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Mobile shopping set to take off

Kathryn McConnachie
By Kathryn McConnachie, Digital Media Editor at ITWeb.
Johannesburg, 03 Jun 2011

A recent survey by online retailer Kalahari.net has concluded that the mobile Web has entered the mainstream and SA is ready for mobile commerce.

The Mobile Shopping Survey of more than 6 200 connected South Africans showed that 51% of respondents access the mobile Internet daily. According to Kalahari.net, 26% of respondents have already made a purchase via the mobile Web, while 53% are considering it.

Kalahari.net has recently launched its mobile commerce offering, Kalahari.mobi.

CEO Gary Novitzkas, says: “The number of people accessing the mobile Internet is skyrocketing and we expect it to overtake the PC as the most sought-after way to access the Internet, in less than five years.

“As an online retailer, this has resulted in a new type of browser experience, another channel to market and, therefore, a slightly different sales platform.”

Mobile-only generation

According to Novitzkas, in developing countries like SA, mobile phone penetration outnumbers fixed Internet users 5:2.

“A new generation of Internet user is emerging. Coined the mobile-only Internet generation, they do not, or very rarely, use a desktop, laptop or tablet to access the Web,” says Kalahari.net.

According to local research, 57% of South Africans currently accessing the mobile Internet are mobile-only users. The 2011 Mobility Study also estimates the mobile Internet universe to be at least six million users strong.

“This is a significant figure. It impacts the way we communicate and transact as an Internet-only business, especially when considering that what they see on their mobile phones is all they will see, and that the mobile Internet is not merely an extension of their desktops.

“It is for this reason that we have not simply created a mobile version of the Kalahari.net site, but a standalone extension of the brand.”

However, another finding from the survey was that 37% of respondents felt that the mobile Internet is the future of communication, but a resounding 63% see it as just another way to access the Internet.

Bulldozing ahead

Eighty-nine percent of respondents also felt that accessing the Web via mobile is as safe as accessing it from computers.

“Trust and safety are the catalysts to sales conversion. It stands to reason that if customers feel safe, they are more willing to transact as a further barrier to sale is removed,” says Novitzkas.

Kalahari.net is confident the mobile Internet is “bulldozing its way into the mainstream”, with 51% accessing the Internet via their mobiles every day, 18% every week and 12% every month.

When asked about their brand of the primary mobile phone, 38% of South Africans responded Nokia, 31% BlackBerry, 12% Samsung, 8% iPhone and 5% Sony Ericsson.

“Although Android is touted to garner the most market share in 2011 by both Gartner and the IDC, a quick look at preferred devices of the Kalahari.net Mobile Shopping Survey correspondents show that Symbian remains the prevalent operating system along with BlackBerry and that Android has some catching-up to do,” says Novitzkas.

When it comes to which products are most likely to be bought online, no clear front runners emerged. Applications, flight tickets, airtime, books, CDs and DVDs, music downloads and games were all supported with between 10% to 13% votes. Electronic devices such as mobile phones, and groceries each garnered 5%.

“This highlights the importance of search functionality on mobi sites. Search defines how the end-user interacts with the site specifically because they need to be one screen away from where they want to be at any given point,” says Novitzkas.

Developing market

Forrester Research shows mobile commerce is still in its infancy around the world, with retailers reporting that mobile browsers account for just 3% of site traffic and 2% of revenue.

Long-term growth in mobile commerce is, however, expected to come from developing nations where mobile is virtually the only way to access the Internet.

“Despite the size of the online retail environment in SA, we have proven that we are recession-proof and continue to report growth,” says Novitzkas.

“The Kalahari.net Mobile Shopping Survey shows that South Africans are ready to embrace mobile shopping.”

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