According to Scott Dunlap, iPhone users are fashion-forward and have 40% more discretionary income, and he would know. As CEO of NearbyNow, which creates mobile shopping applications for magazines, brands, and retailers, it’s his job.
When speaking at the Luxury Interactive 2010 Conference this month, Dunlap let it be known that “high-income shoppers are quickly adopting mobile devices and new behavior.” For high-end retailers, this is a sure sign that it’s time to change the way they connect to customers.
Also speaking at the conference were representatives for retailers Kenneth Cole and Neiman Marcus. An executive for Kenneth Cole said that only 1.5% of the company’s revenue comes from mobile, and that the conversion rate on the mobile site is less than 0.5%.
For some, it might sound like a lost cause. But consider this: in 1997, only 37% of families with incomes from $15,000 to $24,999 used computers at home or at work. By 2005, a survey conducted by Opinion Research Corporation’s Caravan poll found that three-in-four American adults own a computer.
Considering the popularity of Apple’s iPhone 4 and the growing availability of smartphones in the market, ignoring the rise of mobile shopping seems almost foolhardy.
To double its mobile conversion within a year, Kenneth Cole joined forces with Usablenet to revamp its mobile site. “Our mobile site experience is not engaging, but people are using it to buy,” said Tom Davis, vice president of ecommerce at Kenneth Cole, New York. “Mobile, specifically smartphones, is going to be huge. It is going to change the way luxury retail is done.”
According to Mobile Marketer, mobile smartphones will eclipse the number of desktops/laptops by 2013, and they’re already a formidable presence in social media. One hundred million Facebook users out of 470 million are mobile, for example.
“Personalization in the fashion/luxury industry is what is relevant today,” Davis said. “Mobile commerce is a game changer for e-commerce.”
Gerald Barnes, president and CEO of Neiman Marcus Direct, Irving, Texas, said the high-end retailer would be completely mobile by fall as part of a multi-channel contact strategy to drive long-term growth. Its mobile site will eventually enable consumers to buy designer products via handsets.
“We will be completely mobile by August with any type of mobile device,” said Barnes. “We currently have an app for Bergdorf Goodman, which is widely viewed with 30,000 viewers each day. We’re also upgrading that. It’s one shoe a day, and we want to keep it that way. It’s fun, you get to click on it and see what crazy shoe we have there. By August, you’ll be able to see the entire shoe salon.”
Are you preparing for the next wave of consumer contact? If not, perhaps it’s time you should.
Mobile Taking Over Luxury
