Mobile technology is changing the way consumers research, purchase and pay for goods and services. Additionally, mobile commerce is evolving as consumers, phone manufacturers and carriers are now battling banks, credit card processors and POS systems for control of the ecosystem.
The GSMA (Groupe Speciale Mobile Association) projects smartphones will replace feature phones as the price point drops around the world. They also forecast that the adoption rate of smartphones will effectively double to 6 billion by 2020 (excluding M2M). The number of smartphone connections will grow three-fold over the next six years.
Currently, e-commerce accounts for 14% of global commerce (global e-commerce is forecast to reach more than $1.5 trillion this year). The pace of growth will vary by region -- Asia Pacific is predicted to grow nearly threefold by 2017, while North America is likely to be somewhat slower, as North America is starting from a higher base, having been the biggest market worldwide as recently as last year.
Mobile commerce is forecasted to more than double from 2014 to 2017. By 2017, m-commerce is going to comprise between 20% to 33% of all e-commerce. The proportion is likely to be somewhat higher in the more developed markets.
While 2G is still the dominant technology in emerging markets, it is quickly being replaced by 3G service. The two main factors contributing to the shift to 3G are a rapid consumer adoption of smartphones and the decrease in smartphone prices. The expansion to 3G will help facilitate the growth of commerce in emerging markets.
As the power shift happens, brands must develop new strategic partnerships to remain relevant and in control of the consumer experience. This is a time of great opportunity for brands to capitalize on this market shift.
Dan Hodges is CEO and Founder, Consumers in Motion LLC. He can be reached email@example.com
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