Consumers in Europe and in Asia-Pacific not only behave differently, but their behaviours are also changing quickly. With a steadily increasing number of mobile devices and growing acceptance of mobile shopping, the Asia-Pacific market is rapidly moving from e-commerce to m-commerce (mobile commerce).
Digitalization, mobility and connectivity are currently the major trends and drivers of innovation. Consumers in the Asia-Pacific region are shifting from desktop-based surfing to smartphone-led mobile internet use as demand for convenience and speed grows. The rise of m-commerce offers significant growth opportunities - between 40 and 75% annually – to domestic and foreign enterprises.
However, fast-changing trends also make the market extremely volatile. Companies are highly innovative in creating new apps to offer customers more opportunities and services at a very fast pace (hope executives from the Philippine telcos read this and deliver connectivity and speed!).
Continually connected consumers – and all of us are – are turning to their mobile devices to research and complete their purchases while on the go (or sitting in traffic on the way to the office of home). With the trend increasing steadily year on year, and 3G and 4G connectivity continually improving worldwide (in the Philippines also?), it is expected that mobile devices will become an indispensable shopping tool for consumers globally.
Consumers are actively using their smartphones to purchase goods and services or transfer money. New and growing areas in the service sector including finance, education and health are currently being developed. Companies are aiming to be a one-stop provider, combining various functions.
The “WeChat” app, for instance, is much more than a messaging platform. Consumers can use other functions including online shopping, flight and taxi booking services, etc.
What are the challenges ahead? Highly innovative companies can reach out to millions of new users within a matter of weeks to quickly build a customer base. Although foreign companies may find entry into this fast-changing market difficult (because of equity restrictions, like in the Philippines), opportunities do exist in niche markets.
Adjusting to tomorrow’s customers – as well as new regulations, certification, and product accreditation requirements – will be among some of the biggest challenges foreign companies potentially face within the region, including the Philippines.
Mobile commerce acceptance levels (2015):
China70 percent
India60 percent
USA27 percent
Japan24 percent
Germany19 percent