Trendspotting: As m-commerce rises, industry battles out key hurdles
Keeping favourable market projections in mind, industry experts are making strategic business decisions. The first one to show absolute faith in m-commerce was Myntra, and others are expected to follow. Industry experts debate over challenges faced by the industry
If recent market projections are to be believed, the mobile commerce market may grow by 55 per cent from its present size of $2 billion to $19 billion by 2019. Mobile Internet users in India are estimated to be 120 million compared to 100 million users using Internet on their personal computers. Online shopping through smartphones is expected to be a game changer shortly and industry experts believe that m-commerce would contribute major portion of their total revenues.
Keeping all the statistics in mind, industry experts concur with the projections, and are making strategic business decisions keeping these numbers in mind. The first one to show absolute faith in m-commerce was Myntra, and others are expected to follow.
“Much earlier, we saw most of our traffic coming from mobile devices alone and hence the App-only strategy was well sketched out. On the mobile front, network is the most prominent issue which leads to transaction failures as high as 30 per cent. But as the technology evolves, we are expecting better results,” said Shamik Sharma, Chief Product and Strategy Officer, Myntra.
According to Satyam Bansal, Director, Mobile Alliances, Flipkart, it is essential to make strategic decisions such that shopping should not only remain a traditional experience. “Of course, it is not feasible to do that with a laptop in our hands. To overcome that, there is mobile device, which is a super computer in our hands today and that allows us to do all the things with utmost ease and comfort.”
Talking on the challenges being faced by the sector Kumar Karpe, CEO, TechProcess said, “The most important challenge that we are facing in this sector lies in the services like cash-on-delivery and on cash-back services. These services need to receive more attention in order to gain the consumers’ faith which has been the major factor for the growth of m-commerce in the country.”
Speaking about the emergence of e-wallet as one of the major trends in the m-commerce industry, Sharma said, “e-wallets are really a very good option but people generally do not prefer spending their money on a platform that only offers specific goods/services. Wallets are not lifelong solutions. In other words, your bank is also a wallet and hence people prefer transacting through their banks alone.”
Deepak Sharma, Head of Digital Initiatives, Kotak Mahindra Bank, stating that with the entire space shifting to app, from a bank’s perspective, payment is a much broader concept in e-commerce, specifically in the m-commerce space. He quoted that close to about one-third of the payment goes to about e-commerce transactions.
“Thus, for a bank, web is going to be a large option in the near future. Even though mobile is growing at a fast pace, but for banks, web is still going to prove as a much more better platform than mobile usage for payments or other transactions. A lot of customers are not willing to leave their credentials either on web or on their mobiles,” he added.
“Capital is a major factor which drives your brand. Apart from Capital aspect, we use various methods in which discounts are the major one. We offer various app only discounts which give consumers an option of either cash back or direct discount. Various sales too drive your app's popularity. Everyone in this field are opting for various sales and thus helping brands to connect with consumers,” Bansal pointed out.
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