The BING KIMPO Show.: Now this is getting exciting... From The NYT: Cellphone Applications Let Shoppers Point, Click and Buy

Shoppers will soon be able to stand outside the designer Norma Kamali%u2019s boutique in Manhattan, point a phone at merchandise in the window and buy it %u2014 even late at night when the store is closed.

Skip to next paragraph

Enlarge This Image

Michael Falco for The New York Times

ScanLife technology allows customers to scan bar codes on merchandise.

Ms. Kamali is at the forefront of a technological transformation coming to many of the nation%u2019s retailers. They are determined to strengthen the link between their physical stores and the Web, and to use technology to make shopping easier for consumers and more lucrative for themselves.
The main way they plan to do it is by turning people%u2019s mobile phones into information displays and ordering devices. Can%u2019t find the flour at the grocery store? Grocers will offer phone applications that tell shoppers exactly where to go. Is the department store out of size 8 jeans? Retailers want to make it simple to punch a couple of buttons and have the desired size shipped home.
Some supermarkets intend to offer real-time coupons while people shop. For example, a promotion for milk may be sent to a shopper%u2019s mobile phone the moment her cart rolls into the dairy aisle. Drugstores will offer loyalty programs on cellphones, not on plastic cards. And specialty chains will allow shoppers to breeze through the aisles compiling a wedding registry, just by pointing at merchandise.
It remains to be seen how readily shoppers will embrace such aggressive merchandising, which will generally require them to download free applications onto their phones and consent to being tracked electronically while in a store. But many stores are betting they will go along. After all, people already wander city streets guided by maps on their mobile phones. Why shouldn%u2019t the same technology lead them to the toilet paper in Aisle 3?
Hoping to use the technology as a competitive advantage, some big chains are reluctant to discuss their plans. The Sam%u2019s Club division of Wal-Mart, Crate & Barrel, Kerr Drug of North Carolina and Disney stores are among the retailers that confirmed they were testing various mobile technology or planned to do so soon.
Technology companies behind the products say retailers are sniffing around, with some planning limited introductions this year and wider deployments in 2011 or 2012.
Appropriately enough for a revered designer, Ms. Kamali is in the vanguard. A technology called ScanLife was installed at her boutique in recent weeks, and it already allows people to scan bar codes on merchandise and obtain details about the clothes through videos. The part about buying items day or night will come in another week or two.
%u201CTo say that I%u2019m excited is putting it mildly,%u201D Ms. Kamali said. %u201CI%u2019ve been in this business since the %u201960s and I have to just tell you, nothing %u2014 nothing at all %u2014 has been as powerful a change in the psyche of the way we do everything as this technology.%u201D
Other retailers have begun testing a product from I.B.M. called Presence. Shoppers who sign up can be detected as soon as they set foot in a store. That enables Presence to offer real-time mobile coupons. And tracking shoppers%u2019 spending habits and browsing time in various departments can help the system figure out who might be moved to suddenly buy a discounted item.
Presence can also make product recommendations. If a shopper was buying cake mix, Presence might suggest buying the store%u2019s private-label frosting and sprinkles, too.
%u201CWe%u2019re also able to do predictive analytics %u2014 predict what we think you might want based on what we already know about you,%u201D said Craig W. Stevenson, an I.B.M. executive who oversees Presence.
Cisco Systems, the supplier of networking equipment and services for the Internet, is also a leader in the field. The company%u2019s Mobile Concierge system is capable of connecting customers%u2019 smartphones to retailers%u2019 wireless networks %u2014 so a shopper could type %u201CCheez Whiz%u201D into a cellphone, then pinpoint its location in the store.
%u201CWe see the smartphone being used more and more in the shopping experience,%u201D said Dick Cantwell, Cisco%u2019s vice president for retail at Cisco%u2019s Internet business solutions group.
Beyond privacy worries, retailers recognize other potential pitfalls. If the phone applications freeze or give bad information, they will most likely frustrate consumers. So reliability will be a priority, a reason retailers are starting with limited tests. And as some executives said, many stores cannot yet afford such technology.
As the more daring retailers see it, the potential benefits outweigh the risks. More aggressive profiling of shoppers %u2014 along with a novel, entertaining shopping experience %u2014 could help increase sales. And the technology may help retailers save money by cutting workers, essentially substituting electronic guidance for store clerks. Motorola, for example, has stores testing kiosk systems that enable consumers to summon a clerk to a particular department or fitting room when needed.
A new Motorola product promises to eliminate loyalty cards, instead putting the program, as well as coupons, onto shoppers%u2019 cellphones. %u201CProbably by the end of 2010 we%u2019ll have 10 to 20 retailers up and running,%u201D said Frank Riso, a senior director at Motorola, adding that most of the activity will begin in 2011.
Many big retailers have already created cellphone applications that do more than just dole out coupons. Target, for one, has an application that can identify which store aisle sells nightgowns.
So far, many stores have focused on improving their mobile shopping sites, which some consumers use when browsing the aisles to see product reviews and specifications. Retailers like Sears and American Eagle Outfitters work with a company called Usablenet to optimize their mobile sites.
Jason Taylor, Usablenet%u2019s vice president for mobile products, said retailers began clamoring for improvements around Thanksgiving. The company is also working with a retailer, which it said it could not name, to enable shoppers to use smartphones to scan items in its stores, then add them to gift registries.
%u201CExtending the phone to use as a scanner in the retail world %u2014 especially gift registry, wish lists %u2014 you%u2019re going to see a lot more of this year,%u201D Mr. Taylor said.
In the end, though, stores may not have much control over the way consumers use mobile technology.
Some shoppers are already outwitting retailers, using mobile applications like RedLaser to compare prices in a physical store to those on the Web. (Such applications scan product bar codes through a cellphone%u2019s camera.)
Ben Aldern, 20, of Berkeley, Calif., went to Target recently to shop for headphones. %u201CI was ready to spend whatever I needed,%u201D he said, but on a hunch, he fired up RedLaser %u2014 and found the same model for less at Amazon, the online merchant.
%u201COnce I saw I could save 20 bucks,%u201D he said, %u201CTarget lost me.%u201D

Recommend Next Article in Business (1 of 51) � A version of this article appeared in print on February 27, 2010, on page A1 of the New York edition.