Dubai: Mobile devices are beginning to dominate the commerce landscape and retailers who can capitalise on this trend will be successful at driving transactions for the shopping seasons to follow, according to a new report by performance marketing technology company Criteo.
The analysis of its first half of 2016 State of Mobile Commerce Report, showed that the share of mobile transactions in the Gulf Cooperation Council countries (UAE, Saudi Arabia, Kuwait, Qatar) is 43 per cent, which is four per cent higher than the worldwide average of 39 per cent.
The GCC share of mobile transactions is fourth highest globally – after Japan, the UK and South Korea.
The report showed that 86 per cent of transactions in the GCC take place on smartphones, ranking the region No 2 worldwide, in contrast to just 14 per cent on tablets.
“As retailers evolve their mobile shopping platforms, mobile commerce has reached a turning point and is surpassing desktop purchasing. Middle Eastern markets witness some of the highest smartphone penetration in the world, and retailers must ensure more products are made available online, as well as create a seamless experience for consumers,” said Dirk Henke, Managing Director Emerging Markets, Criteo .
Currently, he said the GCC is second in the world in terms of smartphone share among mobile transactions. Keeping this in mind, brands have the opportunity to master this trend and have a head start on competitors, should they choose to utilize it.
“The number of shoppers going online, be that via desk top or mobile, to both browse and purchase products continues to grow with a higher rate of transactions captured on mobile devices than via traditional purchase paths,” he said.
He said that retailers who have optimised their mobile shopping experience accordingly - both in-app and on mobile web – are pulling away from their competitors and continue to see strong traction from consumers:
The smartphone continues to expand its prominence as the go-to shopping device, especially as features like fingerprint recognition make transactions effortless, while tablet purchasing steadily declines.
As more retailers design mobile-friendly sites, mobile transactions are steadily increasing. All retailers should ensure they have a mobile-centric marketing strategy that embraces in-app and mobile web to meet their smartphone-focused audiences:
For the first time ever, smartphones delivered the majority of mobile transactions in every major global market , the report said.
Brands that can deliver this feature-rich environment and create a unified, consistent and relevant experience for shoppers regardless of device will succeed in driving retention and conversion rates:
Retailers with a sophisticated mobile app presence saw up to 54 per cent of their mobile transactions generated in-app in second quarter of this year, an increase from 47 per cent in 2015.
Apps close far more deals than other online shopping channels and convert three times more shoppers than mobile web.
For the first time, mobile apps saw higher order values than desktop and mobile web, with an average of $127 spent in-app versus $100 on desktop and $91 on mobile web.
