2. Kiosks in India
The Evolution:
In India, the evolution of the Kiosks can be attributed to the introduction,
adoption and growth of ATMs (Automatic Teller Machines). In India the first
ATM was introduced by HSBC way back in 1987; however much of the growth
has been witnessed in the last 3-5 years. What started as a money vending
machine has gone beyond the banking sector and catering to diverse
functionalities across the following sectors: Education, Airline, Telecom,
Government, Retail, Healthcare, Hospitality etc. One comes upon various kinds
of Interactive kiosks (beyond an ATM) in our day to day life: Tele-kiosk, Photo
kiosk, Way finder kiosk, Check-in Kiosk, Utility bill payment
(mobile/electricity) kiosk, Internet kiosk, Ticketing kiosk, Security kiosk,
Marketing kiosk, Crowd management kiosk, Survey kiosk, Video Kiosk, Music
Kiosk, Cheque collection kiosk, etc.
Type of Kiosks:
The word “kiosk” is a generic term and may have several categories (retail
displays, vending machines, digital signages, retail kiosks, point of purchase,
3. interaction kiosks, etc). It would be more pertinent to classify it as Interactive
kiosks and Non-Interactive kiosks.
To understand the kiosks
market in India a parallel
maybe drawn to the growth
of ATMs. As per the data
provided by National
Payments Corporation of India
(NPCI), the number of ATMs
across the country has risen
nearly one-third (69,324) over
January 2011.
The prospect of Kiosks is
promising across services
industries like Banking &
Finance, Education, Travel
(Airline, Railways), Telecom,
Retail, Healthcare, Travel &
Tourism, Hospitality, etc.
Kiosks vs Mobile Devices:
Today mobile devices provide (or can provide) a significant number of
functionalities being offered by kiosks (other than physical transactions like
photo printing, Cheque collection). With the introduction of M-commerce
services (given the revised RBI guidelines), it would also be possible to remit
money using mobile service as also to collect cash through mobile retailers.
Kiosks would still be used largely as a money vending machine given the
customer preference; while some of the other value added services (bill
payment, information) may not become that popular owing to increased
penetration of mobile and Internet services in the country. On the contrary,
with the education of consumers “self help” kiosks may gain popularity
especially in the high foot-fall areas (Malls), Airports, Railway stations, Retail
stores and modern trade outlets. Impetus should be to define “relevant” or
“distinct” service offerings which otherwise may not be substituted by the
mobile services. An example to quote in this regard would be the immigration
kiosks introduced by the United States Department of Homeland Security where
visitors register when they enter/exit United States.
4. Given the skepticism & lack of knowledge relating to mobile based transactions
(or M-commerce) of Indian consumer which would make the kiosks more
approachable. Indian consumer still believes in the “touch and feel”
psychology.
While on the other hand, the reach and availability of the kiosk to the end
customer (especially in the rural India) would define the business case or the
higher uptake of mobile based services (information, transaction, etc) in these
areas.
Technological Innovations in Kiosks:
While there may be several technological innovations which can provide the
much needed fillip to kiosks over mobile devices; it would be the “relevance”
and the “distinction” factor which would be instrumental in its success in the
Indian market. Some of the key factors that may help kiosks with-stand
competition from cell-phones are as follows:
– Specialization: Kiosks offer specialized features which would otherwise
be difficult to replicate over mobile devices. Example: Kodak, the
inventor of the photo kiosk, have launched PYNK Smart Print System
which automatically measures, crops, arranges and prints photos to fit a
frame. It also empowers the consumer to create designer-quality framed
collages within seconds.
– Security: Seldom would an Indian consumer count the cash disbursed by
an ATM; while they would still be skeptic about a mobile or a digital
transaction. Security is a key aspect that consumers look forward to
during a transaction. Access to secured patient data through biometric
identification, facial compatibility or fingerprint scanning maybe one
example of enhanced security that can be provided by a Healthcare
Kiosk.
– Virtual Reality: To add to the Indian psychology of “touch and feel”
transaction a 3D Kiosk can provide an opportunity to display or
demonstrate products in 3D. Customers can spin the products and zoom
in to study the details.
5. – Physical Transaction: Ability of the kiosk to accept or deliver physical
items (cash, Cheque, forms, map, reports, etc) from/to the user (with
the added functionality of user security and transaction conformance)
provides an edge over mobile devices.
– Cooperation: Mobile services can supplement the growth of kiosks.
Example: Tata Docomo would be doing a pilot on NFC (Near Field
Communication) Kiosk. The self-service kiosk would allow the customers
to pay bills, to top-up their prepaid account, to download ring tones and
wallpapers and perform a number of other value-added services using
NFC. A video enabled customer support through a Self service kiosk
maybe another initiative for the mobile services industry.