Retailers Struggle with the changing M-Commerce Demands

Consumers round the globe are turning to mobile handsets to purchase everything from gift vouchers to flat-screen TVs and retailers around the world are struggling to keep up with the pace of change.

John Lewis has announced that it is going to launch a mobile-optimized version of its highly successful website. In the U.K., majority of retailers are ahead of the curve in developing mobile websites and apps in order to connect the potential of m-commerce, which technology analyst Ovum expectations will bring in US$41 billion in global revenues by 2014, up from US$7.7 billion in 2007.

According to Scott Seaborn, head of mobile technologies at Ogilvy Group U.K., one of the U.K. High Street retailer estimates that it loses 12% of sales from people who purchase via a mobile channel while still in-store. The boundaries are beginning to blur between using a handset and a laptop. Mobile is becoming so significant in human behavior.

Marks & Spencer and John Lewis, the two most established names on the British High Street, are both taking up m-commerce with devoted mobile sites. Marks & Spencer recently sold two sofas for US$5,200 via mobile.

John Lewis has announced that it was launching a mobile-optimized version of its highly successful website and is looking at app development once the site has been successfully launched.

According to Jonathon Brown, head of online selling at John Lewis, the customers appetite for mobile commerce has grown enormously and the company’s focus is on developing a site with a seamless experience. Mobile is a vital part of the vision to become the leading multi-channel retailer in the UK.

According to Marks & Spencer’s social and mobile commerce development manager, Sienne Veit, the company has chosen not to go for apps because they wanted to reach all of the customers. Every person on the U.K. High Street is the customer, so the company doesn’t expect all of them will have the kind of phone that has an app.

According to a survey conducted by France Telecom’s Orange, U.K. consumers are ahead of their European counterparts, which shows that 40% of them have used m-commerce in the last six months, and 40% are likely to do so in the future. In France, only 28% have used m-commerce in the last six months.

The Internet Advertising Bureau asked retailers what was stopping them from developing their m-commerce capabilities.

According to Jon Maw, the IAB’s head of mobile, in the research, 41% of retailers claimed they will have a mobile presence in the next 12 months, but still 39% think consumers are not ready for mobile. They’re wrong. People are comfortable very quickly with buying on mobile [online grocery store]. According to Ocado, 15% of its sales are made or altered through mobile apps. Consumers are willing to buy stuff on their mobiles as long as the experience is a good one.