Retailers aren't equipped for m-commerce growth
Posted on in Business News
Consumer spending on mobile devices will top £53.6 billion a year by 2024 compared to the £9.7 billion spent today - but 70% of retailers aren't prepared.
According to the M-Commerce Survey, carried out by Conlumino on behalf of Barclays, mobile commerce will grow 450% over the next ten years, accounting for £53.6bn annually by 2024.
Despite this forecasted growth, only 30% of businesses said they offer a mobile website or app for customers, and just over one third (34%) plan to invest slightly or substantially more in mobile over the next five years.
However, the research by Barclays shows that the influence of mobile on spending is expected to more than double this figure from £18.4 billion to £112 billion over the same period. This means that over 42% of all retail sales are expected to involve a mobile device in some way or another, making mobile the fastest growing retail segment.
Richard Lowe, managing director and head of retail and wholesale at Barclays, said: "The size of the retail opportunity is clear for all to see. The question every retailer should be asking themselves is what they are doing about it to not only satisfy today's consumer but, also tomorrow's."
The number of tablet users has doubled in each of the past two years, with almost half of adults now owning one, while smartphone penetration has rocketed since 2007 following the launch on the first iPhone. In 2009, 14% of consumers owned a smartphone. By 2014 the number had more than quadrupled to 61% and by 2019 around three quarters of adults are predicted to own one.
Lowe continued: "While it may be premature to sound the death knell for desktops and laptops nearly half of consumers claim to be shopping far less on these devices thanks to mobile. With new gadgets and gizmos such as the Apple watch being launched all the time, this trend will inevitably gain momentum.
"There is also a lingering notion that mobile shopping is bad for store retailing. The physical high street store still has a fundamental role to play and the development of hybrids such as click and collect has conclusively demonstrated that stores can be supported rather than hindered by the growth of digital commerce. Inevitably practices such as ‘showrooming' leads to some sales shifting online but, with almost three quarters of consumers using their mobile devices whilst out and about, ignoring this trend would be a missed opportunity."
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