There are so many exciting changes going on in the retail and mobile commerce space. We will take a look at what’s to come with marketing and loyalty programs meeting mobile payment and virtual wallets, discuss what you can do right now to engage your customer, share methods for building a loyalty program while being compliant, and considering the security issues that will be faced. To get our focus for the day, Julie will give us a big picture – 30,000 ft view of what is going on with mobile in the retailer’s world. She will share high level trends in mobile usage from a consumer behavior perspective, such as, what they are researching, when mobile usage is highest, the incrementally of mobile to desktop and other exciting mobile trends in retail.

1. The State of Retail
Five notions of Retail, October 2011
Julie Krueger, Retail Industry Director
Google Confidential and Proprietary

2. Retail Sales per Square Foot declining since 2007
Google Confidential and Proprietary

3. Gross Merchandise Value steadily shifting online
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Google Confidential and Proprietary
Source: Forrester Research US Sales Forecast, ForecastView

4. Online influenced sales continue to grow
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Google Confidential and Proprietary
Source: Forrester Research US Sales Forecast, ForecastView

5. The mobile web is exploding
120
US Mobile Queries (Indexed)
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100
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5 Google Confidential and Proprietary
Source: Internal Google Data 2010

6. Mobile allows for constant connectivity
Desktop Queries
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8pm
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Google Confidential and Proprietary 6
Source: Citi Investment Research and Analysis; iCrossing Mobile U.S. Google Internal Data, 2010

7. By end of 2011
over half
of Americans will have a
smart phone
7 Google Confidential and Proprietary
Source: Nielsen March 2010, Morgan Stanley 2010

8. State of Retail explained in 5 notions
1 Consumers demand for deals on the rise
2 Moore’s Law in every pocket
3 Reducing friction increases adoption
4 Transparency increases opportunity
5 Consumers expectations are accelerating
Google Confidential and Proprietary

9. 1. Consumers demand for deals on the rise
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Google Confidential and Proprietary
Source: U.S. Bureau of Labor Statistics, Google insights

10. It’s hard not to find a deal…
Google Confidential and Proprietary

11. 2. Moore’s Law in every pocket
59% of
smartphone
38% of shoppers users used their of these holiday
abandon buying phones for smartphone
something in the holiday shopping shoppers,
store based on what last Q4 80% used their
they looked up on phones to shop/
their phone research while
in a store
67% of
consumers
researched online 87% of
prior to purchase shoppers felt
last Q4… usually they could find a
spending over a better deal
week researching elsewhere
a purchase
Google Confidential and Proprietary
Source: Google/OTX Holiday shopping survey, Comscore July 2011, State of economy

12. 3. Reducing friction increases adoption
Google Confidential and Proprietary

13. 4. Transparency & integration increase opportunity
28% of top 25 retailers feature buy via mobile/pickup in-store
Google Confidential and Proprietary

14. 5. Consumers expectations are accelerating
Google Confidential and Proprietary

15. The mobile movement is here. Are you in it?
http://www.youtube.com/watch?v=CjUcq_E4I-s
Google Confidential and Proprietary