International Journal of Research and Development - A Management Review (IJRDMR) _____________________________________________________________________________
A Review On Growing M Commerce In India
1Y.V. Sunil Subrahmanyam, 2Y.S. Srivatsav
1MBA ™ SITM Pune, Maharashtra, India
2B Tech (CSE) GITAM University, Visakhapatnam, Andhra Pradesh, India Email: 1[email protected], 2[email protected]
Abstract — In the recent years, there had been a sufficiently great impact on the adoption of M-commerce in India. More number of users is transferring from desktop to mobile in order to achieve more desirable and effective transaction in the online markets. M-commerce had become prominent in India, swiftly during the past two years. The impressive growth rate in mobile penetration in India is due to increasing number of applications in mobile technology. With the advent of M-commerce, mobile phone in India, which is the most ubiquitous device in every hand, is no more used for just text SMS and a voice call but also used for many other virtual activities. The main objective of this paper is to discover the factors that led to rapid growth of M-commerce in the online retail markets and to identify, how the spectrum of M- commerce in India can be enlarged.
I. INTRODUCTION
E-commerce (electronic commerce) is the process of buying and selling of goods and services, or transmitting of funds or data, over an electronic network. E-retailing is a part of E-commerce, which is a large domain on conducting business over internet. E- retailing process can be simply stated as the digitally enabled commercial transactions between organizations and customers using the web technologies as per the policies of the organization. Ecommerce also includes many other activities, such as business
trading, E banking, E ticketing etc. The increased penetration of smart phones and internet enabled hand held devices have set a massive foundation for M-commerce (mobile commerce) which is nothing but the E-commerce activities carried out via a mobile device.
II. SCOPE
This paper focuses on the benefits and hurdles to M-commerce in India. Research is emphasized upon the factors that prone to the boom of M-commerce. This paper also stresses on the present and future level of M- commerce in India.
III. RISE OF M-COMMERCE:
M-commerce is swiftly overtaking e- commerce business as the existing mode for online transactions. Mobile devices may conceal the desktops in online transactions by the year 2016 as it is noticed that 50 per cent of total online orders are placed from mobiles. Growth in the mobile transactions is progressing quickly and India‟s one of the leading online fashion retailer Myntra, is planning to become a mobile-only marketplace [1]. The online retailers have noticed the remarkable activity on the m- commerce front. Mobile internet users in India are estimated to be 120 million
compared to 100 million users using internet on their personal computers. One of the Indian online retailers Snapdeal declared that 60 per cent of their orders come from mobile and expects to grow even more in the future [2]. With such overwhelming percentages, e- commerce merchants are left with no option but to adopt the mobile.
IV. GROWTH FACTORS:
While M-commerce is growing quickly in urban markets, the exponential growth of mobile internet traffic is witnessed from Tier 2 and Tier 3 cities in India. Since the liberalization of telecom sector in India in 1991, it has registered an unparalleled growth by contributing notably to the GDP.
Globally in terms of mobile subscriptions, India is the world„s second largest wireless market after China.
Rankings Country or regions Number of mobile phones
Population
- World 6,800,000,000+ 7,012,000,000
01 China 1,276,660,000 1,369,811,000
02 India 970,955,980 1,267,402,000
03 United States 327,577,529 317,874,628
04 Brazil 278,480,000 201,032,714
05 Russia 256,116,000 142,905,200
06 Indonesia 236,800,000 237,556,363
07 Nigeria 167,371,945 177,155,754
08 Pakistan 140,000,000 180,854,781
09 Japan 121,246,700 127,628,095
10 Bangladesh 121,860,000 157,497,000
Table 1 Top 10 List of countries by number of mobile phones in use [3]
The factors that are driving customers towards the mobile rather than the desktop in these regions are:
Infrastructure: India is a mobile-first country. It does not have the sufficient infrastructure to serve a billion laptops, but it is well on its way to serving data on one billion mobile phones. Mobile is the only connected device for many consumers in Tier 2 and Tier 3 cities, as well as rural regions.
Affordability: With Android devices ruling the mobile market in India, many people even with low-income is able to afford a smart phone, which is then used as an internet device. According to IAMAI, 65 per cent of internet users are e-commerce customers.
Accessibility: The retail outlets of big brands in Tier 2 and 3 cities are not much in existence. Hence, the online marketplace had become the gateway for many youngsters who want to buy their favorite brands of jeans and T-shirts.
Payment mechanism: Cash-on-delivery has opened up a complete new market for online transactions. Credit/Debit cards can be used for making the purchases, but with cash-on- delivery, the rural population is also able to purchase online. Digital wallets created a new wave in the mobile shopping by providing exclusive discounts and benefits to attract the customers. For example, paytm digital wallet is allowing its users to transfer the amount between the accounts to lure the customers [4].
V. MOBILE ADOPTION
Adopting mobile means, one needs to be able to serve the customers shopping on mobile well. Mobile shoppers are very demanding and impatient, as many users will turn to a competitor if they have a bad experience while shopping on mobile. They will lose interest on a particular site or app if it takes more than four seconds for a page to load and the conversion rate goes down by seven per cent for every second delay in page load time. Hence the online retailers need to put several efforts to please the mobile shoppers and these strategies constitute
“Adopting Mobile”. Below listed ways can help online merchants to adapt mobile
Fast page loads: The online shoppers are more concerned about the page load times. They wish to use the app or site that opens fast than remaining bells and whistles on the web pages. An unpleasant experience with speed can have an unrelenting effect on customer ehavior.
User-friendly interface: Customers play an important role in the rise of mobile shopping than the online stores. Mobile users expect everything to be mobile-ready, and it reflects badly on brands if they haven‟t already taken a step forward to develop their app. It will also help in increasing the sales of the online retailer who have a well-built mobile app targeted app on their brand name.
Native capabilities: Several inbuilt features in the smart phones like GPS, Click- to-call, Camera for barcode scan and more will give unique facility for the online merchants to integrate to their mobile application. Taking advantage of these mobile only features can lead to exceptional functionalities designed to strengthen the user experience
Mobile marketing: Mobile marketing can be helpful at a great extent in
targeting a wide range of customers. The online merchants can engage with the users by sending push notifications, in-app notifications etc. A well-targeted mobile marketing campaign can lead to unprecedented amount of user engagement that was thought impossible before.
VI. DRAWBACKS:
M-commerce should not be considered as e- commerce with limitations, but it should be identified as a form of e-commerce with its own unique benefits. Smart phones and other handheld internet enabled devices differ from PCs in diverse ways. For example, they generally constitute smaller screen sizes and limited input capabilities. There will be different concerns from the customers with respect to security, reliability, download time when there is less connectivity to the mobile [5]. There also includes some drawbacks of M-commerce that acts as hurdles to its growth. Below are some of the drawbacks that affect the expanding of M-commerce in India
Lack of Internet Connectivity:
The internet connectivity at many places in India is still under the dark room and especially, 3G networks are not accessible in many states of our country.
Language Barrier: Most of the population in India wasn‟t aware of English language and it plays a major role in the online transactions for purchasing or selling the products and services.
Lack of Awareness: In India, there exist people who not even know the term M- commerce. Many people in the country, who are literates, feel uncomfortable and afraid to adapt to mobile for purchasing the things online.
VII. LIMITATIONS
Some limitations have been observed while interpreting the findings. The paper only focuses on the M-commerce in India particularly more on online retail marketing.
Since India has a very large market, the small and medium scale online retail companies hold a very good chance of improving their market by adapting to mobile [6]. They need to put innovative ideas and strategies to attract the customer which is to say that M-commerce alone should not be considered as a golden ticket to expand the market by the merchants.
VIII. CONCLUSION:
The telecommunications industry in India had grown rapidly over the time and the world of business have started looking the M-commerce as game changer in the future online market. The industries have to make use of the wireless devices and mobile applications that are evolving at a quick pace. Robust wireless technologies will bring several business opportunities in the coming future and that will help the growth of M- commerce. The strength of the online market place will continue to increase over the time in this internet era thereby meeting both the basic and advanced expectations of the mobile users and providers [7]. The enhanced 2G, 3G penetration and next generation technologies have opened up new possibilities on the M-commerce front. At the same time, the widened gap between the technology and user expectations should be reduced. On the positive note, many network and mobility related problems like slow transmission speed and connectivity were addressed by the mobile operators. Hence M- commerce certainly gains the advantage of the ever growing technology and it can grow more with the strategic initiatives of marketing techniques.
ACKNOWLEDGEMENT
We would like to extend our sincere gratitude to all of them who devoted their time and knowledge throughout the process.
Nevertheless, we express our gratitude toward our families and colleagues for their kind co-operation and encouragement which help us in completion of this paper.
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