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Provided by Global M-Commerce 2015 March 2015 1.

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1 Provided by Global M-Commerce 2015 March 2015 1

2 PREFACE Market reports by yStats.com inform top managers about recent market trends and assist with strategic company decisions. A list of advantages yStats.com provides secondary market research: By using various sources of information we ensure maximum objectivity for all obtained data. As a result companies get a precise and unbiased impression of the market situation. The analyses, statistical reports and forecasts are only based on reliable sources including national and international statistical offices, industry and trade associations, business reports, business and company databases, journals, company registries and news portals. Our international employees research and filter all sources and translate relevant information into English. This ensures that the content of the original studies is correctly interpreted. yStats.com delivers all research results as PowerPoint files. All data can therefore be used directly for board presentations or be individually adapted. If required, yStats.com provides in-depth analysis for all research projects. Simply send us a request. Terms of use and copyright conditions This report is copyrighted. All rights reserved and no part of this report may be reproduced, stored in a retrieval system or transmitted in any form without the prior permission of the publishers. The information in this report does not constitute the provision of investment, legal or tax advise. Any views expressed reflect the current views of the original authors, which do no necessarily correspond to the opinions of yStats.com GmbH & Co. KG. The information in this report is provided for informational purposes only and without any obligation, whether contractual or otherwise. No warranty or representation is made as to the correctness, completeness and accuracy of the information given or the assessments made. We have taken every precaution to ensure that details provided in this report are accurate. The publishers are not liable for any omissions, errors or incorrect insertions, nor for any interpretations made from the document. © Copyright yStats.com GmbH & Co. KG, Hamburg, Germany. 2

3 Methodology (1 of 2) This B2C E-Commerce Report by yStats.com is produced in a holistic approach to contain relevant information about M-Commerce worldwide. This report includes the results of secondary market research: By using various sources we ensure maximum objectivity for all obtained data. As a result companies get a precise and unbiased impression of the market situation. Cross referencing of data was conducted in order to ensure validity and reliability. The report contains a Management Summary, summarizing the main information provided in each chapter. Besides providing information on the specific topic, every chart contains an Action Title, which summarizes the main statement of the chart and a subtitle, which gives information about the country, the topic, the unit or currency, and the time period the data on the chart refers to. Furthermore, the source of information and its release date are provided on every chart. It is possible that the information included in one chart is derived from several sources. Then, all sources are mentioned on the chart. This report also includes rankings. Within these rankings, it is possible that the total amount adds up to more than 100%. If this is the case, multiple answers were possible, and this is then mentioned in the note of the chart. If available, additional information about the data collection, for example the time of survey and number of people asked, is provided in the form of a note. In some cases, the note (also) contains additional information needed to fully understand the contents of the respective data. When providing information about amounts of money, local currencies were mostly used. When referencing them in the Action Title, the EUR values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the currency figure be in the future, the average exchange rate of the past 12 months is used. This report includes mainly data from the last 12 months. The exact publication dates are mentioned in every chart. 3

4 Methodology (2 of 2) This report covers the global M-Commerce market.
It opens with the chapter about global development, including market overview, trends, international comparisons and news about major players. In the following chapters provide information on M-Commerce in the regions. The regions are presented in the order of descending B2C E- Commerce sales. Regional development is presented first, where available. The countries within the regions are also presented in the order of descending B2C E-Commerce sales. For the countries the following information was presented, where available: M-Commerce sales, share of M-Commerce on total B2C E- Commerce sales, mobile shopper penetration, devices used for shopping online, product categories purchased via mobile. Not each type of information was presented for each country. For selected emerging markets also information about mobile Internet penetration was included, as an indicator of potential for M-Commerce development. 4

5 Definitions The following expressions and definitions are used in this market report*: B2C E-Commerce: This term means the sale of products (and services) through electronic transactions from businesses to consumers, conducted online through computers, mobile phones and other devices. Also referred to as online retail. M-Commerce: M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through transactions via mobile devices, such as mobile phones, tablets and smartphones. Mobile Internet Users: Internet users who access the web through their mobile devices. Mobile Devices: a portable device with mobile Internet functionality, primarily mobile phones, smartphones and tablets. Mobile Shoppers: consumers who participate in M-Commerce, i.e. purchase products (and services) online via mobile devices. QR-Codes: Short for Quick Response Codes. Allow consumers to scan barcodes with their smartphone, directing them to adverts, special offers or vouchers. Instant Messaging: online chat platform, such as in a mobile app. Internet Users: individuals that regularly accesses the Internet. Online Shoppers: consumers who participate in B2C E-Commerce, i.e. purchase products (and services) online via any device. Note: *the exact definitions used by the source were included at the bottom of the chart, where available 5

6 Table of Contents (1 of 8) 1. Management Summary 2. Global
M-Commerce Overview and Trends, March 2015 Breakdown of Frequency of Mobile Purchase, by Smartphone and Tablet, in % of Online Shoppers, September 2014 App and Browser Usage for Mobile Shopping, in % of Mobile Shoppers, November 2014 Mobile Broadband Subscriptions per 100 Inhabitants, by Regions, 2014 Share of Online Shoppers Using Mobile Phones to Shop Online, by Regions, in %, March 2014 Share of Smartphone Users Who Make Purchases via Smartphone at Least Once a Week, in %, by Selected Countries, March 2014 Actions Conducted With Mobile Phones While Being In Store, incl. Purchase, in % of Consumers with Mobile Phone, 2014 Share of Consumers with Mobile Phone Comparing Prices via Mobile While Being In Store, in %, by Selected Countries, 2014 Asia-Pacific Regional Smartphone User Penetration, in % of Population, f Mobile Shopper Penetration, by Selected Countries in South East Asia, in % of Smartphone Users, July 2014 Devices Most Used for Online Shopping, incl. Mobile, by Selected Countries in South East Asia, Compared to Global Average, in % of Online Shoppers, Q1 2014 China Number of Mobile Internet Users, in millions and in % of Total Internet Users, Number of Mobile Shoppers, in millions and in % of Mobile Internet Users, M-Commerce Sales, in CNY billion, and in % Year-on-Year Change, f Share of M-Commerce on Total E-Commerce Sales, in %, f M-Commerce Sales, in CNY billion, and in % Year-on-Year Change, f Breakdown of the M-Commerce Sales, by Players, in %, Q3 2014e

7 Table of Contents (2 of 8) 3. Asia-Pacific (cont.) 3.3. Japan
Mobile Device Ownership, by Smartphone and Tablet, in % of Households, Mobile Shopper Penetration, in % of Smartphone Users, August 2014 Mobile Shopper Penetration, in % of Smartphone Users, by Age and Gender, August 2014 South Korea M-Commerce Sales, in KRW trillion, Q Q3 2014 Share of M-Commerce on Total E-Commerce Sales, in %, Q Q3 2014 Breakdown of M-Commerce Sales by Product Categories, in KRW billion, Q Q3 2014 Breakdown of E-Commerce Utilization, by Device, in %, by Age Groups, September 2014 Australia Mobile Shopper Penetration, in % of Individuals, 2014e M-Commerce Sales, in AUD billion, 2014 & 2019f Breakdown of M-Commerce Sales, by Categories, in % and in AUD billion, 2014e India Mobile Shopper Penetration, in % of Urban Online Shoppers, 2012 & 2014 Share of M-Commerce on Total E-Commerce Sales, in %, 2014e & 2017f Most Popular M-Commerce Applications, by Provider, in million Installs, December 2014e Indonesia Devices Most Used for Online Shopping, incl. Mobile, in % of Online Shoppers, Q1 2014 Philippines Product Categories Purchased via Mobile Phones, in % of Mobile Internet Users, June 2014

8 Table of Contents (3 of 8) 4. North America 4.1. USA
M-Commerce Activities Carried Out In-Store, in % of Mobile Phone Users, 2014 M-Commerce Sales, Excluding Travel and Tickets, in USD billion, and in % Year-on-Year Change, f Share of M-Commerce on Total B2C E-Commerce Sales, in %, f M-Commerce Sales from Smartphones, Excluding Travel and Tickets, in USD billion, and in % Year-on-Year Change, f Share of M-Commerce on Total E-Commerce Sales, in %, Q Q2 2014 Canada Devices Used for Shopping Online, incl. Mobile, by Age Group, in % of Internet Users, July 2014 Breakdown of Online Spending, by Device, incl. Mobile, in %, 12 Months to November 2014 Europe Regional Online Shopper Penetration in the EU5, by Smartphone and Tablet, in % of Internet Users, by Country, 2014e Share of M-Commerce on Total B2C E-Commerce Sales in the EU7, 2014e & 2018f UK M-Commerce Sales, by Device, in GBP billion, f M-Commerce Sales, in GBP billion, Q Q3 2014 Breakdown of M-Commerce Sales, by Smartphones and Tablets, in %, Q4 2014 Share of M-Commerce on Total B2C E-Commerce Sales, in %, Q Q4 2014 Retail Websites/Applications Accessed via Smartphone, in % of Smartphone Owners, March 2014 Retail Websites and Applications Accessed via Smartphone, by Mobile Website and Mobile Application, in % of Smartphone Owners Accessing, March 2014

9 Table of Contents (4 of 8) 5. Europe (cont.) 5.3. Germany
Mobile Shopper Penetration, by Age and Gender, in % of Online Shoppers, 2014 Share of M-Commerce on Total B2C E-Commerce Sales, in % and in EUR billion, 2013 Breakdown of the Last M-Commerce Purchase, by Product Categories, in % of Mobile Shoppers, August 2014 Devices Used in M-Commerce, in % of Mobile Shoppers, August 2014 France Mobile Shopper Penetration, by Tablet and Smartphone, in % of Online Shoppers Who Own Tablet/Smartphone, 2013 & 2014 Share of M-Commerce on Total B2C E-Commerce Sales, in % and in EUR billion, 2014 Products Purchased in M-Commerce via Smartphones, in % of Mobile Shoppers, 2014 & 2015f Russia Number of Mobile Shoppers, in millions, 2012 & 2013 Number of Mobile Shoppers, by Smartphone and Tablet, in millions, 2013 & 2014 M-Commerce Sales, in USD billion, 2013 & 2014e Share of M-Commerce on Total B2C E-Commerce Sales, in %, 2013 & 2014e Mobile Shopper Penetration, in % of Smartphone Owners, by Size of City of Location, 2014 Italy M-Commerce Sales from Smartphones, in EUR billion, 2013 & 2014 Share of M-Commerce from Smartphones on Total B2C E-Commerce Sales, in %, 2014e Share of M-Commerce on Total B2C E-Commerce Sales, in %, 2014e Spain Mobile Shopper Penetration, in % of Internet Users, M-Commerce Sales, in EUR billion, 2013 & 2014e

10 Table of Contents (5 of 8) 5. Europe (cont.) 5.8. Netherlands
M-Commerce Sales, in EUR million, H2 2012, H1 2013, H2 2013 Breakdown of M-Commerce Sales, by Smartphones and Tablets, in % and in EUR million, H2 2013 Share of M-Commerce on Total B2C E-Commerce Sales, in %, H2 2013 Turkey Devices Used to Connect to the Internet, in % Households with Internet Access, Q1 2014 Breakdown of Online Spending, by Device, incl. Mobile, in %, 12 Months to October 2014 Poland Smartphone Penetration by Age Group, in % of Internet Users, May 2013 & May 2014 Mobile Shopper Penetration on Smartphone Owners, in %, May 2014 Devices Used for Shopping Online, in % of Online Shoppers, March 2014 Sweden Devices Used for Shopping Online, in % of Online Shoppers, Q3 2014 Latin America Regional Devices Owned, in % of Surveyed Consumers, by Argentina, Brazil and Mexico, March 2014 Activities Carried Out on Smartphones at Least Weekly, incl. Purchase, in % of Smartphone Users, by Argentina, Brazil and Mexico, March 2014 Breakdown of the Last Online Purchase, by Device Used, in % of Online Shoppers, by Argentina, Brazil and Mexico, March 2014 Brazil Mobile Internet Penetration, in % of Mobile Phone Users, Share of Mobile Device Owners Who Shopped on Mobile Devices at Least Once, in %, June 2013 & June 2014 Share of M-Commerce Sales on Total B2C E-Commerce Sales, in %, June 2013, December 2013, June 2014

11 Table of Contents (6 of 8) 6. Latin America (cont.)
Brazil (cont.) Share of M-Commerce Made via Smartphones on Total B2C E-Commerce Sales, by Category of Online Retailer, in %, July 2014 Devices Used for Online Shopping, in % of Mobile Device Owners, June 2014 Way Used to Shop on Mobile Devices, in % of Mobile Device Owners, June 2014 Breakdown of M-Commerce Transactions, by Product Categories, in %, H1 2014 Product and Services to Buy in M-Commerce, by Category, in % of Mobile Device Owners, June 2014 Mexico Devices Used to Access Internet, in % of Internet Users, 2013 Devices Used for Shopping Online, in % of Online Shoppers, March 2014 Breakdown of B2C E-Commerce Sales, by Device, in % and in MXN billion, July 2014 Breakdown of Mobile Shoppers, by Age Group, by Shopping on Smartphone and Tablet, July 2014 Barriers to Mobile Purchase, in % of Online Shoppers who Own Tablet/Smartphone, June 2014 Argentina Devices Used for Shopping Online, in % of Online Shoppers, 2014 Devices Used to Access Internet, by Primary and Secondary, in % of Individuals, 2013 Middle East & Africa Regional Mobile Phone Users, in millions, and Penetration, in % of Population, by Countries in the Middle East and Africa, incl. Saudi Arabia and UAE, Ranked by Penetration in 2014, f Smartphone Users, in millions, and Penetration, in % of Mobile Phone Users, by Countries in Middle East and Africa, incl. Saudi Arabia and UAE, Ranked by Penetration in 2014, f Devices Used to Access the Internet in MENA, in % of Internet Users, April 2014

12 Table of Contents (7 of 8) 7. Middle East & Africa (cont.)
UAE Share of Online Shoppers Buying or Browsing and Buying via Mobile Phones, in %, March 2014 Breakdown of the Last Online Purchase, by Device Used, in % of Online Shoppers, March 2014 M-Commerce Sales, in AED million, 2013 & 2014 Saudi Arabia Number of Mobile Broadband Subscriptions, in millions and in % of Population, & Q2 2014 Israel Qatar Devices Used to Connect to the Internet, in % of Internet Users, 2012 & 2013 Mobile Shopper Penetration, in % of Banked Internet Users, 2013 Africa South Africa Smartphone Penetration, in % of Mobile Phone Owners, and Share of Internet Users Using Smartphones to Access the Internet, in %, June 2014 Share of Smartphone Users Purchasing via Mobile, in %, June 2014 Share of Mobile Shoppers on Active Mobile Internet Users, in %, 2012 & 2013 Nigeria Share of Mobile Shoppers on Total Online Shoppers, in %, June 2014

13 Table of Contents (8 of 8) 7. Middle East & Africa (cont.)
Egypt Share of Mobile Internet Users on Total Internet Users, in %, Q – Q3 2014 Share of Mobile Internet Users Comparing Prices and Product Reviews Online while Being in Store, by Total Mobile Internet Users and Smartphone Users, September 2014 Morocco Share of Mobile Phone Users who Made a Purchase or Payment via Mobile Phone, in %, and Type of Purchase or Payment Made via Mobile Phone, in %, November 2014

14 Table of Contents 1. Management Summary 14 – 18 2. Global 19 – 28 3.
Asia-Pacific 29 – 54 3.1. Regional 3.2. China 3.3. Japan 3.4. South Korea 3.5. Australia 3.6. India 3.7. Indonesia 3.8. Philippines 4. North America 55 – 62 4.1. USA 4.2. Canada 5. Europe 63 – 98 5.1. Regional 5.2. UK 5.3. Germany 5.4. France 5.5. Russia 5.6. Italy 5.7. Spain 5.8. Netherlands 5.9. Turkey 5.10. Poland 5.11. Sweden 6. Latin America 99 – 117 6.1. Regional 6.2. Brazil 6.3. Mexico 6.4. Argentina 7. Middle East & Africa 7.1. 7.2. Middle East 7.2.1. UAE 7.2.3. Saudi Arabia 7.2.4. Israel 7.2.5. Qatar 7.3. Africa 7.3.1. South Africa 7.3.2. Nigeria 7.3.3. Egypt 7.3.4. Morocco

15 Management Summary (1 of 4)
Global M-Commerce is growing faster than the total B2C E-Commerce market worldwide, with apps ahead of browsers in mobile shopping. Global M-Commerce sales were predicted by Goldman Sachs to reach EUR 470 billion in 2018, rising at CAGR of +36% from EUR 100 billion in 2013. Tablets were almost as frequently used by online buyers worldwide to shop via the Internet as smartphones, as of September 2014, with 47% of online shoppers who own the relevant mobile device buying from smartphones and 46% from tablets. Apps were used by a large share of mobile shoppers worldwide to make purchases via mobile compared to browsers: 64% vs. 52%, as of November 2014. Europe was the leading region worldwide by penetration of mobile broadband subscriptions in 2014 (64 per 100 inhabitants), above the global average (32 per 100 inhabitants), while Middle East & Africa (55%) and Asia-Pacific (52%) were the top regions worldwide in share of online shoppers buying from mobile phones in March 2014. South Korea (30%), Saudi Arabia (22%) and the UK (19%) were the leading countries worldwide by share of smartphone users shopping weekly on mobile. 23% of consumers who have a mobile phone used it to purchase products with an app while present in a store in 2014, while 40% compared prices and 22% made purchase on a website. E-Commerce companies worldwide benefit from the M-Commerce growth, with shares of mobile sales at double-digit figures. Amazon and eBay saw 69% and 63% of their traffic during the holiday sales period coming from the mobile devices. eBay’s M-Commerce gross merchandise value amounted to EUR 21 billion in 2014, 34% of its total GMV. Alibaba’s M-Commerce GMV increased by % to EUR 98 billion, while Europe-based Cnova had 14.0% and 10.5% mobile share in different units in Q Asia-Pacific South Korea is expected to remain the leading country in Asia-Pacific in terms of smartphone penetration throughout 2018 (75%), followed by Australia (67%) and Japan (61%). M-Commerce sales in South Korea grew in every quarter of 2013 and 2014, peaking at EUR 2.7 billion in Q and accounting for 34.1% of total E-Commerce sales. 556.8 million people or 86% of the Internet users in China surfed the Internet using their mobile phones in 2014 and 42% of them or 236 million people made purchases on mobile. In 2015, M-Commerce sales in China are expected to reach EUR 213 billion, with growth rates slowing to +80%. The share of mobile shopping on total online shopping transaction value in China is projected to rise to 40% in “Wireless Taobao” dominated the mobile shopping market in China with a 89% market share, as estimated in Q 15

16 Management Summary (2 of 4)
Asia-Pacific (cont.) Penetration of smartphones and tablets in Japan grew rapidly between 2010 and 2013, reaching respectively 63% and 22% by the end of % of smartphone users in Japan shopped using their smartphones, as of August 2014. 59% of individuals in Australia aged between 15 and 65 made at least one M-Commerce purchase, as estimated in With CAGR of +29.7%, M-Commerce in Australia is forecasted to rise to EUR 39 billion in “Services” was the largest segment in Australian M-Commerce in terms of share on total sales (59%), followed by “Physical Products” (27%). Mobile shopper penetration on online shoppers in cities of India grew from 24% in 2012 to 57% in The share of M-Commerce on total E-Commerce sales is forecasted to rise from 11% estimated in 2014 to 25% in 2017. “Mobile Phone” was the device most used for shopping online by 61% of online shoppers in Indonesia in Q1 2014, ahead of “Computer” (58%). 52% of mobile Internet users made a purchase via their phones in June 2014, with only 4% purchasing physical items. North America In the USA, M-Commerce sales excluding travel and tickets are projected to reach EUR 100 billion by 2018, with growth rates slowing to +16%. The share of M-Commerce on total B2C E-Commerce sales is forecasted to rise from 11% in 2012 to 27% in 2018. 33% of Internet users aged between 18 and 34 years-old made purchases online via smartphone in Canada in July % of online spending in Canada in a year to November 2014 was carried out on smartphone and 4% on tablet. Europe Italy was the leader in the EU5 by penetration of mobile shoppers buying from smartphones on Internet users (44%), as estimated in 2014, followed by the UK (41%). In the UK, M-Commerce sales are forecasted to reach EUR 36 billion in 2018, while tablets are expected to remain ahead of smartphones in terms of M-Commerce sales generation. The share of M-Commerce on total B2C E-Commerce sales in the UK is projected to rise from 10% in 2012 to 38% in 2018. M-Commerce sales accounted for 18% of the total B2C E-Commerce sales in Germany in 2013, equivalent to EUR 6 billion. The age group with the highest mobile shopper penetration on online shoppers in Germany in 2014 were year-olds, of whom 23% purchased at lease once and 30% purchased several times via mobile. 16

17 Management Summary (3 of 4)
Europe (cont.) Tablets were used more for mobile shopping in France than smartphones, both in 2013 and M-Commerce generated 16% of the total B2C E-Commerce sales in France in 2014, equivalent to EUR 9 billion. M-Commerce sales in Russia were estimated to double in 2014, reaching EUR 2.3 billion. The share of M-Commerce sales in Russia was estimated at 18% in 2014, up from between 8% and 10% in The share of M-Commerce sales was estimated at 18% in 2014, up from between 8% and 10% in In 2014, there were 4.1 million people in Russia buying from smartphones and 5.2 million buying from tablets. Total M-Commerce sales in Italy, incl. sales from smartphones and tablets, generated 20% of all B2C E-Commerce sales estimated for 2014. Mobile shopper penetration on Internet users in Spain increased from 9% in 2011 to 26% in M-Commerce sales in Spain were estimated to have grown by +280% in 2014, reaching EUR 1.3 billion. M-Commerce sales in the Netherlands grew to EUR 735 billion in H2 2013, with sales for the full year 2013 amounting to EUR 1.3 billion. M-Commerce accounted for 13% of the total B2C E-Commerce sales in H 9% of online spending in Turkey in a year to October 2014 was carried out on smartphone and 5% on tablet. 35% of online shoppers in Poland purchased via smartphones at least once, as of March 2014, and 19% did so on tablets. 23% of online shoppers in Sweden used tablet computers for making online purchases, while 17% used mobile phones in Q Latin America Of Argentina, Brazil and Mexico, Mexico had the highest penetration of smartphones (40%) and tablets (18%) on consumers in March It was also the leading country by share of smartphone users making purchases via smartphones at least weekly (7%). 22% of online shoppers in Mexico made purchases from “Mobile Phone” online and 7% from “Tablet”, as of March % of B2C E-Commerce sales in this country in July 2014 were generated via smartphones (13%) and tablets (5%). 37% of smartphone and/or tablet owners in Brazil purchased via payment intermediary using their mobile devices in June The share of M-Commerce on total B2C E-Commerce sales in Brazil grew from 4% in June 2013 to 7% in June 2014. 22% of online shoppers in Argentina made purchases using smartphones in 2014 and 15% using tablets. 17

18 Management Summary (4 of 4)
Middle East 53% of online shoppers in the UAE were browsing and purchasing via mobile phones, as of March M-Commerce sales in the UAE surged by +170% in 2014, reaching EUR 82 million. 70% of online shoppers in Saudi Arabia made their last online purchase via smartphone, as of March 2014. 15% of banked Internet users in Qatar who access the Internet at least once per week made purchases via their mobile phones in 2013. Africa 32% of smartphone users in South Africa made purchases from their phones in June 2014. As of June 2014, 60% of online shoppers in Nigeria used mobile devices to make purchases online. 60% of mobile Internet users in Egypt used their phones in store to check prices and reviews online, as of September 2014. 22% of mobile phone owners in Morocco had made a purchase or payment via their mobile phones by November 2014. 18

19 Table of Contents 1. Management Summary 14 – 18 2. Global 19 – 28 3.
Asia-Pacific 29 – 54 3.1. Regional 3.2. China 3.3. Japan 3.4. South Korea 3.5. Australia 3.6. India 3.7. Indonesia 3.8. Philippines 4. North America 55 – 62 4.1. USA 4.2. Canada 5. Europe 63 – 98 5.1. Regional 5.2. UK 5.3. Germany 5.4. France 5.5. Russia 5.6. Italy 5.7. Spain 5.8. Netherlands 5.9. Turkey 5.10. Poland 5.11. Sweden 6. Latin America 99 – 117 6.1. Regional 6.2. Brazil 6.3. Mexico 6.4. Argentina 7. Middle East & Africa 7.1. 7.2. Middle East 7.2.1. UAE 7.2.3. Saudi Arabia 7.2.4. Israel 7.2.5. Qatar 7.3. Africa 7.3.1. South Africa 7.3.2. Nigeria 7.3.3. Egypt 7.3.4. Morocco

20 M-Commerce is growing faster than the total B2C E-Commerce market worldwide, with apps ahead of browsers in mobile shopping. Global: M-Commerce Overview and Trends, March 2015 With mobile broadband increasing worldwide and mobile-first connectivity spreading, M-Commerce is growing ahead of the overall B2C E-Commerce market worldwide. Global M-Commerce sales were predicted by Goldman Sachs to reach USD 626 billion in 2018, rising at CAGR of +36% from USD 133 billion in 2013, while global B2C E-Commerce sales were predicted by eMarketer to grow at +18% CAGR during this period. While computers remain the device most used for shopping online, mobile is a close second. A global survey by Nielsen revealed that mobile phones were used by 44% of online shoppers worldwide in E-Commerce in March 2014, with this share being the highest in Middle East & Africa (55%) and in Asia-Pacific (52%). The leadership of these two regions in M-Commerce penetration is confirmed by results of another survey, conducted around the same time by TNS and Google. In this survey, South Korea (30%) and Saudi Arabia (22%) had the highest share of smartphone owners making purchases using their mobile devices. In terms of frequency, tablets were used almost as often for shopping online as smartphones, according to a survey by PwC. However, in terms of sales generated, tablets were significantly ahead of smartphones in the largest online markets the USA and the UK in 2014, as eMarketer reports. A global survey by Ipsos and PayPal revealed that apps are more preferred for mobile shopping than browsers. 24% of mobile shoppers purchased via apps in 12 months to November 2014 and 52% purchased via browsers. Of those who used both, 47% preferred to shop through an app. The barriers for mobile purchase indicated in the same survey were preference for online shopping via other devices, such as laptops and desktops (39%), followed by the small screen size (34%). The power of mobile devices in retail has already gone beyond pure online shopping. Mobile phones, tablets and smartphones are used to research products, to compare prices and to locate stores. Some of these actions are carried out directly while being in a physical store: according to a survey by GfK, 40% of consumers with mobile phones compared prices and 23% purchased products through an app and 22% through a website, all while being in store. Source: PayPal, Ipsos, February 2015; Google, TNS Infratest, 2014; Nielsen, August 2014; Goldman Sachs, March 2014; eMarketer, December 2014; PwC, February 2015; eMarketer, June 2014, November 2014 20 20

21 Tablets were almost as frequently used by online buyers worldwide
to shop via the Internet, as smartphones, as of September 2014. Global: Breakdown of Frequency of Mobile Purchase, by Smartphone and Tablet, in % of Online Shoppers, September 2014 Smartphone Tablet Not: may not add up to 100% due to rounding Survey: based on a survey of 19,068 online shoppers in 19 countries and territories, conducted online between August and September 2014 Source: PwC, February 2015 21 21 21 21

22 Apps were used by a large share of mobile shoppers worldwide to make purchases via mobile compared to browsers, as of November 2014. Global: App and Browser Usage for Mobile Shopping, in % of Mobile Shoppers, November 2014 in % of Mobile Shoppers Note: does not add up to 100% due to some respondents using both apps and browsers for mobile shopping Survey: based on a survey of 17,519 adults in 22 countries who own and/or use an Internet-enabled device; around 800 respondents per country Source: PayPal, Ipsos, February 2015

23 Subscriptions per 100 Inhabitants
Europe was the leading region worldwide by penetration of mobile broadband subscriptions in 2014 (64 per 100 inhabitants). Global: Mobile Broadband Subscriptions per 100 Inhabitants, by Regions, 2014 Subscriptions per 100 Inhabitants Note: numbers for the year are estimated Source: ITU, 2014

24 Middle East & Africa and Asia-Pacific were the top regions worldwide in share of online shoppers buying from mobile phones in March 2014. Global: Share of Online Shoppers Using Mobile Phones to Shop Online, by Regions, in %, March 2014 in % of Online Shoppers Survey: based on a survey of 30,000 consumers in 60 countries across the listed regions, conducted between February and March 2014 Source: Nielsen, August 2014

25 in % of Smartphone Users
South Korea, Saudi Arabia and the UK were the leading countries worldwide by share of smartphone users shopping on mobile weekly. Global: Share of Smartphone Users Who Make Purchases via Smartphone at Least Once a Week, in %, by Selected Countries, March 2014 in % of Smartphone Users Survey: based on a survey of total population aged 16+, conducted between January and March 2014; 19,395 respondents in the listed countries Source: Google, TNS Infratest, 2014

26 in % of Consumers with Mobile Phone
23% of consumers who have a mobile phone used it to purchase products with an app while in store in 2014. Global: Actions Conducted With Mobile Phones While Being In Store, incl. Purchase, in % of Consumers with Mobile Phone, 2014 in % of Consumers with Mobile Phone Survey: based on a survey of 25,000 mobile phone users in 23 countries; ages 15+ Source: GfK, February 2015

27 in % of Consumers with Mobile Phone
South Korea, China and Turkey were the worldwide leaders in share of consumers with mobile phone checking prices while in store in 2014. Global: Share of Consumers with Mobile Phone Comparing Prices via Mobile While Being In Store, in %, by Selected Countries, 2014 in % of Consumers with Mobile Phone Survey: based on a survey of 25,000 mobile phone users in 23 countries; ages 15+ Source: GfK, February 2015

28 E-Commerce companies worldwide benefit from the M-Commerce growth, with shares of mobile sales at double-digit figures. Global: M-Commerce Overview and Trends, March 2015 According to comScore, the US-based global E-Commerce leaders Amazon and eBay are also the leaders in M-Commerce. During the holiday shopping season in the USA, these companies had respectively 69% and 63% of their traffic through mobile devices. eBay, which officially discloses the M-Commerce data, reported USD 27.9 billion of M-Commerce volume was transacted through its platforms, representing 34% of its total volume and up by +27% from USD 22 billion. Amazon’s M-Commerce sales in 2013 were estimated by Internet Retailer at USD 48.8 billion, while its official net sales were USD 74.5 billion in 2013. The Chinese E-Commerce giant Alibaba, generated USD 130 billion of mobile gross merchandise value in 2014, up by % year-on-year in local currency, with the share of M-Commerce on total GMV rising from 20% in Q to 42% in Q In early 2015, Alibaba Group invested USD 590 million into Meizu Technology Corp, an electronics manufacturer, thus entering the same field that Amazon did previously with its Fire Phone in 2014, namely the production of devices used for M-Commerce - smartphones, Bloomberg reports. Another prominent player in the M-Commerce field in Asia, Japan-based Line Corp., which operates a popular mobile messaging application with M-Commerce capabilities, in July 2014 announced intentions to conduct an IPO, but in September 2014 held the IPO back in order to increase revenues and profit in order to get a better valuation, Reuters reports. Europe-based international E-Commerce leaders also benefit from the M-Commerce boom. Cnova, operator of online shops and marketplaces worldwide, had a 21.6% share of mobile on GMV of its unit Cdiscount in Q4 2014, up from 14.0% a year ago, and 10.5% mobile share on GMV in its Brazil-based unit, up from 4.4% a year ago. Meanwhile, Germany-based Otto Group, an operator of multiple E-Commerce brands around the world, announced investment of a high two-digit million figure in tech startups, including those working in the mobile field. Source: ComScore, February 2015; Reuters, September 2014; eBay, January 2015; Internet Retailer, August 2014; Amazon, 2014; Alibaba Group, January 2015; Bloomberg, February 2015; Cnova, January 2015; Otto Group, February 2015 28 28

29 Table of Contents 1. Management Summary 14 – 18 2. Global 19 – 28 3.
Asia-Pacific 29 – 54 3.1. Regional 3.2. China 3.3. Japan 3.4. South Korea 3.5. Australia 3.6. India 3.7. Indonesia 3.8. Philippines 4. North America 55 – 62 4.1. USA 4.2. Canada 5. Europe 63 – 98 5.1. Regional 5.2. UK 5.3. Germany 5.4. France 5.5. Russia 5.6. Italy 5.7. Spain 5.8. Netherlands 5.9. Turkey 5.10. Poland 5.11. Sweden 6. Latin America 99 – 117 6.1. Regional 6.2. Brazil 6.3. Mexico 6.4. Argentina 7. Middle East & Africa 7.1. 7.2. Middle East 7.2.1. UAE 7.2.3. Saudi Arabia 7.2.4. Israel 7.2.5. Qatar 7.3. Africa 7.3.1. South Africa 7.3.2. Nigeria 7.3.3. Egypt 7.3.4. Morocco

30 South Korea is expected to remain the leading country in Asia-Pacific in terms of smartphone penetration through 2018. Asia-Pacific: Smartphone User Penetration, in % of Population, f 2012 2013 2014e 2015f 2016f 2017f 2018f South Korea 51.0% 62.4% 69.7% 71.8% 73.1% 74.2% 75.3% Australia 43.7% 53.2% 61.2% 63.1% 64.6% 66.0% 67.2% Japan 26.4% 37.4% 50.8% 53.5% 56.3% 59.0% 61.0% China 26.3% 33.1% 38.5% 42.2% 45.5% 48.6% 51.6% Indonesia 10.6% 13.8% 21.3% 31.8% 37.5% 42.6% India 3.5% 6.2% 10.0% 13.4% 16.1% 19.0% 21.5% Other 9.8% 12.3% 14.9% 17.0% 18.7% 19.7% 20.9% Total Asia-Pacific 14.8% 19.3% 23.9% 27.1% 29.9% 32.5% 34.9% Note: data for China excludes Hong Kong Definition: individuals of any age who own at least one smartphone and use the smartphone at least once per month Source: eMarketer, June 2014

31 in % of Smartphone Users
Singapore was the leading country in South East Asia in terms of mobile shopper penetration on smartphone users, as of July 2014. South East Asia: Mobile Shopper Penetration, by Selected Countries in South East Asia, in % of Smartphone Users, July 2014 in % of Smartphone Users Survey: based on a survey of 1,000 respondents in Indonesia, 1,000 in Philippines, 1,000 in Thailand and 2,000 in Singapore; question asked: “Have you ever used your phone for any of the following? Make online purchases” Source: Deloitte, July 2014

32 Countries in South East Asia scored above the global average in terms of online shoppers using mobile phones to make purchases in Q South East Asia: Devices Most Used for Online Shopping, incl. Mobile, by Selected Countries in South East Asia, Compared to Global Average, in % of Online Shoppers, Q1 2014 Computer Mobile Phone Tablet Philippines 71% 62% 38% Indonesia 58% 61% 39% Vietnam 34% Thailand 57% 32% Singapore 73% 48% 29% Malaysia 72% 47% 24% Global Average 80% 44% 31% Note: devices most used for shopping online; does not add up to 100% due to multiple answers possible Survey: based on an online survey of 30,000 respondents worldwide, incl. from the listed countries Source: Nielsen cited by The Rakyat Post, August 2014

33 % of Total Internet Users
556.8 million people or 86% of the Internet users in China surfed the Internet using their mobile phones in 2014. China: Number of Mobile Internet Users, in millions and in % of Total Internet Users, in millions % of Total Internet Users Note: includes mainland China only, excludes Hong Kong, Macao and Taiwan Definition: Chinese residents who have used Internet in the previous 6 months; ages 6+ Source: China Internet Network Information Center, January 2014, February 2015 33 33

34 % of Mobile Internet Users
The number of mobile Internet users making purchases via their mobile phones grew from 56 million in 2012 to 236 million in 2014. China: Number of Mobile Shoppers, in millions and in % of Mobile Internet Users, in millions % of Mobile Internet Users Source: China Internet Network Information Center, January 2014, February 2015 34 34

35 in % Year-on-Year Change
In 2015, M-Commerce sales in China are expected to reach CNY 1.7 trillion (EUR 213 billion), with growth rates slowing to +80%. China: M-Commerce Sales, in CNY billion, and in % Year-on-Year Change, f in CNY billion in % Year-on-Year Change Definition: transaction value of mobile shopping market Source: EnfoDesk cited by China Internet Watch, January 2015 35 35

36 in % of Total E-Commerce Sales
The share of mobile shopping on total online shopping transaction value in China is projected to rise to 40% in 2015. China: Share of M-Commerce on Total E-Commerce Sales, in %, f in % of Total E-Commerce Sales Definition: share of transaction value of mobile shopping on total transaction value of online shopping Source: EnfoDesk cited by China Internet Watch, January 2015 36 36 36 36

37 in % Year-on-Year Change
By 2017, M-Commerce sales in China are forecasted to reach CNY 3 tril. (EUR 392 bil.), with growth rates falling from +490% in 2012 to +27%. China: M-Commerce Sales, in CNY billion, and in % Year-on-Year Change, f in CNY billion in % Year-on-Year Change Note: growth rates are provided as stated in the source; numbers are rounded Definition: mobile shopping GMV Source: iResearch, September 2014 37 37

38 in % of Total E-Commerce Sales
The share of M-Commerce on total online shopping market in China more than doubled in 2014 and was forecasted to reach 57% in 2017. China: Share of M-Commerce on Total E-Commerce Sales, in %, f in % of Total E-Commerce Sales Deifnition: share of online shopping made via a mobile device on total online shopping GMV Source: iResearch, September 2014 38 38 38 38

39 “Wireless Taobao” dominated the mobile shopping market in China with a 89% market share, as estimated in Q China: Breakdown of the M-Commerce Sales, by Players, in %, Q3 2014e Note: *Others include Suning, JUMEI, Gome, Dangdang, Mmb, Amazon China and others Definition: mobile shopping GMV Source: iResearch, December 2014

40 Penetration of smartphones and tablets in Japan grew rapidly between 2010 and 2013, reaching respectively 63% and 22% by the end of 2013. Japan: Mobile Device Ownership, by Smartphone and Tablet, in % of Households, in % of Households Survey: based on a survey of 22,271 households in 2010, 16,530 in 2011 and 20,418 in 2012, and 15,599 in 2013; data as of the end of the year Source: Ministry of Internal Affairs and Communication, June 2014

41 32.8% of smartphone users in Japan shopped using their smartphones, as of August 2014.
Japan: Mobile Shopper Penetration, in % of Smartphone Users, August 2014 Survey: based on a survey of 4,685 respondents, incl. 2,523 males and 2,162 females Source: Video Research Institute cited by D2C, December 2014

42 The group with the highest mobile shopper penetration on smartphone users in Japan in August 2014 were year old females (49.5%). Japan: Mobile Shopper Penetration, in % of Smartphone Users, by Age and Gender, August 2014 Male Female in % of Male Smartphone Users in % of Female Smartphone Users Survey: based on a survey of 4,685 respondents, incl. 2,523 males and 2,162 females Source: Video Research Institute cited by D2C, December 2014

43 M-Commerce sales in South Korea grew in every quarter of 2013 and 2014, peaking at KRW 4 trillion (EUR 2.7 billion) in Q South Korea: M-Commerce Sales, in KRW trillion, Q Q3 2014 +22% in KRW trillion +14% +17% +41% +31% +18% Note: Q data is preliminary Definition: includes B2C and C2C transactions Source: Statistics Korea, May 2014, July 2014, October 2014 43 43

44 in % of Total E-Commerce Sales
The share of M-Commerce on total E-Commerce sales in South Korea grew from 12.6% in Q to 34.1% in Q South Korea: Share of M-Commerce on Total E-Commerce Sales, in %, Q Q3 2014 in % of Total E-Commerce Sales Note: Q data is preliminary Definition: includes B2C and C2C transactions Source: Statistics Korea, May 2014, July 2014, October 2014 44 44 44 44

45 The leading product category in M-Commerce in South Korea in Q1 and Q was “Travel”, while in Q it was “Clothing”. South Korea: Breakdown of M-Commerce Sales by Product Categories, in KRW billion, Q Q3 2014 Q1 2014 Q2 2014 Q3 2014 Travel Arrangement and Reservation Services 551 601 808 Clothes, Fashion and Related Goods 544 648 655 Household Goods, Motor Vehicle Parts and Accessories 308 387 493 Food & Beverages 245 265 369 Home Electric Appliances, Electronic and Telecom Equipment 255 304 352 Cosmetics 193 221 275 Goods for Infants and Children 205 215 234 Sports and Leisure Appliances 90 134 160 Computer and Computer-Related Appliances 109 91 138 Agricultural and Fishery Products 61 77 93 Books 49 40 66 Office Appliances and Stationery 11 15 Music CDs, Videos and Musical Instrument 7 6 Software 1 Flowers 2 Miscellaneous Services and Others 191 Note: Q data is preliminary Definition: includes B2C and C2C transactions Source: Statistics Korea, May 2014, July 2014, October 2014

46 Consumers in South Korea did 26
Consumers in South Korea did 26.5% of their online shopping via smartphones, as of September 2014. South Korea: Breakdown of E-Commerce Utilization, by Device, in %, by Age Groups, September 2014 in % of Online Shoppers Survey: based on a survey of 1,000 respondents Source: Trendmonitor, November 2014 46 46

47 59% of individuals in Australia aged between 15 and 65 made at least one M-Commerce purchase, as estimated in 2014. Australia: Mobile Shopper Penetration, in % of Individuals, 2014e Definition: share of individuals aged between 15 and 65 who made at least one M-Commerce purchase in the previous 12 months Source: Forrester, November 2014 47 47 47 47

48 With CAGR of +29.7%, M-Commerce in Australia is forecasted to rise to AUD 54 billion (EUR 39 billion) in 2019. Australia: M-Commerce Sales, in AUD billion, 2014 & 2019f CAGR +29.7% in AUD billion Definition: includes travel and financial services, physical goods, entertainment expenditure and media purchases, such as tickets, e-books and other digital content Source: Frost & Sullivan, September 2014 48 48

49 “Services” was the largest segment in Australian M-Commerce in terms of share on total sales (59%), followed by “Physical Products” (27%). Australia: Breakdown of M-Commerce Sales, by Categories, in % and in AUD billion, 2014e Note: may not add up to 100% due to rounding Source: Frost & Sullivan, September 2014

50 Mobile shopper penetration on online shoppers in cities of India grew from 24% in 2012 to 57% in 2014. India: Mobile Shopper Penetration, in % of Urban Online Shoppers, 2012 & 2014 2012 2014 Survey: based on a survey of 6,589 respondents in 50 cities in India Definition: share of online buyers making shopping queries from mobile devices Source: Forrester, November 2014 50 50 50 50

51 The share of M-Commerce on total E-Commerce sales in India is forecasted to rise from 11% estimated in 2014 to 25% in 2017. India: Share of M-Commerce on Total E-Commerce Sales, in %, 2014e & 2017f 2014e 2017f Definition: includes sales from smartphones and tablets Source: ASSOCHAM, PwC, December 2014 51 51 51 51

52 Flipkart. com was the leading M-Commerce app in India with 17 mil
Flipkart.com was the leading M-Commerce app in India with 17 mil. installs, as estimated in December 2014, followed by Paytm with 13 mil. India: Most Popular M-Commerce Applications, by Provider, in million Installs, December 2014e in million Installs Source: Huffington Post based on Xyo.net, February 2015

53 “Mobile Phone” was the device most used for shopping online by 61% of online shoppers in Indonesia in Q1 2014, ahead of “Computer” (58%). Indonesia: Devices Most Used for Online Shopping, incl. Mobile, in % of Online Shoppers, Q1 2014 in % of Online Shoppers Note: devices most used for shopping online; does not add up to 100% due to multiple answers possible Survey: based on an online survey of 30,000 respondents worldwide, incl. from Indonesia Source: Nielsen, September 2014

54 in % of Mobile Internet Users
52% of mobile Internet users made a purchase via their phones in June 2014, with only 4% purchasing physical items. Philippines: Product Categories Purchased via Mobile Phones, in % of Mobile Internet Users, June 2014 in % of Mobile Internet Users Note: products purchased via a social messanging app within the previous week, does not add up to 100% due to multiple answers possible Survey: based on a survey of 900 mobile Internet users Source: On Device Research cited by Tech in Asia, August 2014

55 Table of Contents 1. Management Summary 14 – 18 2. Global 19 – 28 3.
Asia-Pacific 29 – 54 3.1. Regional 3.2. China 3.3. Japan 3.4. South Korea 3.5. Australia 3.6. India 3.7. Indonesia 3.8. Philippines 4. North America 55 – 62 4.1. USA 4.2. Canada 5. Europe 63 – 98 5.1. Regional 5.2. UK 5.3. Germany 5.4. France 5.5. Russia 5.6. Italy 5.7. Spain 5.8. Netherlands 5.9. Turkey 5.10. Poland 5.11. Sweden 6. Latin America 99 – 117 6.1. Regional 6.2. Brazil 6.3. Mexico 6.4. Argentina 7. Middle East & Africa 7.1. 7.2. Middle East 7.2.1. UAE 7.2.3. Saudi Arabia 7.2.4. Israel 7.2.5. Qatar 7.3. Africa 7.3.1. South Africa 7.3.2. Nigeria 7.3.3. Egypt 7.3.4. Morocco

56 in % of Mobile Phone Users
19% of mobile phone users in the USA purchased products through an app on mobile device while in-store in 2014. USA: M-Commerce Activities Carried Out In-Store, in % of Mobile Phone Users, 2014 in % of Mobile Phone Users Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 25,000 mobile phone users aged 15 or older in 23 countries, incl. USA Source: GfK, February 2015

57 in % Year-on-Year Change
In the USA, M-Commerce sales excluding travel and tickets are projected to reach USD 133 bil. (EUR 100 bil.) by 2018, with growth rates slowing. USA: M-Commerce Sales, Excluding Travel and Tickets, in USD billion, and in % Year-on-Year Change, f in USD billion in % Year-on-Year Change Definition: includes products and services ordered using the Internet via mobile devices, regardless of the method of payment or fulfillment; excludes travel and event tickets includes sales from tablets Source: eMarketer, July 2014

58 in % of Total B2C E-Commerce Sales
The share of M-Commerce on total B2C E-Commerce sales in the USA is forecasted to rise from 11% in 2012 to 27% in 2018. USA: Share of M-Commerce on Total B2C E-Commerce Sales, in %, f in % of Total B2C E-Commerce Sales Definition: includes products and services ordered using the Internet via mobile devices, regardless of the method of payment or fulfillment; excludes travel and event tickets Source: eMarketer, July 2014 58 58 58 58

59 in % Share of Total M-Commerce Sales
The share of sales generated from smartphones on total M-Commerce sales in the USA is forecasted to drop from 35% in 2013 to 26% in 2018. USA: M-Commerce Sales from Smartphones, Excluding Travel and Tickets, in USD billion, and in % Year-on-Year Change, f in USD billion in % Share of Total M-Commerce Sales Definition: includes products and services ordered using the Internet via smartphones, regardless of the method of payment or fulfillment; excludes travel and event tickets Source: eMarketer, November 2014

60 in % of Total E-Commerce Sales
Among the quarterly periods between Q and Q2 2014, the highest share of M-Commerce on total E-Commerce was in Q USA: Share of M-Commerce on Total E-Commerce Sales, in %, Q Q2 2014 in % of Total E-Commerce Sales Source: ComScore, July 2014 60 60 60 60

61 33% of Internet users aged between 18 and 34 years-old made purchases online via smartphone in Canada in July 2014. Canada: Devices Used for Shopping Online, incl. Mobile, by Age Group, in % of Internet Users, July 2014 18-34 35-54 55+ Computers/Laptops 92% 90% 83% Smartphones 33% 16% 8% Tablets 22% 21% 11% Note: does not add up to 10% due to multiple answers possible; purchase made in the previous 12 months Survey: based on a survey of 800 adults in Canada, conducted via an online panel in July 2014 Source: Ipsos, September 2014

62 5% of online spending in Canada in a year to November 2014 was carried out on smartphone and 4% on tablet. Canada: Breakdown of Online Spending, by Device, incl. Mobile, in %, 12 Months to November 2014 Definition: spending in the previous 12 months Survey: based on a survey of 17,519 adults in 22 countries, incl. Canada, who own and/or use an Internet-enabled device, around 800 respondents per country Source: PayPal, Ipsos, February 2015

63 Table of Contents 1. Management Summary 14 – 18 2. Global 19 – 28 3.
Asia-Pacific 29 – 54 3.1. Regional 3.2. China 3.3. Japan 3.4. South Korea 3.5. Australia 3.6. India 3.7. Indonesia 3.8. Philippines 4. North America 55 – 62 4.1. USA 4.2. Canada 5. Europe 63 – 98 5.1. Regional 5.2. UK 5.3. Germany 5.4. France 5.5. Russia 5.6. Italy 5.7. Spain 5.8. Netherlands 5.9. Turkey 5.10. Poland 5.11. Sweden 6. Latin America 99 – 117 6.1. Regional 6.2. Brazil 6.3. Mexico 6.4. Argentina 7. Middle East & Africa 7.1. 7.2. Middle East 7.2.1. UAE 7.2.3. Saudi Arabia 7.2.4. Israel 7.2.5. Qatar 7.3. Africa 7.3.1. South Africa 7.3.2. Nigeria 7.3.3. Egypt 7.3.4. Morocco

64 Italy was the leader in the EU5 by penetration of mobile shoppers buying from smartphones on Internet users, as estimated in 2014. Europe: Online Shopper Penetration in the EU5, by Smartphone and Tablet, in % of Internet Users, by Country, 2014e in % of Internet Users Source: Mintel, September 2014

65 The share of M-Commerce on total B2C E-Commerce sales in Europe is forecasted to grow from 20% in 2014 to 49% in 2018. Europe: Share of M-Commerce on Total B2C E-Commerce Sales in the EU7, 2014e & 2018f 2014e 2018f Definition: online retail, travel and daily deals sales from mobile and tablets in France, Germany, Italy, the Netherlands, Spain, Sweden and the UK Source: Forrester, November 2014 65 65 65 65

66 In the UK, tablets are expected to remain ahead of smartphones in terms of M-Commerce sales generation. UK: M-Commerce Sales, by Device, in GBP billion, f 2012 2013 2014e 2015f 2016f 2017f 2018f Tablet 1.72 5.17 9.28 12.44 15.47 18.39 20.96 Smartphone 2.04 3.25 4.65 5.67 6.40 6.88 7.84 Other Mobile Devices 0.09 0.13 0.17 0.18 0.20 0.23 Total 3.85 .55 14.10 18.29 22.07 25.47 29.04 Note: may not add up to 100% due to rounding Definition: includes products and services ordered using the Internet via mobile devices, regardless of the method of payment or fulfillment; excludes travel and event tickets includes sales from tablets Source: eMarketer, June 2014

67 in % of Total B2C E-Commerce Sales
The share of M-Commerce on total B2C E-Commerce sales in the UK is projected to rise from 10% in 2012 to 38% in 2018. UK: Share of M-Commerce on Total B2C E-Commerce Sales, in %, f in % of Total B2C E-Commerce Sales Note: the quarters are as follows: Q1 - February to April, Q2 - May to July, Q3 - August to October, Q4 - November to January Definition: sales via tablets and smartphones, travel excluded Source: IMRG, Capgemini, May 2013, September 2013, February 2014, May 2014, September 2014, December 2014; IMRG, Capgemini cited by Mobile Commerce Press, February 2015 67 67 67 67

68 In 2014, M-Commerce sales in the UK increased from GBP 8 billion
(EUR 10 billion) in Q to GBP 9 billion (EUR 12 billion) in Q UK: M-Commerce Sales, in GBP billion, Q Q3 2014 +6.9% in GBP billion +10.1% Note: the quarters are as follows: Q1 - February to April, Q2 - May to July, Q3 - August to October, Q4 - November to January Q1 is calculated based on the share and the total online sales reported by the source Definition: sales via tablets and smartphones, travel excluded Source: IMRG, Capgemini, May 2014, September 2014, December 2014; IMRG, Capgemini cited by Mobile Commerce Press, February 2015 68 68

69 In Q4 2014, 75% of M-Commerce sales in the UK was generated via tablets, while 25% was generated via smartphones. UK: Breakdown of M-Commerce Sales, by Smartphones and Tablets, in %, Q4 2014 Note: according to the source, Q4 - November to January Definition: sales via tablets and smartphones, travel excluded Source: IMRG, Capgemini cited by Mobile Commerce Press, February 2015

70 in % of Total B2C E-Commerce Sales
In the UK, the share of M-Commerce on total B2C E-Commerce grew both y-o-y and quarter-on-quarter in 2013, reaching 32% in Q UK: Share of M-Commerce on Total B2C E-Commerce Sales, in %, Q Q4 2014 in % of Total B2C E-Commerce Sales Definition: includes sales on tablets, excludes travel Source: IMRG, Capgemini, May 2013, September 2013, February 2014, May 2014, September 2014, December 2014; IMRG, Capgemini, IMRG cited by Mobile Commerce Press, February 2015 70 70 70 70

71 in % of Smartphone Owners
“Amazon” and “eBay” were the retail sites/apps most accessed via mobile by smartphone owners in the UK, as of March 2014. UK: Retail Websites/Applications Accessed via Smartphone, in % of Smartphone Owners, March 2014 in % of Smartphone Owners Note: accessed at least once, does not add up to 100% due to multiple answers possible Survey: based on a survey of 2,049 consumers, conducted between February and March 2014 Source: ICM Research, Marketing Week cited by eMarketer, July 2014

72 For the majority of retail sites popular on mobile in the UK, “Mobile Website” was significantly ahead of “Mobile Application” in March 2014. UK: Retail Websites and Applications Accessed via Smartphone, by Mobile Website and Mobile Application, in % of Smartphone Owners Accessing, March 2014 Mobile Website Mobile Application Boots 65% 8% NEXT 62% 11% Debenhams 59% 13% John Lewis Sainsbury’s 58% 18% Currys M&S 57% Asda 56% 17% Tesco 22% ASOS Argos 54% 24% Amazon 45% 38% eBay 35% 52% Note: does not add up to 100% due to the responses “nonapplicable” Survey: based on a survey of 2,049 consumers, conducted between February and March 2014 Source: ICM Research, Marketing Week cited by eMarketer, July 2014

73 The age group with the highest mobile shopper penetration on online shoppers in Germany in 2014 were year-olds. Germany: Mobile Shopper Penetration, by Age and Gender, in % of Online Shoppers, 2014 Total Gender Age Group Male Female 18-29 30-44 45-59 60+ Once 13% 12% 23% 16% 10% 7% Several Times 15% 17% 30% 21% 14% 4% Never 72% 75% 70% 47% 63% 76% 89% Survey: based on a survey of 1,039 online shoppers; question asked “How often have you purchased goods in Internet via mobile devices? Have you purchased already this year (2014)?” Source: BEVH, E-Development, August 2014

74 M-Commerce sales accounted for 18% of the total B2C E-Commerce sales in Germany in 2013, equivalent to EUR 6 billion. Germany: Share of M-Commerce on Total B2C E-Commerce Sales, in % and in EUR billion, 2013 Note: EUR billion value calculated based on total B2C E-Commerce sales value and the share of M-Commerce in % reported by the source Definition: includes non-food products, FMCG, entertainment, tickets, downloads and travel; M-Commerce includes purchases via tablets and smartphones Source: HDE, GfK, November 2014

75 35% of the mobile shoppers in Germany purchased “Clothing, Shoes” in their last mobile purchase in August 2014. Germany: Breakdown of the Last M-Commerce Purchase, by Product Categories, in % of Mobile Shoppers, August 2014 Note: does not add up to 100% due to rounding Survey: based on a survey of 1,039 online shoppers; question asked “What was the last product that you purchased via the mobile device?”; base - mobile shoppers, 323 respondents Source: BEVH, E-Development, August 2014

76 As of August 2014, 71% of mobile shoppers in Germany used smartphones to purchase via mobile, while 46% used tablets. Germany: Devices Used in M-Commerce, in % of Mobile Shoppers, August 2014 in % of Mobile Shoppers Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 1,039 online shoppers; question asked “Which mobile devices do you use for purchasing?”; base - mobile shoppers, 323 respondents Source: BEVH, E-Development, August 2014

77 in % of Online Shoppers Who Own Tablet/Smartphone
Tablets were used for mobile shopping in France more than smartphones both in 2013 and 2014. France: Mobile Shopper Penetration, by Tablet and Smartphone, in % of Online Shoppers Who Own Tablet/Smartphone, 2013 & 2014 in % of Online Shoppers Who Own Tablet/Smartphone Note: over three quarters of the responding online shoppers had a smartphone and 52% had a tablet Survey: based on a survey of 1,009 online shoppers (anyone who made at least one purchase on the Internet); ages 18-75; conducted in December 2014 Source: Fevad, CSA, January 2015

78 M-Commerce generated 16% of the total B2C E-Commerce sales in France in 2014, equivalent to EUR 9 billion. France: Share of M-Commerce on Total B2C E-Commerce Sales, in % and in EUR billion, 2014 Definition: sales via smartphones and tablets, mobile applications and sites outside of application downloads and offline sales marketplaces Note: based on the data collected from E-Commerce websites and aggregate amount of transactions processed by payment companies on behalf of 157,000 websites; EUR values are calculated based on in % share of M-Commerce and total B2C E-Commerce sales reported by the source; includes travel Source: Fevad, January 2015

79 “Fashion and Accessories” is expected to remain the second leading product in M-Commerce in France, following “Train Tickets, etc.”. France: Products Purchased in M-Commerce via Smartphones, in % of Mobile Shoppers, 2014 & 2015f in % of Mobile Shoppers Note: does not add up to 100% due to multiple answers possible; the ranking of products might not be complete; the first two were reported to have the highest share, while the last two in the rank had the fastest growth Survey: based on a survey of 1,009 online shoppers (anyone who made at least one purchase on the Internet); ages 18-75; conducted in December 2014 Source: Fevad, CSA, January 2015

80 The number of mobile shoppers in Russia grew by +50% in 2013, reaching 3.9 million.
Russia: Number of Mobile Shoppers, in millions, 2012 & 2013 in millions +50% Definition: includes buyers from smartphones and tablets; ages 18-54 Source: RBK.research cited by Kommersant, July 2014 80 80

81 In 2014, there were 4.1 million people in Russia buying from smartphones and 5.2 million buying from tablets. Russia: Number of Mobile Shoppers, by Smartphone and Tablet, in millions, 2013 & 2014 2013 2014 Mobile Shoppers from Smartphone 1.9 4.1 Mobile Shoppers from Tablet 0.8 5.2 Survey: based on a survey of 4,142 internet users, ages 18-54, of whom 95% visited online shops and 83% made purchases online; conducted in September 2014 Definition: individuals ordering goods or services via mobile devices, regardless of payment methods used Source: RBK.research cited by Oborot.ru, December 2014

82 M-Commerce sales in Russia were estimated to double in 2014, reaching USD 3.0 billion (EUR 2.3 billion). Russia: M-Commerce Sales, in USD billion, 2013 & 2014e +100% in USD billion Definition: includes travel tickets and hotel booking Source: PriceFree cited by Kommersant, July 2014 82 82

83 The share of M-Commerce sales in Russia was estimated at 18% in 2014, up from between 8% and 10% in 2013. Russia: Share of M-Commerce on Total B2C E-Commerce Sales, in %, 2013 & 2014e 2013 2014e Definition: includes travel tickets and hotel booking Source: PriceFree cited by Kommersant, July 2014 83 83 83 83

84 in % of Smartphone Owners
St. Petersburg and Moscow were ahead of smaller cities in Russia in terms of mobile shopper penetration on smartphone owners in 2014. Russia: Mobile Shopper Penetration, in % of Smartphone Owners, by Size of City of Location, 2014 in % of Smartphone Owners Survey: based on a survey of 4,142 internet users, ages 18-54, of whom 95% visited online shops and 83% made purchases online; conducted in September 2014 Definition: individuals ordering goods or services via mobile devices, regardless of payment methods used Source: RBK.research cited by Oborot.ru, December 2014

85 In Italy, M-Commerce sales from smartphones were estimated to amount to EUR 1.2 billion in 2014, double the 2013 value. Italy: M-Commerce Sales from Smartphones, in EUR billion, 2013 & 2014 +100% in EUR billion Note: is calculated based on growth rate provided for 2014 Source: NetComm, October 2014 85 85

86 The share of sales made from smartphones in Italy reached 9% of the total B2C E-Commerce sales, as estimated for 2014. Italy: Share of M-Commerce from Smartphones on Total B2C E-Commerce Sales, in %, 2014e Source: NetComm, October 2014

87 Total M-Commerce sales in Italy, incl
Total M-Commerce sales in Italy, incl. sales from smartphones and tablets, generated 20% of all B2C E-Commerce sales estimated for 2014. Italy: Share of M-Commerce on Total B2C E-Commerce Sales, in %, 2014e Note: includes sales from smartphones and tablets Source: NetComm, October 2014

88 Mobile shopper penetration on Internet users in Spain increased from 9% in 2011 to 26% in 2013.
Spain: Mobile Shopper Penetration, in % of Internet Users, in % of Internet Users Definition: purchased products or services for personal use by using Internet on a mobile device Survey: based on a survey of 2,900 Internet users; ages 15+ Note: numbers are ITU’s own estimate Source: Ministry of Industry, Energy and Tourism, Observatorio Nacional de las Telecommunicaciones y de la Si (ONTSI), October 2014 88 88 88 88

89 M-Commerce sales in Spain were estimated to grew by +280% in 2014, reaching EUR 1.3 billion.
Spain: M-Commerce Sales, in EUR billion, 2013 & 2014e in EUR billion +280% Definition: includes purchases made online via smartphones and via tablets Source: OBS cited by Modaes.es, November 2014 89 89

90 M-Commerce sales in the Netherlands grew to EUR 735 billion in
H2 2013, with sales for the full year 2013 amounting to EUR 1.3 billion. Netherlands: M-Commerce Sales, in EUR million, H2 2012, H1 2013, H2 2013 in EUR million +67% +34% Definition: includes products and services purchased via smartphones and tablets Source: Thusiwinkel, Blauw Research, 2014 90 90

91 Sales from tablets accounted for 72% of M-Commerce sales in the Netherlands in H2 2013, equivalent to EUR 532 million. Netherlands: Breakdown of M-Commerce Sales, by Smartphones and Tablets, in % and in EUR million, H2 2013 Definition: includes products and services purchased via smartphones and tablets Source: Thusiwinkel, Blauw Research, 2014

92 M-Commerce accounted for 13% of the total B2C E-Commerce sales in the Netherlands in H2 2013.
Netherlands: Share of M-Commerce on Total B2C E-Commerce Sales, in %, H2 2013 Definition: includes products and services purchased via smartphones and tablets Source: Thusiwinkel, Blauw Research, 2014

93 in % of Households with Internet Access
81% of households with Internet access in Turkey in Q had a mobile phone connected to the Internet. Turkey: Devices Used to Connect to the Internet, in % Households with Internet Access, Q1 2014 in % of Households with Internet Access Note: does not add up to 100% due to multiple answers possible Source: Turkey Statistical Institute, August 2014

94 9% of online spending in Turkey in a year to October 2014 was carried out on smartphone and 5% on tablet. Turkey: Breakdown of Online Spending, by Device, incl. Mobile, in %, 12 Months to October 2014 Definition: spending in the previous 12 months Survey: based on a survey of 17,519 adults in 22 countries, incl. 800 in Turkey, who own and/or use an Internet-enabled device, around 800 respondents per country Source: PayPal, Ipsos, cited by eTicaretmag, February 2015

95 Internet users in the age group “15-19” had the highest penetration rate of smartphone users in Poland in May 2014 (78%). Poland: Smartphone Penetration by Age Group, in % of Internet Users, May 2013 & May 2014 in % of Internet Users Definition: smartphone owners who use their device to purchase via the Internet Survey: based on a survey of 1,353 Internet users; ages 15+ Source: MEC, August 2014

96 4% of smartphone owners in Poland used their devices to shop via Internet, as of May 2014.
Poland: Mobile Shopper Penetration on Smartphone Owners, in %, May 2014 Definition: smartphone owners who use their device to purchase via the Internet Survey: based on a survey of 1,353 Internet users, of whom 826 owned smartphone; ages 15+ Source: MEC, August 2014

97 35% of online shoppers in Poland purchased via smartphones at least once, as of March 2014, and 19% did so on tablets. Poland: Devices Used for Shopping Online, in % of Online Shoppers, March 2014 in % of Online Shoppers Survey: based on a survey of 1,500 Internet users; does not add up to 100% due to multiple answers possible; devices used at least once to shop online Source: Gemius cited by Ecommerce News, 2014 97 97

98 23% of online shoppers in Sweden used tablet computers for making online purchases, while 17% used mobile phones in Q Sweden: Devices Used for Shopping Online, in % of Online Shoppers, Q3 2014 in % of Online Shoppers Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 1,301 respondents in Sweden; question asked: “Which devices have you used for buying on the Internet in the past three months?” Source: PostNord, November 2014

99 Table of Contents 1. Management Summary 14 – 18 2. Global 19 – 28 3.
Asia-Pacific 29 – 54 3.1. Regional 3.2. China 3.3. Japan 3.4. South Korea 3.5. Australia 3.6. India 3.7. Indonesia 3.8. Philippines 4. North America 55 – 62 4.1. USA 4.2. Canada 5. Europe 63 – 98 5.1. Regional 5.2. UK 5.3. Germany 5.4. France 5.5. Russia 5.6. Italy 5.7. Spain 5.8. Netherlands 5.9. Turkey 5.10. Poland 5.11. Sweden 6. Latin America 99 – 117 6.1. Regional 6.2. Brazil 6.3. Mexico 6.4. Argentina 7. Middle East & Africa 7.1. 7.2. Middle East 7.2.1. UAE 7.2.3. Saudi Arabia 7.2.4. Israel 7.2.5. Qatar 7.3. Africa 7.3.1. South Africa 7.3.2. Nigeria 7.3.3. Egypt 7.3.4. Morocco

100 Handheld Gaming Device
Of Argentina, Brazil and Mexico, Mexico had the highest penetration of smartphones (40%) and tablets (18%) on consumers in March 2014. Latin America: Devices Owned, in % of Surveyed Consumers, by Argentina, Brazil and Mexico, March 2014 Mobile Phone Computer Smartphone Tablet Internet- Enabled TV MP3 Player Handheld Gaming Device eReader Argentina 84% 52% 33% 5% 4% 1% 0% Brazil 82% 37% 29% 89 8% 7% 3% Mexico 76% 44% 40% 18% 11% 9% Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 1,030 consumers in Argentina, 1,000 in Brazil and 1,000 in Mexico, including online and offline shoppers, ages 18+; conducted between January and March 2014 Source: Google, TNS Infratest, 2014

101 Look for Product Information Look up Maps and Directions
The share of smartphone users making purchases via smartphones at least weekly was higher in Mexico (7%), than in Brazil or Argentina. Latin America: Activities Carried Out on Smartphones at Least Weekly, incl. Purchase, in % of Smartphone Users, by Argentina, Brazil and Mexico, March 2014 Use Search Engines Visit Social Networks Check Play Games Watch Online Videos Purchase Look for Product Information Use Online Banking Look up Maps and Directions Listen to Music Argentina 63% 38% 24% 12% 21% 3% 9% 16% Brazil 29% 35% 31% 4% 20% 8% 14% 22% Mexico 26% 17% 25% 7% 15% Note: does not add up to 100% due to multiple answers possible; activities carried out through web browser or apps Survey: based on a survey of 1,030 consumers in Argentina, 1,000 in Brazil and 1,000 in Mexico, including online and offline shoppers, ages 18+; conducted between January and March 2014; for this question, only responses of Internet users accessing via smartphone were ranked Source: Google, TNS Infratest, 2014

102 Other Internet-Enabled Device
Computer was the device most used for the latest online purchase by shoppers in Argentina, Brazil and Mexico in March 2014. Latin America: Breakdown of the Last Online Purchase, by Device Used, in % of Online Shoppers, by Argentina, Brazil and Mexico, March 2014 Computer Smartphone Tablet Other Internet-Enabled Device Argentina 89% 5% 4% 2% Brazil 88% 3% Mexico 78% 13% 7% Note: may not add up to 100% due to rounding Survey: based on a survey of 1,030 consumers in Argentina, 1,000 in Brazil and 1,000 in Mexico, including online and offline shoppers, ages 18+; conducted between January and March 2014 Source: Google, TNS Infratest, 2014

103 in % of Mobile Phone Users
Mobile Internet penetration on mobile phone users in Brazil grew significantly from 5% in 2010 to 31% in 2013. Brazil: Mobile Internet Penetration, in % of Mobile Phone Users, in % of Mobile Phone Users Definition: Individuals who have accessed the Internet via mobile phone in the three months prior to the survey Survey: based on a survey of households; ages 10+ Source: Brazilian Internet Steering Committee, Center of Studies on information and Communication Technologies CETIC, July 2013, October 2014

104 in % of Mobile Device Owners
Between June 2013 and June 2014, the share of mobile device owners in Brazil who shopped via mobile at least once grew from 57% to 67%. Brazil: Share of Mobile Device Owners Who Shopped on Mobile Devices at Least Once, in %, June 2013 & June 2014 in % of Mobile Device Owners Survey: based on a survey of 450 respondents, ages 15-65, who own mobile devices; 96% owned a smartpone, 54% a tablet and 50% owned a smartphone and a tablet Source: E.life, Pagtel, December 2014

105 The share of M-Commerce on total B2C E-Commerce sales in Brazil grew from 4% in June 2013 to 7% in June 2014. Brazil: Share of M-Commerce Sales on Total B2C E-Commerce Sales, in %, June 2013, December 2013, June 2014 in % of B2C E-Commerce Sales Definition: excludes travel, daily deals, marketplaces, event tickets Source: E-Bit, March 2014; E-Bit, Brazilian Chamber of E-Commerce, July 2014

106 % of Total B2C E-Commerce Sales
Large online retailers in Brazil had the highest share of revenue generated through smartphones (17%), as of July 2014. Brazil: Share of M-Commerce Made via Smartphones on Total B2C E-Commerce Sales, by Category of Online Retailer, in %, July 2014 % of Total B2C E-Commerce Sales Type Manufacturer Selling Directly 9% Store-Based 6% Web-Only Retailer 7% Online Revenue BRL 60, ,000 BRL 240, ,000 4% BRL 360, million 10% BRL 3.6 million - 1 billion > BRL 1 billion 17% Online Tenure < 2 years 2 - 5 years 5+ years Average Note: base - 77 online retailers Survey: based on a survey of 300 companies; question asked “Please indicate the top three biggest challenges your eCommerce business faces over the next 12 months?” Source: E-Commerce Brasil, Forrester, November 2014

107 in % of Mobile Device Owners
26% of mobile device owners in Brazil shopped on smartphone and 21% shopped on tablet online, as of June 2014. Brazil: Devices Used for Online Shopping, in % of Mobile Device Owners, June 2014 in % of Mobile Device Owners Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 450 respondents, ages 15-65, who own mobile devices; 96% owned a smartpone, 54% a tablet and 50% owned a smartphone and a tablet question asked: “What tasks do you perform with each device?”, ranks the answers “Shopping” Source: E.life, Pagtel, December 2014

108 in % of Mobile Device Owners
The most popular way for mobile device owners in Brazil to engage in M-Commerce was to shop from “Store Website” in June 2014. Brazil: Way Used to Shop on Mobile Devices, in % of Mobile Device Owners, June 2014 in % of Mobile Device Owners Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 450 respondents, ages 15-65, who own mobile devices; 96% owned a smartpone, 54% a tablet and 50% owned a smartphone and a tablet question asked: “How did you shop using your mobile device?” Source: E.life, Pagtel, December 2014

109 In H1 2014, “Fashion and Accessories” (18%) had the highest share of M-Commerce Transactions in Brazil in H Brazil: Breakdown of M-Commerce Transactions, by Product Categories, in %, H1 2014 Definition: online retail purchase of goods, excludes travel, daily deal website, marketplaces, event tickets Source: E-bit, 2014

110 % of Mobile Device Owners
The majority of mobile device owners in Brazil held “Tickets” (61%) and “Virtual Content” (56%) to be most suitable for mobile purchase. Brazil: Product and Services to Buy in M-Commerce, by Category, in % of Mobile Device Owners, June 2014 Category Product/Service % of Mobile Device Owners Goods Electronics 52% Clothing and Footwear 36% Home Appliances 33% Furniture and Decoration 13% Leisure and Culture Tickets 61% Cultural Products (Books, CDs, DVDs) 47% Tourism (Plane Tickets, Hotels, Packages) 26% Virtual Items Virtual Content (Online, Music, Apps, Digital Books) 56% SMS Content (Horoscope, Soccer News) 18% Virtual Currency (e.g. Bitcoin) 15% Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 450 respondents, ages 15-65, who own mobile devices; 96% owned a smartpone, 54% a tablet and 50% owned a smartphone and a tablet question asked: “Which products or services do you think are most suitable for mobile shopping and purchasing?” Source: E.life, Pagtel, December 2014

111 49% of Internet users in Mexico accessed the Internet via smartphones and 27% via mobile phones in 2013. Mexico: Devices Used to Access Internet, in % of Internet Users, 2013 in % of Internet Users Note: does not add up to 100% due to multiple answers possible Source: AMIPCI, ELOGIA, May 2014

112 22% of online shoppers in Mexico made purchases from “Mobile Phone” online and 7% from “Tablet”, as of March 2014. Mexico: Devices Used for Shopping Online, in % of Online Shoppers, March 2014 in % of Online Shoppers Note: includes purchase of digital products, such as applications, music and movies, as well as purchase of travel and event tickets does not up to 100% due to multiple answers possible Survey: based on a survey of Internet Users Source: The Comparative Intelligence Unit (CIU), March 2014

113 18% of B2C E-Commerce sales in Mexico in July 2014 were generated via smartphones (13%) and tablets (5%). Mexico: Breakdown of B2C E-Commerce Sales, by Device, in % and in MXN billion, July 2014 Note: includes travel and digital downloads Survey: based on a survey of 4,013 individuals who purchased via computer or mobile device in the previous three months and who own a smartphone or a tablet; ages 18+; conducted in July 2014 Source: ComScore, IBM cited by AMIPCI, October 2014

114 “18 – 24” was the largest age group of mobile shoppers purchasing online via both smartphones (36%).
Mexico: Breakdown of Mobile Shoppers, by Age Group, by Shopping on Smartphone and Tablet, July 2014 Smartphone Tablet Note: includes travel and digital downloads Survey: based on a survey of 4,013 individuals who purchased via computer or mobile device in the previous three months and who own a smartphone or a tablet; ages 18+; conducted in July 2014 Source: ComScore, IBM cited by AMIPCI, October 2014 114 114 114 114

115 in % of Online Shoppers who Own Tablet/Smartphone
18% of online shoppers in Mexico considered having no access to payment options for mobile shopping to be a barrier to M-Commerce. Mexico: Barriers to Mobile Purchase, in % of Online Shoppers who Own Tablet/Smartphone, June 2014 in % of Online Shoppers who Own Tablet/Smartphone Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 4,013 individuals who purchased an item online in the previous three months via computer or mobile device and owning a smartphone or tablet; ages 18+, question asked “Which of the following complications do you consider to use a mobile device to make a purchase? (Please select all that apply)?” Source: Amipci, ComScore, IBM, October 2014

116 38% of online shoppers in Argentina made purchases using smartphones in 2014 and 15% using tablets.
Argentina: Devices Used for Shopping Online, in % of Online Shoppers, 2014 in % of Online Shoppers Note: does not up to 100% due to multiple answers possible Survey: based on a survey of 527 respondents, conducted between December 2013 and January 2015; ages 18+; sample for this question was 237 Source: TNS, Camara Argentina de Comercio Electronico, February 2015

117 “Mobile Phone” was used to access Internet by 24% of population in Argentina, incl. 9% who went online primarily from mobile phones. Argentina: Devices Used to Access Internet, by Primary and Secondary, in % of Individuals, 2013 in % of Individuals Survey: based on a survey of 30,000 individuals, aged 12+ Note: multiple activities could be chosen Source: the Ministry of Culture, May 2014 117 117

118 Table of Contents 1. Management Summary 14 – 18 2. Global 19 – 28 3.
Asia-Pacific 29 – 54 3.1. Regional 3.2. China 3.3. Japan 3.4. South Korea 3.5. Australia 3.6. India 3.7. Indonesia 3.8. Philippines 4. North America 55 – 62 4.1. USA 4.2. Canada 5. Europe 63 – 98 5.1. Regional 5.2. UK 5.3. Germany 5.4. France 5.5. Russia 5.6. Italy 5.7. Spain 5.8. Netherlands 5.9. Turkey 5.10. Poland 5.11. Sweden 6. Latin America 99 – 117 6.1. Regional 6.2. Brazil 6.3. Mexico 6.4. Argentina 7. Middle East & Africa 7.1. 7.2. Middle East 7.2.1. UAE 7.2.3. Saudi Arabia 7.2.4. Israel 7.2.5. Qatar 7.3. Africa 7.3.1. South Africa 7.3.2. Nigeria 7.3.3. Egypt 7.3.4. Morocco

119 In 2014, the UAE was the leading country in the Middle East and Africa by mobile phone penetration, while Saudi Arabia ranked fourth. Middle East & Africa: Mobile Phone Users, in millions, and Penetration, in % of Population, by Countries in the Middle East and Africa, incl. Saudi Arabia and UAE, Ranked by Penetration in 2014, f Country Units 2013 2014 2015f 2016f 2017f 2018f UAE Number, in millions 3.8 4.0 4.2 4.4 4.5 4.6 Penetration, in % 69.9% 71.4% 72.7% 73.7% 74.1% 74.5% Egypt 58.1 59.7 61.2 62.7 64.0 65.3 68.2% 68.7% 69.2% 69.6% 70.1% South Africa 31.7 32.3 32.9 33.4 33.8 34.2 65.2% 66.8% 68.1% 69.0% 69.8% 70.6% Saudi Arabia 17.3 18.2 19.0 19.8 20.6 21.3 64.4% 66.5% 68.8% 70.5% 72.1% 73.6% Nigeria 82.3 87.8 93.5 98.9 103.4 107.9 47.6% 49.6% 51.5% 53.2% 64.3% 55.2% Middle East and Africa (incl. Other Countries) 543.5 577.0 620.7 668.5 715.4 761.3 39.8% 42.0% 44.3% 46.6% 48.9% 50.9% Definition: individuals of any age who own at least one mobile phone and use the phone(s) at least once per month Source: eMarketer, February 2015

120 The UAE and Saudi Arabia were by far the leading countries in the Middle East and Africa in terms of smartphone penetration in 2014. Middle East & Africa: Smartphone Users, in millions, and Penetration, in % of Mobile Phone Users, by Countries in Middle East and Africa, incl. Saudi Arabia and UAE, Ranked by Penetration in 2014, f Country Units 2013 2014 2015f 2016f 2017f 2018f UAE Number, in millions 2.2 2.4 2.7 3.0 3.2 3.5 Penetration, in % 57.0% 60.9% 64.6% 68.6% 71.9% 74.6% Saudi Arabia 8.4 9.3 10.3 11.2 11.9 12.6 48.3% 51.3% 54.2% 56.5% 58.0% 59.0% Egypt 15.5 18.2 21.0 23.6 25.8 21.6% 25.9% 29.8% 33.5% 36.9% 39.6% South Africa 7.6 9.7 14.1 16.2 17.8 24.0% 29.9% 36.1% 42.4% 47.8% 52.2% Nigeria 15.9 19.5 23.1 26.8 30.5 34.0 19.3% 22.2% 24.7% 27.1% 29.5% 31.5% Middle East and Africa (incl. Other Countries) 81.1 104.0 129.7 151.6 173.5 194.5 15.2% 18.0% 20.9% 22.7% 24.2% 25.6% Definition: individuals of any age who own at least one smartphone and use the smartphone(s) at least once per month Source: eMarketer, February 2015

121 “Laptop/Netbook” was the device most used by Internet users in the Arab countries of the MENA region to access the Internet in April 2014. Middle East: Devices Used to Access the Internet in MENA, in % of Internet Users, April 2014 in % of Internet Users Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 3,000 respondents from over 20 countries in the Arab region; Egypt (22%), Saudi Arabia (20%) and the UAE (11%) had the largest share of respondents; the respondents were primarily Internet users, 75% male, 44% in the ages between 25 and 34 and 79% from urban areas; conducted between March and April 2014 Source: Mohammed bin Rashid School of Government, Bayt.com, 2014

122 53% of online shoppers in the UAE were browsing and purchasing via mobile phones, as of March 2014.
UAE: Share of Online Shoppers Buying or Browsing and Buying via Mobile Phones, in %, March 2014 Note: shoppers could use multiple devices Survey: based on a survey of 30,000 consumers in 60 countries, including UAE; the survey responses are based on claimed behaviour rather than actual metered data Source: Nielsen cited by Gulf News, August 2014; Nielsen, August 2014

123 71% of online shoppers in the UAE made their last online purchase via computer and 25% via smartphone, as of March 2014. UAE: Breakdown of the Last Online Purchase, by Device Used, in % of Online Shoppers, March 2014 Note: may not add up to 100% due to rounding Survey: based on a survey of total population aged 16+, conducted between January and March 2014; 393 respondents, Internet users who purchased online question asked: “Which device did you use to make your purchase?” Source: Google, TNS Infratest, 2014

124 M-Commerce sales in the UAE surged by +170% in 2014, reaching AED 400 million (EUR 82 million).
UAE: M-Commerce Sales, in AED million, 2013 & 2014 in AED million +170% Definition: retail sales through mobile devices Note: is calculated based on 2014 sales and growth rate reported by the source Source: Euromonitor International cited by The National, December 2014 124 124

125 70% of online shoppers in Saudi Arabia made their last online purchase via smartphone, as of March 2014. Saudi Arabia: Breakdown of the Last Online Purchase, by Device Used, in % of Online Shoppers, March 2014 Note: may not add up to 100% due to rounding Survey: based on a survey of total population aged 16+, conducted between January and March 2014; 403 respondents, Internet users who purchased online question asked: “Which device did you use to make your purchase?” Source: Google, TNS Infratest, 2014

126 The number of mobile broadband subscriptions in Saudi Arabia reached 21 million in Q2 2014, up from just 3 million in 2010. Saudi Arabia: Number of Mobile Broadband Subscriptions, in millions and in % of Population, & Q2 2014 in % of Population in millions Source: Communications and Information Technology Commission, August 2014

127 91% of online shoppers in Israel made their last online purchase via computer and only 4% via smartphone, as of March 2014. Israel: Breakdown of the Last Online Purchase, by Device Used, in % of Online Shoppers, March 2014 Note: may not add up to 100% due to rounding Survey: based on a survey of total population aged 16+, conducted between January and March 2014; 1,071 respondents, Internet users who purchased online question asked: “Which device did you use to make your purchase?” Source: Google, TNS Infratest, 2014

128 In 2013, “Tablet” (26%) topped “Other Mobile Phone” (22%) , excluding “Smartphone”, in terms of usage for Internet access in Qatar. Qatar: Devices Used to Connect to the Internet, in % of Internet Users, 2012 & 2013 in % of Internet Users Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of households and individuals; base of respondents: Internet users in overall population: 1,485 in 2012 and 2,045 in 2013 Source: Ministry of Information and Communication Technology, May 2014

129 15% of banked Internet users in Qatar who access the Internet at least once per week made purchases via their mobile phones in 2013. Qatar: Mobile Shopper Penetration, in % of Banked Internet Users, 2013 Note: share of surveyed individuals who made purchases using mobile phones in the recent months Survey: based on a survey of banked consumers aged between 18 and 64 who access the Internet at least once a week in 11 countries across Middle East and Africa between November 2013 and January 2014 Source: MasterCard, March 2014

130 Smartphone Penetration
8% of mobile phone owners had smartphones in South Africa in June 2014, while 19% of Internet users used smartphones to go online. South Africa: Smartphone Penetration, in % of Mobile Phone Owners, and Share of Internet Users Using Smartphones to Access the Internet, in %, June 2014 Smartphone Penetration Internet Usage Survey: based on a survey of 5,113 individuals with desktop Internet access Source: IAB South Africa, Effective Measure, August 2014 130 130 130 130

131 32% of smartphone users in South Africa made purchases from their phones in June 2014.
South Africa: Share of Smartphone Users Purchasing via Mobile, in %, June 2014 Survey: based on a survey of 5,113 individuals with desktop Internet access Source: IAB South Africa, Effective Measure, August 2014

132 The share of mobile shoppers on active mobile Internet users in South Africa grew from 12% in 2012 to 17% in 2013. South Africa: Share of Mobile Shoppers on Active Mobile Internet Users, in %, 2012 & 2013 2012 2013 Note: share of respondents who have mobile device with Internet access and made purchase through their mobile device Survey: based on a survey of 500 banked consumers in South Africa, who access the Internet at least once a week; ages 18-64 Source: MasterCard, Wolrd Wide Worx cited by Moneyweb, March 2014 132 132 132 132

133 As of June 2014, 60% of online shoppers in Nigeria used mobile devices to make purchases online.
Nigeria: Share of Mobile Shoppers on Total Online Shoppers, in %, June 2014 Survey: based on a survey of respondents across different locations in Nigeria, conducted at the end of June 2014 Definition: online shoppers who made online purchases via mobile devices Source: Terragon Group cited by IT News Africa, July 2014

134 in % of Total Internet Users
The share of mobile Internet users on total Internet users in Egypt rose from 47% in Q to 52% in Q Egypt: Share of Mobile Internet Users on Total Internet Users, in %, Q – Q3 2014 in % of Total Internet Users Definition: internet usage via mobile Internet and USB modem Source: Ministry of Communications and Information Technology, National Telecom Regulatory Authority, January 2015 134 134 134 134

135 60% of smartphone users in Egypt used their phones in store to check prices and reviews online, as of September 2014. Egypt: Share of Mobile Internet Users Comparing Prices and Product Reviews Online while Being in Store, by Total Mobile Internet Users and Smartphone Users, September 2014 in % of Relevant Group Survey: based on a survey of 1,500 mobile users in 3 countries, including Egypt Source: On Device Research cited by Arabnet, October 2014

136 22% of mobile phone owners in Morocco had made a purchase or payment via their mobile phones by November 2014. Morocco: Share of Mobile Phone Users who Made a Purchase or Payment via Mobile Phone, in %, and Type of Purchase or Payment Made via Mobile Phone, in %, November 2014 Share of Mobile Phone Users who Made a Purchase or Payment via Mobile Phone, in %, November 2014 Type of Purchase or Payment Made via Mobile Phone, in % of mobile Phone Owners who Made a Purchase or Payment via Mobile Phone, in %, November 2014 Survey: based on a survey of 1,074 respondents conducted in November 2014; 85.2% of respondents had access to mobile Internet Source: Maroc Numeric Cluster, Averty cited by InfoMediaire, January 2015 136 136 136 136

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