- Vivian Hendriksz |
London - Mobile commerce is set to become the new channel for luxury, VIP shopping, as millennials continue to shop from their smartphones. However, the UK is lagging behind the rest of the world when it comes to offering a premium shopping experience via mobile app, according to new research from Worldpay. 37 percent of British consumers prefer to shop via mobile browser over mobile app - more than any other country globally.
While mobile apps remain the channel of choice for the majority of consumers, competition within the app space is only getting tougher in the UK. After surveying more than 16,000 people across 10 countries to uncover the mobile spending habits, the Worldpay’s report ‘The Mobile Payment Journey’ found that Brits have just 7 apps downloaded on average in comparison to the global average of 10.
“The UK mCommerce market is one of the fastest growing in the world, but it is also among the most demanding”
When it comes to mobile shopping, trust was found to be a key factor in the UK market with 77 percent of shoppers only downloading and using apps from brands they know and trust - more than the 71 percent of shoppers from around the world. “The UK mCommerce market is one of the fastest growing in the world, but it is also among the most demanding,” said Shane Happach, Executive Vice President, Head of Global Enterprise eCommerce, at Worldpay, Inc in a statement.
“Consumers are reluctant to download new apps, and quick to axe those that don’t prove valuable, meaning it is no longer enough for brands to develop an app for purely functional purposes. Our research reveals the number one reason for smartphone basket abandonment in the UK is a long checkout process, which serves as an important reminder to merchants that the latest in smartphone technology, from fingerprint scanning to facial recognition, can help create a faster and friction-free user experience.”
As UK consumers become more selective about the apps they choose to download and use, there is also an increasing demand for brands to offer a more luxurious and personalised shopping service via their mobile app. The study found that 31 percent of UK shoppers are willing to pay more for a product of service if the mobile shopping experience is better.
Millennials will to pay premium for luxury, 'concierge' customer service via mobile commerce
This number increases to 43 percent among millennials, who are the most willing to favour and shop from brands which offer a luxury, five-star shopping experience. The rewards for brands who are able to offer the right mobile shopping experience are tremendous - nearly one-quarter of the respondents said they spend more than 50 pounds on their last mobile purchase. “We also found that time-strapped shoppers are increasingly turning to their smartphones for a ‘concierge’ style service – and they’re willing to pay a premium for it,” added Happach. Luxury online retailers such as Net-a-Porter and Farfetch have excelled in this area by extending their services from their online platforms to their mobile apps.
“The beauty of technology advancements means that there are more opportunities for virtual assistants and connected devices to make consumers lives easier. Brands that focus on offering consumers a five-star personal shopping service from their pockets, and an increasingly invisible checkout process, will see fewer abandoned baskets, more app downloads, and increased sales of more valuable goods and services.”