devices, a company named Tesco has just created a virtual store in South Korea to enchance customer shopping experience by using mobile devices. Unlike digital and online stores, virtual stores exist in the physical world but products sold are not physically available during the shopping experience. Following the launch of this service, People were really excited and enjoyed the experience of purchasing items through subway virtual store. It is more practice, take less time because they can do shopping while they are waiting for train. Another attempt as stated by Zdnet.com, Paypal did the trial for this kind of business model in Singapore on October 2012. Therefore it seems that this would becoming a brand new trend for future shopping. 

Now, what Retailers can do to attract targetted customers with this kind of store?

Once many competitors available in the same concept, it will be a new big challenge. Retailers should ensure virtual stores mimic real-life shopping experience as much as possible and apply a good system which enable a purchase as fast as possible. Retailers must also ensure their product and delivery quality which are important value for customers. To personalize their customers, they can also create mobile member accounts as to ease them in giving lots of marketing related informations such as promotions or coupons through location based system.