Digital Commerce

For many years it was predicted that the online world of commerce would disintermediate bricks and mortar retailers. Ten years on and it has yet to happen.

Certainly, ecommerce has changed certain aspects of the retail business forever. And in recent years, ecommerce has become significantly more pervasive through the expansion of online content to seamlessly become visible on other connected digital devices - mobile phones, kiosks, smart appliances, in vehicle media players and and even fitting room mirrors. Commerce Convergence has blurred all previous lines of communication between the retailer and customer, and between the digital and the physical worlds. e-commerce has now, really, truly arrived.

Not only has the tight integration between a retailer's online presence and its brick-and-mortar store become a reality, it has arrived in time to meet the needs of a generation of shoppers who expect and demand it. Gen-Y have grown up with the web and do not have the same need for physical presence in retail malls that previous generations once did. Social networking sites have taken over from the community sponsorship once gained from mall meets.

This generation of shoppers easily slip in and out of digital experiences as an integrated part of normal daily activities such as watching TV, checking e-mail, blogging, commenting on social network sites and carrying on simultaneous conversations over IM or Skype.

Their totally connected view of the world is a normal environment in which they survive.

Mobile Commerce

Mobile commerce may not have taken off yet, but the mobile phone is increasingly becoming a lifestyle support system, with banking, entertainment, information, shopping and communications converged into one device.

And in the world of commerce, the mobile phone is taking ecommerce into the stores. A new service, Frucall, provides users with mobile web access to comparative pricing on items by keying in the UPC number.
In the entertainment arena, SnapTell provides editorial ratings and consumer reviews on dvd movies – great whether you are renting or buying.

Currently such services are free, but one can expect retailers to launch similar services. This is already surfacing in consumer packaged goods, where supermarkets are providing shoppers with pdas barcode scanners on shopping trolleys to total the basket spend and communicate any current offers on similar items.

Enhanced Reality

Online clothing retailer Lands' End provides an avatar service for online shoppers to check clothes against their body measurements.
Nordstrom are moving the concept indoors, using digital mirrors that can superimpose clothes on the shoppers bodies, for a quick view without undressing.

These real world examples of rich media converging with commerce are just the tip of the iceberg – expect to see a lot more in the next few years as retailers recognise the leverage they can get by adding these new ways of communicating their products to their customers.