5 Hot Trends to watch in 2012

It is at the point of the year​ when market experts and watchers, silicon valley VCs alike, put forth their points of view on what could be the top and hot trends to look out for in the upcoming year.  Cloud, social and mobility are the easy 3 to mouth out and these will indeed be the key drivers in enabling both existing and new industry sectors to expand into new growth areas.






And so, without further ado, here are my pick (some read, some my added views) on 5 hot trends to watch for in 2012.

(1) EdTech

The Education industry has never been hotter. Every market and government (emerging, mature markets alike) are looking to leverage the pervasive computing devices like smartphones and tablets and bringing the education journey into the classroom and beyond. eBooks (children storybooks, self-improvement books), eTextbooks, eAssessments etc are in the markets and will take to the next level of growth in 2012 with increased interactivity and rich media to attract the new generation of learning minds.


(2) Data Science

In a market research conducted by MasterCard on Singaporeans recently, Internet surfing came in 3rd amongst the top fav activities of Singaporeans, behind eating (dining) and shopping.

Whenever our consumer fires up their browser and visits our sites or others, there're a huge load of behavioral data which could be harnessed and studied for our profiling and future use.


(3) Collaborative Consumption

With the price of cars going through the roof, and the rental car market coming up, will there be an opportunity for a peer to peer time-sharing opportunity here in Singapore? In the US, ZipCar appears to be successful. Perhaps apps or content rental could come into the fore as consumers and small enterprises are getting used to cloud-based services and move on to new experiences with other contents and media.


(4) Content grows more pervasive, being available online/offline

Global players like Google are looking to enter both emerging and their mature markets with solutions which cater to all segments. Take for instance Google Books, which will now be also availed offline. I see a not too distant future when Google Maps will be availed as a hybrid (online and offline) solutions.


(5) Merchants grow out of daily deals and look for tangible business models and relationship with their customers

Loyalty cards companies like Perx are looking to get a piece of the market being thrown away by the Groupons of the world who have sown disillusionment into a large number of disgruntled merchants who do not see repeat customers coming and revenue growing, after the daily deals effect have worn off.

Could loyalty card companies like Perx or social content feed marketing companies like Taggo or companies who could market and promote time or inventory limited offers (much like how airlines deal with revenue management), form the next wave to watch out for in terms of merchant e-commmerce?

What are your top trends for 2012?


Happy 2012 in advance and look forward to hear from you.

Nelson Wee
or engage with me at @nelsonwee

References:
Silicon Valley VCs predict top trends for 2012

6 Players in the Location-Based Services Ecosystem

My last post on location-based services set the scene on the reasons why location-based services are picking up with the the growth in on-the-go consumers who are more freely sharing information socially, and with more location context.  With mobile phone-based location-based apps driving  business recommendation services through integration with the social media internet, multi-channel merchants that sell online and via physical stores have, in many cases, have been very effective in using these services to boost both real-world and digital traffic.

Who are the players of location-based services?  I have attempted to put together the location-based services ecosystem in the following value chain for our discussion.

1. Map Data Providers provide:
1. the base layer map data.
2. enriched hyperlocal POI (point of interest) data.
2. Application Software Providers
1. technology partners who build upon the map data providers' base layer map.
2. develop the user interface to work cross-platform, with customized features.
3. Advertising Network Providers
1. provide the connectors to ads in the LBS app.
2. and the field salesforce to sell the ads to brands.
4. Location-Based Content and Services Providers include
1. backend partners who serve out hyperlocal and relevant ads on behalf of merchants in partnered web and mobile sites.
2. front-end eShopping partners who vend free vouchers, paid eCoupons, aggregate deals.
5. Access and Provisioning Providers (Carriers / Operators) provide
1. affordable data plans to consumers and enterprises.
2. promotions in various marketing touch-points (Retail, SMS, MMS, PC internet, EDMs, DMs, Print, TV) to their targeted customer base.
6. Device Providers
1. work with the Carriers / Operators to provide out of box experience through preloading of the location-based services apps.
2. comprise the N-screens of mobile devices across PC, laptops, tablets, smartphones etc.

What are the revenue streams in location-based services?
Through Strategic Analytics, ABI research and various lit search, there are 3 main pillars of revenue streams in location-based services - some more immediately relevant, whilst others like community set to grow in the next 5 years.

1. Utilities
1. more immediate rational driver, referring to search, turn by turn navigation, personal tracking
2. for parents who would like to track their kids
3. for exploring and looking up places of interests and getting there on car or on foot
4. for enterprises for fleet management
2. Commerce
1. location-based eShopping deals
2. restaurant booking
3. mobile advertising
3. Community
1. social media integration leading to crowd-sourced sharing of recommendations
2. peer to peer value exchange
3. enabling more engagement with consumers through gamification

Before ending this post, I will leave you now with
2 real-world examples of how location-based services bring value and innovation to businesses in the ecosystem.

(1) Nokia Thailand Foursquare Campaign
Here is a first in the world campaign when a phone manufacturer (Nokia), a local operator/carrier (DTAC) and local Thai retailers came on board and collaborated to provide brand awareness of Foursquare check-ins with Nokia smartphones, value to DTAC consumers and driving real-world traffic to the retailers.  (Disclosure: I was involved in the working team for this campaign with my Nokia Thailand colleagues during my career at Nokia)

(2) Nokia Gift Vending Machine Social-Location-Mobile (So-Lo-Mo) innovation
A pretty neat program which provided real-world treats to people who checked in.  Delight: you never know what you are going to get!

1. How do the players in location-based services differ in your market?  
2. How do the campaign mechanics from location-based apps in your markets provide value as ancillary channels for businesses?

I look forward to hear from you on your comments to this post, and write more on these topics.

Later soon,
Nelson Wee
engage with me at @nelsonwee

References:
1. Infographic: Location-Based Social Media – Every Move You Make
2. Location Based Services Usage & Perception Survey from Microsoft

Why are there opportunities in location-based services?

According to a location-based media company JiWire, 53% of the "on-the-go" US audience are willing to exchange their location for more relevant content and better information, including mobile deals.  And this "on-the-go" audience, which comprise users of notebooks, tablets and smartphones out of home or workplace is GROWING.

In one of my recent posts, I wrote about how content consumption has gone mobile as mobile is personal and always near.  As we are always on the move, context in whatever we are doing (or could be doing), where ever we may be, becomes important to us amidst today's time-starved world.  With GPS, cell-ID location tracking in mobile devices like smartphones and tablets are increasingly availed in the hands of the consumers of today and tomorrow, and data plans becoming more affordable, it comes with no surprise that there is increasing interest from on-the-go consumers in:

1. checking into locations via mobile for achievements or rewards,
2. searching for information more online via mobile (even while in the shops!),
3. or buying products and services while on the move.

Let's have a look at some key market growth trends in location-based services.


Location-based Apps and check-in features are garnering interest in mobiles

• According to Pew Internet & American Life Project report (availed via this link) released recently 6-SEP-2011, 5% of all  US cell owners or 12% US smartphone owners use geosocial check-in services like Foursquare or Gowalla.
• With Twitter, Foursquare, Gowalla and Facebook "Places", consumers are sharing to show-off their "Fab life"
• Mainstream audience:  amongst 20 to 34 year olds, privacy appears less of a concern.
• Secondary audience: 35 to 44 year olds who have higher spending power.
• Emotional drivers focusing on the mainstream: gamification and social leaderboards are being used to engage consumers on the move.
• Rational drivers largely to the secondary audience: price comparisons through daily deals, location-based promotions.

Group buys through social sharing and mobile coupons and local deals are growing

• Players include Groupon (more than 30M subs globally), are expanding into Asia through acquisitions.  In Singapore, Groupon acquired Beeconomic the #2 deal site in April 2010 and is now #1.
• Local deals and ecosystem players in Singapore like deal.com.sg and Chlkboard are growing mind share and market share with advertisers.

Many players are looking into being your mobile wallet

• Facebook credits for virtual goods now (in social games) - what about physical products in the future?
• Paypal account - to order your takeaways
• Operator (carrier) billing for lower price tiered products - both virtual and physical
• Retail POS like VISA Paywave contactless paymenbt, MasterCard PayPass for tap and go convenience

Singapore shows strong growth in mobile subscribers and value-added services

• In Singapore, IDC forecasts that the number of Singapore mobile subscribers will increase at a 3.9% CAGR to reach 8.3 million by 2014, pushing the penetration rate from 140% in 2009 to 163% by 2014. 
• Much of this growth is expected to come from the take-up of non-voice services, prepaid subscriptions (comes with data) and the proliferation of multi-sim cards (multi-device ownership - tablets, smartphones, mobile broadband).

Location-based services are going mobile and social (Lo-So-Mo).  The ancillary channels to businesses and potential ancillary revenue streams are only emerging at this point.  I will be writing more next on the various players in the location-based services value chain. 

Meanwhile, I would be most interested to hear more on your views on how location-based services are taking off in your market.

Talk soon,
Nelson Wee
Connect with me on Twitter @nelsonwee

References:
1. Definition of location-based service
2. Location Based Services Usage; Perception Survey from Microsoft
3. Nearly 1-in-3 Adults Use Location-Based Services

How are eShopping trends shaping the market?

These days, we see high growth with the usage of the mobile internet in SouthEast Asia. Besides your wallet and your keys, your mobile is probably the third personal item always by your side.  In fact in a global survey conducted by OnDevice Research, it described how Asian consumers, more often than other consumers, would first go to their phones to research or purchase goods and services.  To save time and get things done more efficiently in today's world, your mobile has become an ancillary channel for eShop browsing to help source, service and support your purchase decisions.

In fact, from a PayPal research done Jan-Feb 2011, there were several interesting findings:

1. Singapore online commerce market reached S$1.1 billion in 2010, and will grow to S$4.4 billion in 2015.
2. 1.2 million Singaporean online shoppers (above the age of 18 years old) had an average spend per head of S$1,492 over the past year.
3. 84% of Singaporeans used their mobile device to either research or purchase goods.
4. Mobile eShopping is in its infancy stage comprising 4% of online shopping market.
5. Over 364 thousand Singaporean online shoppers spent S$43 million ($$119/user) on their mobile devices last year, approximately 4% of the online shopping market
6. 40% (~S$420 million) of online purchases were domestic.

Stores in Singapore could well look into putting together a multi-channel approach to in their sales and marketing.  From a merchandising perspective, the I Love Deals in-app survey infographic below show that the 3 top products consumers expressed interest in online deals were clothing, shoes and consumer electronics.

With online and mobile eShopping primed to take off in Asia and Singapore,

• How will sales and marketing change with eCoupons, vouchers?  What are the ancillary revenue opportunities?
• How will apps, the Web, TV impact marketing, promotions and distribution channels for eShopping?  How will these ancillary channels evolve?
• With daily deals fatigue, what are the new models in eShopping?  Is gamification trending as an engagement tactic?  Is yield management a new model to look into?

I look forward to engage into further discussions on the above.

til later,
Nelson Wee
@nelsonwee

References:
1. The Stats and Facts of Online Shopping in Singapore
2. Mobile commerce on growth path in Asia Pacific
3. PayPal Study Shows Singaporeans Find Value in Shopping on Local Websites