Hong Kong mobile operator SmarTone prepares retailers to join the mobile e-commerce bandwagon
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Mobile network operator SmarTone Telecommunications hopes to roll out its new service called “Kiss” this December as the first batch of retailers in the city have signed up for the ambitious offline-to-online marketing and payments platform.
“We’ve already started signing up stores, including [those run by] medium-sized retailers. Some bigger retailers are looking at it, too,” Douglas Li, the outgoing chief executive at SmarTone told the South China Morning Post.
Li, who drove the platform’s two-year development, said SmarTone “should run Kiss for five to seven years to fully realise the value of how uniquely focused the platform is to help retailers”.
He said there could be an opportunity to license the platform’s technology to telecommunications network operators outside Hong Kong.
“It’s an internet business so the actual cost of implementation is not huge. The only question is how quickly it can scale up,” Li said. “If it does well in a foreign country, the sky’s the limit.”
Launched last month, Kiss enables retailers to connect with consumers through a platform that links digital marketing and loyalty programmes with data analytics and mobile payment.
Merchants are charged a monthly fee and provided with tools to create their mobile storefronts on the platform, directly message customers and launch targeted campaigns.
“Retailers need to adapt to new thinking because the world has changed,” Li said. “You need only look across the border to see how online and mobile [e-commerce] are impacting the traditional bricks-and-mortar retailers. We’re offering retailers in Hong Kong a way to get into this [kind of operation].”
“If it does well in a foreign country, the sky’s the limit.”
Alibaba Group, JD.com Ctrip.com and Qunar have become China’s leading business-to-consumer e-commerce platform operators by providing convenience, choice and low prices to entice people to buy goods and services online through smartphones and tablets.
Research firm eMarketer has forecast mobile e-commerce sales to make up 10.9 per cent of total retail sales in China next year and 55.5 per cent of all online retail shopping as the sector grows 51 per cent to US$506 billion, up from an estimated US$334 billion this year.
“We hope to build a critical mass of connected retailers in Hong Kong so that Kiss will have a strong appeal for consumers,” said SmarTone chief technology officer and recently named interim chief executive Stephen Chau Kam-kun.
Chau said SmarTone was signing up a mix of merchants with “high-value, low-frequency buyers” and “low priced, high-frequency buyers”.
Kiss, operated by SmarTone subsidiary Kissco Marketing Services, also includes in its package a single-purpose Android tablet as tap-only mobile payment terminal, capabilities for customer data analytics and a Bluetooth beacon for the store, configured to push greetings and promotions to nearby consumers with the free Kiss app.
Consumers use the Kiss Wallet feature to store credit card details, retailer cash credits and promotional Kiss Dollars. Kiss Pay is the digital token used for purchases and redeeming rewards.
UnionPay International is the launch credit card partner for Kiss, although efforts are underway to add Visa and MasterCard.
Li, , who resigned in April, said he left “a roadmap” to be implemented over the next two years to further develop the Kiss platform.
Questions & Answers
Q.When is SmarTone planning to launch its new 'Kiss' service?
When is SmarTone planning to launch its new 'Kiss' service?
SmarTone hopes to roll out the 'Kiss' service this December. They have already begun signing up retailers, including medium-sized stores, with some larger retailers also considering joining the platform.
Q.What is the primary purpose of the 'Kiss' platform for retailers?
What is the primary purpose of the 'Kiss' platform for retailers?
Kiss enables retailers to connect with customers through a platform linking digital marketing, loyalty programmes, data analytics, and mobile payment. It provides tools for creating mobile storefronts and running targeted campaigns.
Q.What features does the Kiss package include for merchants?
What features does the Kiss package include for merchants?
The package includes a single-purpose Android tablet for mobile payments, customer data analytics capabilities, and a Bluetooth beacon. This beacon pushes greetings and promotions to nearby consumers using the free Kiss app.
Q.Which credit card company is the initial partner for Kiss payments?
Which credit card company is the initial partner for Kiss payments?
UnionPay International is the launch credit card partner for Kiss. Efforts are currently underway to add both Visa and MasterCard to the platform, expanding payment options for consumers.
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