CHART: Mobile Commerce Continues Its Massive Rise

June 7, 2013 Leave a comment

CHART: Mobile Commerce Continues Its Massive Rise

Josh Luger | Jun. 6, 2013, 2:15 PM | 94 | 

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As recently as late 2010, mobile commerce was only 3% of e-commerce. But, that number has steadily been on the rise. At the end of last year’s holiday shopping season, that number it had soared to 11%. That’s approximately $18.6 billion in consumer spending – and that doesn’t even include travel-related purchases. Thanks in part to a new ecosystem of retail and shopping apps, mobile-generated retail spend could rise to 15% of retail e-commerce by the end of this year.  In a new report from BI Intelligence, we examine the why mobile commerce is exploding and dig deeper into the numbers underpinning the explosive growth. We also analyze the growth and success of new mobile merchandising trends — merchandising being the art of selling people products they didn’t know they wanted — like mobile catalogs and coupons. Here’s a few reasons why the number should continue to rise dramatically:

Currently, 54% of adults in the U.S. own smartphones and about 25% own tablets. In roughly three years, the number of tablets alone will overtake the number of PCs. By 2016, about 450 million tablets will be sold annually worldwide.

Statistics already show that a disproportionate share of mobile traffic to e-commerce websites comes from tablets. With only a 25% penetration rate, tablets account for well over 40% of mobile traffic to e-commerce sites. 

For close to 50% of 12-17 year-old smartphone owners, the smartphone is their primary internet access device. It follows that for younger consumers mobile commerce and buying via smartphones and tablets will be a habit and much less of a novelty than it is for older consumers.

Mobile commerce is driving incremental e-commerce revenues that would not have happened without the availability of tablets and smartphones as new shopping mediums.

Filed under TMT Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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