India's Mobile Shoppers Pose Challenge for D2C Brands: Report

Nearly 94% of Indian mobile shoppers on D2C websites leave without purchasing, according to AppMaker's report. Despite mobile commerce growth, conversion rates remain low, with apps showing higher engagement. Brands are urged to focus on customer retention and conversion to thrive in the expanding digital market.

A recent report by AppMaker, now part of StarApps, reveals that nearly 94% of mobile shoppers visiting direct-to-consumer (D2C) brand websites in India exit without making a purchase. This startling statistic underscores a significant hurdle for online retailers, even as India's mobile commerce market experiences rapid expansion.

Despite the strong shift towards mobile shopping, where 78% of D2C traffic comes from smartphones, the conversion rate lags at a mere 1.5% on mobile websites. In contrast, mobile applications boast a significantly higher conversion rate of 4.5%, nearly tripling the success rate of websites. This disparity highlights the pressing need for brands to optimize for better customer experiences, especially with app-based shopping driving stronger engagement.

The report emphasizes the importance of early engagement and customer retention, noting that 73% of app users uninstall within a week if not engaged promptly. Yet, early engagement leads to long-term retention, with app users making 28% of total digital revenue despite comprising only 1-2% of customers. As mobile shopping strengthens its hold, D2C brands must prioritize conversion and retention to leverage the burgeoning digital commerce landscape in India.