From Mashups to Mashops

In Web development, a mashup is a Web page or application that uses and combines data, presentation or functionality from two or more sources to create new services. The term implies easy, fast integration, frequently using open APIs and data sources to produce enriched results that were not necessarily the original reason for producing the raw source data. The main characteristics of a mashup is that it makes existing data more useful for personal and professional use.
Cisco Internet Business Solutions Group has recently defined Mashops as “Virtual Shopping in Physical Stores”. A mashop combines web-like and in-store shopping experiences and get their name because they "mash up" the virtual and physical worlds to create a new way to shop. Cisco views creating mashops as critical to the future success of retailers and will lead retailers to introduce technologies such as interactive digital displays, video assistants, social networking technologies and Wi-Fi networks that enable shoppers to remain connected with trusted people and information while they are in the store.

Through Cisco’s research involving 1,000 shoppers from the United States and United Kingdom, two distinct groups of technology-savvy shoppers emerged:
- Extreme shoppers (11 percent of the general population, with high representation from Generation Y) use the web and smartphones to find the lowest possible price.
- Calculating shoppers (56 percent of the general population) use the web to inform their buying decisions and has the greatest impact on retailers' revenues and margins
Among calculating shoppers:
* Most prefer to research products online rather than speak with store staff
* One in three use retailers' Facebook pages and coupon-sharing sites.
* One in four use web-based group buying sites such as Groupon.
* More than half (54 percent) wanted to try a mashop-type service in the store. Most of these (73 percent) preferred access to mashop-type services using a touch screen at the shelf edge.
* More than half (54 percent) wanted product and price comparisons, and peer reviews on touch screens in the store.
* More than four of ten (44 percent) wanted a virtual video adviser with web content on a large screen or tablet service in the store and expect to increase their value-seeking behavior over the next two years, further accelerating margin pressures.

According to Cisco, by combining the best of both worlds, mashops create a win-win situation. Shoppers receive the information and convenience of web-based experiences while, at the same time, being able to touch, feel, and see the products they want to buy. For retailers, mashops promise to preserve margins and increase sales. Shoppers are also more likely to upgrade their purchases and increase the basket size when factors other than just the best price influence their buying decisions.

Homeplus ups the Mashop Ante
Homeplus has taken mashop to the next level. Homeplus’, Korea's number 2 retailer, challenge was to become number one without adding a large number of new stores. Their solution, virtual stores in physical locations. They installed displays that look like physical stores in subways. Subway riders shop by using their smart phones to read QR codes on the products in the displays (View a video of this Mashop). Once their shopping cart is filled and paid for electronically, the purchases are delivered after they arrive home. For busy Korean families, this is a tremendous time saver and avoids what Korean’s consider to be an onerous task-grocery shopping. Using this Mashop, Homeplus’ online sales increased 130 percent and they are now the number one in online sales, although still the number two retailer.

The Research Needs Some Refinement
In their research, Cisco concluded that “by combining the best of both worlds, mashops create a win-win situation. Shoppers receive the information and convenience of web-based experiences while, at the same time, being able to touch, feel, and see the products they want to buy.” Homeplus has demonstrated that, at least for Koreans, being able to touch feel and see products comes in second to convenience and efficiency. The salience of convenience and efficiency is something retailers need to pay strict attention to as etailers increase their online offerings of CPG products, expand their distribution/delivery capabilities, and smartphone usage increases in the United States.

(Image from www.retailcustomerexperience.com)