The onus on retailers to adopt new technologies can be immense. But external constraints can often be the true limiting factor. Inditex, the world's largest fashion retailer, knows this only too well. It operates in 82 countries ranging from Kazakhstan to Uruguay via its native Spain.
The company has transactional websites in about one-third of its markets, according to Pilar Gonzalez, head of global payment strategies. When the remaining two-thirds arrive will depend on the growth of online penetration in these local markets and awareness of Inditex’s roster of brands, which include Zara, Berskha and Pull & Bear.
It is also making early moves towards accepting contactless payment, with pilot schemes in Italy and Poland and the introduction of Google Wallet, a mobile-payment system, in its recently opened New York flagship. First, there are legacy ePOS systems that hinder the introduction of contactless payment. “It’s not just a question of how much we want a particular near-field communication wallet,” she says. “The infrastructure has to comply with our requirements.”
Even if a local market has an up-to-date integrated payment system, domestic limits on the amount that can be spent in a contactless transaction can reduce the benefits of introducing the new equipment. “It’s quicker if the transaction is lower than the limit, but the limit is lower than our average transaction price. We very much appreciate everything that lowers the waiting time for customers,” she says. “As long as it doesn’t interfere with store procedures and doesn’t imply any additional work or cost, we’re in favour,” she adds.
Inditex's major rivals are also taking steps. Gap Inc, the world’s third-biggest fashion chain, has introduced Google Wallet to its Gap, Old Navy and Banana Republic stores in the US. H&M, which is the global number two, ought to have an even bigger incentive as it is a single-brand operator and sells at lower prices than Inditex. However, although the retailer has introduced a transactional online presence in some markets, it is yet to begin rolling out contactless payments.
