Downloads of the top 25 apps from retailers in France have grown almost 50 per cent year-on-year, as companies in this sector look to benefit from the “unprecedented level of access to product information, images and purchase options” that smartphones and tablets can offer, according to research from App Annie and Kantar Retail.
However, while most retailers are capitalising on opportunities in the iOS App Store and Google Play, the iPad is an “untapped market”, the report said.
Downloads were actually split evenly between iOS and Android, which is “a close approximation of the overall French market”, where Google Play generated around 55 per cent of downloads during the quarter.
But iPad downloads represented only 20 per cent of total iOS downloads for retail apps on average. For those companies that do offer an iPad app, this device accounts for “almost 30 per cent” of iOS downloads, indicating a “significant opportunity” for those who do not (10 out of the 25 top large retailers’ apps do not have iPad versions).
French consumers show a clear preference for distance shopping apps which offer a full experience from browsing through to purchase. And, unsurprisingly, the success of an app also depends on quality, with higher-rated apps seeing a notable boost in downloads.
However, there are challenges for retailers looking to exploit the potential of apps, including competition from those who take a “mobile first” approach. But the growth of mobile payment technology, as well as Bluetooth-enabled beacons, will also enable retailers to exploit their established positions in the market and their “brick and mortar” stores, the report said.
With many retailers also “reaching a point of saturation” for their physical footprint, leading to the need to focus on platform and service differentiation beyond physical proximity, apps provide a channel for players to “distinguish themselves and provide a unique customer experience”.
But apps also make it easier for customers to shop around, regardless of their physical location. Apps – “if executed successfully” – can be used to create loyalty, although “doing so in many cases requires consumers to sacrifice choice, which must be compensated with significant value”.
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