M-commerce, the big leap soon?
Ira? Won’t go? Some people are (still) reluctant to get into m-commerce: only 54% of French merchants would be ready to invest in this direction according to the “m-commerce and you” survey conducted in mid-June by Rakuten among 263 merchants in its region. marketplace PriceMinister.com. In France, m-commerce turnover increased by 120% in the first quarter of 2013 according to the Federation of e-commerce and distance selling (Fevad). Update on an estimated market to 23.4 billion euros in Europe in 2014.
A growth driver for e-commerce
In France, sales via fixed Internet should grow by 9% in 2014 against 105% on smartphones and 109% on tablets according to a study carried out by the Center for Retail Research for RetailMeNot published last April. The growth of e-commerce is therefore mainly driven by mobile. Moreover, the French should spend 4.2 billion euros on mobile in 2014, according to the same study, an increase of 106% in spending compared to the 2 billion spent in 2013. Between 2011 and 2012, they had already increased by 150%, from 400 million euros in revenue to 1 billion euros in 2012.
In fact, if at the beginning of the 2000s, hardly anyone was still talking about mobile commerce, in 2020, it should weigh as much as e-commerce on fixed terminals worldwide. “Over 20 years, a major paradigm shift is taking place,” observes Renaud Ménérat, president and founder of the mobile marketing consulting agency User Agents and president of the Mobile Marketing Association (MMA) France.
The weight of m-commerce is increasingly important, and will soon be dominant in certain segments. 25 to 30% of Amazon customers buy only on mobile, notes Renaud Ménérat. In France, Voyage-sncf.com is the second brand that concentrates the most mobile traffic (after Amazon): “45% of our audience is made on mobile or tablet and I would not be surprised if at least 2/3 of the traffic will be on mobile within 2 years ”confides Yves Tyrode, general manager of the group, a subsidiary of SNCF. In 2011, 2 million tickets were sold on mobile, a figure that doubled in 2012 and rose to 7 million in 2013.
“Today in terms of commerce, growth comes from mobile. Afterwards, as with other innovations, you have to know how to do things in order: first to develop uses, then traffic and finally turnover ”he recalls.
Vente-privee already made 40% of its sales via tablets or smartphones in October 2013 and “soon enough it will be 90% of our sales that we will do this way” declared last fall the CEO-founder Jacques-Antoine Granjon. Today confirms Xavier Court, partner and co-founder in charge of business development from vente–private: ” this channel generates 40% of turnover. This is true in all countries, and it will continue to grow! “. The share of visits to the site vente–private via mobile exceeds the share of visits via computer, he says.
Another example: au Japan, mobile sales represent nearly 50% of the marketplace by Rakuten Ichiba. “In 2018, the global point of equilibrium between business volumes in e-commerce and m-commerce should be reached,” notes Renaud Ménérat. Suffice to say, tomorrow.
The advance of emerging countries
In this market, emerging countries such as China, India, or certain African countries such as Nigeria have seen their number of mobile users increase significantly in recent years and have even taken a step ahead of Western countries. Unlike those in Europe or North America, consumers have often discovered the Internet directly on mobile. “Developing countries are skipping the fixed Internet revolution to go directly to mobile Internet” observes the president of MMA in France. It is therefore logical that the uses in terms of m-commerce evolve more quickly. A study by KPMG has also shown that, from 2010, the Chinese were particularly adept at m-commerce: 44% of those questioned said that they used their cellphones to make purchases. The Indians were also more than 38% to go towards the m-commerce, against 11% of the French at the time …
In Asia, mobile consumption is also on the rise, and advertisers seem less cautious than in the West. In China for example, the smartphone manufacturer Xiaomi (now Mi), and the publisher of the WeChat application have already spent partnerships for flash sales. Xiaomi sold 200,000 smartphones in less than 3 minutes in one of them, in the fall of 2013. M-commerce, a new means of monetization for social networks and instant messaging applications? Probably. With mobile traffic exploding, mobile advertising is following the same trend, but this is not enough to generate high revenues, m-commerce by flash sales, via BtoBtoC marketing, could develop.
How to approach it?
These findings, how to replicate these new models? We must “approach the mobile as a full-fledged sales channel” and know how to adapt to a “personalized digitization of the user” believes Jalal Boularbah, in charge of the Master in electronic commerce at the University of Paris Est Créteil Val-de- Marl. On mobile, the mode of purchase is fast, impulsive, but sometimes also qualitative (by augmented reality for example). As with e-commerce on the web, dematerialized products such as music, games or travel tickets are particularly suited to m-commerce. ” Glasses or watches, childcare articles, sports or even High-Tech are among the products most purchased via m-commerce on sale–private »Describes Xavier Court.
The most visited m-commerce sites and applications in France are also – in descending order – those of Amazon (2.76 million unique visitors per month on average in July / August / September 2013), Voyage-sncf (1.88 million monthly VU), CDiscount (1.05 million VU) then Fnac and La Redoute according to Médiamétrie / NetRatings data. On the other hand, m-commerce is less suitable, like e-commerce in general, for anything related to BtoB, the automobile or food for example.
“The mistake that has often been observed is to think of mobile in web ‘less’ rather than web ‘more’. Instead of reducing the size of the catalog on mobile or creating a customer account specific to mobile devices, on the contrary, you have to ask yourself the question: what can I add in addition? »Advises Renaud Ménérat. Once the merchant has found a solution to the basic problems (quick and ergonomic display, payment method, protection of personal data, etc.), he can think about drive-to-store strategies. (Read >> Where are we with the Drive-to-Store?)
A key question: what performance?
The display performance directly depends on the conversion rate. “Users can be on a 3G network or less, so care must be taken to lighten the technical architecture of the site and optimize the size of the media to be displayed in order to reduce loading time” considers the president of MMA France. What Yves Tyrode sums up as follows: “it is fundamental to adapt the ergonomics to each medium, it is certainly expensive to have a development team for each medium, but it is essential given the level of requirement of customers in terms of experience ”.
An adaptation which has a cost, and leads to a certain reluctance of advertisers. “The first obstacle concerns the share of digital budgets allocated to mobile. We are less than 5% in France where the 15% mark is exceeded in the United Kingdom, recalled in May the CEO of the company Ad4Screen, Jérôme Stioui. Therefore, mobile budgets focus on fairly simplistic mechanics. The second brake is linked to the constraints of the mobile ecosystem. The applications have a preponderant weight on the mobile Internet (80% of the time spent, + 60% of the advertising inventories) and require particular technologies ”he specified. Clearly, you have to surround yourself with specialized agencies and technical intermediaries, or create a team from scratch. But beware, proprietary mobile applications are not always a guarantee of performance for many brands, it is undoubtedly necessary to build a brand so that the “downloader” mobile user turns into an active mobile user …
Once these barriers have been lifted, the m-commerce performance curve will undoubtedly be able to take off, and accompany that of uses which, for its part, continues to climb.