India has now become the second largest country in term of the internet users. In the population of 1.3 billion, there are 354 million internet users out of which 213 million are Mobile internet users. According to statistics,1 out of 5 Indians use mobile internet.
The convenience in doing online shopping through mobile phones is attracting consumers and eCommerce retailers both. Consumers are glad that they don’t have to take extra efforts for going to physical market or connect to the internet via their laptops. At the same time, retailers are happy that they can increase their sales and number of target audience via Mobile Apps as well.
5 key drivers for growth in mobile commerce in India:
1. Growth in mobile internet users:
From the data, we can observe that there has been a tremendous growth in the number of mobile internet users from the year 2012 to 2015.
2. Growth in nUMBER of smartphone users
There is clear increase in smartphone users in India. It is making users more inclined towards online shopping, as they can browse products of their choice and check best deals on-the-go. As per study, the number of smartphones users in India is expected to be 167 million in 2015.
3. Mobile commerce is dominating online transactions
41% of India’s eCommerce sales is via Mobile. India has a huge opportunity for growing mobile commerce. On the internet through mobile consumers get best deals and offers and variety of products which they did not get otherwise.
4. Growth in mobile app downloads
As per the industry report, the number of mobile app downloads in India is expected to grow from 1.56 billion per annum in 2012 to 9 billion by 2015. It witnesses a compound annual growth rate (CAGR) of about 75 percent. The study also reveals that most of the apps are downloaded by users in the age group of 16 and 30 years. The eCommerce retailers lure the consumers for downloading Apps of their brand by offering discounts and deals for making purchases via their Apps. Retailers are paying more attention to web platform on mobile apps.
5. AFFORDABLE mobile data plans
The availability of cheap mobile data plans is grabbing the attention of mobile users as they can browse internet at a cheaper cost and shop at the same time. According to Analysts, this will further boost internet usage and e-commerce sales via smartphones.
All the leading Indian eCommerce players like Snapdeal, Amazon and Flipkart are bullish on their Mobile App approach to win e-commerce battle. This is not only increasing their visibility but also increasing their online sales and target audience.