Mcommerce spending to rise in UK

16 November 2012

LONDON: Mobile commerce expenditure is set to rise by more than 500% in the UK during the next five years, a forecast has predicted.

Verdict Research, the insights provider, estimated that the typical mcommerce shopper will spend £905 through this route per year by 2017, a 243% increase from 2012.

Overall, the mobile retail channel will rise by 504% in the same period, meaning it should deliver 25% of all online sales in five years' time.

"Early adopters Amazon and eBay are among the most prominent mcommerce retailers, as their optimized websites and apps expand the online shopping experience, enabling users to access, use and remain updated anywhere," said Matthew Rubin, a retail analyst at Verdict.

Food and grocery brands dominated the mcommerce sector in 2011, yielding 30.1% of value sales, the study found.

Elsewhere, more than 1.8m people acquired music and video content through mobile gadgets last year, presenting rising possibilities for media owners.

"The channel is essential for all retailers with ambitions of long term growth; however evolving technology and the blurring lines between devices means innovation and adaptation is essential to stay ahead of the curve," said Rubin.

A survey conducted by Verdict Research found that 24.8% of shoppers will mostly use their device for research before buying, as this medium impacts acquisitions made in stores or on PCs.

"Spending pressures have led consumers to seek the best value deals through m-commerce, but as the economy improves they will be drawn to the best content that adds value to not only online purchases, but also the in-store experience," Rubin added.

"Third party developers are also playing a divisive role in the channel, not only in promoting special offers but also encouraging the practice of showrooming, which inevitably hinders high street retailers."

Data sourced from Verdict Research; additional content by Warc staff