Online shopping has been rolling along in Europe like in the US and much of the rest of the world, both in emerging and developed markets. This is a trend that is showing no signs of slowing down despite still a shaky economic state around the globe and especially in Europe. A consistent bright spot though has been the growth of ecommerce and now with predictions out from Forrester, mobile commerce (or mCommerce) looks to be headed for steady growth as part of that sector as well.
The process of mCommerce specifically through the smartphone (not including tablets) will represent just under 7% of online sales in Europe by 2017. This translates to €19.25 billion or $23.49 billion. As a side note, this statistic illustrates how large the overall market is for online shopping in terms of sales. It is simply an exploding sector of business. These numbers will only look more favorable when shopping from tablets is factored in as well.
The Figures By Year
The report is called the EU Mobile Commerce Forecast: 2012 to 2017 and is clear in its predictions. The following is the set of figures for mobile commerce in the retail, ticket, and travel sectors for the represented span of years.
- 2012, 2.74 euro, $3.34
- 2013, 4.62 euro, $5.64
- 2014, 7.42 euro, $9.05
- 2015, 10.76 euro, $13.13
- 2016, 14.66 euro, $17.89
- 2017, 19.25 euro, $23.49
The average spend of each buyer in this market is expected to rise as well from €201 in 2011 to €227 in 2017, but surprising that is not where the power of the growth comes from. Rather, it is in the increase of overall volume of mobile shoppers that particularly seek lower-cost items.
Reasons for Growth
There are a couple factors in play with this growing trend. First, smartphone growth is a large catalyst as more and more users are adopting the new technology. Reports vary regarding the actual adoption rate for the smartphone across Europe but it is roughly between 45-50% in Western Europe. Beyond the simple increase in the device’s penetration, is the comfort level that consumers will ascertain in the coming years getting more familiar with the processes of using the device for mobile shopping.
It will be become more convenient and shoppers will trust it to greater degrees. As this occurs, mobile shopping will reach mainstream adoption by 2017 and at that time the population that will be buying products will be 79 million up from 7.6 million in 2011.
Additionally, the report indicates that impulse purchases like books and DVDs will be a driver of this growth and location is a big motivator for items that make location relevant like ticketing.
Businesses in this market need to understand that this is a trend that is only going to develop further. Companies that are already engaged in e-commerce should develop m-commerce capabilities if they have not already done so, and businesses who have neither should initiate the development of both. This depends largely on the aims and ability of a particular company to support adding these web solutions, but there is positive potential for many businesses across the spectrum. Those companies selling impulse-buy type products, as detailed earlier with book and DVDs, are especially positioned to receive benefit from this activity.
E-Commerce and SEO agencies that work to redevelop shopping platforms and bring increased numbers of online visitors to it to ultimately increase sales are also positioned to assist in this positive trend. Drawing in the mobile shopper requires a varied tool set that is unique to the standard online shopper because the experience is inherently different.
Reach out to me directly at rbuddenhagen(at)webimax.com or @ryanwbudd for more information about mCommerce growth in Europe or how your business could benefit from adding mCommerce solutions.