BWild |
February 10, 2014
Retail environment of India is beginning to evolve
India’s retail climate is beginning to change. In the past, a common saying among consumers has been “can’t touch, won’t buy,” but the advent of mobile technology is beginning to change the way people feel about purchasing products. As Internet access becomes more common throughout the country, many Indian consumers are beginning to turn to e-commerce for everything they need. As more people get their hands of smartphones and tablets, they are beginning to purchase products using these devices, hence a growing focus in the retail sector on mobile commerce.
E-commerce is experiencing strong growth as consumers become more mobile
India’s e-commerce business grew by 80% in 2013, according to Flipkart, one of the country’s leading e-commerce firms. The company notes that this is the most significant growth e-ecommerce has seen in the country in the past several years. The momentum behind e-commerce is expected to remain strong for the foreseeable future. Notably, many consumers are beginning to purchase products from online retailers with their mobile devices rather than with home computers.
Retailers are focusing more heavily on mobile commerce
Flipkart suggests that consumer mentality is beginning to shift at a rapid pace. People are beginning to feel that mobile commerce represents a more convenient form of shopping. Consumers are not making the move toward mobile shopping on their own of course, as retailers are also beginning to focus more heavily on the mobile crowd. India’s e-commerce market is currently valued at approximately $13 billion and retailers are beginning to see a great deal of potential in the mobile space when it comes to the future of e-commerce.
E-commerce market expected to hit $70 billion by 2020
The e-commerce market in India is expected to reach $70 billion by 2020 as more retailers begin focusing on mobile commerce. Consumers are quickly becoming convinced that mobile payments will have a major role to play in the future of their shopping. It may be some time before mobile becomes the most favored shopping platform in India, however, as many people are likely to remain supportive of traditional, physical stores.
Report highlights the growing power of mobile commerce
Ayden, a provider of omni-channel mobile payment solutions, has released its third Mobile Payment Index report. The report covers the period of September to December 2013 and examines the trends and progress that mobile commerce found during that time. The report reiterates what similar studies have already found: Mobile commerce is growing and showing no signs of slowing down in the foreseeable future. Much of this growth is being partially powered by higher rates of device ownership among consumers.
20% of transactions from September to December 2013 came from mobile devices
According to the report from Ayden, approximately 20% of global transaction came from a mobile device in December 2013. This is up from 12.6% of global transactions coming from mobile devices in 2012. Travel, digital goods, gaming, retail, and ticketing are all areas where mobile payments are thriving. The report suggests that consumers are becoming more comfortable with the idea of mobile payments and are therefore beginning to trust mobile commerce platforms more readily.
iOS devices prove popular in the mobile commerce space
The report shows that iOS devices were the most popular devices when it came to mobile commerce between September and December of 2013. Approximately 41% of all mobile payments made during this four month period came from iPad devices, with 32% coming from iPhones. While iOS devices are popular with those interested in mobile commerce, Android devices have found more success within the mobile commerce space throughout the rest of 2013. Notably, tablets are considered a favorite among consumers when it comes to shopping and purchasing products online.
Retailers are gaining a better understanding of what mobile commerce is and how to engage mobile consumers
Retailers are expected to see a great deal of growth as they begin to focus on the mobile space more heavily. During the 2013 holiday season, many retailers saw a dramatic rise in mobile sales. As retailers begin to better understand consumer behavior within the mobile space, they are likely to provide consumers with better mobile services that can accommodate mobile payments more adequately.
