Lee Gomes has an excellent piece discussing the engaging (or addicting) power of our mobile devices.
Our sensory motivators are always seeking to be engaged. Because mobile devices do such a fantastic job of "entertaining" us we run to them constantly.
Would shoppers return to an engaging in-store experience? This is unknown because there are ZERO legitimate in-store networks capable of morphing, engaging and calculating shopper interests.
"In-store" is simply a channel to the consumer. It is currently one dominated by 30 year old POP advertising models and an agency-controlled infrastructure which is loathe to see this change. It will change but only the innovators will add value during this evolution.
18.5.10
The Fading Value of Retail
Brick and mortar locations are always going to play a role in consumer buying (and as I've argued in the past a much more significant role than most journalists would lead one to believe.)
This said, the balance of power continues to shift away from the retailers themselves and toward consumers and brands. This shift began many years ago but is being accelerated by mobile device technology.
Consumers are bringing their own product assessment devices in-store. They're asking people THEY trust for product opinions and advice.
The retailer used to dominate this space (as they should considering the fact that they own the physical space) but they are failing in their inability to entice shoppers to pay attention to their in-store message rather than the message a specific brand may wish to share.
A brick and mortar presence is of immense value unless this space becomes marginalized by technology. This does not have to be the case. A 24"-60" screen will always dominate the experience of a 2-5" screen in your pocket. Retailers are going to be forced to make substantial hardware investments in the in-store experience if they want to have an opportunity to reengage their shoppers.
The question retailers continually ask themselves is "Am I going to see a sales lift if I invest in this new in-store infrastructure?" I would contend this is question is missing the point. An in-store network may not be a matter of "increasing sales enough to pay for it" but a matter of "will we even survive if we don't take this step"?
These questions bring considerably different risk assessment views to the conversation.
This said, the balance of power continues to shift away from the retailers themselves and toward consumers and brands. This shift began many years ago but is being accelerated by mobile device technology.
Consumers are bringing their own product assessment devices in-store. They're asking people THEY trust for product opinions and advice.
The retailer used to dominate this space (as they should considering the fact that they own the physical space) but they are failing in their inability to entice shoppers to pay attention to their in-store message rather than the message a specific brand may wish to share.
A brick and mortar presence is of immense value unless this space becomes marginalized by technology. This does not have to be the case. A 24"-60" screen will always dominate the experience of a 2-5" screen in your pocket. Retailers are going to be forced to make substantial hardware investments in the in-store experience if they want to have an opportunity to reengage their shoppers.
The question retailers continually ask themselves is "Am I going to see a sales lift if I invest in this new in-store infrastructure?" I would contend this is question is missing the point. An in-store network may not be a matter of "increasing sales enough to pay for it" but a matter of "will we even survive if we don't take this step"?
These questions bring considerably different risk assessment views to the conversation.
17.5.10
Google Blinks
Just when you thought Google could overturn all business models and tear down any bureaucracy using technology reality stepped in.
Many felt Google's online sales efforts could shift the mobile device purchasing habits of many to "online" sales which largely ignores a few simply facts: 1) We are human beings and we ENJOY shopping in person for some goods (particularly confusing consumer electronics) and 2) existing sales and distributions infrastructures are in place for a reason.
This is simply one more example of the extensive reach and power of "bricks and mortar". If you are a carrier or manufacturer do NOT doubt the importance of your physical and geographic connection to your customers.
This is not 1999. In the 2010's brick and mortar sales channels will reestablish themselves as a most enviable business model. Online sales will remain supplemental in many non-commoditized markets. And if bricks and mortar is not going away (as was once feared) what is the modern retailer / carrier doing to embrace their customer? Google only attempted this mutiny due to a perceived pain in the marketplace. The pain is real. Google simply had the wrong answer.
Many felt Google's online sales efforts could shift the mobile device purchasing habits of many to "online" sales which largely ignores a few simply facts: 1) We are human beings and we ENJOY shopping in person for some goods (particularly confusing consumer electronics) and 2) existing sales and distributions infrastructures are in place for a reason.
This is simply one more example of the extensive reach and power of "bricks and mortar". If you are a carrier or manufacturer do NOT doubt the importance of your physical and geographic connection to your customers.
This is not 1999. In the 2010's brick and mortar sales channels will reestablish themselves as a most enviable business model. Online sales will remain supplemental in many non-commoditized markets. And if bricks and mortar is not going away (as was once feared) what is the modern retailer / carrier doing to embrace their customer? Google only attempted this mutiny due to a perceived pain in the marketplace. The pain is real. Google simply had the wrong answer.
4.5.10
Convergence Is Here - But What Matters? Channel or Device?
Most of the industry-speak about convergence centers on the mobile devices we carry and the tremendous impact they can have since we have them on our person 24/7.
This report argues it is not only this one channel which is converging but all the channels by which we consume information.
This report argues it is not only this one channel which is converging but all the channels by which we consume information.
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