SPECIAL REPORT: Mobile World Congress Overview-Part 2 - Dan Hodges

Part Two Mobile Is Transforming Retail ampamp MoneyRead Part One The Mobile Industry on the MoveRead Part Three The Connected Car ampamp Eight More Mobile TrendsMore than 67000 visitors from 205 countries attended the Mobile World Congress MWC this year MWC attracted executives from the worlds largest and most influential mobile operators software companies equipment providers Internet companies and media and entertainment organizations as well as government delegations from across the globe More than 50 percent of this year39s MWC attendees hold Clevel positions including 3500 CEOs The race is on to transform the global economy connect people and fundamentally change the ways we interact in business and in society This is second of three parts that reviews the highlights and trends highlighted from Mobile World Congress There were ten areas that came up throughout the week on different days and in various panelsamp183 Speed at which the market in movingamp183 Mobile Moneyamp183 Connected caramp183 Mobile Healthamp183 Capital investment to build out infrastructureamp183 The need to rewrite the regulations that govern the industryamp183 Big data The Cloudamp183 Education Agricultureamp183 Machine to Machine Communicationsamp183 Security1 Speed At Which The Market is MovingOverview John Donahue CEO of eBay says that we are at a commerce ampamp payments inflection point There will be more change in the next 3 to 5 years than in the last 20 years Ecommerce is already a 500 billion dollar business Retail by contrast is an 8 trillion dollar business Ebay reports that 1 out of every 10 of its deals was done on a mobile phone Ebay reports that 50 of all products purchased are researched online Ebay39s 70 million customers generated 5 billion of revenue in mobile purchases last year and in 2012 they are expected to generate 8 billion in revenue The eBay motors division sells 3500 cars each day via mobile phone Ebay39s PayPal had 4 billion in transactions last year with 17 million customersBest Buy reports that 77 of orders online or on mobile phone are picked up in 24 hours and 63 are picked up in less than 12 hoursShopping via mobile phone is growing 100 monthly2 The Mobile Money War Episode One The Clash of the TitansOverview Coalitions of retailers telecom operators handset manufactures banks credit cards Google Facebook along with known and unknown startups are in competition for the projected 600 billion in global transactions over the mobile phone by 2016 According to ABI Research 20 of Tokyo39s digital shopping is done via smartphone In the US market The Wall Street Journal reports that 17 of retail sales for the 2011 season were done on iPadsThe stakes are great and big questions such as quotwho owns the customerquot and their data raises and how consumer privacy is protected are just a few of the issues to be resolved Intellectual property rights government taxation and regulation are just beginning to emerge as players in this battle for the mobile wallet The market is ripe for a disruptive innovator and one is sure to emerge One only has to think back to 1995 when startups such as Amazon and eBay emerged as products of the Internet to see what happens to companies well positioned at an inflection point Unlike the Internet boom this innovation cycle has already begun and unlike past cycles it is playing out over the next five yearsThe Consumer Value Proposition The consumer is offered simplicity with no need for credit cards or cash and loyalty point automatically calculate and tabulate purchases into the loyalty programs of your choiceThe Players Retailers WalMart Target and other big box retailers along with drug stores quick service restaurants and vending machine companies representing 138 trillion in revenue are in one campGoogle Google wallet is working with MasterCard Citigroup Sprint American Eagle Outfitters Macy39s Walgreens and 150000 merchantsTelecom ATampampT Verizon and TMobile have combined efforts with Isis which is their mobile wallet solutionBanks JP Morgan Capital One Barclays are working with IsisCredit Card Networks Merchants are unhappy with the current system and credit card companies are trying to find their own solutions and partnershipsFacebook Facebook is participating in quota number of industry wide initiativesquot intended to support the development of the mobile web focusing on technology standards and payment enabling Operators working with Facebook on streamlined billing are ATampampT Deutsche Telekom Orange Telefamp243nica TMobile USA Verizon Vodafone KDDI and SoftBankBanking in Emerging Marketsamp183 40 to 50 of foreign remittances are done person to person and those payments will move to mobile in the next five yearsamp183 Mobile money is moving from operator control to banking controlamp183 Royal Dutch Shell reward drivers with free airtime based on their driving safety ratingamp183 There is a big opportunity for valueadded services A good example is when you pay the parking meter in Austria you get an SMS message when you have ten minutes left on your parking meteramp183 Mobile Banking is growing rapidly in the developing world In Bangladesh they are adding 2500 to 3000 new accounts each day and in one year there will be more people banking on their mobile phones than at banksImplications for Marketers Marketers will be able to make offers directly to consumer eliminating the need to FSI39s direct mail email marketing The marketers with the best loyalty and CRM database will have a competitive advantage in both mature and emerging marketing A new industry of mobile shopper loyalty is already emergingPart One The Mobile Industry on the MovePart Three The Connected Car ampamp Eight More Mobile TrendsDan Hodges is Chief Revenue Officer of Verve Wireless Dan works directly with agencies and brands providing solutions and partnerships across Verveamp8217s national footprint of premium local media properties Dan can be reached at danielvervewirelesscomRead all Dan39s MediaBizBloggers commentaries at MediaBizBloggers Guest BlogCheck us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBloggerThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggerscom management or associated bloggers MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries

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SPECIAL REPORT: Mobile World Congress Overview-Part 2 - Dan Hodges

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