Mobile commerce is accelerating at a rapid rate in India
A new study from ASSOCHAM and Grant Thornton predicts that mobile commerce will explode in India in the coming year. The study forecasts that the overall e-commerce market will see a compound annual growth rate of 63%, reaching $8.5 billion in 2016. Mobile shopping is likely to play a larger role in this growth, as more consumers are beginning to use their mobile devices to shop for products online.
Mobile Internet use is growing quickly, giving consumers more access to mobile services
Mobile Internet penetration is growing throughout India and telecommunications companies are working to quickly expand their mobile networks in order to accommodate consumer demand. Smartphone adoption is also on the rise, with penetration expected to go beyond 200 million, ranking India the second largest smartphone market in the world. More consumers will be using their mobile devices to shop online and retailers will be working to provide better mobile commerce services to these consumers in order to secure their loyalty.
Online transactions to reach 38 million by the end of the year
By the end of this year, there is expected to be more than 38 million online transactions, an increase from the 11 million that was reported in 2011. The Indian government has also taken an interest in mobile commerce, planning to rebuild and modernize the postal infrastructure in order to better accommodate digital consumers. This modernization is being seen in various other sectors, as well, and it is becoming easier for consumers to participate in mobile commerce.
Online travel dominates the mobile commerce market in India
Online travel seems to be the leading force India’s e-commerce market. More consumers are beginning to use their mobile devices to book trips and plan their vacations and mobile has become one of the most influencing powers affecting online travel in the country. Retail is also experiencing a surge in mobile shopping and retailers are beginning to work to become more mobile-centric in order to provide consumers with efficient and adequate mobile commerce services.
The mobile space is not the only thing driving growth in India’s e-commerce market. Traditional brick-and-mortar stores are also driving people to the Internet to purchase products. Many retailers have begun to use augmented reality for their marketing campaigns, which has proven to be quite engaging for consumers. These campaigns offer consumers special deals if they shop online and help raise awareness of stores that are near their location.