In the current fast developing digital environment there is an ever-growing need for shopping on our mobiles. With 72% of the UK population-owning smartphones the demand for change in the way we shop is rising. According to mobile analytics firm Flurry, shopping app usage grew faster than any other category of apps. Sessions on shopping apps on iOS and Android devices increased by 174% year-over-year, including 220% on Android alone. That’s up from 77% last year (Soloman, 2015).
So why aren’t UK grocers making the most of this opportunity?
Well, In the news this week it has been reported that Sainsbury’s will be launching a shop-and-go smartphone app that will allow customers to complete their entire in-store shopping trip using their mobile. The mobile app will allow customers to create their shopping lists at home by either scanning products or simply searching for product types and brands. Once the customer enters a Sainsbury’s store (and has connected to Sainsbury’s Wi-Fi) a visual map will be created on the mobile app with products that are on the shoppers list appearing as dots, to guide individuals round the store (Hegarty, 2015). Payment can be made instantly and customer’s details can be entered into the app simply by taking a photo of their card. Shoppers can then choose to save those details within the Sainsbury’s app (Tugby, 2015).
https://www.youtube.com/watch?v=v1WMCJiUNBA
Game changer
I believe Sainsbury’s have taken a serious step forward with the development of this app and are making a positive impact for the usage of this digital marketing strategy for the grocer market in the UK. In support of my opinion, Sainsbury’s CEO Mike Coupe has been documented saying “The mobile scan and go technology will end up being adopted across the industry. I think Brand Match took about a year to be copied across the industry, so I think that’s about the length of time we’ve got on this as a competitive advantage” (Tugby, 2015).
Not only will this app attract new customers for Sainsbury’s but the development of this digital marketing strategy has created a number of jobs within the organisation. It is projected that Sainsbury’s will bolster its online retailing capabilities by creating 480 ‘specialist’ jobs in response to rising consumer demand for more convenient and intuitive ways to shop (Robinson, 2015). In addition to this Jon Rudoe, director of digital and technology at Sainsbury, is quoted on the company website stating ‘we’re now firmly on the map as a career destination for digital and technology specialists. We’re structuring and equipping entrepreneurial teams to improve the digital experience and develop products that will help make our customers’ lives easier” suggesting that the development of this app is just the beginning of a new digital strategy by Sainsbury’s.
What can we expect now?
Taking Mike Coupes statement into consideration, Sainsbury’s predict that they are around a year ahead of their competitors. From this we can expect an explosion in the development of grocer apps in the UK with each organisation trying to out perform the competition. Currently the smaller discounters Aldi and Lidl do not provide an ecommerce platform for their consumers, but I would expect this to change in the not so distant future. The closer rivals to Sainsbury’s such as Tesco and Asda will have to move quickly to ensure they reach maximum potential from this new demand in shopping.
References
Hegarty, R. (2015) TheGrocer. Available at: http://www.thegrocer.co.uk/stores/sainsburys-developing-new-in-store-shopping-app/517116.article (Accessed: 17 April 2015)
J Sainsbury plc / Sainsbury’s creates specialist digital and technology jobs (2015) Available at: http://www.j-sainsbury.co.uk/media/latest-stories/2015/0331-sainsburys-creates-specialist-digital-and-technology-jobs/ (Accessed: 17 April 2015)
Robinson, N. (2015) FoodManufacture. Available at: http://www.foodmanufacture.co.uk/Business-News/Sainsbury-s-boosts-digital-jobs?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright (Accessed: 16 April 2015)
Solomon, B. (2015) Shopping Apps Are Now The Fastest Growing Thing In Mobile. Available at: http://www.forbes.com/sites/briansolomon/2015/01/06/shopping-apps-are-now-the-fastest-growing-thing-in-mobile/ (Accessed: 17 April 2015)
Tugby, L. (2015) RetailWeek. Available at: http://www.retail-week.com/sectors/food/sainsburys-to-launch-scan-and-go-smartphone-shopping-app/5073990.article (Accessed: 16 April 2015)