M-commerce spend to hit £19.3bn by 2021
|17 Oct 2011 3:51 BST||Back|
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UK consumers will be spending £19.3bn a year via their mobiles and tablet devices within 10 years, says new research by Barclays Corporate.
M-commerce spend will be 15 times higher than it is today and will account for £1 of every £20 in retail sales, according to the report.
Consumers currently spend £1.3bn using their mobile and m-commerce only makes up 0.5% of total retail spend.
Food and groceries are the most popular categories, representing nearly £300m of spend this year.
Aside from direct spend, consumers are using their mobiles for other stages of their purchases – 52% of them use their mobiles to research or compare products.
Technology advances such as near field communications (NFC), mobile payment systems and faster mobile data transmission will increase m-commerce.
“With little new shop space coming into play, the real growth opportunities lie on the virtual high street,” said Richard Lowe, Barclays Corporate’s head of retail and wholesale. “Those retailers which are prepared to invest will be at a significant advantage.”
M-commerce is set to see growth of 55% over the next five years and will grow more quickly than any retail channel, says the report.
Online sales are predicted to increase by 8% while in-store sales are set to grow by just 1.6%. However, Lowe stresses that m-commerce does not signal the end of the traditional high street.
“The real value to be found in m-commerce is though its role as a multi-channel integrator and the indirect sales boost it generates by connecting physical stores with online,” Lowe said in Talking Retail.