22 aug st online pay_pal eyes slice of physical payment pie
20 nov bt online__money rolls in as local firms roll out their apps _2_
1. Client : PayPal Country : Singapore
Publication : The Business Times
Date : 20 November 2012
Topic : Money rolls in as local firms roll out their apps
URL : http://www.businesstimes.com.sg/premium/top-stories/money-rolls-local-firms-
roll-out-their-apps-20121120
Visitorship : 65,401
Money rolls in as local firms roll out their apps
Businesses tap into the potential of mobile devices to improve prospects
BY AMIT ROY CHOUDHURY
Just tap it: The Republic's mobile commerce market grew by a whopping 660 per cent to reach
S$328 million last year, PayPal says.
[SINGAPORE] With 71 per cent of mobile users owning a smartphone, it's no surprise that most
Singaporeans reach for their mobile devices when they want to check out something online, be it a
discount deal or information about a particular product.
And Singaporean businesses are taking advantage of this trend. A host of companies, particularly
small and medium-sized businesses (SMBs), have started to build mobile friendly websites; some
have even gone further and have designed specific mobile apps to reach out to a wider range of
customers.
Retail distributor, WingTai Clothing has utilised the Moobifly mobile website enabler for its lines
such as G2000 and Fox Fashion. "By optimising our merchandise websites for mobile consumers, we
have noticed a significant increase in our online traffic," says a WingTai official.
Others, such as ticketing company Sistic, have built their own mobile apps. Speaking to BT, Chan Wai
Hong, Sistic's senior applications manager notes that the company's mobile app, launched earlier
this year, provides users with access to event details, show descriptions, promotions, ticket prices
and purchase options 24 hours a day, seven days a week. "A key feature exploits location
2. technology, providing users with easy agent and venue location, including walking and driving
directions, using Google Maps. It has already been downloaded by more than 75,000 arts and
entertainment fans, and is free," Mr Chan adds.
Other local apps such as ShowNearby and SG Malls help users find specific shops and services by
listing them on a shared directory service that categorises businesses by function or by location.
ComfortDelGro's SBS Transit iris is a nifty little app which gives bus and train timings. Its journey
planner helps consumers plan the best way to get to their destinations via a combination of public
transports.
A recent report by AC Nielsen shows that one in three online consumers in Singapore have
downloaded a mobile app in the past 30 days. PayPal noted that last year, the Republic's mobile
commerce market grew by a whopping 660 per cent to reach S$328 million.
Anticipating this growth in mobile usage, the Infocomm Development Authority of Singapore (IDA)
devised the Digital Concierge (DC) programme in 2010. One of its aims is to help the retail, tourism
and hospitality sectors by catalysing mobile commerce.
Talking to BT, an IDA spokesman says that the mobile channel allows businesses to reach out to their
customers more effectively through targeted marketing and drives consumption of their goods and
services.
Many SMBs have found a competitive edge by developing mobile apps.
SingPet and Vanity Trove have set up online mobile commerce stores that enable shoppers easy
access to merchandise without ever needing to visit a physical store.
Vanity Trove is a mobile website that makes use of PayPal's mobile payment - a DC enabler - to
provide subscribers with an innovative delivery of different cosmetic samplings every month. Since
its launch in December 2011, the site has received 175,000 unique visitors and mobile visitors
represent 30 per cent of all visits.
"Mobile commerce has changed the way we do business in very dynamic ways. Previously,
businesses such as ours required a store front. We are able to achieve a new level of convenience
where customers can shop even while out of the house doing things such as waiting for the bus or
queuing in a taxi stand," says Douglas Gan, co-founder of Vanity Trove.
SingPet is an online store offering a large variety of pet supplies and accessories and has seen the
value of interacting with its customers via mobile devices. Speaking to BT, Sebastian Wiradharma,
the company's director and CIO (chief information officer) notes that the company saw the
smartphone as means to secure a stable market share.
"Customers need only to scan the barcodes of their current products using their mobile devices to
add the items to their shopping carts. We have also integrated with the IDA DC payment enabler
that supports PayPal transactions. That has helped us reduce our production cost while adding an
additional dimension of convenience to our customers."
SGMalls creator, 2359 Media says the company is seeing an increase in the development of apps in
both the public and private sector. "Since we first participated in the DC programme in June 2010,
the requests for mobile related projects has increased by more than 300 per cent year-on-year; the
3. average time spent by users on an apps has increase 10 fold, and the results in terms of effective
outreach of the apps has also increased tremendously," says Wong Hong Ting, director and co-
founder of 2358 Media.
Sistic's Mr Chan, however, adds that everything is not necessarily smooth sailing. "One of the main
challenges is supporting different mobile operating systems as there is no clear market leader. So
when we set out to develop our mobile apps, we had to consider the timeline and development
skills for the two major operating systems - Apple's iOS and Google's Android.
"Another challenge is optimising the app display for different sizes of devices, especially for the
Android market, which includes many devices of varying sizes. Mobile devices are very exciting and
certainly the future, but also present unique challenges."
Despite challenges, the market is too alluring to ignore. Singapore's e-commerce market is expected
to grow to S$4.4 billion by 2014.
"Some businesses have claimed improved revenues through mobile solutions, and that a mobile
presence captures more consumers easily," said the IDA spokesman.