QR Code Will Fuel New Trend Towards Mobile Retail

Recently, I took a trip across the pond to return to Japan for the first time in six years. Every time I go there, it’s a treat to see the evolution of consumer gadgetry in full force. What impressed me the most about the recent trends in the far east was the increasingly seamless integration between mobile and other channels such as print, TV, and internet. The backbone of this innovation requires a camera phone and a free-to-download or pre-installed bar code reading applications.
Amazon Scan Search

With the use of a simple app, any phone equipped with a sufficient resolution camera could read barcodes off pretty much anything from a computer screen to a poster. There you have it: smooth transmission of data on to a mobile device from various media, including non-digital means such as print. Of course it is a very small amount of data, but as you will see, never the less powerful.

One of the early applications was the Scan Search service developed by Amazon Japan. Using a free application from Amazon, a mobile device can read barcodes from items like books. For an example, you can scan the barcode from a book your friend recommended. Your mobile device will launch Amazon’s shopping cart ready to take your order. With this Amazon has made an ordinary event (talking to your friend) into a sales opportunity.

Today’s standard UPC barcode has its limitations. To keep up with marketing innovations, I imagine that service offerings such as Scan Search will need to adopt the more powerful QR-code (or the 2-dimnesional bar code), developed by the Toyota group company, Denso-Wave (link). This new easy-to-use bar code has revolutionized the mobile world in Japan, and now is gradually being employed by the rest of the world.

QRcode sample

Originally conceived for tracking auto parts, the QR code’s advantage over the barcode is its damage resistance, legibility, and speed. The QR-code’s horizontal and vertical design makes the code resistant to wear, able to pickup data from 360 degrees, and decode at higher speeds over traditional bar codes. These improvements have been a game changer.

QR codes are used to transmit all kinds of useful information. The QR code can include URLs or text strings that direct users to a web site on your mobile browser or even product details that can be sent through other apps like iTunes. Here is a demo video of an iPhone being used to decode QR codes. (The example is Australian. Figured it would be easier than learning Japanese for the most of us.)

QR codes can now be found on almost any print material in Japan. They often appear in magazines or posters, where they are used to direct users to web sites and online campaigns. This circumvents the need for typing cumbersome web addresses on a portable device. Think of the QR code as a hyperlink that can be printed or displayed on anything. This is an example of it being used in a magazine to access other content.

Even websites can use QR-code images to direct cell-phone users to their mobile site. Here is a Japanese fashion site using it to redirect its users to a portable device compatible version of their site. No need to get in to heavy-handed data transfers such as USB, Bluetooth or even e-mail.

The adoption of QR-codes offers limitless possibilities on interacting with the consumer. One particularly interesting method is using the mobile device as your coupon or ticket. Coca-cola Japan had tested this type of application through an online loyalty point redemption system called c-mode. In this scheme a mobile device running the Coke app would generate QR code images on the phone as point redemption tickets. The user would present the QR code on their phone to an Internet-enabled vending machine that would offer free beverages to the customer.

Many Japanese event and concert halls have used the mobile device interface as an e-ticket that can be scanned at the box office. This function has been extended to all kinds of scenarios where we by tickets, including movies, transportation, and sporting events. We are seeing this use of the QR code internationally now as witnessed by the International Air Traffic Authority’s adoption of the technology to check-in passengers.

Seeing the QR code in action has confirmed for me that the future of m-commerce is to further bridge the gap between our physical daily experiences with the online world. This technology pushes the ability of a device to interact with all kinds of media, from the analog world of TV, print and in-store experiences, to the digital space of wireless and broadband connectivity. Everyday situations will continue to evolve into touch points connecting company and consumer. Imagine them embedded in TV programs so that a customer can take a quick snap that links them to a product page where they can purchase the scarf that the heroine is wearing.

As a taste of what is to come, check out the Vespa Canada marketing campaign, conducted in our very own Toronto, the first of its kind in North America. In the summer of 2008, Vespa disseminated posters through out Downtown Toronto embedded with QR codes. The ads prompted the user to scan these codes that would redirect them to a mobile site that offered free items as well as discounts. I am sure this type of advertising will become more pervasive in North America with the advent of smart phones and the education of consumers on the technology.

Also, as a final parting gift, here is a link to a text version of this article:

Qrcode link to blog post

Some QR code readers:

For Blackerry users: Beetagg and Kaywa Reader

For iPhone users: Go to the iTunes Apps store

Compiled list of some good readers

There are a whole bunch or readers out there not listed here. You can go to Google to find the best match for your hardware.

To learn more about how to use the QR code, read our instructions here.