It all started in Seoul, South Korea, in July 2011. Tesco (branded Home Plus in South Korea) sought a way to increase its market share without increasing the number of stores. This led to the idea of virtual stores.

Products images were displayed in a subway station in Seoul, with QR codes allowing commuters to scan and add the items to a virtual shopping basket, checkout and pay. Products were then delivered when they got home.

The concept won numerous marketing awards and drew a lot of attention within the retailer and marketing communities. So much so that Home Plus brought it into a reality on August 25^th, for a period of three months, in the arrivals hall of the Seonreung subway station, in Seoul.

In the same week, Ocado, the UK online grocery retailer launched its own ‘virtual shop window’ for Apple iPhone users at London’s One New Change shopping centre.

As an online retailer, about 15 per cent of Ocado transactions were taking place on a mobile at the time. Becoming the leading mobile retailer therefore seems the logical next step, which Ocado doesn’t hide: Jason Gissing, Ocado’s co-founder, said: “We’ll be looking at options around continuing this ‘virtual window shopping’ approach.”

Soon, other retailers joined the fray, and over the last couple of months not a week has gone by without a retailer or a brand announcing its own virtual shop:

Oct 7: HSN HD, a US home shopping Television channel, used ’scan & shop’ QR Codes during its Innovation Weekend to test whether viewers would purchase items with their mobile phones.

Oct 31: Procter & Gamble, one of the most innovative consumer goods manufacturer, set up virtual stores in four of the busiest subway stations in Prague, where busy consumers on their way to and from work could purchase essentials via their mobile phones.

Nov 15: HMV (a UK retailer focused on music & movies) and Twentieth Century Fox, used QR codes printed on ads on the bus shelters, leading directly to a mobile app to purchase the DVDs advertised.

Nov 28: John Lewis, a UK retailer, trialled QR codes with the launch of a virtual shop in Brighton (UK).

Dec 1: eBay opened its ‘QR emporium’ on one of London’s high street.

Dec 13 Argos, another UK retailer, opened its virtual shop in Waterloo and Paddington tube stations.

Lasting trend or just a fad?

Critics were quick to dismiss these initiatives as a stunt to increase awareness. So far, no numbers have been released; however these initiatives make sense. They are the answer to a lasting trend that will have profound consequences for our digital lives; and there is a wealth of statistics and research that corroborates this observation. To name but a few:

• By 2015, there will be more m-commerce than e-commerce (Gartner, 2011).
• Today, in the US 79% of smartphone owners use their smartphone to help with the shopping and 70% use their smartphone while in the store (Ipsos OTX 2011).
• 7 of 10 Consumers understand QR codes (MGH, 2011).

Love it or hate it, retail is going mobile. And it’s happening now.

Black Friday to Christmas is always the busiest time for retailers, and it is for us also!   Now that the dust has settled (a bit) from the opening party (aka Black Friday, and now “Cyberweek”), we wanted to share some interesting stats.

First we should say that the 10 days from 11/24-12/4 were record breaking days which saw scan rates as high as 8 per second.  We also recorded our biggest single scan day ever on Black Friday which was very exciting!

Some other fun facts:

• Scan rates were up 158% versus year ago (both 1D & 2D), with QR Code scanning up 263%.  This just shows how many more QR Codes are in the market versus a year ago.
• The top 5 US cities scanning were:  Orlando, Houston, San Antonio, New York, & Chicago
• Scans by OS were dominated by Android (47%) and iPhone (43%) with BlackBerry and others making up the remaining 10%
  
• Black Friday by Time of Day:
  • Biggest spike was at 1:00 AM EST as doors opened for Midnight sales in the Central Time zone.  Apparently those hard core shoppers are using all the tools to find the best deals!
  • Busiest time block was from 12-2 EST with 18% of all scans that day
• Top 3 electronics products being scanned (from UPC codes):
  • iPhone 4Gs (16 GB)
  • Nikon Coolpix
  • Garmin Nuvi GPS

Thanks to all of our users for being part of these momentous numbers, and keep scanning!

If you don’t already have the ScanLife app, check it out from www.getscanlife.com. 

Taco Bell and MTV have teamed up to help promote this year’s MTV Video Music Awards with the help of ScanLife. The fast food chain has placed QR Codes on all of their “Big Box Remixed” packages and large cups. The codes deliver all kinds of VMA content to users including teasers, sneak peeks, artist interviews and performance footage.

Even better, the content changes on a weekly basis, so users can expect to receive a different experience for scanning throughout the six week campaign. The scan rates are already into the six-figure digits, and you can find out more about it from their website.  Don’t have an app?  You can even use our Scan and Send service by just snapping a photo of the QR Code and texting it to 43588.

They did a great job with explaining how it all works, so check it out, and head out to your nearest Taco Bell and join in on the fun!

Here are some of our most recent campaign examples for the month of December.  2D codes were used by a variety of different industry categories including:

• Film: Movie Poster for “I Am Number Four” – Code linked to entry of an exclusive sweepstakes.
• Retail: Target Holiday Catalog – Code linked to videos like a “How-To TV Buying Guide”.
• Sports: NHL – Code linked to YouTube video promoting the Winter Classic in Pittsburgh.
• Non-Profit: City Harvest – Code linked to a menu of options on how to help feed the homeless

Here’s one example, and you can check out the rest from our Flickr page.

Stay tuned for more examples, and follow us on Twitter for new examples as they launch!

It’s been awhile since we did a basic 101 post, so we thought we would take a look at how retailers can use barcodes (both 2D and 1D) to help give shoppers valuable content.  After all, the holidays are right around the corner!  Check out this recent report from Sterling Commerce which has some pretty amazing numbers, including 25% of people are already using their phones to price compare (with ScanLife and other apps).

Why Should a Retailer Use ScanLife?

1. Give shoppers deeper information, without needing to leave the store or spend time away from the shopping experience.
2. Provide cross-sell opportunities by matching products, linking to online inventory information, or linking to online communities to get friend recos.  60% of people want inventory info in the store.
   
3. Existing UPC codes on products or hang tags can be registered to link to specific content without needing to print new material

How are Codes Being Used in Retail?

There are a number of ways this technology has been used and can be used.  Here are a few, but the options are virtually endless!

• Drive shoppers to retail from outside marketing like print, direct mail, etc. Consumer can view closest store locations and current sales.
• Codes are placed in storefront windows that enable potential shoppers to purchase an item on their mobile device when the store is closed, or enter the store with a discount offer.  See the Norma Kamali campaign as a great example.
• Codes placed at the point of sale that show complimentary products or demo videos of how the product can be used or worn.
• Link the customer to view alternative size or colors, and order online if it is not available in store.
• Offer a discount for an item which can be redeemed at check out (if capable) or by email rebate.
• “Lotto” codes that offer shoppers the chance to win a product instantly. See the Norma Kamali campaign as a great example.
• Check in by scanning a code that links to Foursquare for exclusive offers which other visitors can’s see.

You can download a White Paper on this topic here, and feel free to add your retail ideas below!