5 Charts That Prove App Model Is The Way Forward For Ecommerce In India

Report by Nielsen Informate Mobile Insights state that app model is the way forward for eCommerce in India in 2015

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Ever since Myntra decided to shut its website and go for an app-only model, several debates have been triggered on whether it is a brave or a foolish move. Mobile is sure driving the economy but can we forget desktop for online shopping completely?

While this debate was on, Flipkart announced that it is also following the same path and has decided to go app only for its eCommerce business from September. In fact reports have been floating in the market that Myntra’s decision has been proved wrong and business is suffering.

To pacify the ongoing and growing concerns, CTO Shamik Sharma of Myntra informed TechCircle that Myntra’s transition to the app-only mode is not hurting overall sales. “It’s true that we have lost a portion of our customers due to this app-only approach but I believe that has been compensated by a huge number of people who have come on board on the app platform.”

Strengthening the belief that app model is the future of eCommerce in the country, Nielsen Informate Mobile Insights has released a report on the mobile shopper and increasing incidence of shopping apps.

The report states – “If 2014 was the year when E-commerce finally came into its own in India, 2015 promises to be the year of the mobile shopping app. The Indian shopper is increasingly embracing shopping on the go, spurred by widespread E-commerce campaigns and easy access to smartphones that have seen an explosive growth in penetration. Sale periods are in sync with festivals and public holidays, and along with aggressive app launches and promotions, they have reinforced the growing trend.”

The report further states that number of smartphone users who use shopping apps has jumped to 54% in May 15, from just 21% a year back. In comparison, the growth in popularity of shopping websites has been moderate, increasing from 28% to reach 45%.

Listed below are the major highlights of the report that leverages innovative smartphone metering technology to provide insights into evolving consumption patterns of mobile device users:

1. Growth of shopping apps

According to the report, the number of smartphone users who use shopping apps has jumped to 54% in May 15, from just 21% a year back. In comparison, the growth in popularity of shopping websites has been moderate, increasing from 28% to reach 45%.

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2. Women spend more time on shopping apps

In the early days of online commerce, a widespread belief was that women will adopt and drive mobile shopping. However, up until a few months ago, it was actually men who were driving the adoption and growth in mobile shopping.

In the past 2 to 3 months however, women have caught up and today they spend 16 mins a month more than men on mobile shopping apps.

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3. Non-Metros driving higher engagement

The report further highlights an interesting data that non-metros are slightly more engaged on shopping apps than users in metros. The former has limited shopping alternatives, especially in the electronics and apparel category, although the latter has a higher spending power. The cash-on-delivery option is also a driver of small town adoption for shopping apps.

In addition to this, users with more expensive handsets, those exceeding INR 15,000, spend 1.6x the time on shopping apps compared to those with cheaper phones. Higher time spends can be loosely correlated to higher spending power in mobile shopping.

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4. Flipkart leads in mobile shopping apps

For the month of May, 15 Flipkart leads in mobile shopping apps both in terms of penetration (35%) and engagement (60 minutes per month). Snapdeal is a close second with a penetration (20%) and a user engagement of 35 minutes a month.

Flipkart_Shopping_App_Data5. Festivals increase app downloads

In 2014, there was an increased push on sales and marketing around the festival period and national holidays. With ecommerce players pushing the usage of mobile apps through added discounts, app installations often increase around days on which sales are held. Downloads significantly ramped up—even tripled —during sale periods.

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