M-Commerce: The new kid on the block
Alex Kozloff, senior mobile manager, IAB, says as barriers continue to come down for m-commerce in the UK, this ‘new kid on the block’ will evolve into a medium that retailers, brands and consumers can no longer afford to ignore…
Considering that 25.2 million of us now use our mobiles to shop and browse online, it’s clear that m-commerce has come of age. And, like our phones, it’s getting smarter.
No less than 37 million[1] people in the UK buy goods online, and one billion parcels are shipped from online purchases each year[2]. As m-commerce gathers pace at a similarly impressive rate, the rise of mobiles as purchasing tools is set to grow even further.
This is because a mobile device can enrich the retail experience – both on and offline – in a way the humble PC or laptop can’t. The clue is in the name.
The following are some key stats and trends, based on analysis and insight from the IAB’s 2011 m-commerce research.
Currently 45% of UK phone owners research via their mobiles. This means checking and comparing prices, finding a store location, gathering product information, and obtaining vouchers and coupons – which can be instantly redeemed in-store, simply by showing the retailer the mobile screen.
Some 35% of UK phone owners use their mobiles to ‘enhance the purchase experience’. This includes keeping up to date on a purchase’s estimated delivery time, ticketing via mobile, or taking advantage of exclusive offers using mobile loyalty schemes.
Many of us are accustomed to buying content, products and services with our phones and paying for it when our monthly service bills come in. 34% of the UK already does so and this will become even more commonplace, as brands and retailers roll out more ways to purchase.
A further 30% impart card or bank details when m-commerce shopping. However, the advent of payment through in-store ‘touch technology’, such as Near Field Communications (NFC) is heralded as the next landmark m-commerce development.
Although prevalent in Japan, NFC is only beginning to find its feet here – currently only 0.6% of UK consumers have NFC-enabled handsets [3]. While 74% of consumers see NFC style payments as a good idea[4], there remains ample opportunity for retailers to embrace the use of mobile in-store.
Brands like Starbucks clearly see the value of ‘touch payment’ technology, evidenced by the chain’s mobile payment system, which recently launched in the UK. Likewise, innovative companies such as Jack Dorsey’s Square[5] and Eagle Eye[6] are making it easier for both small and large retailers to optimise the consumer’s in-store experience using mobile.
As barriers continue to come down for m-commerce in the UK, and more brands and agencies begin to realise the importance and pulling power of the mobile, this ‘new kid on the block’ will evolve into a medium that retailers, brands and consumers can no longer afford to ignore.
Sources:
1 IMRG 2012
2 IMRG 2012
3 comScore MobiLens November 2011
4 IAB M Commerce Consumer Research 2011
5 https://squareup.com/
6 http://www.eagleeye.com/