54% of smartphones have shopping apps; Flipkart No. 1 – Survey

FLIPKART-APPAll the mobile web traffic sacrificed by Flipkart seems to be paying off, at least in terms of getting users to install the company’s app.

According to Nielsen’s latest survey based on real-time mobile data across 8,000 handsets in the country, Flipkart’s mobile app is present on 35% of all phones checked and was the No. 1 in the shopping category.

Nielsen Informate Mobile Insights also revealed that the number of smartphone owners using mobile apps of e-commerce companies has gone up from 1,680 (21%) in May 2014 to 4,320 (54%) in May this year.

The survey also reports higher engagement for mobile shopping from users in non-metros than users in metros. The cash-on-delivery option is stated as one of the key drivers of small town adoption for mobile shoppers, Flipkart said.

The report found Flipkart app to have a 15% higher penetration compared to the No 2. That should put Amazon (which we expect is the No. 2) at 30.4% penetration.

Even in usage, Flipkart topped the mobile shopping category with app usage of 60 minutes per month, the Bangalore-based company said.

Flipkart’s growth rate for mobile commerce is two times than that of desktops, it said.

“Over 75% of traffic to Flipkart comes via the mobile app and majority of these shoppers are from tier II & III cities. The way Indians shop has changed and one can see a new wave of confidence from shoppers in smaller towns across all age groups.”

At present, Flipkart blocks all traffic to its website if the user is browsing from a mobile device. This has lost it web traffic, and Amazon recently overtook Flipkart as the website site with the highest number of users.

In fact, Flipkart-owned Myntra recently shut down its website totally, and now is present only as an app. There are reports that Flipkart may also go that route, though we believe that is unlikely.

Flipkart today said mobile “is the way forward for online shopping in India.”

Flipkart said it is stepping up focus and investment in mobile technology. Mobile apps are going to get more sophisticated and intuitive in the near future – making m-shopping an experience that matches and even surpasses shopping from a desktop, and taking it closer to real-life shopping experience, it said.

“Knowing that Indian consumers spend the most time on Flipkart mobile app validates our deep belief that mobile is fundamentally altering the dynamics of how Indians buy,” said Punit Soni, Chief Product Officer – Flipkart.

“What has made this possible is the obsessive focus at Flipkart towards developing and investing in technology aimed at providing our customers the best shopping experience. The survey also throws light on how mobile commerce is catching up in India. Our aspiration is to continue leading this trend and be the one-stop shop for all essential products that a consumer needs.”