The online retailers are taking the smartphones route
to tap the market opportunity offered in Tier-II and Tier-III cities.
Most leading players expect 90 per cent of their online shopping to come
through smartphones and tablets within the next few years.
India
is the second largest mobile phone market with more than 930 million
customers. According to IDC data, the domestic smartphone market grew 84
per cent in the second quarter of 2014 and is expected to grow rapidly.
With
the huge market potential offered by smartphones, companies such as
Snapdeal, Flipkart, Myntra, among others, have already launched mobile
applications.
“The growth in internet usage in
India, largely on mobile devices, is the key driver for e-commerce
growth. Specifically for fashion, the non-availability of the latest
brands in Tier-II and Tier-III cities has led to high interest in online
shopping,” said Myntra Chief Revenue Officer Prasad Kompalli.
Over
the next three years, online market place Snapdeal expects 90 per cent
of its order to come from people who buy through their mobile devices.
“Currently,
around 60 per cent of our orders come through our mobile platform. We
are hoping to receive 75 per cent of our transactions through mobile
within the next one year. The same is expected to touch 90 per cent over
the next three years,” said Kunal Bahl, Co-founder and CEO of
Snadeal.com.
Another reason for the increase in
mobile commerce is the penetration of smartphone into the rural markets.
Around 45per cent of the online users in India access internet only
through their mobile phones. As per industry experts, out of all
shopping queries in India, 30 per cent come from mobile phones, however,
presently less than 5per cent of total digital commerce happens through
mobile
According to a recent report from IT
research and advisory firm Gartner, the eCommerce market is expected to
grow 70 per cent and touch $6 billion in 2015.
“Mobile
commerce will help organisation skip the desktop wave with increasing
penetration of affordable smart devices with connectivity and a rapidly
growing ecosystem to engage customers on mobile,” said Praveen Sengar,
research director, Gartner.
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