Mobile Retail Purchases to Exceed $700bn Annually by 2018
Published on: 7th Jan 2014
Annual retail payments on mobile handsets and tablets are expected to reach $707 billion by 2018 representing 30% of all eRetail by that time according to Juniper Research. This compares with mobile retail spend of $182 billion last year when mobile accounted for around 15% of eRetail.
The report -- 'Mobile Payment for Digital & Physical Goods: Opportunities & Forecast 2014-2018' -- found that leading retailers were increasingly developing strategies built around mobile, using it as a 'hub' facilitating payment, product discovery and customer retention. As a result, it found that the size and scale of purchases across both smartphones and tablets was increasing strongly. However, for users owning both devices there was a strong trend towards browsing on the mobile while completing the purchase on the tablet, and that by the end of 2013 global per month retail spend on tablets had eclipsed that on handsets.
Addressing the 'Showrooming' Trend
The report also highlighted the increasing trend towards 'showrooming', where consumers examine retailer products in-store while simultaneously browsing on their mobiles to compare prices online. It argued that retailers need to adapt their strategies to incorporate this activity, by deploying tablets equipped with mPOS (mobile Point of Sale) capability throughout the store, while also introducing a price match option.
According to report author Dr Windsor Holden, 'This means that not only is the retailer proactively offering the consumer the opportunity to price check in-store, but that the purchase can be made immediately, without having to queue elsewhere in the store.'
Other findings from the report include:
'Cyber Monday' in 2013 saw retail sales via mobiles and tablets approach $400 million in the US alone
For digital goods purchases, storefronts that implement direct carrier billing solutions can monetise younger demographics and unbanked users for the first time
Tags: mobile commerce