Retail Ecommerce Sales is a huge success by all standards, but still a majority of shopping still takes place offline in local stores. While $155 billion worth of consumer goods were bought online last year, a far larger portion of offline sales were influenced by online research.
Forrester estimates that $917 billion worth of retail sales last year were “Web-influenced.” It also estimates that online and Web-influenced offline sales combined accounted for 42 percent of total retail sales and that percentage will grow to 53 percent by 2014, when the Web will be influencing $1.4 billion worth of in-store sales.
Increasingly, consumers are taking advantage of the sophisticated capabilities of smart phones to do more of this online research while in a store or on the go. Location-based technologies in mobile devices help on-the-go consumers to get directions to local stores, look up product availability and check in for special offers.
Further, some of the most innovative location-based services send shoppers automatic alerts and deals if they are near a retailer’s store. Imagine if you are able to get a special sale feature of the hottest items in fashion that only last for 24 hours in the store. Shoppers can enjoy tremendous savings by shopping for designer brands on the go.
However, a flipside remains as retailers will need to address consumers’ privacy concerns for these services to become main-stream.
What Is Driving Local Commerce?
We all know the influence of internet and mobile devices to find information online. This is now also being used to find information about nearby stores, restaurants and other businesses. Shopping at a “local” retail store from the consumer’s perspective is more likely lead them to a purchase.
Consumer awareness, use of location-based digital services and targeted local advertising and marketing initiatives are all driving local commerce. The retailer further has embarked on an exciting journey where he can send the consumer relevant offers based on their location and product needs that influence their in-store purchases.
How do Such Devices Augment In-Store Shopping
Retailers are doing a better job to woo online consumers in their physical stores. In fact, these retailers see this as an opportunity to enhance the in-store shopping experience.
- Mobile in-store research enables consumers to compare competitors’ prices, read customer reviews and access special offers while at the point of purchase.
- Retailers now offer mobile apps that help customers feel more confident about making purchases, and some have even equipped their sales associates with iPads to help customers make purchase decisions.
- Mobile and social are becoming important sources of local retail and product information. Mobile shoppers in particular are turning to social media to check prices, read product and business reviews, and get coupons and deals from local stores.
- Local shopping cues and opinions about local retailers and in-store deals influence the shopping decisions of today’s consumers.
Smartphone Users are ready to Buy
A user who looks up local information from their desktop PC is removed from the act of shopping. She/he might be in an early stage of online research which may precede an actual store purchase by hours, days or even weeks. In contrast, on-the-go mobile shoppers are ready to shop i.e. have an urgent need, in the act of shopping, ready to fulfil that need. Thus the connection between research and a purchase is much closer.
With mobile in-store shoppers, who research while standing before a product under consideration, these two actions are occurring simultaneously. For marketers, a mobile user with local intent presents an opportunity to influence a person who is ready to buy.
Mobile in-store shopping is in the early stages of consumer adoption. They not only help on-the-go shoppers find local retailers and products but also augment their in-store shopping experience. Retailers on the other hand, will earn customer loyalty if they enhance the shopping experience with digital tools, as well as offer targeted coupons and deals.













