Brick-and-mortar retail as we know it has come to an end. Retailers learned it the hard way and witnessed the fall of the once-mighty Toys R Us and Claire’s. Now, the remaining ones have to understand how the changing consumer behavior paved the way to the demise of the legacy chains. Only then they can foresee where the retail industry is headed and what it means for their business. Only then they can clearly see that mobile commerce is the wave of the future.
Mobile commerce is just getting started
Shopping habits have changed drastically. 15 years ago, consumers used to shop at the local stores. Today, they can shop across channels and from anywhere in the world. They have a lot of choice and they prefer brands that have a truly integrated omni channel experience. While many retailers are still trying to build a strong online presence, let alone merging offline and online channels into a seamless omni channel experience, a considerable share of consumer spending is shifting towards mobile.
In order to better visualize these ongoing changes, let’s take a closer look at the numbers that we have. Research conducted by eMarketer clearly shows how mobile commerce keeps gaining momentum.
When we first look at the retail ecommerce sales worldwide between 2016 and 2021, we see that ecommerce sales is on the rise. In 2016, e-commerce sales is amounted to 1.8 trillion dollars and it made up 8.6 % of total retail sales. Ecommerce is projected to surpass 4.8 trillion dollars and account for 17.5 % of retail sales worldwide in 2021.
In depth analysis shows that mobile commerce has been and will be the driving force behind this growth. Mcommerce almost reached 1 trillion dollars and accounted for 52.4% of ecommerce sales in 2016. It is expected to generate over 1.8 trillion dollars at the end of 2018 and is set to pass 3.5 trillion dollars by 2021, representing 73 % of total e-commerce sales in 2021.
According to eMarketer report; Markets with significant mobile spending include China, Japan, South Korea, the UK and the US. Especially consumers in Asia using mobile payment solutions while making purchases set the pace for the mobile commerce transactions.
Thanks to its leading players like Alipay and WeChat and mobile-first consumers. China alone generated 67.1% of mcommerce sales worldwide in 2017. While the percentage of mobile sales accounts for more than 80 percent of online shopping, mobile sales are projected to rise to 2.595 trillion dollars 2021, up from 909.93 billion dollars in 2017.
In the light of this research, it becomes more obvious that mobile is the highest-growth channel. Therefore, retailers that want to best position their business for the future success have to embrace and invest in mobile. Tomorrow’s winning retailers will be those that understand and respond to the ongoing changes affecting their industry.