A new report from the GSMA has shown that smartphone shopping and transactions are on the rise.
The most recent GSMA: Mobile 360 Series report, which focused on the Africa conference, showed that digital and m-commerce are rapidly rising in Africa and that this is being greatly driven by a boost in internet penetration throughout the continent.
The report’s findings were based on consumer research data that was collected in March 2015 by Ipsos.
What the report showed was that 20 percent of internet users in South Africa have made a purchase online either over computers or m-commerce. It also revealed that an additional 48 percent said that they expected to shop online in the future. It also said that mobile shopping will become a key component in the growth of the overall digital commerce market within Sub-Saharan Africa, since most internet users within that part of the world will be accessing the internet by way of smartphones and other mobile devices.
These findings and conclusions align well with those made by other m-commerce focused reports.
A survey released by In Mobi in 2014 was already showing that 83 percent of consumers said that they intended to shop online over a smartphone or tablet in the following year. This was an increase of 15 percent over that firm’s figures from 2013 and it involved the participation of 14,000 people across 14 different countries.
This is only being helped by the fact that there are now several established online shopping sites within the Sub-Saharan African region and many of them are offering transactions that can be conducted cross-border. Jumia stands out among them. It has been around since 2012, at which time it was launched through the funding provided by Rocket Internet. That company has been greatly successful and has undergone a considerable expansion throughout that part of the continent, starting in Nigeria, but moving outward to a number of other countries such as Uganda, Kenya, Tanzania, Ghana, Cameroon and Senegal.
A central component of Jumia’s strategy is m-commerce. It has already entered in to partnerships with Millicom and MTN to push growth into the future through increases in traffic from mobile users by way of promotions, cross-selling, joint advertising campaigns and payment facilitation.
Some of the giants in the industry are saying that smartphone shopping will soon be far more personalized.
As mobile commerce continues its evolution, new developments, insights, and predictions have become relatively commonplace, particularly as a growing number of real-life features are starting to be included in the shopping experience to integrate smartphones in the shopping experience.
Beacons, mobile marketing, and smartphone based payments at checkout counters are blurring the reality/digital lines.
Now, some of the largest players in this market, including Google, Facebook, and Foursquare, are attempting to ensure that smartphone users are able to use mobile commerce to purchase the products and services they want whenever they want them and at any time. This effort is also trying to make the process as seamless as possible. These companies have also revealed that there is one major trend that appears to be present on virtually every level of mobile commerce as it moves ahead, and that is customization and personalization. The more a customer is able to see relevance and convenience with the use of smartphones as a part of their shopping experience, the more they are using it.
Mobile commerce is, therefore, about to become an increasingly personalized experience for consumers.
According to the Facebook director of global marketing solutions, Kelly Graziadei, mobile apps are making up about half the total time that consumers are spending on their smartphones and tablets. Moreover, it was pointed out that 75 percent of that time is spent on the four most popular mobile apps, including that social network.
Therefore, among the main questions that are now being asked by the companies behind the leading applications is with regards to how they can go about continuing to engage a customer over the application and ensure that the right product is placed in front of the right individuals at exactly the time that they actually want it.
Graziadie explained that deep linking makes it possible for a customer to be sent from their Facebook or Instagram account to a retailer, and while this is a “big part of it,” it is also important to note that one of the primary questions in retail is exactly where the customer should be sent. Should it be to an app or to the website. The next mobile commerce question is how to use that direction to ensure that the experience will be as seamless as possible, as the key is to make sure that it is an entirely personalized experience.