M-commerce set to rocket says research

THE value of good brought through mobile phones and tablets is set to rocket, according to research.

A study fron Barclays predicts consumer spending on mobile devices in the North West set to increase by 222% within five years.

Total consumer spending via mobile devices set to leap from £9.7bn today to to £53bn a year by 2024, the bank’s study said.

It predicts too that the influence of mobile on spending is expected to more than double this figure from £18.4bn to £112 billion over the same period. This means that nearly half (42.4%) of all retail sales will involve a mobile device in some way or another, making mobile the fastest growing retail segment.  

In the North West, consumers are set to spend £3.2bn a year within the next five years, compared with the £1bn spent today.

North West retailers will see spend influenced by mobile devices increase by 157% from £1.9bn to £4.9bn by 2019.

Michael Hartig, managing director at Barclays Corporate in the North West, said: “The size of the retail opportunity is clear for all to see. The question every retailer should be asking themselves is what they are doing about it to not only satisfy today’s consumer but, also tomorrow’s”.

The research also reveals the number of tablet users has doubled in each of the past two years, with almost half of adults now owning one, while smartphone penetration has rocketed since 2007 following the launch on the first iPhone. In 2009, 14% of consumers owned a smartphone. By 2014 the number had more than quadrupled to 61% and by 2019 around 75% of adults are predicted to own one.

Hartig added: “While it may be premature to sound the death knell for desktops and laptops nearly half of consumers claim to be shopping far less on these devices thanks to mobile.

“North West retailers must cater for the mobile consumer in order to remain relevant.”