The rise of the mobile platform for commerce has witnessed considerable growth in the last few years. The shift from e-commerce to m-commerce is no longer a distant phenomenon but a reality that exists.
One of the biggest drivers of this growth has been the growth of the smartphone market in the country. It needs to be mentioned that India is the third largest market for smartphone players dominated by Chinese brands with 54% market share.
According to the findings of the recent study by payments company Worldpay, m-commerce in India will emerge as the fastest growing sector. The report predicts that it will make up 45% of all online sales by 2021. Even the latest Mastercard Mobile Shopping Survey points out that India continues to be the market with the highest proportion of mobile shoppers, with three-quarters (75.8%) of consumers reporting they made at least one mobile purchase in the three months preceding the survey.
The Criteo study titled ‘App Commerce Goes Big in Asia-Pacific’ also establishes the growing clout of m-commerce in India. The study reveals that with surging internet penetration, mobile retail and shopping apps are becoming a new-age trend in the Indian retail market. It also states that over 40% of Indian respondents indicated convenience as their key driver for installing an app while over 38% of respondents confirmed that availability of a wide range of products is what they valued most in retail and shopping app.
Explaining this growing trend from e-commerce to m-commerce, Siddharth Dabhade, General Manager, Criteo India said, “It’s a very big trend and the best part is that India is leading it. Countries like India, Indonesia and Thailand are home to some highly encouraging numbers when it comes to the use of m-commerce. Our study also found that mobile is no longer used to buy just low-value purchases. In fact, e-commerce is getting transformed to m-commerce.”
While the promise of m-commerce might be gradually getting unraveled, however, this growth story comes with its own set of challenges. According to Hina Mittal Nayar, Co-Founder & CEO, ProfiliAd, “In the next 2 to 3 years m-commerce will grow rapidly and witness almost 30% YoY. At the same time, this growth story has its own challenges like mobile fraud which is becoming a big challenge which needs to be addressed.”
“In this cluttered retail market, brands need scale and personalisation to compete on an equal footing with their competitors. To do so, they must tap into an open commerce marketing ecosystem and use technology and data analytics to help shoppers find products of their choice and need. Criteo’s technology allows brands to engage with shoppers, creating relevant experiences on both retail apps and third-party platforms, thereby directly driving sales and profits,” added Dabhade