Apps today are as ubiquitous as newspapers, and cups of ‘chai’ used to be, in the late 1950’s. Buying something rare, pricey and hard to find today, is probably the easiest thing in the world, thanks to e-commerce. Put these two together and (see where I’m going with this…) and we have what can only be described as a match made in retail heaven. E-commerce in India is one of the most hotly contested, high growth industries in India. It wouldn’t be wrong to compare this current boom, to the glory years of the dotcom, where everyone worth their salt was in a SIFY, Infosys, and Wipro. Entrepreneurs of today, seem to think that the e-commerce space has only just started to evolve.
Chirag Alreja of Hitplay Devices, the premier shop for all things quirky says, “What we in India are experiencing today, is only the very tip of the e-commerce possibility. The West experienced this around 10 years ago, and today, is experimenting with newer, by the minute possibilities. We have 10 years’ worth of catching up to do, and app commerce in my estimation is a fantastic way of doing that.” While there are a few in the industry whose opinions differ, the consensus appears to be favourable.
App Commerce: The way forward, but not the only way forward…
Understanding what app commerce is, is crucial to making up your mind about whether it is the sole deliverance for the e-commerce industry. App commerce in essence is the presence of an online stores entire back catalogue, inventory, payment and ordering capabilities and delivery checking and logistics, in a single mobile application.
Now most Indian families today boast of at least one (conservatively) smart device. This includes smartphones, tablets and hybrids. This also means that there exist numerous mobile outlets by which a person could, in theory, shop at any given point in time. This combined with the fact that that every year the country’s existing 975 million smartphone users, get added to by an astronomical 30 to 40 percent, are a valid argument to many that app commerce is the only thing that will act as a positive driver of change and growth in the e-commerce space.
There used to be an old saying, when America sneezes, the world catches a cold. In the Indian e-commerce parlance, the same can be said about Flipkart. The Bengaluru heavyweight has been seen as both the pioneer and innovator in the e-commerce space. Recently, Myntra, acquired by Flipkart, not so long ago, went app-only, to the delight and chagrin of many clientele. There are rumours, and unsubstantiated news, that Flipkart itself was looking to do the same by the last quarter of the current year.
Can an app-only approach serve a company well?
While Flipkart certainly sees, India as moving rapidly from a mobile phone first, to a mobile phone only country, there are others who politely disagree.
This of course also include who many call the progenitors of the e-commerce space (along with Ebay), Amazon. While playing the app-inclusive approach, the company continues to retail off a mobile site as well. A prudent move, considering that the spectrum that rules in the Indian mobile telephony and internet space today, is still 2G. Sahil Dalal of myonsto.com says, “forget South Korea and the States, our internet (terrestrial) speeds are low, and amongst the worst available in developing countries, at such a time an app-only approach, that relies on 3G and 4G connections, that to this point are prohibitively expensive, for most people, could easily spell doom. An app-inclusive model however, is the way to go in my estimation.”
The goal of a business should be to engage with its customers across all available avenues. So why then are some players in the market moving to alienate their customers by literally dictating how and where they should buy their products. From a customer perspective, many individuals are fuming at what they call ‘arrogance’ on the part of certain e-commerce companies. Priyanka Balwa, a media professional had this to say, “The notion that a Myntra, Flipkart or any other brand for that matter can dictate the way I shop, is borderline insulting. My phone’s limited memory is reserved for important stuff, not another e-commerce shopping app. I was quite surprised when some brands went app only. It is all fine and dandy to be looking to connect with more customers, but at the cost of alienating existing customers, seems a little short-sighted.”
Older folks, late adopters of online shopping will be one of the most disaffected, considering their notorious discomfort with technology. The above 40 age bracket, still shows the highest percentage of people using laptops and desktops. Leading marketplace Snapdeal recently, committed its resources and its efforts to engaging with customers across the app, mobile and terrestrial internet touchpoints, based on this very same insight.
So what’s in store for app-commerce?
While there is no doubting the fact that app-commerce will indeed be one of the greatest revenue contributors to the e-tail space in the near future, the overall experience of in-app shopping still leaves a lot to be desired. Mobile shopping apps are plagued by a plethora of problems, from user experience to payment processing, from catalogue availability to checkout. Let’s take a look at these problems, for us to get a better sense of what the space needs in order to become all it possibly can and more, for its parent industry.
For app commerce to become the most important contributor (in our estimation it will never be the only driver) of profit and revenue to the e-commerce space, these issues will first need to be acknowledged, rectified and tested. The future of e-commerce as an industry is pretty bright and in the long run, m-commerce, whether in-app or on a mobile friendly site will flourish. The trick however for many e-commerce companies, will be the balancing of the baskets, between traditional terrestrial internet, mobile friendly site and in-app shopping.
The way forward: Apps and flash sales
Discounting began as a way by which e-commerce started beating back traditional retail. Very soon traditional retailers couldn’t seem to fathom how to keep pace with these new kids. In the age of app-commerce however, flash sales and disruption are no longer gimmicks, but established ways of business. Apps therefore are excellent tools that will enable e-commerce stores induce more sales. If you have a great deal come your way, by simply downloading an application, wouldn’t you? This is a tactic that sites like Flipkart and Myntra are hoping will popularise and make app-commerce and app-only shopping the norm, rather than the exception.
Conclusion:
The app-only approach isn’t an unmitigated disaster, but it isn’t the resounding success that many e-commerce companies were hoping it would be. It is however possible, that mobile apps in conjunction with traditional terrestrial, mobile sites and other avenues, will be one of the industry’s most significant drivers of profit in the long run.
