There are more than 300 malls in Moscow and Moscow region with total area about 16 million m2. In ABI Research’s latest report, “Indoor LBS: Applications, Advertising, and Revenues”, senior analyst Patrick Connolly comments that in 2014 a number of major retailers are finalizing their pilot projects in indoor navigation and soon we will see a lot of system installations. This trend is also supported by late developments in iBeacons/BLE technologies and readiness of consumers to increase the share of online purchases through a smartphone. By the way, the latest study by Deloitte Digital reveals that digital interactions influence 36 cents of every dollar spent in the retail store, or approximately $1.1 trillion. By the end of 2014, that number will climb to 50 percent or $1.5 trillion of total store sales. Consumers using a device during their shopping journey convert, or make a purchase, at a rate 40 percent higher than those who do not use a device. Consumers are largely do-it-yourselfers, and prefer to navigate the aisles and the checkout without a store associate's help. 80% respondents in Deloitte Digital's study said they would rather research product information on their own device or from an in-store device like a kiosk, rather than ask a sales associate.
Most importantly, retailers now understand the need to address the newly emerging smartphone shoppers. Analytics is a fundamental first step, but longer term, a combination of targeted in-store offers, hyperlocal search, and in-application advertising will drive $5 billion in revenue in 2019, enabling retailers to better reach their customers both in-store and at home.
As for the indoor- positioning technology the key advantage is an increase of mall attractiveness for tenants and visitors. For example, it could be a placement of marketing offers (discounts, sales, new collections) on mall map and analysis of their efficiency.
Another important feature is the ability to create a personalized route based on the shopping list and places to visit. Besides the user interface mall owners receive tools for customer behavior analysis, such as monitoring of visitors flow, «heat maps», analysis of mobile app users behavior and influence of geo-positioned offers on their routes, creation of analytical reports for internal use and sales to tenants.