Much has been said and done about the rise of ecommerce in the country. India, like every developing nation that undergoes e-revolution or the rise of connected devices has witnessed the upsurge of consumer confidence in internet based shopping. This rise was accentuated recently by the smartphone revolution and handheld devices that connect to the internet like tablets and PDAs. Buzzcity released its Quarter1 report about the high consumer confidence in mobile commerce services.
The report reveals that the demand for mobile based shopping is at an all-time high, with consumer confidence diminishing previous fears over security of payments – 3% compared to 27% a year ago. There are new companies that enter the online market everyday and others, the established players that launch new verticals with the changing trends viz. Times Internet and InMobi (itself a mobile advertising platform) among many others.
Mobile devices are getting increasingly sophisticated and there is an increased sense of validity and security in the minds of Indian customers when it comes to sales of smart phones. The overall effect has affected the net volume of trade and reduced checkout abandonment The mobile commerce sector closed with a year on year growth of 46% last year which shows how rapidly the scene has changed. The report also enumerated the leaders in the mobile space. Nokia still holds its reputation in India but Samsung challenges it with the threat of knocking it down as the top brand. Mobile surfing is also expected to grow as smart phone penetration grows to beyond 25%. India is close to having one mobile device per citizen (quantity wise).
Promotional offers and QR promotional codes play an important part in brands gaining popularity through the mobile space. New apps are being rolled out for targeted advertising that engages the customer to the point that last minute purchases are made by mobile for many. Mobile wallet is yet another concept that is staring to gain popularity. Mobile ticketing and location based services have committed users that check in and checkout – day in and day out.
The path ahead for mobile commerce would be to have company/brand associations with banks and monetary associations for easy transfer of money from one entity to another (the e-wallet concept). Some banks have come up with their own apps and they provide facilities like mobile top-up and DTh recharge on them. Dr KF Lai comments on the report: “Mobile is now the first screen for many. Our research shows that there are many influences involved in consumers’ decisions when shopping via a mobile device”. This would be evident in the coming days when mobile shopping surpasses PC online shopping.
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Image Courtesy | mobilemarketingwatch