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Nielsen: Consumers favoring mobile buying

access_time Oct 29,2016 chat_bubble_outline 96 views

Forty-six per cent of Vietnamese consumers have purchased a product or service on their mobile device in the past six months, according the latest report from Nielsen entitled “Mobile Money Makes the World Go Around”, released on October 26.

Nielsen: Consumers favoring mobile buying

Asia-Pacific has the highest self-reported rates of mobile purchasing globally. Half of respondents in China (50 per cent) and roughly half in India (49 per cent), South Korea (47 per cent) and Vietnam (46 per cent) say they purchased a product or service using their mobile device in the past six months.

“Mobile commerce has enormous implications for the entire retail ecosystem,” said Mr. Doan Duy Khoa, Director, Consumer Insight, Banking &Technology Industry at Nielsen Vietnam. “Mobile devices are not only bringing new consumers into the modern, connected economy, they are also enabling a more customized experience, as products and services can be more closely tailored to behavior, needs and preferences.”

Higher adoption and usage starts when companies develop a deep understanding of how consumers are shopping and transacting in a digital world and then use that understanding to design strategies around their habits and preferences.  

Forty-two per cent of Vietnamese respondents said they checked an account balance or a recent transaction on their mobile device in the past six months, 35 per cent said they booked movie tickets/air tickets/hotels, 33 per cent said they paid bills online, and 31 per cent said they transferred money between bank accounts using their mobile device.

Participation in these activities will likely be even higher in the near future. Fifty-three per cent of Vietnamese respondents said they’re highly likely to check a bank account balance or recent transaction in the next six months, 39 per cent said they’re likely to use a mobile app to make a purchase, and 38 per cent said they’re likely to transfer money between bank accounts.

Nielsen: Consumers favoring mobile buying

While more consumers are using their phones as a shopping tool, the activities they’re participating in on their devices vary widely, and companies may need different tactics to win consumers. A poor mobile experience may lead to lower conversion rates and drive shoppers to competitors’ storefronts, sites or apps.

Retailers developing mobile products should keep in mind four fundamental shopper needs: ease, convenience, choice, and value. “That is, the solution should satisfy a variety of trip purposes and deliver strong value for money in a way that requires less time and effort,” said Mr. Khoa.

The report also revealed that security concerns top the list of mobile banking barriers (53 per cent), followed by a preference for physical locations (31 per cent) and not having a need for the service (28 per cent).

“Winning brands also recognize that while mobile is a critical component of any retail strategy, a holistic approach is required,” Mr. Khoa added. “An integrated approach is necessary to drive sales in both online and offline channels and to provide an engaging experience for consumers regardless of whether they buy in-store or online.”

At a recent workshop on e-commerce apps for mobile phones held in Ho Chi Minh City, Mr. Tran Huu Linh, Director of the Vietnam E-commerce and Information Technology Agency (VECITA) under the Ministry of Industry and Trade, said that e-commerce is thriving with the rise of digital technology.

“The e-commerce model is no longer limited to computer platforms and is developing strongly on the mobile platform as well,” he said. “This will be the main trend in e-commerce over the next five years.”

A VECITA report noted that 34 per cent of Vietnam’s population, or more than 30 million people, now access the internet on their mobile phone. One-third of time spent online is on a mobile.

All transactions, from procurement and payment to information exchange, are being conducted on mobile phones. E-commerce enterprises are therefore actively transferring from the computer to the mobile platform to stay abreast of consumer trends.

The “Mobile Money Makes the World Go Around” report is based on the findings of the Nielsen Mobile Shopping, Banking and Payment Survey, which polled more than 30,000 online respondents in 63 countries to understand how mobile devices are influencing three distinct yet interconnected activities: shopping, banking and payments.

VN Economic Times

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