QR Code: A Missing Piece in Brazilian Internet
QR Code: A Missing Piece in Brazilian Internet
People from a tier-7 village in Shanxi, China are buying their daily necessities by mobile payment via QR Code in groceries.
Power of QR
Power of QR
QR (“Quick Response” ) Code, invented by DW from Japan in 1994. QR Code now is the most popular mobile access to information and services Asia wide: retail, ad, ticketing, coupon, payment… Chinese QR Code utility market started in 2012 with 160MM times of scans per month and exceeded R$50B in size in 2015, with +10,000 local companies directly involved.
QR Code Applications
Tracking
After “Mad Cow” outbreaks, EU requires traceability on all imported food.
AIAG (American Automotive Industry Action Group) uses DPM to trace the quality issue of all key parts of a car.
And in services QR Code can be used also to collect feedbacks and rate service quality, for example online-to-offline medical services.
Identification
Invoice Anti-fraud
Transaction identification – movie ticket, air ticket, entrance ticket, conference admission, to enable fast check-in.
Information Storage & Exchange
Tourist & transportation info based on geolocation
QR Code embedded business card or gift tag
Extensive reading apart from static content
Promotion
To fill the low-peak hours, E-Mart placed 36 devices that project QR-Code shadows during lunch time that grant special offers to clients. 12000 group deals and +25% sales increase in a single month.
Value-Added Services
QR Code stamped at the entrance of the Turquoise Cottage Bar, which grants you different benefits according to different hours: 20:00-22:00 Restaurant Discount 22:00-06:00 Taxi Hailing 06:00-16:00 Tips for Hangover 85% of customers shared on the social media
Online-to-Offline Social
Harry’s Bar in Singapore: Buy a bottle, scan the QR Code, record the message and send to someone that you want to meet in person
To shorten the distance with No.1 offline convenient store chain with much large offline presence, HomePlus created virtual stores at subway stations to grab consumers’ fragmented time slots.
Online-to-Offline Retail
Fast dish order Discount/coupon attached Rating on customer service
Online-to-Offline Services/Restaurant
Payment
Summary: QR Code Application Scenarios
1. @Attention & Interest Phase: To create integrated impact, linking offline & online xp
2. @A&I to Search and A&I to Action Phase: To stimulate interaction and convert to real purchase (The Blue Note Grill printed their QR Code on TPs and achieved a 70% sales increase)
3. @Search to Action Phase: To improve transaction efficiency 4. @Share: To enable immediate sharing
Why So Popular in China
A Game of Giants
QR Code is a game of giants and we need a high-frequent utility and an attractive feature to start with to educate the market.
SEP 2012 in V4.3 Tencent launched QR Code scan feature (200MM users by 2012), for basic friend -add purpose.
FEB 2013 Wechat added its long-expected feature of creating fast group chat via QR Scan
QR Code Booms Together with O2O
Being an excellent tool to link offline to online, QR Code evolution accompanied perfectly the O2O phenomenon in China
Search Interest of QR Code (red) and O2O (blue) in China, 2011-2016
Cultural Factor
淡水河谷 http://www.valedoriodoce.com/
QR Code vs.NFC
Comparison
ITEM QR CODE NFC
Who lead Internet Players Telecom, Financial, Terminal Manufacturers (Smartphone, POS, Smartcard)
Transaction Mode Passive & Active QR Code Scan
Near-Field Approximity
Pro Simple to Use & Easy to Spread
Convenient, Secure, All Players on Industry Chain Benefited
Con Payment Process Complex (except Wallet), Less Secure, Less Win-Win
Long Industry Chain to Coordinate
Scenario Small, Medium & Large –Amount Payment
Small –Amount Payment
Example Alipay, Wechat Pay ApplePay
Current Champion
“2015 China Digital Banking Report” reveals that when paying amount of less than RMB100, 28% of consumers choose using QR code, 4 times more than NFC. So far, DoCoMo, ApplePay and GoogleWallet all failed promoting NFC to a global scale.
QR Code Design Principles
Understand the Reason
Based on Queaar’s survey, 87% users expect receive promotion info, while in reality only 25% advertisers fulfilled the expectation.
First Things First
Before your users start scanning, be sure to provide all necessary tips regarding the promotions: 1. with which tool to scan 2. should expect what benefits 3. mention all security
guarantees 4. Post-event continuity
Curiosity is a Powerful Weapon
Fit In
QR Code should fit in the perfect environment and timing, which enable available idle time for possible scanning.
Rich Information Even Offline
QR Code can hold up to 1850 characters without Internet connection, use it wisely.
Be Creative
Brazil QR Code Scenario
We Don’t Know What Tool to Use
4,418,432 4,140,918 3,971,727
1,661,503 1,302,072
Scan - QR Code and Barcode Reader (Scan)
QR Droid QR Droid Code Scanner (Droid)
QR Reader for iPhone QR Code Reader (Tw Mobile)
Download
Accumulated QR-scan App Downloads Since 2011
Source: AppAnnie Set 2016
Old Tryout & Limited Usage
Creative Application
QR Code To
Follow Brazil
Election
Banco do Brasil Use QR Code to Validate
Transactions on Their Site
Suggestions
Suggestions
• As no giants in QR Code game, coordinated cross-sectorial co-op seems the only solution for massive end user education
• When promoting QR Code, subsidy is necessary to incentivize the usage;
• QR Code is an excellent tool for offline marketing and its performance assessment, use it wisely.