Unlocking the hidden gems of mobile commerce in UK 2016
Posted by Audrey Zack on 11 Feb 2016
Mobile ecommerce in UK is the new frontier for many UK retailers. The share of ecommerce transactions has been growing rapidly over the past few years. In 2016, mobile ecommerce is expected to contribute to an even greater share of UK ecommerce transactions. Last years, mobile ecommerce platforms were accounting for as much as a third of all online sales. That trend is expected to grow in 2016 and by 2019, that proportion is expected to hit 40%.
Improving UK Economy
The UK market has been experiencing improvement in the recent months of 2015 and that is expected to continue in 2016. That improving economy will drive many shoppers to make purchases using the new expanded options presented by mobile ecommerce in UK. Many analysts expect the digital platforms to be the key drivers of the retail in 2016 and with the growth of smartphone usage in the UK, retailers can expect mobile commerce shopper revolution this year. In 2015, digital platforms accounted for 14.4% of retail sales, a trend that is expected to grow even further in 2016. Because mCommerce in UK is a fast growing component of this digital revolution, retailers can expect mobile platforms to significantly contribute to a bigger share of the digital sales.
The Fast Growth of the UK Mobile Commerce Industry
Another opportunity that many retailers can leverage in 2016 is the fact that the m-commerce market in the UK has been on a steep growth trajectory in the recent years. It is growing at a faster rate than that of other developed market such as the US and Japan. In 2015, it grew 30% and mobile sales accounted for as much as £19.92 billion. The projects are that by 2019, mobile sales will have hit a high of £37 billion. By 2024, consumer spending via mobile devices is expected to hit £53 billion.
The UK Smartphone and Phablet Revolution
The high growth in the m-commerce in the UK is due to a large part that the UK has one of the most advanced smartphone markets in the world. A large number of UK consumers are adopting the latest smartphones, tablets and phablets. It is only a matter of time before mobile ecommerce in UK enters the mainstream and the majority of UK consumers begin shopping from the convenience of their smart phones. Retailers can leverage this by investing early in robust m-commerce platforms that they can leverage in the near future as the market matures.
The trend towards smartphone purchases is going to be an organic progression meaning many consumers have developed a highly sophisticated relationship with their smart devices and apps that they contain therein. It is only a matter of time before they begin demanding mobile shopping capabilities from the various retailers that are already thinly leveraging mobile platforms for marketing purposes but not for sales. Product purchases made through smart devices will very soon become the norm in the UK.
A positive factor in the UK mobile revolution is that many consumers love tablets which have great mCommerce capabilities. Retailers can work hard in order to leverage the tablet experience by making them more responsive and feature-rich so that consumers can fully enjoy the whole experience.
Millenials Don’t Excuse Poor Mobile App Experience
There is another important rationale why businesses need to invest in a good mobile presence when they are deploying these channels for their ecommerce needs. According to a research by Oracle Mobile, most millenials are unlikely to use a mobile service again if they encounter a poor experience. 48% of the respondents said that they are unlikely to use the business’s other products and services if they encounter the same experience. 31% are unlikely to recommend your products if they encounter a poor experience while 20% will develop a negative view of your products and services from a poor mobile experience. This underscores the importance of incorporating m-commerce best practices when designing a mobile experience for consumers.
Increased mobile banking in the UK
Another important factor running in the favor of many UK retailers that have deployed mobile platforms is the fact that many UK residents are increasingly adopting mobile banking. 42% of consumers in the UK now do their banking on smart devices.
There is every incentive to invest in mobile in 2016. All indicators are pointing to the direction of strong growth in mCommerce. Companies that fail to deploy a robust mobile commerce platform are going to lose out on a very significant market.