M-commerce, which allows customers to order goods for UK couriers to send to a destination of their choice, is likely to be an increasingly crucial part of the retail sector.

That is according to the KPMG Consumer Markets CFO Survey, which found that retailers and consumer goods companies expect mobile technology to be the key driver of profits over the coming two years, ahead of traditional processes like business intelligence or supply chain management.

It found that 36 per cent of UK chief financial officers expect m-commerce to be crucial between 2012 and 2014. This figure is higher in less developed countries, possible because the lack of broadband access for many people makes smartphones especially important.

Tim Clifford, partner in consumer markets at KPMG, said: "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."

He added that at a time of economic upheaval, when competition in the industry is especially fierce, companies must be poised to take advantage of any new opportunities that come their way.

M-commerce as a device for facilitating transactions or communicating with customers is such an opportunity, according to Mr Clifford.

It can help shoppers gain more information about a product by using their smartphones to research it while out on the high street.

He explained that many companies are recognising this and investing in new technologies, despite falling sales across many areas and a drop in profits for some retailers.

A survey from the Internet Advertising Bureau (IAB) recently found that smartphone and tablet users are an important revenue stream for many retailers and urged companies to adapt to this new landscape.

"In particular, the way consumers are turning to their mobile phone in-store is a strong call to action for retailers to react to this growing trend," added IAB senior mobile manger Alex Kozloff.
 

Author:  Gillian Walters