m-Commerce : India’s Largest Malls Have Shrunk into our Phones!
Introduction to the world of M-commerce
Shopping now-a-days is really easy without the long and tiring weekend trips to the markets and malls! Remember the time when we had to buy a dress from a market? Checking out so many shops before deciding on one used to take so much of time and effort, but now, we can easily browse through 20-30 dresses with offers and discounts online.
Here are some facts about the M-commerce market in India
- India is undergoing an exciting transition as the country is rising impressively in M-commerce, contributing upto 70% of the total revenue in India.
- India’s market for mobile commerce was worth $2 billion in 2014 and is estimated to grow up to $19 billion by 2019. As more of its 1.2+ billion people look to search, interact, and shop on the go via their smartphones and other mobile devices.
- Since RBI has started supporting mobile-banking and released its guidelines on mobile banking transactions, banks have sped up their roll out of m-payment products with banks such as Standard Chartered, SBI and IDBI Bank launching their services.
- Mobile commerce is not only preferred by youths, they are increasingly being used by people of all ages over the past decade.
India is now one of the top five regions for the Google Play store.
- Recently Flipkart decided to shut down its desktop website and go mobile only, which made desktop users download the app on their mobile devices.
Strengths of m-Commerce
M-Commerce is beneficial for both large and small scale businesses. The number of mobile users are increasing day by day, as, through M-Commerce a business gets larger and a growing market place for wild range of goods and services.
It is easy to start and manage a business through M-commerce.
E-commerce is limited to PC users only, but M-commerce is open to almost everyone with a cell phone and a mobile connection as it is easy to reach users through M-commerce.
As more users are switching to M-Commerce, there are lots of companies using M-Commerce site to reach them by giving attractive and better deals compared to their competitors.
Users do not need to go far to the store physically and at the end it saves user’s time and money.
Faster buying plus selling procedure as well as easy to find products.
Consumers do not need to be highly skilled, they can just select their required products from thousands of items on their cell phones and there is no need of online checkout process.
Buying/selling is available 24/7.
Every invention has its own merits and demerits. It is also applicable in M-Commerce business.
Unavailability of big screen like desktop or laptops, sometimes make users tired of navigating more and more to choose just one item from thousands.
Sometimes people may not feel like breaking their habit of shopping through E-Commerce and choose to download mobile apps.
Online transaction procedures are still doubted by users.
Mobile commerce needs high speed connectivity otherwise it may become problematic for users to go through the entire product purchase process.
Opportunities and future of M-Commerce in India
Mobile devices like cell-phones and tablets are far more affordable than desktops and laptops, plus, one doesn’t even really need expensive smartphones to make mobile transactions. Due to their mobility and affordability, even tablets are high in demand in India.
Growth of smartphones and the easy payment systems on the go are going to boost the segment.
Mobile-commerce is expected to grow because the mobile usage and ownership penetration is more than 4 to 5 times than a PC and growing at a very fast rate.
Wallet system ensures a convenient and technologically quick method to purchase products. For example- Paytm has more than 15 million active wallets within 10 months of its launch, out of which around 6.5 million with money or saved cards.
M-commerce sales have grown from $3billion in 2010 to $31 billion in 2016. M commerce sales accounted approximately 7% of e-commerce sales in 2016 and is expected to increase further. (Source- Forrester Research Inc.)
M-Commerce sites are cheaper in comparison. Consumers are becoming adaptive to the new technology trend.
Mobile Internet users in India are estimated to be 120 million compared to 100 million users using Internet on their personal computers.
M-commerce isn’t getting the push it could have achieved because of the lack of trust of the customers on non-paper payments. A more secure payment procedure can make its way towards success, ultimately helping to boost the mobile commerce.
Most of the people of India does not even know what they have with them and how to make the best use of it.
Mobile viruses can spread attacks quickly through the network.
During my research I observed that:
Mobile commerce is the future of globalization so the infrastructure of M-commerce should improve in India.
The rural India should get more opportunities to leverage the internet facility.
As the whole world is coming closer through M-commerce, Wi-Fi availability should be increased.
Transaction procedure should be made more secure to win customer’s trust.
As customers in India want more convenience for shopping, M-commerce is rapidly being adopted by merchants for better services.
Forrester Research Inc.