B2B Articles - Oct 23, 2013 9:25:52 AM

Is showrooming a threat to retail profits?

Showrooming is the term used to describe the act of using mobile phones to do price comparisons, feature comparisons, check reviews or product details while in a physical store. Showrooming does not however mean that the shopper is purchasing online instead.

SHOWROOMING AND THE RISE OF THE MOBILE-ASSISTED SHOPPER SEPTEMBER 2013Columbia Business School's recent report on Showrooming focuses on the intent to purchase online while browsing in-store. In the report, SHOWROOMING AND THE RISE OF THE MOBILE-ASSISTED SHOPPER, 3,000 retail consumers in the US, UK, and Canada were surveyed with the intent to explain how they are really using their mobile devices in-store. The report also explores offline / online strategies that retailers should consider for mobile-assisted shoppers and showrooming.  The report also defines five deliniated types of mobile-assisted customers (see below).

DEMOGRAPHIC PROFILE of retail and online shopping

According to a report by Econsultancy/BuyDesire, Mobile Marketing and Commerce Report 2013, 67% of retailers admit that mobile-assisted shopping is expanding, only 11% feel that mobile poses a threat to their business.

Mobile price comparison - eCommerce vs brick and mortar

Most companies (7 out of 10) will be will be upping their mobile budget over the next 12 months.  Within the surveyed group, 29% more companies expect to focus on 'tablet-specific websites' or mobile-responsive design.  Location-based marketing tools and mobile commerce sites will also be tactics to increase loyalty with shoppers--allowing retailers to drive sales in a mobile-centric world.

planning to increase the mobile marketing budget in the next year

SOURCE: Econsultancy/BuyDesire Mobile Marketing and Commerce Report 2013,

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