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  1. Price cuts drive app-wardly mobile e-tailers

Price cuts drive app-wardly mobile e-tailers

This has been possible as the e-tailer is giving an additional discount of 30% to users of its mobile app...

By: | New Delhi | Published: March 10, 2015 1:28 AM
Myntra, Jabong, Flipkart, Snapdeal, mobile commerce, ecommerce Indeed, m-commerce is one of the key factors driving the e-commerce revolution, with over 15 crore smartphones in India and the number increasing every day.

A Mango women’s black and white printed blouson angle top is available on fashion e-tailer Myntra’s website for Rs 2,093, after a 30% discount.

But the same top if bought via the firm’s mobile application will cost just Rs 1,465, thanks to an additional discount of 30%. That’s true also for Scholl footwear, which is available for Rs 1,600 on the e-tailer’s website but is being sold at Rs 1,000 after a 38% discount on its mobile application.

Indeed, m-commerce is one of the key factors driving the e-commerce revolution, with over 15 crore smartphones in India and the number increasing every day. “More than half of the new customers are visiting Myntra through mobile devices,” said Prasad Kompalli, head, retail, Myntra.

The rise in traffic has also resulted in an increase in revenues for e-commerce firms. While they refuse to disclose the break-up, the top retailers say they are currently generating anywhere between 50% and 70% of their revenues from their mobile applications and the mobile site put together. The mobile site is slightly different from the site accessed through a computer.

“At Snapdeal.com we now get over 70% of the orders through the mobile site and the application, up from a mere 5% 18 months ago,” Ankit Khanna, senior VP, product management, Snapdeal.com told FE.

Myntra is not the only counter-culturist, e-commerce players such as Jabong, Flipkart, Snapdeal and Amazon too are wooing the Indian consumers with deeper discounts and better deals on their mobile applications.

For instance, a blue shirt from the brand Only, which is available for R1,495 on Jabong’s website, is being sold for R1,047 on its mobile app.

This has been possible as the e-tailer is giving an additional discount of 30% to users of its mobile app. “The idea behind discounts and deals is to familiarise the users with mobile shopping, and make them comfortable about it. This is a necessary evil to break the threshold,” said Praveen Sinha, founder and managing director, Jabong.com.

To be sure, the strategy is working in favour of the e-commerce firms as presently 70-80% of the traffic comes through mobile phones.

Moreover, with e-commerce companies launching special schemes for app users such as Appiness Day or the App Fest, launched by Amazon India and Snapdeal.com, respectively, the number of people buying sky-rockets. “On Appiness Day we saw a fourfold increase in traffic through the app as compared to regular day,” said Akshay Sahi, head, customer experience, Amazon India. For the record, Amazon India launched Appiness Day in November last year. Following in the footsteps of its rivals, Snapdeal launched a two-day discount scheme called the App Fest last month.

And while these discounts have managed to grab the attention of consumers living in the metros, consumers from smaller cities too are jumping on the bandwagon. “We see a lot of traffic from both metro and non-metro cities. Since last year, we have witnessed the number of customers from smaller cities grow significantly. We see a high participation from cities like Ahmedabad, Pune, Mysore, Jaipur, Coimbatore, Lucknow, Indore and Ludhiana,” said Mausam Bhatt, senior director, mobile marketing, Flipkart.

Apart from offers such as ‘deals of the day’, the online retailer runs various schemes such as ‘save more’ on its mobile app. For instance, a pair of Catwalk heels under the ‘save more’ offer is being sold at Rs 600 on the mobile app. Amazon India’s Sahi points out that the mobile revolution does not not comprises first time buyers only. “The repeat rate of customers is very healthy,” he said.

For e-commerce players in India, the mobile game has just begun.”Mobile will soon be the primary mode for shopping online. Also, a higher participation from consumers based in tier 2 and 3 cities can be expected when it comes to shopping via mobile,” said Bhatt of Flipkart.

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