Singapore, July 20 2014: India is among the leaders in the Asia-Pacific region, when it comes to harnessing mobile phones for online shopping. A report from the mobile advertising network BuzzCity, commissioned by the Mobile Marketing Association , reveals that nearly half of mobile users (48%) made purchases online regularly.
In addition nearly 1 in 5 browse products online before buying in stores. Taken together, more than 70% of mobile consumers shop online.
In some countries, mobile has become the most dominant shopping channel. These are noticeably in the Asia-Pacific region with Malaysia (where 42% of online shopping is on mobile), Sri Lanka (39%), Philippines (35%), India (32%) and Indonesia (28%) among them.
Mobile as a shopping channel is now on a par with PCs and a key to driving the change in consumer shopping behavior.A third (32%) shop with their mobiles compared to a fifth (21%) with PC’s in the region. Further growth in mobile is expected as nearly one in three (30%) of those surveyed said that they would consider using their mobiles for shopping.
Says Rohit Dadwal, Managing Director (APAC) at MMA: "Mobile as a channel has evolved very quickly but the challenge for marketers is to create a seamless shopping experience across all the channels to ensure that consumers are getting a consistent brand message and identity.”
The explosive rise of mobile as a shopping channel appears to have caught many retailers off guard. The survey records that more people are leaving stores without making a purchase for a variety of reasons. At least 22% left stores for a better deal online compared to 13% last year and 27% could not find what they wanted in stores compared to 14% in 2013. Overall, fewer customers are engaging with shop assistants and consequently not making it to the tills, which should signal strong alarm bells for retailers.
Dr KF Lai, CEO and founder of BuzzCity comments “We know that consumers are driven by mobile in the first instance, but mobile first shouldn't mean mobile only for retailers. The survey highlights mobile’s potential to undermine traditional brand power and the imperative for marketers to maintain the relevance of their message across all digital media.”
The survey was conducted in April and May 2014 amongst 3590 respondents from 26 countries including 11 Asia Pacific markets. Results are published in the The BuzzCity Report Volume 4 which can be found here
The MMA- BuzzCity findings bear out the experfience of Indian online retailers: Financial Express, July 20 2014 reports: India’s over 100 million smartphone users are beginning to shop online at such a pace that the country’s biggest e-tailing companies are expecting the mobile traffic to surpass their desktop user base soon... Online marketplace Snapdeal announced that over 50% of its sales were now coming via mobile devices...Similarly, at Flipkart, just over a year ago, the daily traffic from the mobile platform was in single digits. Today, that number stands at over 50%...Fashion e-retailer Myntra is almost there with close to 35% of its business being driven by m-commerce .