M-commerce sales set to double

• Just 2.1% of UK adults shop via their mobiles;
  
• UK m-commerce market worth £122 million in 2009 vs £21.2bn for total e-commerce;
  
• Mobile shopping sales set to more than double in the next three years to £275 million;
  
• Mobile plays 'integral role' in overall shopping experience.

Verdict's consumer research shows that while 28% of the UK adult population had internet access on their mobile in 2009, just 2.1% used this access to shop online. However, with internet-savvy consumers now accustomed to the multichannel environment, they are beginning to embrace m-commerce.

Verdict estimates that in 2009, internet shopping sales via mobiles was worth just £122.9 million (About R1.374 billion), 0.6% of total £21.2 billion (about R237 billion) online retail spending. At present, rather than shop, it is clear that consumers are using their mobiles to enhance the shopping experience by comparing prices, researching products and interacting with retailers. Indeed, the findings of Verdict's consumer research reveal that 11.5% of all UK shoppers are using their mobiles to research before shopping, while 3.8% use them to research, engage and interact with retailers while out shopping.

M-commerce can provide consumers with more

Malcolm Pinkerton, senior analyst at Verdict Research, said: "Consumers are not spending significant amounts via mobiles and, for now, we believe the true potential for m-commerce is to provide consumers with a valuable tool for research, comparison shopping and retailer interaction."

Christine Bardwell, senior retail technology analyst at Ovum, added: "The opportunities are there for the most proficient multichannel retailers to claim a share of the growing cross-channel expenditure by exploiting the possibilities provided by mobiles to seamlessly link the online and in-store environments."

By 2013, internet sales via mobiles will have doubled to £275 million (about R3.075 billion), driven by a 119% rise in the m-commerce population, improvements in mobile technology, better interoperability and greater take-up of smartphones and Android devices.

Verdict and Ovum believe that though m-commerce will still not have become a significant channel by 2013, its effectiveness as a marketing tool and way of interacting with customers will have increased substantially, providing a massive boost to sales growth across all channels.

"As consumer affiliation with m-commerce increases, retailers will need to decide if they're going to be pioneers in the market and meet consumer expectations, or wait and risk being behind the curve as many were with e-commerce", added Bardwell.

Pinkerton concluded: "If correctly implemented, m-commerce will not only ensure the needs of tomorrow's shoppers are met today, but also that growth is maximised across all channels."

This articles was published by Ovum and Verdict, both part of the Datamonitor group of companies.

Mobile is not simply a sales channel

Ovum and Verdict Research consider m-commerce to be a broad term that encompasses all forms of interaction with a consumer via a mobile device, such as issuing electronic coupons, providing loyalty and creating dedicated websites that are specifically designed to facilitate mobile browsing.

Mobile is not simply a sales channel; it is about enhancing the multichannel customer experience. Although mobile revenues are growing at a rapid rate, the real potential for mobile lies in creating a seamless customer experience across all retail channels, providing an opportunity to maximise growth across a company's store and online businesses. Although Apple's iPhone is the clear first choice of platform when it comes to retailers developing their first application, retailers should involve all potential mobile assets in m-commerce strategies. The iPhone is not the only option.

The joint report, entitled Mobile Commerce: Meeting the Demands of Tomorrow's Consumers Today, takes a high-level look at the market potential for mobile commerce (m-commerce) in retail.