What Goes Mobile?
By Leslie Belcher, President, Jesta I.S. Inc.
Ten years after national commercial platforms for mobile commerce were launched in the Philippines and Japan; they are slowly beginning to emerge in the North American market. Residents in rural parts of the Philippines and other developing nations routinely pay bills through their smart phones, while people in Japan and Europe canbuyproducts as well as train and airline tickets using their mobile phones.
The accelerated growth of mobile commerce, combined with the acuity of location-based applications makes it possible for direct response retailers to use the mobile channel for locally targeted mass marketing. One estimate, according to Mobile Marketer, puts worldwide mobile phone connections at 4 billion; while another by Neustar and SMS Mobile Marketing predicts that mobile revenue in the United States will reach $3.3 billion by 2013. SMS text messages dominate mobile advertising in markets like the U.S today, but coupon to phone and location based marketing are emerging.
A recent study by Coda Research agency has revealed that mobile ecommerce in the US shall grow at a compounded rate of 65% between 2009 and 2015. According to this study, mobile phones will constitute 8.5% of all ecommerce revenues in the US. Here is an estimate of the mobile commerce market in absolute terms:
The rapid growth of banking and bill paying activities with mobile phones aside, today’s retailer must be looking towards some rapid development of new marketing strategies. Three areas seem to be emerging as real opportunities: coupon to phone, product locators, and location based marketing. All three rely heavily on existing robust CRM data bases, integrated ERP and POS systems that readily interact with various web services. In the case of product locators, near real time inventory status and true distributed order management functionality are essential ERP functions since the consumer is being directed to sites with product on hand. POS systems are being asked to readily support scanning of bar coded coupons on smart phone displays.
Mobile coupons are the next evolution of the traditional printed coupon and they’re growing in popularity. The YankeeGroup released a consumer survey report in November 2009, which found that 73 percent of respondents were interested in receiving mobile coupons via SMS or MMS. The same report also predicted that mobile coupon redemptions would increase tenfold over 2010. A new report from Juniper Research, forecasts that consumer usage of mobile coupons will generate close to $6 billion globally in retail redemption value by 2014. This new approach to coupon marketing will place tremendous pressure on legacy POS systems to adapt to scanning smart phone displays at the register. Not only will the POS system need a scanner that can physically read the phone display (laser scanners will not), but the POS software will need to be able to handle what amounts to ‘timed pricing by customer’. With this kind of capability being implemented as the cash desk, it is essential to have robust, comprehensive, and real-time accessible CRM databases that can customize campaigns based on customer buying histories and customer loyalty programs.
Smart phone applications now offer various product search tools. Google offers freeware like Barcode Scanner and Googles that can locate a product based on its barcode or a photo image. They offer not only where to buy based on your location, but price comparisons and some retailers offer inventory checking. Product Search for mobile with local inventory lets a user see if, say, a Nikon Coolpix camera is in stock at a nearby Best Buy or Sears and then provides basic directions to get there. Consumers can then tap on an adjacent “in stock nearby” link and navigate to the seller’s page to see whether the camera is in stock. This is approach has exciting potential for the retailer who can provide accurate near real time inventories by product and by site. The obvious risk is alienating the customer who drove out of her way to the store only to find the item was not on hand. The pressure on the ERP system to update the Web Service with accurate on hand inventories by site is critical to success.
The third emerging Mobile marketing strategy involves location based marketing to mobile devices. Google for example is updating its Buzz applications to not only recommend close by retail services, but provide reviews and relevant information along with the obvious directions. Some retailers combine e-coupon pushes to the mobile user to further entice the consumer. The reliance on robust CRM data is critical to the ultimate success of this marketing approach. To be effective, location-based marketing requires the ability to target appropriately, by both geography and context. As much as mobile consumers are looking for places and things, they are also looking for information (directions, reviews, recommendations, help). Part of what makes hyper-local targeting effective is having both the right kinds and the right depth of content to go with relevant ad inventory and offers.
The future of e-Commerce utilizing new smart phone technologies is growing exponentially over the next several years. Retailers that invest in their IT systems to tap into this emerging market can grow market share and revenues successfully.
About Jesta I.S. Inc.
Jesta I.S. is a leading supplier of business solutions in supply chain management systems for manufacturers, distributors and retailers primarily in the soft goods and specialty industries worldwide. Jesta I.S. is recognized for its expertise, innovative products and services and its commitment to evolving business solutions in today’s rapidly changing business world. Jesta I.S.’ solutions process essential business management information for well known industry leaders including Perry Ellis International (NASDAQ: PERY), PUMA (German: PUM), Genesco Inc. (NYSE: GCO), Town Shoes Limited, Tween Brands Inc. (NYSE: TWE), Cole Haan, Haggar Clothing Co., Cavender’s Boot City and DSW Inc. (NYSE: DSW) as well as many others.
Jesta I.S. Inc.
P: 1-888-925-5152
Email: info@jestais.com
Web: www.jestais.com
Copyright (2010) Jesta I.S. Inc. ALL RIGHTS RESERVED. All information contained in this document is the property of Jesta I.S. Inc. Vision Store is a trademark of Jesta I.S. Inc. All other company and product names are trademarks or service marks of their respective owners.
The challenges of internet retailing
By Leslie Belcher, President, Jesta I.S. Inc.
At the dawn of e-commerce, retailers were skeptical about the potential to grow sales via the web. Today, however, by integrating e-commerce into their business models, retailers are realizing the Internet’s positive contribution to overall sales. For many retailers, e-commerce has become the gateway into previously inaccessible markets. However, entering this new world of opportunity comes with some strings attached: the Customer is a significantly more sophisticated shopper; inventory fulfillment needs to be optimized; and existing stores must be part of the e-Commerce strategy. It is not enough for retailers to be Multi-Channel capable. Retailers must be seamlessly ‘Cross Channel’ as well.
Customers that shop in the bricks and mortar stores are also passing through the gates of e-commerce and are becoming better informed about the products they wish to purchase. According to eMarketer.com, 70% of online shoppers are making their purchase decisions based on product/service reviews, ratings, and/or advice from friends or family. Only 3% indicated they would rather have advice from sales people.[1]
While consumers appear to benefit from the competition in the market, they have also been impacted by the economic downturn. Each purchase takes on more meaning as consumers cut back on discretionary spending. They are becoming much more informed, willing to actively research products and the companies that sell them.. The Internet has been critical in giving consumers access to other consumers – allowing them to share a wide variety of information and opinions. As they become more informed they become more demanding; consumers now expect a particular level of not only quality, but social responsibility.
At the end of the day, consumers call the shots. Their spending may be slowing but their product/service expectations are on the rise; they want to be able to buy anywhere, ship anywhere, and return anywhere, and still retain the ability to shop online or in-store.
While it would be reasonable to conclude that consumers’ expectations for uniformity make perfect sense, the reality for retailers is very different. Shoppers often receive inconsistent messages from their experiences of buying online and in-store. It is critical that retailers integrate e-commerce into their business models in order to assure their systems are able to uniformly identify their products, promotions, and customer base. As a result we’ve seen the advent of business intelligence tools as companies actively gather as much information as possible about their products and customers.
Internet retailing requires availability of both internet technology and distance payment methods. In their most basic form, multi-channel retailers are using disparate systems, run by separate organizations (and importantly, separate inventories) for each channel. While each unit may be profitable, finding and harnessing synergies to enhance that profitability throughout multiple channels remains elusive. As a result, each channel is effectively run as a separate business, sharing only a common brand logo.
With regard to manufacturing and production, retailers could face logistical complications, government regulations and communication barriers. Moreover, retailers with stores are forced to maintain a balancing act between lean inventory and production capacity. If they are too aggressive they can lose sales by having too few products in stock, however if they attempt to maximize capacity they increase their chances of being overstocked. Web retailers often avoid this problem by using a drop-shipping model (products are delivered to customers directly from the manufacturer).
Sharing sales, inventory, and customer data is perhaps the most critical first step to achieving the benefits of multi-channel retailing. Even if systems are not yet fully integrated, decision makers, from customer service representatives all the way up to the C-level executives will be more informed.
As noted, business intelligence tools are critical in providing decision makers with accurate real time and consolidated information. Adopting a single integrated ERP platform that can manage all channels with the same toolset has many benefits. All initiatives are analyzed and managed together. Inventory visibility is complete and can be shared with the customer and supplier alike in near real time. Customers can easily check in-store availability or the status of an order on-line. Stores can expand their capabilities by presenting various options to customers when confronted with a stock-out such as reserving an incoming unit, sending the customer to a nearby store, or placing an order.
It is critical that management consider shaping their organizations to encourage the success of the brand, not the channel. Brick and mortar retailers have traditionally fostered a sense of friendly competition amongst stores, districts, and regions. However since each was driven to achieve its own goals for their given geography, cannibalization was not an issue.
The boundaries separating brick and mortar from e-commerce retailers are becoming blurry; both types are in search of new markets and consumers. As a result, competition has increased and consumers now expect store-based prices and promotions to match those found online and vice versa. For many consumers, shopping on the web is equivalent of yesterdays “window shopper”.
Very few small to medium sized retailers have bridged the chasm between multi-channel retailing and cross-channel brand management; they have successfully transformed their organizations to give customers what they want, when and where they want it, and benefit from streamlined, efficient management, and greater inventory flexibility. Ultimately, these retailers will be outperforming their peers.
Transitioning from a single channel retailer, to varied levels of multi-channel integration, to the ultimate in cross-channel optimization, one thing has remained constant: the customer. The truly customer-centric retailer has always understood this, and has built up the technical capabilities as quickly as budgets have allowed. Opening up new channels has opened up a new customer base. Integrated reporting has allowed marketers to better target the increasing client base, resulting in higher margins. Those new profits can help fund an integrated system that leverages an inventory investment that can dramatically increase returns and decrease stock-outs. Finally, an integrated cross-channel ERP strategy/system unites the business, reduces costs and optimizes forecasts and execution. All aimed at giving customers what they already expect: anything, anywhere, anytime.
About Jesta I.S. Inc.
Jesta I.S. is a leading supplier of business solutions in supply chain management systems for manufacturers, distributors and retailers primarily in the soft goods and specialty industries worldwide. Jesta I.S. is recognized for its expertise, innovative products and services and its commitment to evolving business solutions in today’s rapidly changing business world. Jesta I.S.’ solutions process essential business management information for well known industry leaders including Perry Ellis International (NASDAQ: PERY), Puma (German: PUM), Genesco Inc. (NYSE: GCO), Town Shoes Limited, Cole Haan, Haggar Clothing Co., Cavender’s Boot City and DSW Inc. (NYSE: DSW) as well as many others.
Jesta I.S. Inc.
P: 1-888-925-5152
Email: info@jestais.com
Web: www.jestais.com
Copyright (2010) Jesta I.S. Inc. ALL RIGHTS RESERVED. All information contained in this document is the property of Jesta I.S. Inc. Vision E-DOM is a trademark of Jesta I.S. Inc. All other company and product names are trademarks or service marks of their respective owners.
[1]“ E-commerce in a recession”,p.6 www.eMarketer.com,
Jesta I.S. is PA-DSS certified by Coalfire
Retailers are assured of PA-DSS and PCI Compliance with Jesta’s Vision Store
New York, NY – January 18, 2010 – Jesta I.S. Inc., a leading supplier of software solutions for the soft goods and specialty markets, announced today that Coalfire has certified Jesta I.S. Inc.’s Vision Store -PA (Payment Application) to be PCI PA-DSS compliant.
Cardholders, retailers and banks all victims of fraud where money and trust have been lost in the past years are concerned with protecting customer account data. As a result, the founders of the Payment Card Industry (PCI); Visa, MasterCard Worldwide, American Express, Discover Financial Services and JCB International have introduced a set of security standards to help ensure that the information associated with a debit or credit card transaction is protected.
These standards comprised of the PCI Data Security Standard (PCI DSS) and the Payment Application Data Security Standard (PA-DSS) assure accountability on how customer account information is used regarding security management, policies, procedures, network architecture, and software design among others.
Coalfire, a Qualified Security Assessor (QSA) and Payment Application Qualified Security Assessor (PA-QSA), has certified that the Jesta I.S. Vision Store-PA is in compliance with the PA-DSS. The upgrade to Vision Store 11.0 includes the new Jesta’s Vision Store-PA that provides an innovative approach to isolating cardholder data and associated transaction processing from the rest of the retail enterprise.
Retailers can be assured that a customers’ card data is never exposed; the processing of the card is done in a manner consistent and compliant with the Payment Card Industry standards. The purpose is to give retailers a new safe environment and to help them adapt easily and efficiently to these changes.
“It is very important to retailers that their credit and debit card transactions are secure. Not only are they facing imposed deadlines by the Payment Card Industry, but they are also facing an increased level of anxiety from their own customers’ regarding privacy and security. With this certification, Jesta I.S. is well positioned to help retailers succeed in this challenge” stated Mr. Leslie Belcher, President, Jesta I.S. Inc.
About Coalfire
Coalfire Systems, Inc. is a leading IT audit and compliance firm that provides IT audit, security, and compliance management solutions throughout North America. Services include compliance testing, penetration testing, application code reviews and certifications. Customers are in the financial services, government, healthcare, education, legal, electric utility, and retail industries. Coalfire’s solutions are adapted to requirements under emerging data privacy legislation including PCI, GLBA, HIPAA, NERC CIP, SOX, and FISMA. Coalfire is a Qualified Security Assessor (QSA) that conducts over 1,000 IT audits and assessments annually. For more information, visit www.coalfiresystems.com.
About PCI Security Standards Council
The PCI Security Standards Council is an open global forum for the ongoing development, enhancement, storage, dissemination and implementation of security standards for account data protection. The PCI Security Standards Council’s mission is to enhance payment account data security by driving education and awareness of the PCI Security Standards. The organization was founded by American Express, Discover Financial Services, JCB International, MasterCard Worldwide, and Visa, Inc. Additional information is available at
https://www.pcisecuritystandards.org/index.shtml.
About Jesta I.S.
Jesta I.S. is a leading supplier of business solutions leveraging more than 40 years of expertise in supply chain management systems for manufacturers, distributors and retailers primarily in the soft goods and specialty industries worldwide. Jesta I.S. is recognized for its expertise, innovative products and services and its commitment to evolving business solutions in today’s rapidly changing business world. Jesta I.S.’ solutions process essential business management information for well known industry leaders including Perry Ellis International (NASDAQ: PERY), PUMA AG (XETRA: PUMV.DE), Genesco Inc. (NYSE: GCO), Town Shoes Limited, Cole Haan, Haggar Clothing Co., Cavender’s Boot City and DSW Inc. (NYSE: DSW) as well as many others. Additional information is available at www.jestais.com
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Copyright (2010) Jesta I.S. Inc. ALL RIGHTS RESERVED. All information contained in this document is the property of Jesta I.S. Inc. Vision Store is a trademark of Jesta I.S. Inc. All other company and product names are trademarks or service marks of their respective owners.
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Marketing
Jesta I.S. Inc.
(514) 925-5100
marketing@jestais.com
Jesta I.S. Extends its Relationship with HP by Becoming a Member of the HP DSPP
Jesta I.S. Extends its Relationship with HP by Becoming a Member of the HP Developer and Solutions Partner Program
Partnership Expected to Strengthen Joint Retail Solution Offering
August 19 2009 – Jesta I.S., a leading supplier of business solutions for the soft goods and specialty markets, announced today that it has become a member of the HP Developer and Solution Partner Program (DSPP). As a member of the DSPP program, Jesta I.S. will work closely with HP to jointly offer retailers with a reliable, feature-rich and affordable point of sale solution, combining Jesta I.S.’ Vision Store application with HP’s hardware offering.
Retailers are seeking point of sales solutions that ensure continuity of store operations to reduce revenue loss and ensure maximum sell-through. HP’s hardware and Jesta I.S.’ Vision Store combines best practices from HP and Jesta I.S. to offer retailers a standards-based solution that can dramatically improve the shopping experience.
“Today’s specialty retailer moves at a rapid pace requiring scalability and reliability, the combination of Jesta I.S.’ Vision Store and HP’s hardware results in a well positioned offering that meets the needs and makes economic sense for retailers,” stated Leslie Belcher, President for Jesta I.S.
“Our partnership with HP and the decision to join the DSPP community enables Jesta I.S. to extend its sales and marketing reach and work more collaboratively with HP to ensure that we continue to offer today’s specialty retailer with a competitive alternative, commented Dean Blair, Director, Product Marketing, Store Operations for Jesta I.S.
Mr. Belcher added “We welcome new hardware partners into our network providing current and new retail customers with both competitive pricing and with a variety of supported hardware options. The Jesta I.S. can offer retailers with absolute flexibility when deploying Vision Store. Our affliliate network includes a variety of partners including payment processors, hardware, software and service organizations.”
“We are delighted that the team at Jesta I.S. decided to partner with HP. Over the past several years we have focused on retail and have an ongoing effort to grow our partnership network with vendors like Jesta I.S., as we feel that their solutions complement our portfolio and together we competitively address the needs of the retail community, stated Tate Davis, Manager, POS Product Marketing for HP. Read more
Jesta I.S. Announces the Signing of Taryn Rose International
Taryn Rose International Sees Enterprise System as a Key Differentiator
Luxury footwear firm to implement Jesta I.S.’ Vision Suite of Solutions
New York, NY, June 25, 2009 – Jesta I.S. a leading supplier of business solutions for the soft goods and specialty markets announced today that a leading luxury fashion footwear brand, Taryn Rose International, has selected the Vision Suite of solutions as its new enterprise platform. The suite of Vision products provides Taryn Rose International with an end-to-end enterprise solution which includes; Vision Sourcing and Demand Management, Vision Financials, Vision Merchandising, Vision Planning and Vision Store.
Taryn Rose International’s management team identified business systems as a key driver in their goal to strengthen brand awareness and increase market share. “Understanding the competitive advantages gained from the right business system, our team recognized Jesta I.S. as an important vendor in our industry that was able to demonstrate its strength in both wholesale and retail,” stated Bob Meers, Chief Executive Officer for Taryn Rose International.
The Vision Suite will enable Taryn Rose to execute their strategy while optimizing business operations with an integrated solution, increasing its visibility into critical business processes from concept to check-out.
Leslie Belcher, President of Jesta I.S. added, “The Vision Suite has been designed to meet the needs of organizations like Taryn Rose International. Offering a single source, modular solution, for both retail and wholesale, makes the suite more appealing for today’s self-sourcing retailer. Jesta believes that the breadth of our solutions enable organizations to reduce total cost of ownership and benefit from a single IT partner. Our goal is to continue to evolve with the market demands and work with forward thinking organizations like Taryn Rose International.”
“Taryn Rose International prides itself on its ability to seek out new technologies and breakthroughs in areas of design, marketing, manufacturing methods, and branding strategies. With the Jesta I.S. team on our side, we are confident that our business is in good hands. Their team is very experienced and knowledgeable in the footwear market, both retail and wholesale which was a critical part of the decision to partner with Jesta I.S,” stated Mr. Meers. Read more
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