<div>E-commerce companies are developing mobile apps to tap shoppers on the go, targeting customers in the 18-34 age group. </div><div> </div><div>The number of smartphone owners using mobile apps of e-commerce companies has gone up from 1,680 (21 per cent) in May 2014 to 4,320 (54 per cent) in May this year, based on real-time mobile usage data across 8,000 handsets in the country, said Nielsen Informate Mobile Insights. However, the growth in popularity of shopping websites has been moderate, increasing from 28 per cent to reach 45 per cent.</div><div> </div><div>Surprisingly, the data also shows users in non-metros are slightly more engaged with shopping apps than those in the metros—they clocked an average of 116 minutes per month, compared with 109 minutes per month by users in smaller towns and cities.</div><div> </div><div>With traffic from mobile devices on the rise, e-commerce businesses are pushing users to download apps by offering app-only discounts or discontinuing mobile phone websites.</div><div> </div><div>India’s largest e-commerce firm, Flipkart, led the pack for mobile shopping apps both in terms of penetration (35 per cent) and engagement (60 minutes per month). Snapdeal was second with a penetration of 20 per cent and user engagement of 35 minutes a month. Amazon India Shopping, a recent launch from Amazon India, has quickly climbed up the ladder to reach the third spot with a reach of 17 per cent and user time of 37 minutes per month.</div><div> </div><div>There are now reports that Indian e-commerce is ahead of China and the US in sales from mobile phones and apps. Alibaba, the Chinese e-commerce giant, receives around 30 per cent of its gross merchandise value from mobile phones and apps. The majority of Indian e-commerce firms report over 60 per cent sales on non-desktop platforms.</div><div> </div><div>With more than 900 million mobile phone users, India is the second-largest mobile phone market in the world. Only around 10 per cent of the phones used in India are smartphones, but that number is growing rapidly. By 2020, analysts expect the number of smartphone users in India to jump five times and bolster the country’s nascent online retail industry, according to a report in <em>The Wall Street Journal</em>.</div><div> </div><div>A recent report by consultancy firm KPMG states that mobile commerce is likely to overtake e-commerce in India in the next few years. "It is estimated that mobile app downloads will grow six-fold by the end of this year to 9 billion apps," it says.</div><div> </div><div>While the Web vs App debate rages, many industry insiders are sounding the death knell for the Web. Research also shows that customers find apps more engrossing. Analysts are of the view that running three separate sections — a website, mobile site and apps — requires financial and human resources. With people opting for apps, the companies believe that is the area they need to focus on.</div><div> </div><div>These developments mark a trend that experts say is here to stay. Being app-only has many benefits as well. Consumer behaviour research done in India has shown that consumers prefer to use mobile apps on smartphones rather than a mobile browser. The key reason is: the customer is no longer required to remember the store specific URL or make an effort to log in. Users just click the app icon and they see products or deals based on their preferences.</div><div> </div><div>At present, many e-commerce and retail industry analysts see online companies’ decision to go mobile app only is risky at a time when India’s e-commerce industry — and consumers’ habits of online shopping — is nascent.</div>
