Smartphones have the power to connect businesses and consumers with all the mediums of advertising and that's the reason why M-commerce is creating ripples in the India's retail market. Let's find out how the extensive rise in number of GenY or millennial
As per Frost & Sullivan estimates, the network-based segment of M-commerce applications in India will record revenues of US $1.26 billion with close to 72.5 million subscribers by the end of 2018. It is estimated that the number of Internet users in India will touch 503 million by 2017. Undoubtedly, it is anticipated that the next wave of growth in India will certainly come from brands that have presence through online and mobile platforms.
As last few years have witnessed a swift rush in the number of e-commerce players, more and more businesses are now moving from traditional brick and mortar format to completely a virtual platform for selling their products and services. Looking at the changing scenario, e-tailers are now tapping the “mobile phones” to stimulate profits. The sudden transition can be attributed to various factors such as increasing penetration of internet in the country. Subsequent to e-commerce wave in the industry, it's now the turn of M-commerce to fuel the growth of online players. These days, e-commerce chains are shifting to an exclusive mobile app-based model to bolster sales and target customers by luring them with exciting deals and offers. In fact, many small and big business conglomerates are focussed towards developing mobile friendly websites and apps to cash in on the lucrative opportunity to spread their reach in every cranny of the country.
Factors behind M-commerce boom in India
Experts believe that major growth propellers towards the m-commerce retail market are
Commenting about the m-commerce wave in the Indian market, Vikram Chopra, CEO & Founder, Fabfurnish.com says: “35% of our revenue comes via M-commerce (app & mobile web). In fact, our revenue from last year via M-commerce has grown by 4-5 times. Major drivers behind the M-commerce retailing are increasing mobile penetration (smartphone and non-smartphone), more time being spent by users on mobile, better interface on mobile app
Growth drivers that fuel M-commerce in India
Bharti Airtel is now the third largest telecom operator in the world with 303.1 million subscribers, according to data published by World Cellular Information Service (WCIS) lately.
“Smartphone penetration in India is expected to grow from the current 6% to 33%, by 2020. It is also estimated that by 2020, 80% of the mobile devices used in the country will be smartphones.”
Head- Customer Experience, Amazon India
“We want our customers to be able to do everything they do today on their PCs from their mobiles while searching and shopping online, be it through a browser or an app.” Greater brand accessibility towards users and high discounts given by e-tailers on mobile app purchases. Mobile is definitely seen as a better search and discovery platform.” Whereas, Bizpluss, which is regarded as the first eServices Platform putting the distribution and retail business on cloud. Their CBO and ED, Tarun Bhardwaj says: “The total market size of e-commerce in India was $4 bn in 2014 and is expected to swell to $ 6 billion by the end of 2015. It has grown 56% annually between 2009 and 2014. A per the recent eMarketer study, by the year 2017, more than 25% of all online retail transactions will happen in the mobile paradigm.”
M-commerce is booming market
With M-commerce, shopping becomes easier as one can shop, check out best deals to relax at a nearby spa or go for a health check-up, book cabs or one can look at deals at popular food joints while at one's comfort in any city or country. Currently, the brands that have already diversified into this segment are – Flipkart, Snapdeal, Amazon India, Purplle, Paytm, Myntra, Zovi, Voonik, Jabong, Quikr, Limeroad, Taxiforsure, Ola Cabs, firstcry and Lenskart. They have come up with their exclusive mobile apps to double their sales and reach consumers across urban and rural areas for a wider footprint. M-commerce offers ease and convenience to consumers and they can now shop at a comfort of their home or anywhere across the globe. Elaborating about the potential of M-commerce, Akshay Sahi, Head- Customer Experience, Amazon India, says: “Today nearly 50% traffic comes through mobiles and there is a sharp increase in customers as well as quantum of shopping on our apps. Additionally, the repeat rate of customers is very healthy indicating a good shopping experience on the app. We are focussed on creating a Mobile First experience. We want our customers to be able to do everything they do today on their PCs from their mobiles while searching and shopping online, be it through a browser or an app.”
“Fab Furnish.com gets 70% of sales from desktop and 10% of sales from their mobile app. The brand expects M-commerce to grow 2-3 times this year. Akshay Sahi also confirms: “Amazon offers an anywhere, anytime and on-the-go convenient shopping experience through the Amazon App for Android, iOS and Windows phones. Mobile devices contribute 50% of the traffic on Amazon.”
Virtual platforms are biggest game-changers
The development of avant-garde technology, consumers' growing buying power and internet connectivity and rise in number of mobile or smartphones users are the top growth boosters behind the increasing M-commerce market in India. It is expected that M-commerce will redefine the consumers' overall shopping experience and rev up revenues for e-tailers, mobile app developers and telecom players in the coming times.