NetSuite Inc. (NYSE: N), the industry’s leading vendor of cloud-based financials / ERP software suites has authored a report that reveals £11bn in growth from m-commerce in the year ahead.
The report is based on economic models provided by the Center for Economics and Business Research (CEBR) and primary research of 200 UK high street retail managers, including 7 of the top 10 retailers in the UK, conducted by Vanson Bourne and announced by NetSuite today. Download the full report, The Retail and Wholesale Distribution Trends Report.
Despite the UK’s recent return to recession and a downbeat retail environment over the last few months, the majority of high street retailers remain positive, with an average expected increase in revenue of 10 percent. The huge growth in consumer smartphone and tablet uptake is reflected in retailers’ development of mobile services, with nearly three quarters (73 percent) already either running a mobile-optimised eCommerce site or a smartphone app, rising to 80 percent when you include those that plan to build one or the other in the next 12 months. The report also reveals concern over how consumers use their rivals’ mobile offerings, with over half (52 percent) of retailers viewing such apps and sites as a threat to their sales.
The biggest challenges for retailers in developing and delivering an m-commerce experience are integration with other e-commerce systems (38 percent), lack of budget (37 percent) and a lack of understanding on how to deliver a compelling experience (15 percent).
“In the context of a difficult macroeconomic climate, retailers seem positive in their expectations for revenue growth. The estimates from retailers may prove to be somewhat optimistic, but, the relative importance of the higher expected growth rates among retailers with e-commerce and m-commerce revenue streams means that these revenue channels are likely to become increasingly important.” says Colin Edwards, Economist at CEBR.
In this industry report, market changes impacting the retail and wholesale distribution sectors are researched and examined. Among the key findings:
Despite hardship, 87% of retailers expect positive revenue growth this year
Retailers expect 23% growth in m-commerce over the next year
Two-thirds of retailers expect social media to drive considerable sales
27% of wholesale distribution companies plan to add a direct sales channel (e-commerce)