Why are e-com firms suddenly in a tizzy to go mobile-first?
The Internet space recently saw two major developments. Numerous e-commerce firms are talking about concentrating on the mobile, aka smart-phone space, and discarding other bigger-screen platforms. This is of course thanks to a substantial increase in traffic and transactions from mobiles, especially from tier II and tier III cities. Secondly, Google announced that it would give higher ranking to mobile-friendly websites in its search results.
A few questions arise in light of these events. While it is clear that smart-phone penetration in India has been deepening, why are e-commerce companies suddenly in a tizzy to go mobile-first? How are they planning to expand their outreach — by going app-first or app-only, without a mobile website? Remember Google's new search regime requires a competent mobile website. Finally, how relevant does the desktop remain in a scenario where the mobile is fast becoming the primary point of access to the Internet?
The Mobile Internet in India Report 2014, released by IAMAI and IMRB International calculated that India would have 213 million Internet users in June 2015 from 173 million in December 2014. However, 75% Indians own a mobile phone, and 15% have access to a broadband connection (Indian Mobile Network survey). The 'mobile-first internet user' seems to be a rapidly expanding category with little competition and e-commerce companies are bidding to loop in these new users while maintaining the existing ones.
A possible reason why the 'app over mobile website' approach is gaining ground there is that the mere presence of the icon on a personal cell phone makes the brand easier to recall. Rohith Bhat, software developer and founder of Robosoft Technologies, substantiates, "If your company's icon is able to get itself onto a smart phone's limited capacity, there is a high chance that the consumer will grow habitual of its usage — not only to shop, but to browse during leisure time too, like window-shopping via the phone."
Enhancing this personalized relationship between the brand and the user is the 'push notification.' "Every phone has a unique device ID, which the app can harness to understand consumer behavior even when it is inactive. The app can combine a massive amount of information — like if the user spends a lot of time on social networks — and send targeted notifications. A mobile website does not allow for this level of sophistication as it uses cookies to gather data," adds Bhat. Smart phone users are accustomed to checking notifications as soon as they pop up — this works in favor of e-commerce apps too.
Further, e-commerce firms are looking to convert 'traffic' into 'users' by attempting to combine producers' interests with enhanced user experience. "An app's user interface is built with the singular focus of facilitating the customer to checkout smoothly. So they choose a product and there will be an immediate checkout option enabling them to seal a transaction right away," explains digital strategy specialist Prasanth Mohanchandran.
However, a silent tussle seems to be brewing between e-commerce and Google. E-commerce firms today have the option of bypassing the traditional mode of internet discovery altogether. Sanjay Sethi, co-founder of Shopclues argues, "The advent of apps has made possible circumventing the search process altogether. Different apps for different things get the job done, making browser search less relevant."
Therefore, applications are giving Google a run for its money by making the type-and-search route dispensable and by costing Google the revenue for Internet ads. Having been the de facto standard for entry into the Internet for many years now, the application-regime is perhaps emerging as a challenge to Google's monopoly; and in an attempt to face up to the challenge, Google is wooing users by promising a quality mobile experience.
E-commerce firms are looking to create a base of picky, loyal customers and Google search is a liability they want to mitigate. Nilesh, a frequent online shopper claims, "The real reason to do away with desktop and mobile sites is to stop getting captured in search results of price comparison sites like Junglee. Looking at Indian customer's preference for price and total lack of loyalty to any e-commerce brand, they search for the product and then click on the link that gives the best price."
Laptops and desktops are an expensive way to go online and this realisation seems to be catching up with companies like Flipkart. Describing its recent move to shut down its mobile website, Flipkart said it was taken "to focus more on the app experience. However, our desktop continues to be available for now." Going full-throttle app-only does not seem to be off the cards then.
However, despite its growing popularity at developers' end of the spectrum, how well placed is a decision to go from 'mobile-first' to 'mobile-only'? "Mobile site would offer flexibility to users irrespective of the phone they are using," says Shreyas, a user whose views resonated with many low and middle-range smartphones users who have reservations about downloading separate apps as clutter tends to slow the phone down. "Many of us search and select products from (desktop) websites and pay later using mobile," rues Shobhit. Woes about the convenience of browsing on the desktop being taken away were common. Varun Mathur questions why not let consumers have the best of both worlds, "The web is a more comfortable channel to explore a broad array of options! Mobile can provide instant fulfillment (through quick checkout). So why curtail choices for the users?"
Despite the lack of a concrete survey, it appears that the desktop still has a place and utility for users. "It does not make sense to force customers into a corner to make a choice," says Subramanya Sharma, CMO at Cleartrip. "From an economic rationale, it may make sense to shut down the website; but we need to understand that consumers from different backgrounds are accessing the internet."