Mobile Commerce and Hyperlocal: Changing Logistics
Mobile commerce and hyperlocal apps are gaining popularity, particularly in India.
There has been a rapid growth in the number of smartphone owners in India in recent times, contributing to an ever larger user base for mobile internet. A recent report published by an international social media consultancy called “We Are Social” claims that internet traffic is now 72% mobile, 27% on desktops and laptops, and only 1% via tablets. The country has become the second biggest mobile device market, accounting for approximately 930 million customers. In light of this, ecommerce companies are launching mobile apps in order to attract new customers to their platform.
One of the main reasons for the growth of mobile commerce is the uptake of smartphones in rural areas. Mobile commerce companies have recognized this trend and are now using it to access new market opportunities in Tier 2 and 3 cities. As a result, it is likely that mobile commerce will overtake ecommerce in the next few years.
Hyperlocal is the latest buzzword trend in ecommerce and is upsetting the giants of the industry. It is claimed that this is the next level of revolution in mobile commerce. A rapid growth in the amount of start-ups who are mobile-first, combined with a scaling up of interest by investors means there is huge potential in hyperlocal markets. It is now possible to deliver everything from food, groceries, laundry, medicines and more, straight out of nearby stores, shipped faster and at a lower cost. Consumers are finding comfort in this and are happy to access what they need at the click of a button.
Hyperlocal commerce has its basis in companies who are cashing in on the availability of technology by connecting local retailers and consumers in a specified area. They gain advantage from reduced logistics costs, the negligible cost of inventory they must hold, and reduced lead times for delivery. Added to this, another benefit they are seeing is in the delivery of content and customizations according to the demographic composition of their intended market.
Startups in hyperlocal are gaining a lot of interest from investors due to the staggering amount of potential that exists in the market. Firms such as Zopnow, Jiffstore, Wolpr, Grofers, Peppertap and Zopper have been able to extract huge sums of money from investors who are excited by their potential.