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M-Commerce: Africa rising amid projected global market growth

Technology Times StaffbyTechnology Times Staff
19/03/2014
in Market Updates, News
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Africa’s teeming mobile telephony family is now making an increasing number of purchases via their handset amid positive growth projections for M-Commerce.[blockquote right=”pull-right”]In 2011, approximately ten per cent of all mobile Internet users made purchases via their mobile phones, while more people indicated that they planned on doing so in the future. [/blockquote]

This is the result of a report, which cited that the number of people worldwide who purchase via mobile reached approximately 400 million in 2012.

M-Commerce is expected to soar globally in the years following 2012, according to “Global Mobile and M-Commerce Report 2012”, secondary market research company yStats presents facts and figures on the use of mobile phones and other portable devices with Internet access, along with information on M-Commerce and mobile payment methods.

By growing more than 20 per cent annually, the number of mobile shoppers worldwide is projected to approach 600 million in 2014.

“About 40 percent of all retailers offered their customers the option to purchase goods via mobile devices”, according to the report, which observed growing adoption of M-Commerce across the African continent.

The report includes trends, revenue figures and many other details about 46 countries in all regions of the world. In addition to country-specific information, the report also provides data on a global and regional level.

The number of people worldwide who purchase via mobile reached approximately 400 million in 2012. About 40 percent of all retailers offered their customers the option to purchase goods via mobile devices.

Some of the key findings
are underlisted:

  • – In the USA, regular online sales increased much slower than M-Commerce sales in 2012, especially regarding tickets and travel.
  • – In 2012, the UK is expected to be the European country with the highest share of mobile sales on total online sales, followed by Sweden.
  • – The share of mobile shoppers on total consumers in Germany increased to more than 10 per cent in 2011, with the age group 14-28 years accounting for most mobile shoppers.
  • – Taobao and Tmall were the leading mobile shopping companies in China in Q2 2012, accounting for more than three-quarters of total market share.

Similarly, about 40 per cent of all retailers offered their customers the option to purchase goods via mobile devices.

In the USA, M-Commerce is developing at a faster rate than traditional B2C E-Commerce. Compared to traditional B2C E-Commerce, M-Commerce has increased especially in the travel and ticketing sectors. A large number of males conduct mobile purchases in the USA.

Females were especially active, when it came to procuring discounts for mobile purchases. While in 2011 nearly 30 million customers made mobile purchases in the USA, this number is expected to increase to double until 2015.

Consumers in Latin America also have the option of making purchases via mobile devices. However, M-Commerce accounted for only a single digit percentage figure of all B2C E-Commerce activities there.

In the first quarter of 2012, many consumers in Argentina still preferred using a PC or a laptop for their online purchases. Others said that purchases via mobile devices were not safe enough. Conversely, in 2011, four fifths of all mobile phone users in Brazil already used their mobile device in the shopping process.

Some European Countries more open toward B2C M-Commerce than others.

According to forecasts, approximately one third of all smartphone users in Europe will use their devices to conduct purchases within the next years.

M-Commerce will then account for approximately five per cent of all retail business. Figures on how many consumers make mobile purchases vary largely across Europe.

In the three months leading up to July 2012, approximately 20 per cent of all smartphone users in the UK conducted purchases via their mobile phones.

In March 2012, ten per cent of all mobile phone users in France claimed to have previously made at least one mobile purchase.

Many more indicated that they plan to do so in future. Two thirds of all Belgian online shoppers said in 2012 that they did not intend to conduct purchases via mobile devices.

In Italy, the ticketing market is especially benefiting from M-Commerce. 60 per cent of all Italians have expressed interest in using mobile devices for this purpose. By 2015, this sector is expected to be worth more than 200 million dollars. M-Commerce is also popular in Spain. 60 per cent of all tablet PC users and one third of all smartphone users ordered something with their mobile devices in June 2012.

In Germany, individuals aged 14 to 28 account for most purchases via mobile devices. The share of mobile shoppers increased in 2011 to more than ten percent.

Compared to 2011, the number of unique visitors to Otto Group in Germany among consumers who used mobile devices tripled in spring and summer 2012. Between May 2011 and April 2012, in Austria only a single digit percentage figure of smartphone users ordered something via their mobile devices.

In 2012, orders via mobile devices increased in Switzerland, with mobile websites being more significant over there than apps.

The M-Commerce market in Eastern Europe is also very successful. Poland in particular has experienced strong growth, where M-Commerce increasing twice as much between 2010 and 2011 than in the rest of Europe.

Russia is also focusing on M-Commerce activities. The mobile phone companies MTS, VimpelCom and Megafon signed an agreement in 2012 in support of M-Commerce.

In the first quarter of 2012, almost one quarter of all Internet users in Turkey aged 16 to 74 used a mobile phone to access the Internet, while only five per cent used a tablet PC for the same purpose. However, approximately one fifth of smartphone owners have already conducted a purchase with their device.

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In Scandinavia, Denmark has the highest number of mobile shoppers, followed by Norway, Sweden and Finland.

The Danes purchased mostly media and entertainment products in the third quarter of 2012, followed by consumer electronics. Males in Norway made more mobile purchases in 2012 than their female counterparts and two thirds of all mobile shoppers used apps for mobile devices.

In Sweden, media and entertainment products were the most popular products in the third quarter of 2012, followed by travel-related services.

M-Commerce also continues to grow in Asia and Africa. Between the end of 2011 and the beginning of 2012, Asians mostly bought apps and music with their mobile devices. In the second quarter of 2012, in China Taobao and Tmall were the top players within M-Commerce.

Consumers in Hong Kong demonstrated a positive attitude toward purchases via smart phones. In July 2012, more mobile phones were used there for purchases than tablet PCs.

M-Commerce is also becoming more important in India. In 2012, there were approximately 800 million mobile phone users, 90 per cent of who used their mobile devices for Internet access.

In 2012, M-Commerce accounted for approximately one fifth of all B2C E-Commerce business in Japan. Singapore is expecting an annual increase of approximately 75 percent from 2011 to 2015 M-Commerce.

In the first quarter of 2012, more than one quarter of all smartphone users in Australia said that they had conducted at least one purchase via their mobile devices.

In the Middle East, apps and plane tickets were the most popular mobile purchases between the end of 2011 and the beginning of 2012. App purchases were predominantly popular in Saudi Arabia, followed by toys and gifts.

In 2011, approximately ten per cent of all mobile Internet users made purchases via their mobile phones, while more people indicated that they planned on doing so in the future.

In 2011, only approximately ten percent of all consumers in Namibia used the Internet, half of whom accessed it via mobile devices.

M-Commerce is forecasted to grow at a rapid rate over the next few years.

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