16 Jan 2017 | By Jisha
Topics: Mobile Commerce
The year 2017 and the years beyond are going to witness a large digital transformation into Mobile Commerce. The number of people shifting from old mobile phones to technology driven smartphones is increasing rapidly. As a result, the retail world is undergoing an unprecedented wave of innovation. Latest technologies, as well as the new business models, are having a profound influence on this transition. Roughly 4.77 billion people are expected to be using smartphones by the end of 2017. It is expected that by 2020 about 204 billion people will move into mobile- commerce.
As this tremendous change is happening, retailers need to be aware of the new developments in the space as more businesses shift to the portable and online domains. The retailers who are preparing for a transition, all it takes is a little forethought to adapt to rapidly changing customer markets.
Here are some of the M-Commerce trends that are expected to happen very soon and the reasons why Mobile Commerce will increase in the coming years?
Consumer e-commerce today is largely driven by price and convenience. Products that are delivered quickly are making a good deal in the market. A growing number of consumers want to have more from e-commerce. For instance, they may find some products online which are otherwise not found in big-box retail chains.
These consumers also feel the convenience of doorstep delivery and the online product availability that is comparably cheaper than from retail outlets. By 2026, these fundamental desires will still exist, but consumer expectations of the e-commerce experience will have changed drastically, along with the shopping experiences.
There are many things that drive consumers to take shopping as an experience. Many consumers today already treat shopping as a leisure activity. Consumers are also increasingly drawn to a new generation of lifestyle brands. Alongside this is the appetite for life-enhancing experiences in addition to material things. Another reason is the seemingly insatiable need for people to showcase their participation in activities and experiences on social media. This can already be seen with the emerging trend in integrating social media with in-store retail, with the aim of creating socially driven shopping experiences.
By 2026, many consumers will want retailers to provide an environment where shopping is an event experience. This will translate into interactive, highly engaging online and real-world retail environments where augmented reality (AR) plays a key role.
The widespread adoption of increasingly powerful smartphones with larger screens is improving the m-commerce experience. Meanwhile, more and more retailers are optimising their sites for mobile shopping. Together, these developments are turning the smartphone into a platform that can support the whole shopping journey, from product search and discovery to comparisons, recommendations, and payments.
The ability to identify a user’s location and deliver targeted, timely, contextually relevant information, advertising and marketing messages is a powerful, compelling proposition. Moreover, the real-time aspect of location analytics will offer a more adaptive approach to marketing, enabling retailers to change their marketing and engagement in real time to meet an individual consumer’s needs. For example, delivering coupons to customers’ phones as they pass nearby locations or approach the competing retail chains.
In addition, retailers will place growing emphasis on AR (Augment Reality) apps and devices, which overlay digital data on real-world scenes that are aimed at shoppers who use these tools to local stores that stock goods they’re hunting for. It is assumed that by 2026, the contextual location will be an integral part of the retail experience, driven by mobile technology.
From an estimated 452.78 million global users in 2014 to 2.07 billion users in 2019, there is going to be a very strong growth in mobile payments for online goods and services over the next few years and beyond.
Consumers are already gravitating to smartphones and now tablets for m-commerce a trend that will accelerate going forward as the user experience continues to improve. M-commerce is becoming the largest m-payment segment in terms of transaction value.
The low traction for in-store payments today is partly because Near Field Communication (NFC) still has not been universally deployed across retailer Point of Sale (POS) acceptance infrastructure. This will, in turn, affect consumer adoption which in the earlier years is also hindered by low awareness and/or a perception that such payments do not provide any benefits above and beyond existing payment instruments.
But this situation will change as both the aforementioned barriers are addressed: as support for NFC becomes more widespread among merchants while consumers appreciate the speed and convenience that in-store mobile payments can bring. It is expected that by 2019, the global user base for mobile proximity payments will have grown rapidly to 1.09 billion users.
Study reports say that customers are checking their smartphones and mobile devices dozens of times a day and are often multitasking when using them. More time to spend on mobile browsing tempt shoppers to increasingly make one-touch purchases. So they expect rapid-fire order placement solutions and the ability to quickly and easily browse, buy or research transactions on the fly whenever the mood strikes.
Noting this, retail organisations will have to focus on offering both the best deals and products as well as the best possible mobile experience. In effect, more and more retailers need to place an emphasis on designing responsive online storefronts and adaptable websites tailored for mobile devices in the coming days. Also need to create solutions that will work on a variety of screen sizes, operating systems and technical readouts to offer smooth conversions.
Amidst the skyrocketing digital growth, mobile commerce trends are now an important consideration for retailers to keep in mind. The future belongs to tech-savvy retailers with an eye for driving online purchases.