E-Commerce Companies

Are E-Commerce Companies Right in Choosing the App-only Option?

6 people are having a discussion on the topic (Sahil, Vasu, Muthukumar, Sonika, Shivika, Archit)

Group Discussion Starts
Vasu: Hi All, the topic given to us is: are e-commerce companies right in choosing the mobile-only option? As a customer, I would say, they are not. Apps cannot provide the level of multitasking and user friendliness that a web browser provides.

Muthukumar: Also, mobile apps are still in nascent stage, Is it ready to trust entirely on them?

Sonika: Exactly, on mobile apps we cannot compare a particular stuff, which might be available with various sellers/e-comm websites.

Sahil: Before going into further details, let us see why do it at all? - "if we dont, someone else will!". We have a huge base of 900 million mobile phone users in India.

Archit: That is true, also, India is third largest internet market and is fastest growing mobile internet market.

Shivika: Adding the view-point of an e comm player, it has great possibilities, they say that mobile internet is the future.

Sahil: Also, number of cell phones used is much more than number of pc users, hence e-comm players see much more profit here, and therefore, wants to put 100% focus on apps only.

Muthukumar: I totally agree with your point that mobile platform is the future, however, increase in number of mobile phone users does not mean decrease in the number of PC users

Sonika: Yeah, a PC offers multi-screen and not single screen. Browser gives us the liberty to open multiple tabs with multiple sites.

Vasu: App only restricts the capability to compare prices. Amazon once tried charging more money from mac users!

Archit: That is there, but, apps have some benefits as well: it may be personalized as per user's requirement, payment details etc, can be stored; better wishlist, carts management.

Muthukumar: There are benefits, but there are negatives as well, people don’t like installing apps due to battery and perrformance issues and storage considerations also need to be thought of.

Vasu: True that, plus mobile apps still store a lot of data that could be misused if stolen

Sonika: Adding on to that, security is a big concern. Apps have personalized selling, hence intrusion. Mobile apps require permissions - they can have access to your personal information and manipulate into buying stuff.

Archit: Exactly, customers still are sceptical about data safety and security.

Muthukumar: This is actually an effort to cash on the free time of people i.e. in metros, traffic, etc.

Shivika: Well, then let us have a look on this topic from an e-comm player’s perspective as well. Data analysis done by famous players like Flipkart-Myntra shows that upto 70% of their traffic comes from mobile.

Sahil: They will be benefited from app only for sure, for starter, it is cost effective for company to maintain app only.

Archit: Also, business research showing most sales(>50%) on mobile platform - top 59% retailers have mobile platform.

Shivika: Interestingly, recent move by flipkart to make myntra mobile app , increasing internet access on mobile (20% of subscribers).

Archit: Also apps have simple interface, low maintanance required - 89% of time spent on mobile web is on apps.

Sahil: Yeah, and the concept of mobile wallets, quickr on mobile - providing m commerce and on time when need arises without need of desktop.

Vasu: It is a move from a pull kind of business to push

Shivika: Yes, it is, and it helps in providing customers with innocous shopper and sale offers via notifications

Sonika: Exactly, customers are segmented, targeted and customised marketing is done utilizing app data

Muthukumar: There is something in for e-comm players here, however, I think there will be a loss of PC customers.

Vasu: And mobile web pages are just as good as well.

Sonika: If we take Google for once, it has achieved success from its Maps app, yet it is still available on the PCs as well

Sahil: Agreeing to that, I believe, if they want, definitely focus on apps, however, dont do away with desktop sites, as people like me, who have been associated with desktop internet for a long time now, are better off with desktop versions

Shivika: Yes, mobile web and app-only are two different things - web uses browser - app is your own application for a platform.