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A new research report from ABI Research finds that in 2015, shoppers around the world are expected to spend about $119 bn on goods and services purchased via mobile phones. That number represents about 8% of the total e-commerce market. Noteworthy is the fact that even $1 bn plus turnover in the US is dwarfed by the size of the mobile online shopping market in Japan, which exceeded $10 bn in 2009 alone. This market is growing solidly in Europe too, and is expected to outpace the US by the end of 2010.
Mobile shopping is also picking up in the Indian market. Buying behavior and preferences of the Indian consumers are changing rapidly .Consumers increasingly favor shopping and buying in an anytime, anywhere scenario. With the emerging trend of m-commerce and increased adoption of advanced and high-end handsets like smartphone, blackberry, iPhone, etc, in the Indian market, mobile shopping is also taking off. As smartphones and networks continue to become more powerful, they are making it easier for users to make the shift from simply browsing to buying everything.
The driver for mobile online shopping has been the recent sharp spike in smartphone adoption and the corresponding enthusiasm for mobile Internet. Also, many more retailers have been launching mobile commerce websites. A long term driver in global terms is the fact that in many less-industrialized regions, mobile is virtually the only way to access the Internet.
“Mobile online shopping is reaching critical mass. In the United States, mobile online shopping rose from $396 mn in 2008 to $1.2 bn in 2009. While definitions of 'mass market adoption' vary, a more than threefold increase in one year indicates significant consumer interest," says Mark Beccue, senior analyst, ABI Research.
Not only does mobile online shopping allow shoppers to manage their time better, but in Q4 of 2009, an interesting trend emerged-consumers were checking out products in bricks-and-mortar retail stores and using their phones for comparison shopping. A subset of mobile commerce is the trade in virtual goods, generally associated with online gaming. This too has seen a rapid uptake as mobile payments are the best option for online purchases under $20, and this way of shopping is especially suitable for those—often young gamers—without credit cards.
Access to product reviews, price comparisons and other resources anywhere, round the clock makes mobile shopping more effective and time-saving than running around to multiple stores and making phone calls to various locations. Realizing the huge potential and increasing demand, retailers and advertisers will be looking towards mobile applications supporting mobile shopping in the coming years.
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