Mobile technology will decide battle on the high street, says KPMG

Tuesday 14th February 2012

Retailers and consumer goods companies say mobile technology will be the key driver to maximize sales over the next two years, according to the KPMG Consumer Markets CFO Survey.

The efficacy of mobile technology to generate business is ahead of more traditional ways such as business intelligence or supply chain management, according to KPMG’s global survey of CFOs in the sector.

The research suggests that the importance placed on mobile technology varies by country. Thirty six per cent of UK respondents view mobile technology as key to maximize sales, compared to 46% in Germany, 44% in the US and 50% in India.

One of the key reasons for mobile technology being more important in developing countries is the lack of access to broadband and stores, so more people are shopping via their smartphones.

Given falling revenues in the sector, investing in new technologies in order to drive sales seems particularly important: 47% of UK respondents expect this year’s revenues to be lower than last year’s, compared to 46% in the US, 50% in Canada, 48% in China and 50% in India.

However, the survey shows that UK companies are slow off the mark to foresee potential sources of new business, with 54% of UK respondents say that tapping new middle-class consumers in emerging markets is key to their long-term strategy, compared to 75% in the US, 79% in Australia, 85% in Brazil and 92% in China.

“Mobile technology will help decide who wins in the retail space. Retailers must embrace mobile technology as an urgent priority or otherwise risk falling behind,” said Tim Clifford, partner consumer markets at KPMG.

“For retailers and other players in the consumer goods market the challenge is to respond to a ‘two-speed economy’: On the one hand they need to adapt to slowing consumer demand in the more mature markets by managing risk and cash and de-stressing the supply-chain.

“On the other hand, they are under pressure to look for new sources of growth which means investing money in order to tap into the new emerging markets and make acquisitions as the opportunities arise.”

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