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Specialty
Graphic Imaging Association
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Executive Summary
January 2012 |
Retail Focus: Smart Phones and Printed Graphics
Smart phones are changing the way many consumers make purchases at brick and mortar stores. Using the latest handheld technologies, consumers are empowered to control the complete buying process. As the consumer becomes empowered, the role of environmental graphics increases in importance.
Consumers need easy access to clearly presented product information. And, retailers need to use graphics to cross-sell related products. Brick and mortar retailers aren’t just competing with each other; they are also competing with online retailers. Store environments and brand management will play an increasingly important role in the retail sector as consumers and retailers adopt smart phone technology.
To illustrate: In 2007, 57 percent of SGIA’s graphic and sign community served the retail sector. By 2011, that percentage had risen to 77 percent. Based on current survey data, 49 percent of the graphic and sign companies serving the retail sector anticipate market growth in 2012.
Consumers are very knowledgeable about the products that interest them and can easily prepare for a major purchase by extensively researching it online. Also, using one of a host of buying apps, consumers can scan barcodes to compare prices at other stores before they make their purchase.
Armed with this knowledge, consumers are less dependent on sales staff to guide them through purchase decisions. As consumers become increasingly independent, the value of in-store graphics increases. This independence translates into positive news for the SGIA community.
When it’s time to pay, the credit card can stay in the pocket if the retailer is prepared with contactless payment stations. Using near field communication (NFC) technology, a wave of the smart phone completes the transaction.
Retailers are using smart phones to expand on loyalty card programs, too. Keychain tags and loyalty cards are being replaced with smart phone apps. Retailers also are reaching out to close-by customers using geo-fencing technology. When participating customers are in the vicinity of a participating retailer, the customer can expect a text message with special offers.
Expanding use of the smart phone as a purchasing tool is expected to get the attention of additional retailers in 2012. Considering that in 2010 there were 8.2 billion app downloads and in 2011 there were 17.7 billion, we can anticipate dynamic growth of smart phone application use in 2012.
There’s no doubt that smart phones are changing the retail sector. Change can mean opportunity for creative graphics producers. |
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