Virtually every list of tech start–ups includes a high proportion of enterprises aimed at the retail sector, mobile or ecommerce. 

Virtually every list of tech start–ups includes a high proportion of enterprises aimed at the retail sector, mobile or ecommerce. 

The three are at the focal point of the next stage of retail investment.  Retailers plan to spend $190 million in 2015 on technology, with internet- based systems taking up a large chunk. 

A survey of retailers (by TLT Solicitors) found that over 90% said that the most important investment areas were their websites and mobile sites. 

Only a little way behind that, IT systems were also ranked as important investments. So investing in a retail company is becoming more about investing in the right technology.

A retailer without an ecommerce site is extremely rare. For some, such as small specialist shops, that’s the major element of their branding and route to market.

But it’s not just the small companies.  Alibaba, one of the biggest ecommerce sites in the world and which sold over $9 billion worth of goods on ‘singles day’ recently, is a highly profitable intermediary whose only real asset is technology as it doesn’t make any of the goods it sells.

The amount it spends on technology  is reportedly growing faster than its profits - that is, very fast. 

All the retailers surveyed by TLT were confident that technology would help them to grow their businesses and nearly 44% said it is important to be an early adopter of new technologies. 

If so, then new technologies offer the most promise of business growth. Among them, mobile payment technologies are high on the list and the number of small entrepreneurs as well as major players such as Apple offering or building a product or service in this area is significant. 

Having focused heavily on getting people to shop online and on developing online shopping systems and delivery services, it seems that the emphasis is now on building direct revenues. 

Mobile payments are the missing piece of the jigsaw. With a mobile website and mobile payment app, consumers can buy and pay for goods wherever they are and have them delivered maybe in time for when they return home. In-store shoppers can pay without having to queue. ‘Unexpected item in bagging area’ could become a thing of the past. 

  • Dan Coen, director, Zolfo Cooper