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Mobile Devices Are Actually Driving Store Sales, Not Hurting Them
Mobile Devices Are Actually Driving Store Sales, Not Hurting Them
Cooper SmithMay 2, 2014, 17:37 IST
Welcome to our new E-Commerce Insider newsletter, a morning email with the top news and analysis on the e-commerce industry, produced by BI Intelligence. Click here to sign up for E-Commerce Insider today, and receive it every morning in your inbox. MOBILE COMMERCE IS DRIVING IN-STORE SALES: Mobile devices are actually leading people to do more shopping in stores, as they use them to find shops, products, and deals offline, according to a recent Gallup poll.
22% of consumers say mobile technology has increased their in-store shopping.
19% say it has decreased their store shopping, and 59% say it's made no difference in how they shop.
BI IntelligenceThe survey also found that the younger in age a consumer is, the more likely they were to say that mobile is driving their in-store shopping. For example, roughly 30% of consumers aged 19-29 say they are shopping more in stores because of smartphones and tablets. We think that its smartphones, rather than tablets, are the device that's driving in-store shopping. We recently analyzed some data (see chart at right) from Digitas that showed that 42% of smartphone owners use their phones to conduct research about products, such as searching for where they can buy something. As retailers install more in-store technology such as beacons, which can send offers and coupons over Bluetooth, shoppers will likely rely on their smartphones even more in-store. GROUPON LAUNCHES BULK SHOPPING SERVICE: Groupon, which is synonymous for its daily deal offerings, is getting into the bulk shopping business with a new service called Groupon Basics. At launch, the service will have roughly 100 different products available (mostly in the home goods and personal care categories), according to Internet Retailer. Groupon Basics will compete directly with Costco and Wal-Mart's Sam's Club. Groupon's advantage here is that it has a massive database of emails belonging to bargain-hunting consumers. Now Groupon has a business that lets it sell merchandise on a larger scale to that customer base. AMAZON EXPANDS SAME-DAY DELIVERY: Amazon is rolling out same-day delivery in Dallas, Los Angeles, and San Francisco, reports the Wall Street Journal. Customers will have to place an order by 12:15 p.m. local time to receive their package(s) by 9 p.m. that day. The new markets join nine other cities where Amazon currently offers same-day delivery. As we noted yesterday, fast delivery is one way that e-commerce companies are differentiating themselves from competitors. Amazon, eBay, and Uber all offer same-day delivery in select cities throughout the U.S. WELCOME, E-COMMERCE INSIDERS: This is our new newsletter covering all things e-commerce. Please email csmith@businessinsider.com with news and tips. Click here to sign up for E-Commerce Insider today, and receive it every morning in your inbox. BLUE NILE SALES UP: Online jeweler Blue Nile reported first quarter earnings yesterday. Sales were up nearly 7% compared to the first quarter of 2013, topping more than $103 million. The company noted that sales of engagement rings grew faster than other product categories. Blue Nile CEO Harvey Kanter said on the call that they will continue expanding the company's bridal and diamond jewelry collection, and building out a presence in China. In a note to clients, investment bank Jefferies said it's expecting travel sales for the first quarter to come in "seasonally soft" as global travel trends "remain choppy." Charles Drucker, CEO of payments processor Vantiv, reported that the company's e-commerce business saw 30% volume growth in the first quarter - a sign of continuing consumer migration to e-commerce. Farfetch, an online marketplace for fashion boutiques, has raised $66 million in funding. The company is recording annual sales of $275 million, according to TechCrunch, which represents annual growth of 100%. Farfetch CEO José Neves Farfetch said the investment will go towards expanding into new markets, such as Russia, Japan, and China. Here's what else BI Intelligence subscribers are reading …In China, Online Shopping Is Now More Popular Than Social NetworkingSales On eBay Show The Platform Is As Relevant To E-Commerce As Ever
