M commerce a new differentiator in us retail

M-COMMERCE

– A NEW DIFFERENTIATOR IN US RETAIL August 2013

US Retail M-Commerce Market The US retail Mobile Commerce, also known as M-Commerce market was estimated at USD 24.66 Bn in 2012, which represented 11% of the total retail E-Commerce sales and 0.7% of the total retail sales in the US

As per the outlook is concerned the M-Commerce market is expected to grow at a CAGR of 37.0% during 2012-16, to reach US$86.86 Bn in 2016. Also by 2016, the M-commerce market of the US will represent around 24.0% of the E-Commerce sales in the US M-Commerce penetration will outpace spending in the US. In 2013, nearly 80 million US consumers ~ 51% of online buyers will make a purchase on a mobile device. This number will increase to more than two-third of online buyers by 2017

US Retail M-Commerce Sales by Device

Majority of the retail sales in the mobile category 56.2% of them took place on tablet devices in 2012, followed by smartphones with 40%. The trend will further strengthen in 2016 for tablet devices, which will contribute 70.3% of the total retail m-Commerce sales in the US, versus a little more than a quarter on smartphones

M-Commerce - A New Differentiator in US Retail

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Why US consumers prefer mobile shopping?

Consumer time split while shopping

M-Commerce - A New Differentiator in US Retail

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Additional observations

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“…Just four years ago mobile commerce barely existed. Today, mobile touches nearly one in every three purchases on eBay..”

– Steve Yankovich, Vice President of Mobile, eBay

“…Mobile purchases now constitute more than 7 percent of Target’s digital sales and mobile traffic is now more than 25 percent of our overall digital traffic.

As mobile continues to grow in importance, we’re focused on creating in-store guest experiences and testing new technologies that make smartphones an even more useful shopping companion, with enhanced mobile product search, maps and shopping lists…”

“…With the continuing shift away from desktop to mobile internet use, it is inevitable we will see the latter platform outstrip desktop PCs as the preferred device for shopping online, and from the latest figures it is apparent this may be sooner than expected…”

– Tina Spooner, CIO, IMRG

– Eddie Baeb, Spokesman, Target

Source: All data from secondary sources; Sutherland analysis

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