1. Mobile Commerce for Retailers
6th webinar of the retail ecommerce series
an embitel initiative
16th Sep 2010
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2. Speaker
Founder
dmc digital media center GmbH,
Germany
www.dmc.de
Chairman
Embitel, India
www.embitel.com
Daniel Rebhorn
dr@dmc.de
• Studied Computer Science at University of Stuttgart
• Entrepreneur since 1992
• Working in retail e-Commerce for last 15yrs
• Responsible for development of e-retail sites like Neckermann, Kodak
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3. You have 6,480,000 possible
answers to this question.
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4. Agenda
• Mobile Commerce, Hype or reality?
• Market trends
• Opportunities and threats
• Mobile Commerce and E-Commerce compatibility
• Case studies
• What can be the approach?
• Our vision of Mobile Commerce
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6. Why will Mobile Commerce not only be accepted,
but be a driver?
Because (smart) mobile devices will be part
of our daily life!
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7. 4
X ≈2
Source: Morgan Stanley
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8. Media access in emerging markets
People access to …
70% 65%
60%
50% 45%
40% PC
TV
30% FM Radio
19% mobile phone
20%
9%
10%
0%
PC TV FM Radio mobile phone
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9. Driving factors
1. People: Mobility, Freedom, Time,
Need for Information, Fun
2. Hardware- : Intense Competition, Need to
Industry offer new, innovative devices
to increase sales
3. Software- : Opportunities for new business Industry
models, new devices are allowing
new kind of applications,
more sales
4. Network : Increased ARPU (Average Revenue per user),
operators more sales
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12. Usage pyramid in India
# Smartphones
w/ internet feature:
approx. 2 million
# Mobile phones
w/ internet feature:
approx. 125 million
# Mobile phones:
approx. 500 million
# Population in India:
approx. 1.1 billion
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13. Other trends
• More available 3G networks in India will boost mobile
internet usage (more fast, more convenient, more
acceptance)
• In 2010, approx. 1.25 billion mobile phone will be sold
worldwide. About 1/5 (= 250 mio.) will be smartphones.
• Usage of social networks is a perfect match with mobile
internet devices/smartphones.
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15. How is the evolution concerned ?
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16. Trends on M-Commerce
• Approx. 75% of retailers in Europe see M-Commerce as real
opportunity for their business.
• Today, in US less than 1% of online retail transactions are
done on mobile channel.
65%+ retailers think it will be half within next 10 years.
• 60% of UK retailers expect M-Commerce as part of their
online strategy.
• All major retailers in US and Europe already launched mobile
services/applications.
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20. Opportunities
• Increase user coverage
• New device capabilities supporting new features
• Access to your service anywhere, anytime
• Support for you other channels (multi channel
approach)
• New business models
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21. Media access in emerging markets
People access to …
70% 65%
60%
50% 45%
40%
30%
19%
20%
9%
10%
PC
TV
0% FM Radio
PC TV FM Radio mobile phone mobile phone
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23. Multi channel approach
M-Commerce can drive b&m sales:
- store locator
- availability reporting
- order mobile, pickup in store
- …
E-Commerce
Brick & Mortar Channel
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24. Search Online Purchase Offline (SOPO)
Case Study, Oct 2009, Germany
Product segment: Apparels
13,9 % of Online sales is
initiated through local store
( = 0.6 bil. EUR) 13,9 %
Local stores
10,7 % of Offline sales is Online shop
initiated through online shop
10,7
% ( = 5.3 bil. EUR)
+ 4.7 bil. EUR
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25. New business models
• Subscription based shopping
– Groceries
– Drugstore goods
• Real time market screening
• Support for “translated” shopping for tourists
• Mobile marketing/advertisement
• Shopping profile “stock exchange” / “banking”
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26. Challenges & Threats
• Challenges
– Expectations of users increase
– Increased maturity of systems and processes
– It’s a new channel to be explored
– Many platforms, many technologies, many players
• Threats
– “anytime, anywhere” increases transparency
• Price comparison (incl. barcode scanning) makes the market even
more transparent, reaching full transparency (in B2C)
– Oligopols/Cartels might appear
• as whole system is much more controlled by tech companies
(providers of hardware, software, network, …)
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29. Building blocks of successful Online Commerce
E-Commerce M-Commerce*
Product Management Full portfolio, even larger Full portfolio, focus on
than b&m portfolio convenience products
(Online) Marketing Full range of activities, Integrated
Management including SEM, SEO, communication in all
Newsletter. channels.
Integration in offline Little mobile marketing
communication (SMS, etc.)
Shop Management Sales focused Mobile specific
placements and management
promotions.
Logistics / Fulfillment Fast, reliable, consumer Even faster.
Management friendly.
Customer Management Fast, reliable, consumer Even more reliable.
friendly. (remember: anytime!)
*) today.
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30. Increased challenge on IT maturity
Availability of Real-Time Data
Brick&Mortar / E-Commerce M-Commerce
Mailorder
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31. Competitive advantages of Internet retail players
+ -
New Venture Brands /
Retailers Manufacturer
+ - -
+ + +
Mail order Aggregators &
companies Marketplaces
+ + +
+ + +
Brick & mortar Pure internet
retailers retailers
- + +
… in E-Commerce … in M-Commerce Better eCommerce 2010 Embitel
33. Amazon case
• Mobile shopping apps
available for
– Android
– Blackberry
– Nokia
– Iphone
– Ipad
• Sales exceeded in 1 billion
USD in June 2010
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34. Ebay case
• 6 Million downloads of Iphone
app
• 1,5 mio products have been
purchased
• Mobile transaction volume in
2009: 600 mio USD
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35. What can be the approach?
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36. Approach
• Start your own mobile services.
3 different options:
– web-based mobile services
– app-based mobile services
– a hybrid version
• Integrate into (mobile) Marketplaces
• Easier to sell commodity products
– repeating purchases
– those with less explanation
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37. Our vision of Mobile Commerce
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38. Our vision of M-Commerce
• Mobile Commerce will be
– more convenient
– much faster
– something to be done anywhere, anytime
– and: only those with great user experience (services and features) will
succeed
• Mobile Commerce will be predominant in shopping of non-
physical goods and services in 2013 only
• Mobile Commerce will even more integrate social networks
with online commerce
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40. Recommended Link
Trend Predictions in 140 Characters
http://www.slideshare.net/TrendsSpotting/2010-mobile-
influencers-trend-predictions-in-140-characters-by-
trendsspotting
Mobile Trends 2020
http://www.slideshare.net/rudydw/mobile-trends-2020
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41. Summary
It’s the right time – even in India – to start now!
Find the right product portfolio
in combination with the right services.
Mobile will lead to even more transparency.
Don’t try to block it, use it!
Start thinking about location based services.
How can this fit to your business?
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42. “You can't see the future through
a rear view mirror.”
(Peter Lynch)
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43. Our Company
• E-Commerce service company • 300+ employees in
since 1995 Stuttgart (HQ) and Berlin, Germany
• e-commerce and e-business • 80+ employees in Bangalore
projects in 30+ countries (incl. • Offering Online Commerce services
Europe, US, Australia, Japan) in India and overseas
• Responsible for … – consulting
– 75+ Webshops – design
– 1.000.000.000+ USD – technology
E-Commerce Order Volume/year – hosting
– 5.000.000+ – shop management
E-Commerce Transactions/year – online marketing (SEO, SEM, SMM)
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44. List of webinars
• Webinar 1:
E-Retailing - A perfect storm in India
• Webinar 2:
Essence of Retail e-Commerce and its optimization
• Webinar 3:
SEO - More Visibility, More Traffic & More Sales for free?
• Webinar 4:
Social Media Marketing
• Webinar 5:
Customer Acquisition & Retention
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45. Thank you for your interest!
Any questions?
Daniel Rebhorn
dr@dmc.de
www.xing.com/profile/Daniel_Rebhorn
www.linkedin.com/in/danielrebhorn
embitel / dmc systems India Pvt Ltd.
www.embitel.com
www.smarte-commerce.com
www.linkedin.com/companies/embitel
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