Mobile Commerce’s Role in India's Digital Transformation 

Authored by Mr. T.P.S Oberoi, Founder Director, m1Order

M-commerce is a boon for the startups as with low capital and in need of fast growth, mobile is the best platform for economic campaigns. Yet, m-commerce is not a foolproof plan as many startups have gone through that path and ended up naught.

"E-commerce is ruling the roost of late with the rise of a hectic lifestyle and monetary capacity of the urban mass, the convenience of these e-commerce sites have been sought as a blessing in disguise. One click and the object you desire is at your doorstep, as most of the e-commerce work on the 1-2-3 step model."

The 21st century is the time for digital commerce to flourish with ever transforming market and demands for a more seamless experience, companies are finding new innovative ways to sell their products. Digitalization has slowly replaced other means of communication, with the advent of Facebook and other social networking websites. You get to cover a large base in a lesser time. For startups and young companies having limited capital to spend on marketing, digital marketing is the only money-saving method to get their message across large consumer base, in half the time. Unlike traditional media, with the right setup, it is easy to venture into digital. You can achieve a lot with nominal efforts here, which has levelled the uneven playing field between big and small companies i.e., there is no “big fish” there as companies of every size have a fair chance in minting gold.

In India, digital is going huge, due to the great rise in users. Since India is a 3rd world country, how is that possible? According to statistic, India maybe less on GDP but due to the influx of low-priced Chinese smartphones, the mobile market has drawn to an open ground. Therefore, the rise of mobile users has been on a new high. Every house may not have a machine but every household has at least two smartphones in use. In fact, in surveys, a staggering 900 million users are online through mobile. So what do these 900 million users look for?

M-Commerce

E-commerce is ruling the roost of late. With the rise of the hectic lifestyle and monetary capacity of the urban mass, the convenience of these e-commerce sites have been sought as a blessing in disguise. One click and the object you desire is at your doorstep. As most of the e-commerce work on the 1-2-3 step model, it’s so simple that you don’t need the great technological know-how to avail it. Initially, e-commerce was restricted to the Tier 3 cities, catering to the urban crowd. But slowly as the capital began to flow into the suburban and rural areas more people of the suburbs started demanding for a reach in their tier 2 and tier 1 city. Thus, bases were spread out to the suburbs. For these tier 2 and tier 1 cities, the access to such websites is through their mobile phones. Also, the era of smartphones and the “app” business have given m-commerce an entity of its own

Here are a few factors that work in favour of m-commerce:

Instant connectivity: Due to the introduction of GPRS, constant connectivity is ensured. Assistance is provided 24x7 and deliveries can be made at any time. The mass prefers staying ONLINE in the fear of missing things out and this factor caters to that irrational fear, providing the mass gratification for their needs.

Personalization Factor: With smartphones being present in every household, information on individual purchases has been possible. The success of these e-commerce companies is through the personalized services they provide by keeping CRM databases on every transaction of the consumer.

Mobility factor: Unlike the hardware heavy personal machines, mobiles are easier portable and occupy less space. So one does not need to rush to the nearest PCs for any monetary transactions. E-banking and E-transfer are possible now through designated applications built and hence accessibility is high.

Immediacy: Here, the call-to-action and the process of going through a purchase can be made on a more streamlined form. Certain products like readymade food and medical equipment need immediate purchase and delivery. Here, immediate queries do have quick solutions delivered across.

Localization: Again, with the help of GPRS, companies can target their audience on the basis of their geographic location. This helps in providing customized services, keeping location in mind. Certain products and ventures need a locally catered target audience. Also in a diverse land like India, the language barrier has slowly been disseminated due to language based campaigns according to the regions.

Cheap cost of connections and handsets: The fair pricing of mobile connections and the introduction of Chinese smartphones into the Indian market, now every household owns a smartphone or two. Also, the aggressive marketing of smartphones by the mobile manufacturing companies has transformed the smartphone from a luxury to a necessity.

Reach factor: The widespread reach of the mobile phones makes it a profitable venture to invest. The combination of the above factors ensures that even rural India stays connected to this vast web of information. In fact, the spread of mobile phones is greater than that of televisions and transistors have been replaced by radio in mobile and hence mobile has slowly grown into a symbol of connection amongst people of this era.

M-commerce is a boon for the startups as with low capital and in need of fast growth, mobile is the best platform for economic campaigns. Yet, m-commerce is not a foolproof plan as many startups have gone through that path and ended up naught. Hence, a certain amount of gumption and luck, with an idea of how to capitalize into SMS promotions and mailers, with time-to-time app updates ensure the success of the m-commerce venture.

It is safe to say that certain risks are worth taking and the M-commerce gamble perfectly provide rewards to Indian digital-sphere.