The mobile key to e-commerce of the future

People’s shopping habits are changing. And quickly. As digital channels move into the market, the conditions have changed dramatically. One clear example is the strong increases in sales via mobile phones and tablets. Of digital sales, 5–10 per cent currently take place via a mobile device, the rest via a computer. But in recent years mobile sales have increased by 100–200 per cent a year.

All companies must convert

“What people currently do on a computer will increasingly take place when they’re out and about, on the bus or in the store,” says Björn Johansson, Supply Chain Manager at Stralfors, who works on trend monitoring and business development with a major focus on digital commerce.

To keep up with developments, all companies in the field of commerce must convert – whether they are traditional, physical stores or online stores.

“Traditional operators will have to start working with online shopping and other channels. And online traders will have to work with physical premises such as showrooms or pop-up shops. All sales channels will blend into one whole, known as omnichannel.”

Ordering goods through your camera

One term used commonly when it comes to digital shopping is e-commerce. But this is a word that Björn Johansson prefers not to use. He feels it is too narrow, as it usually refers only to shopping via the Internet. He prefers instead to talk about digital shopping.

“Imagine you go into a store and look at various products. Or you’re standing by an advertising screen while waiting for the bus. You buy the products by scanning their barcodes, and when you get home there’s a bag waiting at your front door. For me, that’s a digitisation of shopping, a much broader term than e-commerce,” he explains.

Several channels for a purchase

One such element of digitisation is already under way. As one stage of the mobile transition, commercial companies must adapt their digital sales channels so that they have a uniform appearance, something many companies have already started.

“Consumers will be using more different channels to buy a product. They use one channel to search and make decisions, another to buy. That’s why business models for online stores and physical stores will gradually merge, until finally they’ll be one and the same. Companies that haven’t started this process will have to do so, because that’s the way it’s heading,” says Björn Johansson.

Examples of companies that are creating new Internet strategies in order to develop their digital businesses include Swedish clothing company H&M, American retailer Walmart and American clothing company Macy’s. They all have large product stocks and a distribution structure in place. They are now working at a high tempo to convert their businesses for an increase in digital shopping, so that they can compete with pure e-commerce operators.

Amazon has started to sell food

One such online operator is Amazon, for example, which is using its resources to move towards physical shoppers by building up a global distribution network. They have even started selling food online with same-day delivery in order to compete with Walmart and UK company Tesco.

Another telling example of how digitisation is affecting sales strategies is the American electronics chain Best Buy. The company has realised that a lot of people are just looking at electronic products in store, before going home and buying them online. Which means the store is nothing more than a showroom.

“So they’ve installed price comparison terminals in their stores, so that they can match their competitors’ prices and encourage customers to leave their store with a product.”

There are also companies that have made the shift from the Internet to a physical store. One such company is the clothing outlet Bubbleroom. They’ve installed showrooms in Stockholm, Gothenburg and Malmö where people can try on clothes and feel the quality.

“Such test stores don’t hold any stock, but customers can order the goods in the store or over the phone, and then have them delivered to their home two days later, or in some cases even the same day,” says Björn Johansson.