TREND TRUTH
From the “Brick” to the Boutique: Mobile Shopping on the Rise
A study by FGI Research shows that over 30% of consumers polled shop online using mobile devices. Phones, it seems, do a lot more than help users keep in touch with friends. A bit of history shows how far mobile has come since the technology emerged.
From the Brick…
In 1984, Motorola unveiled the first cellular phone: nicknamed “the brick,” it weighed two pounds, offered a half-hour of talk time per battery charge and sold for $3,995. In twenty-six years, mobile technology has transformed at warp speed. Not only are most devices the size of matchbooks, but phones are inexpensive and readily available. Some boast a battery life of up to a week, and features like games, unlimited texts, and Internet are standard. Through texting, many companies have found a new avenue for marketing to consumers. Some users have even started to shop online –with their phones. FGI turned to SmartPanel to get insight in this trend.
… to the Boutique
Among those surveyed, 59.67% reported that their phones had Internet, whereas 40.33% did not. When we drilled down the data by provider, the percentage of customers with Internet sometimes jumped as high as 75.9% (with Sprint) or 70.9% (with AT&T).1 Across the board, customers believed the Internet connection on their phones was secure. When asked if they felt safe using mobile Internet to make a purchase, 87.93% answered “yes.” Customers’ overall faith in the web that they accessed through their phones may help explain the purchasing habits of those who used the technology to shop.
However, not as many customers were shopping online with their phones as their level of comfort might portend. As many as 67.6% of respondents said they did not use their phones for online purchases. Even among mobile customers who had Internet, the number of respondents who shopped online through their phones was relatively low. Nevertheless, the 32.4% of users who said they did shop online were making purchases in a range of categories.
What they Bought
Most (81.03%) were buying apps for their smartphones. Yet respondents also purchased other products, including electronics, clothes, shoes and accessories, books, food, and household items. Some said they also looked up information about what cars to buy. The industries that dominated were fashion, books, electronics and food. All of this data begs the question: who is the customer here?
Who’s Buying
The majority of those who shopped with their phones, up to 67.2%, were male. 32.8% were female. When women did use their phones to make purchases, they spent most of their money on household goods or on clothes, shoes and accessories. Men, meanwhile, spent a fair penny on food, books and electronics.
A breakdown in terms of income revealed even more about these mobile shoppers. Nearly two-fifths were in an income bracket between $75k and $100k. One fifth was in the bracket of $100k or more. A little over 30% made between $20,000 and $75,000 a year.
What they Spent
No matter who was shopping, customers tended to use their phones for small purchases: 43.1% of those surveyed said they spent less than $50 per month, and 24.14% reported that they spent between $51 and $100. A few said that they spent as much as $200-$300 on purchases through their phones. Among these, most were spending money on food (33.3%), automotive goods (30.0%), or clothes and accessories (27.8%).
Actionable Insights
Ultimately, the diversity of purchases that customers made through their phones –buying not just apps but tangible goods and services –indicates that this trend should influence how companies adapt their marketing plans to respond to mobile technology. By finding out what customers shop online, which ones use their phones to shop online, and what they buy, multiple industries can move towards marketing efforts aimed at this demographic. The way to gain an edge in the emerging mobile market is by using top-notch research methods. One thing is for sure: both mobile Internet and online shopping are here to stay. As the former becomes more ubiquitous, the tendency to use phones for online purchases could increase, or at least stay steady. Further research would reveal even more insight into this possibility.
Next Steps You Can Take
Survey Methods
Date of Study: 2/5/2010
Total Responders: 300
Sample Source: FGI SmartPanel
1. We wanted to know what mobile providers respondents relied on and what features were on their phones. We found that the leading providers were Verizon and AT&T, while T-Mobile and Sprint claimed a smaller –though substantial –share of the market.
March 14th, 2010 at 9:50 am
Hey there, i would like to say thank you about this great post, very helpful to me, Thank You.
March 30th, 2010 at 1:25 pm
I think this wa a great post. Interesting to see who is doing what and what they are doing
March 30th, 2010 at 1:35 pm
Wow, that’s really interesting. And I think AT&T and Verizon need some real competition…looks like they have a really big hold on the market which = bad news for those who can’t afford to spend a fortune to have a cell phone….
March 30th, 2010 at 1:59 pm
valuable and great survey report.It is easy to understand.
March 30th, 2010 at 4:17 pm
I know cell phones are very convenient but there are a few people how just use a phone for a phone. If I need a computer I will use one and on the road I would either get a netbook or a wireless laptop or not try to get my phone be a computer. I may be old fashion but to me a phone is a phone and if you get the smart phones then you are getting a small computer. I have considered using my phone for a modem to use my computer but I still prefer a basic cell phone for just calling my friends and family and not be bothered by the rest of the apps or such or the text messaging which can be as annoying as talking and more distracting when you are driving and just pay attention to what your are doing. Most of what I buy I get at a store and if I can not find it I will look online. Using a cell phone is an easy way for people to steal your info and leave you stuck with a bill.
March 31st, 2010 at 4:24 am
This really is an interesting sight at what the future of marketing will be – especially when applied to those small purchases that most people are making. Internet-enabled smartphones allow consumers to quickly research and evaluate a product which could heavily influence whether they make a purchase or not. Companies and organizations which are able to effectively create marketing campaigns that include the presentation of data in a mobile format will have an edge in this powerful new segment.
March 31st, 2010 at 11:11 am
Wow, amazing what technology has today. Wonder what it will be like in another 5 years?
April 28th, 2010 at 11:20 pm
Sorry all, but I do not own a cell phone. I also do not order anything on line. It is too easy for the bhad guys to get hold of my information and rob me. Just say I am old fashioned but at 71 years young I do not like some of the new gadgets that are on the market.