(keitai-l) Keitai-based comparison shopping vs. the retailers (was: Re: Digital skin is IN!....)

From: Michael Turner <leap_at_gol.com>
Date: 11/24/00
Message-ID: <005501c05600$13ea8820$52e9fea9@miket>
From: <Jan.Chipchase@nokia.com>

> It is not in retailers interests to let you compare prices (unless they
know
> they are the cheapest locally). Why would they encourage customers to
leave
> their store?

Indeed, this would provide many retailers with *commercial* justification
for installing celphone jammers, for which they already have the pretext
of "not annoying other customers by allowing individuals to
receive calls."  Of course, this rationale doesn't plausibly apply to
silent browsing, but that won't stop some retailers from using it anyway.

On the other hand, you can say that it's not in the interests of book and
magazine shops to permit browsing - except that there's always a shop
up the street that *would* be happy to be the first, so *everyone* has
to allow it.  Economists probably have some dreary jargon phrase for this
phenomenon.  They always do.

Shops that allow local price comparisons over wireless will be seen as less
likely to gouge, and will have an advertisable trustworthiness advantage
over those that prohibit it or jam it.  Shops that prohibit it will need to
have some other edge.  Ifyouhavetoswipeyoucantaffordit.com is, of
course, carefully considering all these issues in developing its clicks-
and-mortar wireless strategy ;-}

LBS and product-identity-based mobile browsing will probably see
a fair amount of tug-of-war, maybe even some lobbying and legislation
over "right-to-browse" vs. retailer interests.

How might this work in Japan?

With its prices still high even in a slightly deflationary economy
because of a distribution system that is still too layered despite some
delamination (your basic B2B gladiator arena waiting for some real
action), with its serious shopping culture (the #2 national sport), and
with its incredible, dense mobile phone penetration continuing apace,
Japan could see the first clashes in this battle.  Especially since the
political establishment (LDP) has a strong voter base in the small
retailers, and wouldn't want to preside over yet more employment
instability and an accelerating deflationary cycle.

Come to think of it, though, this all sounds like an excellent reason
why it *won't* take off here, despite Japan being an excellent candidate
for an early start, based on demographics and technology alone.
The pols would hear from one of their major constituencies that
keitai comparison shopping is killing them, would call their old-school-tie
bureaucrat buddies in MoF (still holding 47% of NTT) and in MPT,
the word would go down to the keitai makers and the shop-jamming
licenses would go in.  All too easy to imagine, at least if you've lived in
Japan too long.

"You say you want an IT Revolution?  Well, you know...."

-m
leap@gol.com




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Received on Fri Nov 24 12:08:24 2000