360 View on M-Commerce. Presented by S. Baranikumar
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1 360 View on M-Commerce Presented by S. Baranikumar
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3 Having multiple channels is important for the future 7 in 10 ecommerce consumers use their mobile phone or smartphone to research online and 1/10 use it as their main device to research. 2/5 would also use their mobile phone or smartphone for purchases again, showing potential for mobile internet research & purchases in this market. PC, laptop or netbook at home/work Mobile phone or smartphone Laptop or net book on the go Tablet PC Devices Ever Used To Research 85% 69% 59% 27% Devices Used To Purchase 45% 33% 24% 11%
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7 Price comparison is an important activity that 68% of mobile shoppers engage in.
8 Key Motivators Key Motivators for M-Commerce Convenience of shopping & saving while on the go Growth of smart phones Secure and easy payment systems on the go always-on connectivity. Cost of entry into m-commerce is low for most entrants. Flipkart, Snapdeal, Amazon, etc. gave a huge push to their mobile app. Their strategy was plain and simple: get users to download the app first, convert them later.
9 M-Commerce Applications and Services Juniper's mobile ticketing report says: Half a billion worldwide to use mobile ticketing by 2015 The activity will grow from 4.5% of mobile phone users worldwide this year to 12.7% A recent report by the Internet and mobile Association of India (IAMAI) has predicted that the Mobile VAS market in India might reach to $13.34 billion (INR 671 billion) by For VAS, SMS and Digital Music contribute 55% and 35% revenue respectively. Lack of content localization and shortage of spectrum are the two basic challenges for VAS in India The banking industry is still well short on harnessing the power of mobile, beyond just a channel or technology. Many of the crowdsourcing panel believe 2015 will be the year when leading banks will use mobile design strategies as the foundation for all customer touchpoints, and when expansion of capabilities will provide digital differentiation.
10 M-Commerce Applications and Services Morgan Stanley's analysts believe that, based on the current rate of change and adoption, the mobile web will be bigger than desktop Internet use by 2015 AuctionByCellular(ABC) combines fun, easy-to-use technology with a team of charity event experts to deliver fundraising success. Today, India is the largest RTB(Real Time Bidding) revenue generator behind the US with the entire Asia-Pacific region increasing their real-time auctions by more than 50 percent within one single month More than half of the consumers in India indulge in maximum mobile purchases for entertainment service like cinema, theatre shows, DVDs, sport games (53 %) followed by music downloads (48%). The other key purchases via mobile are clothes/footwear/other attires (47 percent) and books or e-books (40%). Consumers in India are driven to buy goods using their mobile phone by exclusive offers (33 percent) and coupons (26 percent), the survey highlighted Mobile phone / smartphone 4% Gartner analysts projected that mobile advertising spending globally would reach $41.9 billion in Popularity of location-based advertising is on the rise and will continue to climb, becoming a preference for advertisers
11 Stakeholders View A larger selection of merchants with whom they can trade. More consistent payment interface when making the purchase with multiple payment schemes, like: Credit Card payment Bank Account/Debit Card Payment Brands to offer a wider variety of payment Easy-to-use payment interface development To offer a consistent payment interface to consumer and merchants
12 Brands that do well The report revealed that Flipkart got more than 20% of its orders through mobile apps and hopes mobile users to contribute half its total sales in a year In 2-3 Years, Flipkart Will be Largely an M- Commerce Company: Sachin Bansal Focusing heavily on the mobile platform, the online retailer is trying to get its customers shop through mobiles and to make that happen the company is even providing Rs.150 discount for users who shop through Flipkart Mobile App and free shipping
13 Brands that do well Paytm has been focusing on mobile and DTH recharges. It receives over 800,000 orders a day Has 90% repeat users 12 million apps users and 80% of new users are from mobile. Paytm hopes to hit 1 million orders a day on the platform by end of 2015.
14 Brands that do well 50% of Snapdeal's sales come via mobile The company said it has seen an exponential 25x growth in mobile based transactions compared to a year ago 45 percent of the transactions seen on mobile now come through the native applications while the remaining 55 percent come through the mobile site The average ticket size of orders place through the mobile apps is higher than those placed through the mobile site Snapdeal also revealed that 20 percent of all app users open it every day
15 Brands that do well Amit Agarwal, country manager and VP, Amazon India, feels India is a mobile first market and m-commerce is growing rapidly. "We had launched the Amazon shopping app for Android and ios platforms last year, a few months after we began our India operations. In August this year, Amazon launched the Shopping App for Windows Phones. Today, nearly 50% of traffic comes from mobiles. Amazon s new Facebook-powered Surprise! mobile application points to how mobile gift cards are increasingly a must-have for a comprehensive m-commerce strategy.
16 Brands that do well Myntra.com has witnessed phenomenal activity on the m-commerce front, with smartphones gaining prominence as the preferred mode to access and shop for fashion brands in the country. Myntra's mobile sales were responsible for 80 percent of its growth in the first quarter of this year Shopping site expects mobile to contribute 40 percent of its total sales by this year end
17 Brands that do well We see 100% traffic growth on mobile platform: HomeShop18. With over 900 million mobile users in India, mobile shopping is fast gaining popularity due to increased customer convenience. Thus, mobile is a very large and important category for us. Our Scan & Shop dynamic display wall is another m-commerce initiative that has helped us increase transactions via our app. HomeShop18 continuously launches innovative products such as the Solar Phone, Transparent Phones, Watchphone, Whatsapp Phones, Gaming phone and much more for its customers thereby, encourage m-commerce.
18 Factors to be considered when designing m-commerce mobile sites and Apps Mobile Sites and Apps Design The study also found that 71 percent of mobile consumers use mobile to find a nearby store location, and 55 percent of mobile shoppers want to purchase within an hour and 83 percent within a day so location information and offers are important for brands and retailers to consider when designing their mobile sites and apps. Respondents want marketers to focus on a better customer experience Respondents want transparency about security issues and content prioritization
19 Business and Technical Challenges The challenge lies in making mobile commerce a habit amongst consumers The industry also needs to focus upon building apps that encourage people to share & drive more installs. Slow data transfer speeds on cellular networks, resulting in higher costs to customer (From Indian Context). More Web sites need to be designed specifically for small wireless devices. Currently, 29% of transactions are being driven by mobile and it would be interesting to see how it will increase when RBI does it away with 2-step verification for smaller transactions It will be unfair to burden the e-tailing sites for the growth of mobile commerce. Other sectors such as banking and e-governance have to optimize their services for the mobile phone platform. Banking sector in particular has to take the lead in order to push the mobile platform.
20 Mobile Commerce platforms and tools Mobile Shopping Platforms Makes Shoping Better
21 Thank you
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