It was guessed on the introduction of mobile phones, that they will be a turning point in our daily routine lives, but few predicted that they will eventually become the primary gateway to shopping. Mobile commerce or M-commerce is a branch of ecommerce involving use of mobile (smart) phones, tablets and other electronic and mobile devices.
M-commerce is a relatively new phenomenon, which is growing at a very rapid pace; it fundamentally entails guaranteeing online presence more relatively smaller screens of smartphones.
Mobile phones all over the world have become the chief mode of accessing the internet and information; it has now become a crucial façade of realization of digital movement all over the Globe. The proliferation of smartphones has played the role of bridging in the digital divide of the world.
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The business owners of the present world are taking an intense interest in first the understanding and secondly in exploring the immense upside potential of this form of ecommerce. It is because M-commerce market is expected to grow to a towering figure of $250 billion by the end of the year 2020, with almost active smartphone users to be around figure of 4.77 billion.
Asia Pacific driving M-commerce growth
According to Euromonitor International and Retail Asia, mobile retailing represents the fastest growing digital channel in Asia Pacific, with the volume of sales totaling $328 billion in the year 2016, depicting a marvelous growth of 64 percent year-on-year. M-commerce accounts for almost 50 percent of total digital commerce in China, South Korea and Indonesia. As per Euromonitor, it expects the region to reach a gigantic figure of $795 billion by the end of 2021, almost three times the size of North America’s leading mobile commerce.
Euromonitor and Retail Asia made an announcement about the region’s top 500 retailers logged total sales of US $940 billion in 2016. In the region, Japan and China witnessed slowing growth. Southeast Asian countries made a good show in 2016 with many retailers in Indonesia, Vietnam, India and Philippines witnessing double digit growth rates.
The top 5 Asia Pacific retailers in 2016 were:
- AEON Group (Japan)
- 7-Eleven (Japan)
- Woolworths (Australia)
- Wesfarmers (Australia)
- Family Mart (Japan)
M-commerce and Global App Market
There is still a lot of room for profits to be made in the world of apps. According to the analyst research firm App Annie, the app economy will be touch a figure of around $6.3 trillion by 2021, which makes up a jump of 380% from the app market of size $1.3 trillion in 2016.
As the smartphone and app users are increasing every day across the map, companies are aware of this global transition and are taking steps to boost the economic activities through mobile apps by introducing easy to use mobile applications facilitating buying and selling of different products being offered. As per the research by the firm, in 2016, people spent almost 1.6 trillion hours in apps, this numbers of hours are expected to reach 3.5 trillion by the end of the year 2021.
Different companies are now focusing on a very micro level also, as much as they are trying to keep a track of the usage of mobile media throughout the day.
Below snapshot, is from comScore Global Digital Future in focus depicting how desktop still important especially during daytime for work audiences, but, smartphone and tablet lead the evening part.
The Future of M-commerce
This modern face of ecommerce has a very bright future. On Black Friday in 2016, shoppers in US hit $1 billion milestone in purchases made via their mobile phones. In pursuit of new mass of consumers, retailers must take the required steps in order to engage ever growing mobile shoppers with different and appealing offers, discounts and coupons delivered on their handsets.
The future of m-commerce is the one that depends on Omni channel shopping journeys. With people starting to consult more their mobile sets during the physical in store experience, this in itself presents an opportunity to market on-the-ground to potential and existing customers via digital channels.
Apps are also playing their part in promoting this brand of e-commerce. It can also serve as a tool to gauge brand loyalty-customers who have selected to download your app are much more likely to be loyal to your name than the other half and consequently likely to respond to the offers made to them.
Syed Adeel Ali Shah is a Banker by profession. Apart from this, he is a content writer and a blogger. He is an MBA in Marketing and Finance. You can contact him at [email protected]