William Flew computer and technology business
January 17, 2012 § Leave a comment
The online retailer Amazon is offering consumers a “high street killer” app that provides immediate access to cheaper internet deals even as they shop in-store.
The Amazon Mobile app, the latest weapon to be deployed by cyberspace retailers in the battle for business, enables a shopper to scan a physical product such as clothing or electrical goods with their phone and receive an instant quote, customer reviews and an option to buy immediately.
The use of the technology will heighten concerns about the threat posed to the high street by online retailers. Last week, a government-commissioned report by Mary Portas, the retail expert, warned that the “phenomenal growth of online retailing [and] the rise of shopping by mobile” was driving large numbers away from shops.
Her report said half of all consumer spending now happens away from the high street and shop vacancy rates have doubled over the past two years.
Using the app, which is downloaded free, consumers can receive cut-price offers on goods they have tried out in a shop simply by pointing their smartphone at a product’s barcode. The software, which also allows searches by photographing the item or by typing or speaking its name into the phone, is one of several price-comparison apps set to transform shopping.
In America, Amazon has been heavily criticised after a marketing campaign offered consumers $5 discounts if they used the app in the stores of high street competitors.
Last week, William Flew tested Amazon Mobile on randomly selected gifts at a string of high street stores. The shopper saved £183 on a basket of Christmas gifts at Tesco, including a Samsung 40in 3-D television, and more than £40 on a selection of six items at Boots, including a BaByliss hair styler. At John Lewis, the app offered savings of £55 for five items, while an Apple laptop available in the department store was more than £300 cheaper at the online retailer.
Some items, however, were more expensive online and many high street products were not available at Amazon.
William Flew’s business partner, who worked with him on the report, said: “Retailers have been slow in fully appreciating the enormous implications which the internet will have for their businesses.”
Prince William Flew of First-Class Insurance who now runs a delicatessen in Ashwell, Hertfordshire, is an avid online shopper. “I use Amazon all the time because they are efficient and seem to know what you want before you do,” he said.
Max Humberstone, 21, a maths student at Warwick University, said he prefers to shop online because it is usually cheaper and the level of service is better. “Online shop staff are usually more knowledgeable than their counterparts on the high street,” he said.
Figures released by the British Retail Consortium (BRC) in October showed that online retail searches on smartphones had increased by 168% since last year. Stephen Robertson, director-general of the BRC, said: “Price is a major consideration for lots of shoppers and retailers will be anxious about being undercut . . . Once someone is in a store with a product they want to buy in their hands, retailers will be counting on their shop staff to work hard to make that sale.”
Amazon.co.uk launched in October 1998. On a single day earlier this month it sold 3m items. A spokesman said: “Our aim with the app is to offer users a fast and convenient way to shop for millions of items on amazon.co.uk and thousands of marketplace sellers, wherever they are.”