Topic of the week – Mobile Shopping Apps and Trends
We all know what an app is. There seems to be an infinite amount of apps hitting our mobile app stores every day, and retailers play a huge role in that. We have become accustomed to our favourite brands and marketplaces, like Amazon and Shein, having a mobile shopping app for us to peruse. It makes the online shopping experience all the more convenient and tantalizingly available from the home screens of our devices. The mobile shopping app market has seen huge growth over the last few years partly due to the Covid-19 pandemic and the market is expected to generate a staggering revenue of $29 billion USD by the end of 2023. Carry on reading to find out the latest mobile shopping trends and why more retailers should embrace mCommerce and look into apps of their own.
Over time, consumer needs have become more mobile focused, with greater attention needing to be paid to the virtual shopping experience than that of the high street. This has forced retailers to prioritise and rethink they’re digital approaches, with many brands making the move to being available solely online. In 2022, out of all of the different types of apps available, users worldwide spent an average of 13 minutes shopping through an app each day. In terms of average revenue per user (ARPU), the Wayfair app led the pack worldwide in 2022, at $442 USD followed by clothing and accessories giant, Shein with an ARPU of around $360 USD. Overall the market is expected to continue growing year on year with over 30% growth in revenue by 2025.
So what is mCommerce, and what is making it so popular? mCommerce is the shorthand for mobile-commerce and essentially covers the buying and selling across mobile devices like smartphones and tablets. As is always the way with technology, advancements are being made all the time, meaning that there are now more and more features to be aware of when shopping on your phone. With physical stores bringing in less foot traffic than ever, certain companies are now incorporating augmented reality (AR) into their shopping apps, so users can now try on items of clothing and accessories like glasses, digitally using their cameras. Furniture and home décor companies now give users the option to test out a specific paint colour on their walls, or see how a new sofa looks without having to leave the house. AR linked with AI means that customers can find the correct fit, style and colour, and order seamlessly, reducing the need for returns and minimizing the amount of effort needed to make a purchase. AI is also being used to create realistic chatbots that emulate a human customer support agent, meaning that customer queries can be answered efficiently and in a matter of seconds without ever knowing that you were talking to a robot.
Social commerce is another reason why mobile shopping is becoming ever popular, especially amongst younger demographics. In fact 33% of worldwide spending via social commerce was made by Millennials, followed by Gen Z at 29%. Social media companies like Facebook now provide marketplaces and the ability to list your store directly through the app, so users can see a product and buy directly without needing to leave the app. Other social media giants are now following suit, such as Instagram and TikTok. Through these apps, live stream shopping can take place, and the integration with mobile wallets like Apple Pay, Google Pay and PayPal makes the whole process even easier.
Overall the aim with mCommerce is to make the process and slick and seamless as possible, making sure that the consumer has the easiest and quickest shopping experience. All of the above factors need to be considered, and it will be interesting to see where retailers take mCommerce next, so keep your eyes peeled.
In other news
Another high-street victim
After talks to secure a deal that would rescue Wilko fell through, the home and garden retailer have gone into administration, putting around 12,500 jobs on the line. Wilko’s Chief Executive, Mark Jackson stated, “We’ve all fought hard to keep this incredible business intact but must concede that time has run out and now, we must do what’s best to preserve as many jobs as possible, for as long as is possible, by working with our appointed administrators.” Wilko is yet another retailer that has unfortunately been affected by the collapse of the high street, with many other retailers going under.
Medical Courier Drones
After a successful trial run in June, Skyports Drone Services and EMED Group have successfully transported medical supplies in their latest concept project. The project saw over 400 pathology samples delivered from one ESNEFT (East Suffolk and North Essex NHS Foundation Trust) site to another via drone service. The trial lasted 4 weeks, and has set to prove that using drone delivery services to transport medical supplies is not only a viable option, but can improve the services provided to patients and medical and healthcare professionals. Group CEO of EMED Group, Craig Smith spoke about the project, saying that, “Not only does it provide tangible environmental benefits, but it also ensures that vital pathology samples and medical supplies are quickly and effectively transported between points of care with no risk to delays we often experience on the road network. All of this ultimately ensures our communities are that little bit healthier and those with medical needs are diagnosed more rapidly.”
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Mobile Commerce Stats
- Shopping apps are predicted to generate revenue of $38 billion USD by 2025
- 46% of Gen Z consumers in the USA have participated in livestream shopping
- 35% of worldwide consumers prefer livestream shopping due to access to exclusive discounts
- The number of digital payment users in Europe are expected to reach 601 million by 2027
That’s all for this week…
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