The very fact that Amazon has outpaced every other retailer in the world clearly indicates the growing popularity of IT-enabled shopping options . This of course does not take away the experience that physical stores are giving and which is in fact a big trend for the future . Yet , the convenience of online shopping is also a reality that is giving brick and mortar retail formats a run for their money . And even while e-commerce is still developing roots across all markets and countries , becoming ‘ a must have ’ option for traditional retailers , m-commerce ( mobile commerce ) has already posed a serious competition for digital retail . According to retail analysts , global m-commerce economy is taking over the e-commerce platform and is anticipated to have touched US $ 100 billion at the end of 2017 . It took many years for retail to move from the physical format to the digital platform , but the shift of e-commerce to m-commerce has been extremely fast . This rapid change in loyalties has been boosted by a number of factors , including secure payment guarantee with the use of mobile phones ; intuitive User Interface ( UI ), easy and fast access that is available 24x7 , one touch payment and the enhanced awareness of the internet . On top of this , most retail mobile apps offer attractive loyalty programs that attract customers .
According to market reports , in 2017 over two billion mobile phone or tablet users made some form of mobile commerce transaction , around the world . In the US , mobile devices account for 19 per cent of all US retail e-commerce sales and this figure is estimated to reach 27 per cent by the end of 2018 , which represents 1 out of every 4 US retail e-commerce dollars . This holiday season , the bigger shift
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ESSENTIALS
The biggest m-commerce market place of the future is China . It is predicted that by 2020 , mobile commerce will make up 74 per cent of total e-commerce in the country , outpacing the US growth rate . The base has been laid by the huge popularity of e-commerce here . Last year , Chinese consumers spent about US $ 750 billion online , outspending both US and UK consumers ’ online purchases combined , and beyond that China has been a standout in adopting e-commerce as a driving habit in retail .
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has been towards how consumers are shopping . Purchases made on mobile devices have totalled a record 36.9 per cent of all sales , and 54.3 per cent of all site visits . According to Mickey Mericle , VP of Marketing and Customer Insights at Adobe , “ The big story this holiday season was seen in mobile shopping . Retailers know this is where the audience is now and are delivering better experiences , the gap between mobile traffic and revenue is closing . Also , shoppers looking for discounts are getting better at using smartphones to quickly close the deal , and we saw better mobile conversion this season at over 10 per cent growth .”
Though the trends are strong , e-marketer believes that the US consumer is still hooked to the e-commerce platform with growth in m-commerce yet to match pace with e-commerce growth . In a recent report , e-marketer reports that while e-commerce sales are set to grow to 9 per cent of total retail sales by 2018 , m-commerce still only comprises 27 per cent of the e-commerce projection . In other words , by 2018 , e-commerce sales driven by PC and laptops will approximately be US $ 359 billion sales channel while m-commerce sales ( driven by smartphones and tablets ) will only be an approximate US $ 132.69 billion sales channel . Further , though US total retail sales are projected to grow to US $ 5.5 trillion by 2018 , m-commerce is only set to grow to 2.4 per cent of total retail sales in 2018 .
In the meanwhile , among the fastest developing region for m-commerce is Western Europe , as the region already has a well-developed retail e-commerce market , hence experts predict that most future growth will come from mobile commerce . It also helps that retail sales is on the
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upsurge , primarily due to the fact that despite sluggish employment and wage growth in France and Germany , Western Europe ’ s economy is performing well overall . This will have a positive impact on the region ’ s total retail market , which is expected to grow by 1.6 per cent in 2018 to US $ 3.894 trillion . According to e-marketer , m-commerce will be the biggest driver of retail sales growth across the region , which will rise at a compound annual growth rate ( CAGR ) of 17.8 per cent between 2016 and 2021 . It is also projected that retail m-commerce sales in the region will more than double within the same period to top US $ 200 billion . In 2017 , for the first time , digital purchases accounted for more than one-tenth ( 10.2 per cent ) of total retail sales in Western Europe . This share is significantly higher in the UK , at 21.2 per cent , partly due to large numbers of foreign consumers buying from UKbased e-commerce platforms .
However , the biggest m-commerce market place of the future is China . It is predicted that by 2020 , mobile commerce will make up 74 per cent of total e-commerce in China , outpacing the US growth rate . The base has been laid by the huge popularity of e-commerce in China . Last year , Chinese consumers spent about US $ 750 billion online , outspending both US and UK consumers ’ online purchases combined , and beyond that China has been a standout in
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