Small business success in today’s global marketplace means staying ahead of the curve by following key business and consumer trends – from innovations in shipping logistics, to tracking the demand for competitive products, to learning about new markets in which to increase cross-border sales, there is no shortage of information to consider as you seek to optimize your business growth.
But the one trend you cannot afford to ignore is the rapid growth of mobile commerce. Global research from PayPal and Ipsos released earlier this year found that mobile shopping is growing at nearly three times the rate of overall e-commerce.
The study, which looked at the habits of more than 17,500 mobile shoppers in 22 markets around the world, found that through 2016, the multi-country annual growth rate for mobile commerce is projected at an estimated 42 percent vs. 13 percent for overall e-commerce. And once again Asia leads the way in mobile. As an example, three quarters of Young Singaporeans (18-29 year old) use their mobile for shopping.
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Smart merchants are embracing mobile commerce, encouraged by these upward numbers. As we reach the cusp of a mobile-first era, here are some helpful tips to reach the “mobile majority.”
Mobile Apps Drive more Shopping
For most people, their smartphone is more than just how they connect one-on-one with people – it’s their main outlet to the digital world. In fact, the millenials check their mobile phones more than 150 times per day
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Do you?
The ubiquity of mobile devices has changed consumer consumption habits. More than a third of shoppers conduct product research on a mobile device, and in turn are becoming more apt to make a purchase on their phone. In fact, one-third of online shoppers have purchased a product via smartphone in the past 12 months
4 -- and that figure is projected to continue growing as global mobile adoption continues.
Many consumers find that apps make mobile shopping a better experience. Globally, approximately 64 percent of smartphone shoppers have purchased via an app
5. Benefits of shopping through an app include instant confirmation of payment, reminders to apply offers and discounts, and a digital record of purchases. Consumer comfort with shopping on apps will continue as smartphone adoption spreads, along with larger phone screen sizes, increased mobile device security, and a seamless checkout experience.
Gen Z is Going to be Truly Mobile-First
The biggest wave of consumers coming down the pike is Generation Z (this group falls into the 12-20 age range today). This group has never known a time without cell phones and mobile devices. They are comfortable with multi-tasking across multiple screens and see that one channel is indistinguishable from another. For Generation Z, mobile shopping is the norm. Asia continues to expand its lead as a “mobile-first” region. Asia has five of the top ten market positions in terms of smartphone adoption, including Singapore (#2) at 88%, followed by South Korea (83%), and Hong Kong (79%).
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Despite having lower incomes than their older generation counterparts, Generation Z spends the highest share of their income online, as much as 9 percent.
7 As this group begins to enter the workforce and increase their earning potential, they will make a big impact on overall e-commerce growth. Eighteen-to-34 year olds – otherwise known as the “millennial” generation – account for an average of 59 percent of mobile shoppers around the world.
In China, they account for 86 percent and in Mexico, 88 percent
8! Much like Generation Z, this group of consumers is increasingly using their phones for every part of their lives – mobile shopping included.“To be build, or not to build an app, that is the question”.
[1]IpsosMORI (September - October, 2014)
[2] PayPal Insights, The Travel Edition – Southeast Asia Singapore, November 2014
[3]Source: 2013 Internet Trends D11 Conference
[4]IpsosMORI (September - October, 2014)
[5]IpsosMORI (September - October, 2014)
[6] Consumer Barometer - Smartphone Adoption
[8]IpsosMORI (September - October, 2014)