3 questions about Indian e-commerce's mobile-only obsession
Karthik Srinivasan
Communications strategy consultant. Connect with me for corporate workshops on personal branding. Ex-Ogilvy, ex-Flipkart, ex-Edelman. No paid posts - my words are not for sale.
This current mobile app-only obsession by Indian e-commerce brands throws up some interesting questions, inside my head.
Some context, before that:
- Flipkart moves towards becoming app-only platform – Livemint https://bit.ly/1OkJRyc
- Myntra to shut down website by year end, to concentrate on mobile app: Report – Tech2 https://bit.ly/1xp6n43
- Why e-commerce firms are rapidly shifting focus to mobile phones to lure customers – The Economic Times https://bit.ly/1DJF46h
…and,
Now, the questions.
1. What's the impact on search? If the leading brands go app-only (not only mobile web; Myntra doesn't let you see their mobile web version too... forces you to download app and Flipkart is heading there too!). For example, if a user is going to use Siri, or its Android and Windows equivalents, I'm assuming they return results from respective search engines, right? If leading e-commerce stores hide behind their app gates, where does that leave them with search results?
Or, is search not important for them at all and they want people to (!) only come to app with or without an intent and look up? That would be like me entering a mall (with multiple stores) with nothing specific in mind and start to window shop and end up buying something.
2. Earlier, these brands prioritized on one mobile OS ecosystem over the other based on numbers. So, they had an Android-first strategy given sheer number of Android users in India. Then, looking at the value created per user in iOS, they added that too.
With so much funds they have raised over time, you mean to say they are not willing to have even a small team manage web version or mobile web verison of their websites and instead getting the entire team to focus only on the app version? I get it - some numbers being thrown around say that 90% traffic is from mobile. But is all that 90% via apps? Or does it include mobile web? Even if mobile web was say, 10% traffic, 10% of the mega million user base of these brands would still mean something... enough to have a team focus on it, right?
Why go the Henry Ford way by forcing people... to shop only one way? The number of times I have searched on Google for something, seen a Myntra link, clicked on it, only to be forced to download Myntra app is massive. In all those times, I have avoided downloading the app, used web version of the app in my mobile or Mac to continue shopping. That's just me, though - a strictly anecdotal example.
The sheer benefit of things going online is choice. Offline comes with its riders and constraints - in terms of space and cost. Online is seemingly endless. If online is going to force users to do things the shop's way ("You can shop only from that store of ours; other stores won't have stock"), aren't we going back to replicating the offline constraints-loaded model online too.
3. What if tomorrow (or eventually) Android Play Store or Apple App Store rules are 'evolved' by their respective owners to include a higher/heftier cut from certain types of apps that go through more financial transactions than others? For example, I may transact only once or twice via a New York Times app, but may transact 10+ times a month via a Flipkart app.
What if the mobile OS parents see this an opportunity to 'tweak' the rules a bit and seek higher charges per transaction from e-commerce apps? Does that sound silly, or preposterous?
Why? If the land owner of a piece of land on which a leased store exists can sense a bigger payout seeing the success of the store, can't the same happen with owners of Android and Apple store owners?
Assuming something like this does happen (assuming!), what will happen to the e-commerce players' 100% focus on mobile app only strategy?
But, in the end, all these things don't matter, I suppose. Someone eloquently explained it on Twitter.
Founder @ Syne Square Consulting LLP | New product launch | Market Research and Strategy
9 年The primary focus on driving consumers to the mobile app relates to these sites wanting more customers to sign in to their mobile payment platforms, the focus on increasing profitability from the creamy layer of buyers and trying to increase captive buyers. I recently did a post on this at https://goo.gl/KaghKS which outlines the app infatuation of Indian e-commerce start-ups which outlines the same.
Founder, Consultant, Managing Director at Chevalier Designs, Qualified & Registered Independent Director
9 年Thought provoking indeed! I guess that this mad rush towards installation of apps on your customer' device and owning them will possibly be a reason for the issues emanating from e-commerce/ shall I say m-commerce. Firstly, by avoiding, the search option the retailer / should i say market place like flipkart are hoping to come out of the stanglehold search giants like Google has on marketing. But not before long the same consumer is going to cry and yell with the barrage of push marketing these apps will drive on your phone. Data usage, phone memory, battery all will play havoc. How many apps can you install? After a short while itself, there will be a crowd on your screen. A case building up akin to "killing the goose that lays golden eggs". To sum it up, these marketplaces just dont get it - they dont own the customer, the customers dont love them, they just love the brands at the market place and most importantly the price when the products are dumped. Brand' gradually losing their brand premiums and teresstial retailers building their own house brands will all follow. But mobile apps will just be a fad and the tall claims of stopping web-commerce will pale out before long
Head of Digital & Performance Marketing - Uber India SA
9 年I remember attending a Google event last year where the speaker mentioned while the "usage" metrics were more for app v/s mobile web but transaction volume was more on mobile web v/s app (US only study). Now even if there are market specific trends that warrant a mobile app focused strategy, it never hurts to have mobile web as an option. As for your argument around "Search", mobile search atleast from Google's perspective is evolving a great deal. Paid Search can now directly send people to specific locations within the app (deep linking) and eventually the same might happen for organic results as well
Digital Consultancy Services - Mobile Tech, Ad-Tech, Mar-Tech, AI-Tech
9 年Always give the consumer access however they request it. Mobile only makes complete sense for India and those emerging markets where mobile connectivity has leapfrogged fixed line. However, it is important for commerce players to provide a seamless experience across mobile web and app. Both come with different customer acquisition strategies which need to be managed. Forcing consumers down a route where their user journey may be disrupted will result in lost customers. This is already a fact and proven in other markets such as the U.S. And UK for instance.
Learning & Development Enthusiast ● Instructional Design Expert ● Talent Management ● Performance Improvement ● LMS Automation
9 年Not a sound strategy! It is like converting an open-to-public store into a members-only format.