Here is a dramatic example of how consumers' mobile browsing
habits are affecting retailers' merchandising strategies.
The Wall Street Journal reported that Target, the
country's second largest retailer, sent an urgent letter to its
vendors seeking their help in combating "showrooming" - a practice
where a shopper visits a brick-and-mortar store to evaluate a
product in person only to go online and purchase it somewhere else
at a cheaper price. Target's proposal to vendors: create special
packaging for us that won't allow consumers to easily scan and find
the products elsewhere, or reduce your prices to meet online
rivals.
Mobile websites, mobile search, and mobile price comparison apps
are playing a huge role in the reality of today's new consumer
behavior. Amazon.com encouraged this by running an "anti-brick and
mortar" campaign last holiday season that let shoppers scan a
product barcode in-store with their smartphones and rewarded them
with up to 5% off when they purchased the product from Amazon.
Hopefully, what Target will come to realize is that mobile can
play a vital and positive role when it comes to driving value and
enhancing the customer experience. Give your customers a reason to
use your mobile website or app to read reviews, offer exclusives,
or loyalty rewards and discounts for repeat purchases. Asking your
suppliers to change their packaging will only frustrate consumers
and create a sense of dis-trust with your brand.
Areas such as customer service, sales training, and loyalty
programs coupled with mobile's powerful personalization
capabilities are likely to get consumers focusing less on price and
more on convenient, enjoyable shopping experiences. But as a
discount retailer, Target typically competes on price so it will be
interesting to see if mobile price comparison shopping has a
material impact on its in-store sales.
What do you think? Will the future be full of consumers standing
in retail stores scanning products and then walking out
empty-handed?