Adobe Report

mobile shopping growing a unique and powerful sales and engagement channel

mobile shopping growing

2

executive summary The potential of mobile shopping to deliver sales has been established in numerous case studies. Many of these, however, have focused on high profile brands, or innovative augmented reality (AR) functions.

The reality is that mobile shopping is undergoing massive growth driven by factors ranging from working from home (WFH) to social commerce.

Based on an extensive review of local and international statistics, case studies and in-depth market research, this report has identified six factors that are central to mobile shopping.

Frequent engagement

QR codes

Social interaction

Digital wallets

Gamification

Augmented reality

Anytime and anywhere means that the time spent shopping is not limited by access to physical stores or computers

Friends old and new increase the enjoyment and hence commitment to shopping at your brand

Thrills and rewards can directly increase sales and be much more effective than other channels for promotions and competitions

The more that retailers can incorporate these factors individually and collectively into their mobile channel, the greater the opportunities for them to achieve the ultimate retail trilogy of sales, loyalty and competitive differentiation.

The race to leverage mobile shopping has commenced and is far from over; now is the time to act.

Instant information reduces purchase hesitation and supports decision comfort

Easy and secure payments provide opportunities for leveraging loyalty and providing competitive advantages

Another dimension for increasing awareness, competitive differentiation, engagement and recommendation

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introduction Most retailers are now aware that omnichannel shoppers spend more and are more loyal. It has been demonstrated in countless real-life examples and validated in multiple controlled studies. Some maybe unaware, however, of the unparalleled access that mobile phones offer into the lives of their target audiences.

Numerous retailers have made online order tracking and checking product availability the main focus of their mobile 7.3 6.7 6

Australian mobile browsing and shopping in 2020

Unfortunately, many retailers still view mobile in the same context as their website and fail to optimise its unique strengths.

For consumers, choosing to shop on your mobile sits in the same decision set as “Should I go to the major shopping centre, an outlet centre, a fashion high street, or just stay at home and use my smartphone?”

Other times, consumers use their mobiles for unique features like virtual reality (VR), and/or checking competitor prices while in a physical store.

Post-pandemic and the greater acceptance of QR codes, their use as in-store commerce drivers will only grow.

2.9

2.8

apps. These functions are important but are used relatively infrequently and in a strictly functional context. On their own, they do not generate sales.

And then there’s social commerce.

Source: https:// www.reviews.org/ au/mobile/aussiescreentime-in-alifetime/

Boomer 1946-1964

Silent 1928-1945

Gen X 1965-1980

Millennial 1981-1996

Gen Z 1997-2012

Mobile shopping has now become an established multidimensional activity that will only continue to expand in its role and evolve in its engagement with shoppers. For this reason, any decisions taken by retailers around mobile commerce must start with shoppers.

45%

Buying products

70% 42%

Price checking

39% 19%

Order tracking

27% 19%

Checking product availability

25%

24% 20%

Checking product details

23%

Finding new products/ latest products

17%

Linked to increased WFH leisure time

21% 20%

Browing for ideas or inspirations

18% 14%

Wish list

In-store product location finding

Linked to increased online shopping

11%

Browsing while doing other things

Scanning prices in-store

Linked to increased online shopping

11%

2019 2020

3% 7% 9% 6%

Australian shoppers’ main uses of retailer apps Source: https://powerretail.com.au/ product/talking-point-report-7/

mobile shopping growing

While buying products is the main use of retailer apps (70%), Australian shoppers utilise them in many steps along the path to purchase and highlights the importance of mobiles in the shopping experience.

a l i n te r a c t i o n

od

es

ga

ic m if

io at

n

54% 55% 50% 22%

Detailed and up to date order tracking

36% 24%

Bonuses, giveaways and promotions

22% 24%

Notifications of sales, new products, new stock etc.

20% 10%

Easy to compare products

18% 17%

Wish list function

17% 20%

Powerful search functions

17% 19%

Easy to use while doing other things

14% 15%

Better experience than mobile website

Cardless payment options

Rc

45%

Easy to navigate

Ability to take photos and get product information

so ci Q

Secure payment options

Instant loyalty point information

freque nt e ng ag e

t en m

An extensive review has identified six key drivers of mobile shopping. Each of these drivers can be activated in a variety of ways, and most can be combined to increase the overall impact.

ity real ted n e m

digital wallets

“For mobile commerce to succeed it takes an understanding of data, design and how people think,” Bhrugu shares. “Few companies really understand all of the components. They need to understand the person shopping and then present personalised screens or personalised shopping journeys that keep them engaged.”

“Retail needs to be fun and entertaining, not a chore, and mobile phones must do that,” says Bhrugu Pange, managing director of technology services at AArete, a global management consulting firm.

au g

4

10% 10% 7%

2019 2020

9% 8% 7% 9%

Australian shoppers’ desired retail app features Source: https://powerretail.com.au/ product/talking-point-report-7/

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frequent engagement Every marketer knows that the more frequent a customer sees, visits, or engages with a brand, the greater their sales and loyalty. In this regard, consumers obsession with mobiles offers an incredibly powerful marketing tactic.

The drivers of the increase in the use of mobile for purchasing health and beauty products are less apparent, however, they have coincided with an increased use of mobile based augmented reality apps in that category.

Globally, 49% of consumers shop via smartphones.

Depending on the platform, conversion rates on mobile shopping range from 2.11% on iOS to 1.81% on Android.

For example, Lovehoney, the sexual wellbeing brand and online retailer, is going mobile-first as it sees 80% of its traffic coming from smartphones in the Covid e-commerce boom and an increasing need for editorially led content to help make the sale.

Overall, 25% of Australians prefer to shop via mobile. This interest leads 39% of mobile owners to browse for products at least daily and 49% to shop on their mobiles weekly. The use and preference for mobile shopping is generally skewed towards younger consumers and also towards women.

During Covid lockdowns in 2020, 23% of Australians significantly reduced their use of mobiles for online payments.

The situations in which mobile payments had decreased during 2020 were mainly related to pandemic shutdowns, e.g. travelling, queuing, and are expected to bounce back to 2019 levels as travel behaviour returns to normal.

Some of the types of retail purchases made with mobile phones also seem to have been impacted by WFH. An increased utilising of desktop computers for purchasing computer related equipment, and for purchasing games and entertainment items has probably led to the decrease in mobile purchasing for these categories.

The most common reasons for shopping using a mobile phone are ease (45%) and time saving (41%). Consumers clearly have high expectations around these two issues as they were also common reasons for abandoning mobile shopping carts (too difficult 29%, took too long 26%).

“While our website is already mobile-optimised and personalised to each user, we know that customers use the website differently when they’re accessing it through mobile devices,” said Sean Senvirtne, founder and CEO of MyDeal.

Google has provided a key indicator of the evolution of mobile shopping into mainstream mobile utilisation. In the past, Google has utilised shopping apps on its mobile phone experience. It has now quietly stopped supporting these apps and introduced a shopping tab within its search function. This is expected to dramatically increase the use of mobile shopping search.

68%

70%

38%

38%

39%

Australian m-commerce purchase situations Source: https://www.paypalobjects. com/marketing/brc/au/paypal2020-ecommerce-index.pdf

31%

2019 2020

26%

23%

14%

Travelling for leisure

Travelling to and from work

16%

Never

8%

Less often

4%

3%

Weekly

16%

16%

11%

Daily

30%

19%

Source: https://www. paypalobjects.com/ marketing/brc/ au/paypal-2020ecommerce-index.pdf

39%

Australian mobile browsing and shopping in 2020

33%

2019 2020

Out and about with friends

While waiting

At home keeping busy

At home relaxing

mobile shopping growing

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“All of the functionality the app offered users is available on the Shopping tab. We’ll continue building features within the Shopping tab and other Google surfaces, including the Google app, that make it easy for people to discover and shop for the products they love,” a Google spokesperson said.

Eleganza

A Progressive Web Apps (PWA) is a browser-based application software constructed and delivered via the web using an app-like interface. While often discussed by retailers in the context of their relative cost and ease of development, PWAs also have been shown to have a direct impact on customer engagement with some claiming that they have three to five times the conversion rate of native apps.

For the Netherlands based fashion retailer Eleganza, implementing a PWA significantly lifted many key measures compared to the standard mobile optimised website.

These included a 23% improvement in page load speed and a 327% increase in server reaction times. The net effect on consumers was increase of 76% in the number of pages viewed per session.

A prime example of the potential impact of a PWA is Alibaba. Prior to the launch of its PWA interface, Alibaba had focused on encouraging visitors on its mobile website to transition to its native app, which offered a vastly improved customer experience. Unfortunately, many shoppers resist downloading yet another retailer app.

“We have seen immediate benefits in our investment in PWA,” said Guus van der Staak, Eleganza, e-commerce manager.

“We look forward to realising additional value in the future as PWA not only brings us to the forefront of our market but keeps us there for years to come.”

Alibaba implemented a PWA as an alternative that offered native app-like functionality but did not require the shopper to leave the browser environment. The implementation of the PWA resulted in a 76% increase in total conversions across browsers with monthly active user rates increasing by 30% on Android and 14% on iOS.

Selected mobile purchase categories 62% 59%

60%

Source: https://www.paypalobjects.com/marketing/brc/au/ paypal-2020-ecommerce-index.pdf

51%

53%

52%

50%

2019

48%

Possibly due to an increased use of smartphone AR features

40%

34%

Likely due to an increased focus on desktop activities during WFH

2020

Likely due to an increased focus on desktop activities during WFH

30% 28% 25%

25%

10%

10%

13%

14%

16%

18%

20%

20%

22%

23% 20%

20%

Food and drink

Clothing and accessories

Grocery

Healthy and beauty

Homewares

Toys and games

Electronics and computing

Books and magazines

Digital or virtual goods

Sporting goods

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social interaction Social networking apps are the most commonly used apps on Australian smartphones (88%). To give an indication of the importance placed on shopping apps, more smartphone owners use social networking apps than banking apps (60% versus 49%).

Instagram, Pinterest and TikTok are mobile based social media apps that are all striving to further develop their status as shopping destinations and have experienced incredible growth in 2020.

Pinterest Pinterest is expressly focused on supporting users with shopping inspiration and making it easy to purchase items they see on it. Pinterest encourages users to deepen and broaden their engagement with the app by providing multiple ways to shop on it.

Shopping List Pulls together all of the products in which a user is interested into a single comparison grid

553% 7,3

Shopping in search A search function that only shows product results related to the search terms, e.g. home office décor Shopping in Lens: Users can take a photo from the real world and then use visual search within Pinterest to find similar in-stock items

356%

Shopping in close-up A visual search function automatically generates product results that are similar to one selected in Pinterest by the user

189% 160% Increases in shopping on social media apps during 2020

Product detail pages: Allows users to easily source product details, price, delivery options and reviews Facebook

Instagram

Pinterest

Tik tok

TikTok The 3.3 billion views of “TikTok made me buy it” is proof that TikTok impacts retail sales. In the past, TikTok has indirectly influenced purchasing by increasing the demand for products that go viral. It features “Shop Now” buttons for brands’ video ads and recently introduced the “Hashtag Challenge Plus” e-commerce feature which allows users to shop for products associated with a sponsored hashtag.

Retail on TikTok took a major step forward with its new partnership with Shopify that will allow retailers to use in-feed shoppable video ads to sell their products directly on TikTok. Additional in-app shopping features will be introduced over time.

Examples of retail sales linked to TikTok include Gap, who experienced a 200% increase in online sales of a particular style of jeans within 24 hours of them going viral on Tiktok.

A campaign for Ocean Spray Skateboarder delivered 16 billion impressions and 60 million incremental sales. “[What goes viral] are posts that are made by fans and of our novelty product. We see that immediately the product sells out. The entire [social and online] ecosystem lights up. Now, we know what product will get people talking,” said Amanda Bopp, Kate Spade’s vice-president of digital marketing and CRM.

Shopping Spotlights Curated trending product ideas that can be shipped directly from the display Shop Your Board Displays previously selected and suggested items along with stock level information “They’re ready and willing to shop and discover new brands. It’s that intent that makes Pinterest a different kind of platform,” said Dan Lurie, head of growth and shopping product at Pinterest.

Instagram Instagram has more than one billion followers globally and 10.45 million in Australia (41% of the population). Shopping is a key activity on Instagram with 60% of users using to discover new products and 72% having purchased a product they saw on it.

“Covid isn’t temporary, and habits have permanently shifted.

We want to help businesses navigate what is frankly a permanent shift in consumer behaviour when it comes to shopping,” said Layla Amjadi, Instagram’s director of product management.

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gamification “We know that these (gaming + fashion) experiences increase dwell time, make consumers feel more connected to the brand, and make them value physical products more highly. We are undoubtedly entering into an entirely new era of experiential retail,” said Matthew Drinkwater, head of the Fashion Innovation Agency at the London College of Fashion.

Without the opportunity to host in-person fashion shows, Valentino and Mark Jacobs displayed collections in Nintendo’s Animal Crossing game.

Studies have dispelled traditional stereotypes and identified the modern gamer as typically being well-educated, affluent, involved in major household purchases, with an average age of 31. As a highly desirable retail demographic, it is not surprising that retailers and brands have sought to engage them.

“Burberry’s signature gabardine, pioneered by founder Thomas Burberry and designed to protect the wearer against the elements, fits seamlessly with Yao, who personifies the role of a protector for her teammates,” a statement from Burberry.

To date, the overlap of gaming and retail brands has mainly focused on the fashion and beauty sectors. In May 2021, three of the top 10 most downloaded mobile games in the world were fashion: High Heels, Hair Challenge and Makeover Run.

Participation in fashion game apps

Brands have found multiple ways in which to raise their brand profile and positive brand associations, to encourage product trial, enable in-game sales.

Burberry gained substantial brand exposure in a mobile game with its in-game character skin-designs for Honor of Kings which has more than 100 million daily active players.

The highly successful Covet Fashion app game involves dressing up models in clothing and accessories from reallife fashion brands, though you can’t actually purchase them in the game.

The Kenneth Cole 2021 Pride collection was launched via the casual mobile game High Heels!

Participation in popular games

Games in their own apps/websites

A number of major luxury brands have participated in online games to raise their brand profile. For example, Louis Vuitton introduced in-game skins for the online game League of Legends in 2019. While League of Legends is not mobile based, its huge popularity helped legitimise this form of brand participation.

Gucci took a different approach by incorporating an arcadestyle gaming element into its own app.

Target (US) Christmas Wish List In 2020, Target US launched a Christmas themed 3D mobile gaming app aimed at two separate audiences: children and their mothers.

The app ran for six weeks leading up to Christmas and encouraged children to use mobile phones to build wish list while in Target stores and then forward them to Santa. Mothers could forward the lists to relatives and friends. The wish list was automatically updated as gifts were purchased from it.

The campaign was highly successful, with more than 100,000 wish lists created with an average of 30 items and an average value of US$1,500.

Enragement was also extremely high with 61% of users accessing the app multiple times a week.

In total, the campaign attracted more than one million visits to the Target website.

Fashion brand Balenciaga launched its Fall 2021 collection via a video game on its website entitled Afterworld: The Age of Tomorrow.

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Game-based retailing

Leveraging existing fashion events

Drest exemplifies the idea of RVR (originally referring to Real items, made Virtual, then shoppable in Reality).

ComplexCon is an annual event that draws together streetwear enthusiasts to find new exclusive gear and enjoy a festival-like experience of live music and high-end food trucks. Responding to the pandemic, the 2020 event was held online in the format of a complex single-player game.

In the app, players can either style avatars or simply shop for near-perfect images of fashion items from 200+ luxury brands including Gucci, Bottega Veneta, Loewe, Stella McCartney, Fenty and Breitling. All items can be purchased directly from the app.

Brands can deepen their engagement with gamers with limited-time challenges in which the players have to compete exclusively wearing their products.

“There is a clear correlation between the game-play and what ends up in players’ [shopping] baskets,” said Lisa Bridgett, COO of Drest.

Engaging the gaming community Nearly half (45%) of the world’s gamers are women. In 2020, Benefit Cosmetics ran a high-profile trial campaign in which they invited 20 female-identifying gamers to livestream themselves using Benefit Cosmetics to put their “Game Face” on. Benefit Cosmetic have now launched the campaign on a global scale.

“Our goal is to create a space where they can explore and combine their interests in beauty and gaming and ultimately feel empowered to get their best Game Face on so they can play and live-stream with confidence,” said Toto Haba, senior vice-president of marketing and communications at Benefit Cosmetics.

The main feature of the game is a search through a futuristic city to find exclusive product drops major brands, including Adidas.

“Gamification within shopping apps will continue to rise as the industry continues to get back to normal and mobile gaming grows in popularity,” said Lexi Sydow, head of marketing insights at App Annie.

Another interesting combination of gaming and shopping was run in selected Stockland Shopping Centres.

Participants used their mobile phones to find “magic objects” hidden around the centre and scanned the associated QR code to win prizes.

“People carry their mobile phones with them wherever they go. Stockland’s new AR experience harnesses the use of mobile phones to improve retail engagement by means of a fun, treasure-hunt game at their favourite local Stockland shopping centre,” said Emile Rademeyer, executive director of creative strategy at Vandal.

Sainsbury’s Great Fruit and Veg Challenge Sainsbury’s Great Fruit and Veg challenge leveraged parents’ desire to encourage healthy eating with the fascination of game play.

The interactive mobile game was played in-store and used targets and badges to reward tailored healthy purchasing patterns. In 2020, 450,000 customers played the game leading to the purchase of 52.5 million pieces of fruit.

Participants in the game made an average of 3.6 additional fruit and vegetable purchases per week. Post-game purchases continued to be 2.7 pieces per week above pre-game levels.

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QR code

Klarna Klarna has taking an unusual approach to leveraging QR codes by placing scannable QR codes within an interactive TVC. Shoppers are encouraged to use their mobile to scan directly off the TV scan and unlock special shopping deals via the Klarna app.

As part of the process of unlocking the deals, shoppers are also engaged in using various features of the Klarna app. Part of the reason that Klarna undertook this particular campaign was to enhance its brand.

“We are dedicated to delivering the ultimate shopping service.

Everything we do is unexpected with our quirky brand persona, so you can count on us to be disruptive while offering convenience, inspiration and value to Klarna shoppers,” said Andrea Darling, Klarna’s head of marketing for Australia and New Zealand.

Hipanda At the flagship Tokyo store of apparel retailer Hipanda the QR code activates at totally immersive shopper experience as described in a feature in Frame magazine: “For starters, the search starts the minute customers point to the façade with their phones (to scan a QR code that activates AR features), as the furious bear jumps out at them, bursting through a splash of mercury-like confetti. Then, by way of both digital and analogue interactions – the former mostly AR, the latter mostly light-based – the host’s presence is revealed among the T-shirts and hoodies on the racks and hangers, which move to the beat of his supposed steps.”

“In another room, a sea of bouncing balls jumps through the handheld device, until the sullen host materializes inside a foggy chamber.

Think of it as trying to catch an adorably scary Pokémon inside a mysteriously lit, minimalist haunted mansion.”

“One thing we’re definitely going to see more of is the use of QR codes in the retail environment. The connection between mobile devices and digital out-of-home assets is continuing to grow as the public becomes more used to the technology, and we’ve had an influx of briefs to integrate QR tech and consumer interaction into the campaigns we deliver,” said Noel Cook, chief commercial and operations officer at oOh!media.

It is common nowadays to see shoppers in physical stores using a mobile phone to aid them in their path to purchase.

Common reasons include: to compare prices (74%), read reviews (34%), and ask opinions friends and family for their opinions (30%).

While the QR code was invented in 1994, it was the 2019 pandemic has driven the acceptance of QR codes as part of the Australian physical retail experience (at least for entering stores).

Globally, QR codes are already well established and 50% of consumers believe that they are the future of shopping beyond the pandemic and 40% go so far as to say that the presence of QR functionally will incentivise them to both shop and to complete a purchase.

Global data identifies the drivers of the acceptance of QR codes to be perceived safety (45%) and the opportunity it provides to further explore the features and benefits of products while in store.

“The QR code has finally clicked with people, and the fact that half of our respondents believe it’s ‘the future of shopping’ is testament to that,” said Simon Hathaway, managing director of EMEA at Out Form.

Australia is already following these global trends with 55% of shoppers having scanned a QR code within an advertisement or promotion in the past four weeks (outside of store check-ins), and 75% agreeing that QR codes are a useful way to get additional information about a brand or product.

Luxury retailers have been early adopters of QR codes.

Ralph Lauren has deployed them on posters and display windows for nearly 10 years. Lacoste also uses QR codes in magazine ads and in-store.

QR codes can elevate retail campaigns with innovative AR and AI, making the brand experience more tangible beyond the purchase event,” said Klarissa Fletcher, head of marketing at Shopper Media.

Online retailers Bonobos and Warby Parker both opened physical stores to grow sales and provide their customers with a tactile experience. Australian online furniture retailer Brosna opened its own bricks-and-mortar showroom.

Brosna took the additional step of attempting to provide shoppers with an online like experience when shopping in their physical store. When in store, shoppers use QR codes attached to every item in the store to access the same information as they would on the retailer’s website.

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digital wallets Digital wallets are key driver of the use of mobiles in physical retail stores. They are used by 11% of Australians, up 4% in the past 12 months, and their continued growth seems certain.

An indication of the rise of app based contactless payments comes from Australia’s largest bank, the Commonwealth Bank.

From 2020 to 2021, payment in store that went through the Commonwealth Bank via Apple Pay, Google Pay, CBA tap-and-pay and other apps increased by 90%. During this period, the average value of these transactions increased for both credit cards ($41 to $44) and debit cards ($26 to $29). The bank now predicts that digital wallets will be the most popular form of contactless payment by the end of 2021.

It is particularly significant that the use of contactless mobile payments across all Australian retail has gone from being most popular among people under 40 in 2016, to basically representing the age distribution of the Australian population in 2019.

Total 10,8%

Apple pay Google pay Samsung pay 7,1%

6,5%

6,1%

4,1%

3,7%

4,1%

3,6%

2,3% 1,0%

0,7%

Jan-18 Digital wallet uptake in Australia Source: http://www. roymorgan.com/ findings/8408-digitalpayment-solutionsmarch-2020-2020 05120625

Jan-19

1,0%

Jan-20

As the rise of digital wallets ensures the use of mobile phones in stores, which, in turn, supports the use of mobile retail apps. Digital wallets also have a key role in storing loyalty/membership card details.

Shoppers with membership, loyalty apps or digital catalogue apps such as Stocard, Google Pay, Beem It, ShopBack, Prezzee and Shopfully are strongly committed to them. More than half (55%) them at least once a week and 66% have had at least one installed for at least a year.

Most importantly for retailers, however, is that 67% of shoppers prefer to research online using these types of apps before buying the same item in-store.

The rise of digital wallets and their use in retail is being consolidated by organisations such as CommBank who have engaged with Little Birdie, a price finding online start-up.

“Little Birdie will bring customers the best shopping deals from across the internet and will help to connect our 7.5m digitally active customers with our 700k business customers. Combined with our 50:50 partnership with Klarna in Australia and StepPay, CBA’s recently announced buy now, pay later card, we have a highly differentiated platform to help business customers grow and retail customers save money,” said Matt Comyn, CEO of CommBank.

Woolworths Scan&Go app Woolworths has rolled out its app-based Scan&Go solution in 30 stores. While shoppers can continue to use the traditional forms of checkout in these stores, they are encouraged to try the Scan&Go app.

Shoppers use their mobile to scan product barcodes as they shop, pay via the app, and then scan a QR in a dedicated lane to complete the shop and leave the store.

Fruit and vegetables are scanned via barcodes generated electronic scales located in the produce areas in the store.

Trolleys in these stores even have special mobile phone holders.

“We know many of our customers are short on time, and the speed and convenience of Scan&Go has been popular with many shoppers across Australia for this reason.

In addition to the time saving, Scan&Go allows customers to closely track their spend as they shop, which is helpful for budgeting,” said Ben Garvan, Woolworths’ head of digital in-store.

Wolki Farm While much of the focus on app-based in-store payment, some are being deployed on a small scale.

Wolki Butchery is a family-owned store in regional New South Wales. They recently converted their store to allow unattended shopping using the Scan & Go system.

Once they have downloaded the app, shoppers can enter the store using a PIN. They use the app to scan items and pay in the app. The store uses CCTV and other measures to ensure security.

“Everyone is amazed at how easy the (Scan & Go) app is to use. It’s fantastic how quick it scans!” said owner Jacob Wolki.

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augmented reality Mobile use in retail has been supported with an increasing variety of AR applications; the majority of which operate on mobiles.

“Getting it right now is just as important as scoring the right URL in 1999, and the right social handles in 2010.

We all know how fleeting the moment is to stake your claim as an early mover, and that moment has arrived for AR,” said Jeremi Gorman, Snap’s chief business officer at Snapchat.

Shutdowns associated with the pandemic have increased the appeal of AR to the extent where more than one in four shoppers would rather to use AR to try on clothes than to do it instore.

In line with their experience as digital natives, it is predicated that that in the lead up to 2025, the use of AR

by Gen Z consumers will increase by 33%.

MAC Cosmetics Eighty per cent of MAC Cosmetics AR tryon experience are accessed via a mobile. In one 12-month period, 10% of remove online visitors used the facility totalling 6.2 million experiences.

US customers using the AR feature spent 3.5 times longer on the site and had 1.5 times higher conversion rate than non-users.

In categories with highly specific size requirements, e.g. shoes, the growth in the use of mobile AR applications has been even higher. Compared to 2019, transactions on Hotter Shoes mobile AR increased by 40%.

Entertainment

Product evaluation

Education

Post-purchase

Using mobile AR experiences to enhance the experience of in-store shopping to the point where it can be used as a drawcard for visiting physical retailers.

From way finders to illustrating complex information, in-store mobile AR experiences have been extremely popular.

Numerous retailers have used AR apps to assist consumers to visual products in their own homes. Ikea has used this feature.

Adding new levels of experience to products.

Lego has used this feature to assist children to enable virtual gameplay around their creations.

“We absolutely saw AR take off in major ways during the pandemic, particularly in response to retail and shopping,” said Dr Helen Papagiannis, a learing AR influencer and the author of Augmented Human.

Research has identified some of the ways in which mobile AR is particularly effective in generating both short term sales and customer loyalty: 1.

2.

3.

Enhancing the demand for, and engagement with, less popular retailers and brands Improving decision comfort and reducing purchase hesitation for expensive and/or luxury products Converting laggards to trial and adopt a retailers’ online channels

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wrap up Mobile shopping presents the unique opportunities for retailers and brands to increase sales and shopper engagement. The incidence of mobile shopping has taken a stepwise increase over the course of 2020, and its continued rapid growth is inevitable.

At its simplest level, consumers cite ease and time saving as their key reasons for mobile shopping. Their expectations around these benefits are high as they are also the most common reasons for abandoning mobile shopping carts.

However, in this day and age, ease and time saving are generic requirements for all consumer activities and cannot be seen as specific to any one retail channel. They are hygiene factors.

Many of the ways in which shoppers utilise their mobiles both in the path to purchase and post purchase cannot be replicated via other channels. For this reason, retailers must avoid viewing mobiles in the context of specially optimised versions of their websites and leverage them to their full potential.

There are six key factors that should be considered when developing mobile shopping strategies:

Frequent engagement

Anytime and anywhere means that the time spent shopping is not limited by access to physical stores or computers

Social interaction

Old friends and new increase the enjoyment and hence commitment to shopping at your brand

Gamification

Thrills and rewards can directly increase sales and be much more effective than other channels for promotions and competitions

QR codes

Instant information reduces purchase hesitation and supports decision comfort

Digital wallets

Easy and secure payments provide opportunities for leveraging loyalty and providing competitive advantages

Augmented reality

Another dimension for increasing awareness, competitive differentiation, engagement and recommendation The more that retailers can incorporate these factors individually and collectively into their mobile channel, the greater the opportunities for them to achieve the ultimate retail trilogy of sales, loyalty and competitive differentiation.

The race to leverage mobile shopping has commenced and is far from over; now is the time to act.

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references 1.

https://www.forbes.com/sites/pamdanziger/2021/05/16/ mobile-commerce-is-the-under-the-radar-story-inconsumers-flight-to-digital-shopping/?sh=ffb0aa226a6b

worldwide-australia 27.

https://blog.hubspot.com/marketing/stats-about-australianinstagram-users

28.

https://www.fiber.com.au/post/social-media-statisticsworldwide-australia

2.

https://powerretail.com.au/product/talking-point-report-7/

3.

https://powerretail.com.au/product/talking-point-report-7/

4.

https://appinventiv.com/blog/mobile-commerce-trendsinfographics/

29.

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