Mcommerce Update
posted by Stuart Cumming ~ 26/05/14
Category: Marketing
Like anybody in marketing these days, I'm keen to make sure I'm up with the general trends at the leading edge of digital commerce. 

But two articles just published (on the same day!) had me carefully looking to definitions and distinctions to try and make sense of what's happening with M-Commerce in the near future.Given that the same organisation (Forrester) contributes comments to both articles is even more confusing!

In "Is Enthusiasm for Mcommerce Waning?" Chantal Tode questions whether the initial wave of Mcommerce, driven by the early adopters, is sustainable. That's not to say that growth isn't there, just that it won't be at the stratospheric level (116% up for smartphones in the year to April 2014) currently experienced.

She goes on to note that there is a general belief sales from smartphone or tablet will "always be a percentage of ecommerce sales."

And, as we've noted previously, overall retail sales dwarf ecommerce.

The article quotes Julie Ask, principal analyst at Forrester Research as saying "For a bricks and mortar retailer digital overall is typically a small part of their business.

"Mcommerce is not the biggest opportunity," she said. "For them it is driving consumers in store."

But in "M-Commerce To Be Majority Of E-Commerce by '18" Sucharita Mulpurru, a Forrester analyst, predicts that "percentage" will be a "whopping 54%" of E-Commerce.

Narrowly defined as a sale from a mobile device, this would mean just an increase from 9% to 11% of total retail sales over those 4 years, so it starts to put the various channels into perspective.

In Ask's opinion "In-store is the next frontier or challenge facing many retailers. The low-hanging fruit has been picked."

With so many different options for marketers to spend their dollars my thought is that only very strong business cases will get the requisite funding for mobile.
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