Is e-commerce shifting to m-commerce?


Is e-commerce shifting to m-commerce? No Comments

Just as the retail world was gradually getting accustomed with e-commerce, it got suddenly blown away by a storm called m-commerce, or to put it simple – mobile commerce.

Some of the significant shift in focus by e-commerce big shots to m-commerce:

  • Myntra, Olx, Quikr, and Ola Cabs to name a few have launched their own and exclusive mobile apps.
  • Flipkart has plans to invest its 1 billion $ fund raise in m-commerce market.
  • Amazon which has plans to invest 2 billion $ in India says that its main area of operation would be mobile and its related commerce.
  • Flipkart’s Indian version Snapdeal is focusing on mobile commerce as it is closing its acquisition on Freecharge an online recharge service provider.

Why this shift?

The year 2014 had set a bench mark in Indian e-commerce business with billions of dollars being invested in this area by top business houses all over the world. Minutely observing this trend, Indian Business houses like Tatas, Birlas, Ambanis had invested in e- commerce business to broaden their horizon. But a survey in 2013 shows that India is the second largest mobile market in the world after China. India has a massive subscriber base of 867.80 million, which has obviously gone up in 2 years. The advent of smart phones assessed by its software and affordable mobile network plans has enhanced the growth of m-commerce in a primary level.

Industry Experts believe that m-commerce would contribute upto 70% of their total revenues by December end this year.

In India the mobile population has outnumbered the population of computer and broadband users. Here is a data from the leading e-commerce business houses in India.

  • According to Snapdeal 60% of their orders are coming from mobile only.
  • Amazon India claimed that 40% of their orders come from mobile devices.
  • Myntra the online fashion portal expects 70% of its revenue through smartphones this financial year.Now, it has completely shifted to m-commerce.
  • According to a source from Flipkart, less than a year ago the total percentage of their mobile orders were restricted only to a nominal 10%. But now it has crossed the 50% benchmark.
  • For Jabong, m-commerce constitutes 30% of its sales.
  • In India, almost 70-75% people access the net primarily through their phones, which has forced the e–commerce business units to shift their base to m-commerce.