Global Ecommerce

Mobile apps are at the global forefront as the primary channel for online shopping. With the largest count of mobile app users, Asia is the world leader in mobile commerce growth. This fact holds implications for super apps and their role in the global ecommerce industry. Let’s dig deep and help you understand the phenomena taking ecommerce platforms by a storm- Super Apps! 

 
What are super apps? 
 
A super app is a platform designed to offer multiple sets of products and services under a single umbrella. It is a unified marketplace that brings together a range of in-house and third party products and services under one inclusive mobile application acting as a single door to access a diverse range of offerings. One of the key characteristics that make super apps ‘super’ is the ability of users to switch from one app to another seamlessly.  
 
Super apps are already disrupting the omnichannel ecommerce scene across multiple industries around the world. Think of an app that lets you talk to your friends, hail a cab, make payments and order groceries under a single platform. You will come up with several mainstream examples of successful super apps. WeChat and Ali Pay are the premier examples. They bundle services like messaging, social media and ecommerce together under one platform so users can move from one app to other without exiting the main app. In layman terms, a Super app is your very own virtual mall where you can hop from shop to shop across dynamic businesses and verticals. 
 
Premises behind the emergence and success of super apps
 
The concept of super apps was incepted in China, followed by all of Southeast Asia. Internet giants like WeChat, Ali Baba, Grab tapped into the potential of customers that visited their platforms for social media and communication and offered them additional services. In line with their expectations, it led to an increment in their revenue realizations.
 
The feasibility of a market or a region for the growth of super apps depends on a few factors. The primary factor is that majority of the target population should be Smartphone first. They should use their smartphones more to fulfil their internet-related needs than desktops or laptops. Secondly, the region should have an undeveloped Ecosystem of apps tailored to meet local needs. Chinese super apps like WeChat and Ali pay were able to mine these factors in their favour which helped them to amass more than 1 billion users worldwide. 
 
In the case of China, geopolitical factors and regulations played a crucial role in the revolutionary growth of super apps. Unlike China, the availability of the Google Play store and features like Firebase provides a coherent user experience for app developers in western countries. Super app resolves this problem of users as a single app with multiple applets and functions under its umbrella. It eliminates the friction in the user experience caused by the absence of a standard play store. Without Google Play, people find it challenging to discover apps and install them from trusted sources. A super app surpasses this loophole by offering a bona fide app store like experience to the users. 
 
“Successful businesses come up with ground-breaking solutions by transforming challenges into opportunities.”
 
Across Southeast Asia, super apps are well-configured in the lives of users. Merely scanning a QR code helps them to swiftly access any desired function, make quick and secure payments and interact with digital ecommerce platforms with a native experience. 
 
The feature that stands out the most for super apps is the impeccable payment functionality. Unbanked population struggle with making payments online without a credit card or a bank account. Super app bypasses this issue by facilitating payments through digital wallets alongside offering complimentary reward points often. 
 
A very convenient alternative to the cash payment feature allows the users to make transactions within the secured vicinity of the Super app in the form of app credit or currency. This feature does not just entail the prosperity of the Super app makers but also incites a boost in trade across ecommerce platforms contributing to rapid economic development. It helps economies transcend from being underbanked to becoming digitally independent ecommerce leaders. 
 

The potential of super apps to disrupt the global ecommerce industry

Super apps are the future of ecommerce because their characteristics are congruent with the basic principles that dictate the success of any online business model. They have a massive reach, are financially feasible and provide a brilliant UX.

1. Targets all customer segments- The reach of super apps is humongous. Their target consumer base is massive and encompasses demographic, geographic, psychographic, socioeconomic and behavioural customer segments. 
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3. Budget-friendly- All super apps comprise applets or mini-apps that provide a unified and seamless user experience. Developing these mini-apps do no cost businesses a fortune. They use a platform-based approach for scaling products, opening spaces for integrations, ultimately adding the element of financial feasibility to their business model.
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5. Excellent UX- One of the most significant factors for the success of any ecommerce business is a great user experience, which is provided by simplifying things for users; one of the objectives behind the very idea of super apps. For instance, the very convenient onboarding process for new customers and abbreviated KYC costs by automatic data synchronization from extensive social and financial customer profiles. 

 
These features do not make Super apps invincible. They still have to test waters before choosing to enter a new region or market. Multiple factors influence the consumer behaviour towards super apps in southeast Asia- government policies, mobile-first population, homogeneity of markets across the region and a majority of the unbanked population. 
 
So, what implications does it hold for the rest of the world?
 
The global ecommerce market is witnessing a rise of super app phenomena, but it is different from the Chinese super-app model. Western consumers are not as subservient as the Chinese consumers when it comes to having a service provider enforced on them. They like to explore their options before making a transaction. 
 
For successfully entering and launching a Super app into a new region, it is imperative to assemble a native team. Understanding local tastes & preferences, government regulations, ecommerce penetration and most importantly, identifying what the users are missing is indispensable. 
 

Some of the prominent rising super apps in the global ecommerce market

1. Uber- Uber has a service portfolio similar to Indonesia’s leading super app GoJek. Uber is conquering the western ecommerce industry by providing a gamut of services under a single umbrella. These services include transportation, food delivery, banking and digital wallets, grocery shopping and much more. 
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3. Rakuten Viber- Owned by the Japanese MNC Rakuten, Viber is all set to penetrate the digital market of the Philippines by offering users to make transactions through its new feature called the ‘Chatbot Payments’. Although their offerings follow a similar business model, Rakuten Viber has emphasized and promised to not grow as a monopolistic leader like WeChat or an intrusive digital leader like Facebook. It aims to instil efficiency in the operations instead of seizing the market share of its partners. 
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5. Careem- A prominent cab-hailing app based in Dubai, Careem has evolved as a lifestyle app in the past two years in the MENA region across tier one and tier two cities. Leveraging on its existing logistic infrastructure, it ventured into food delivery and delivery of goods & services. Other applets under the umbrella of Careem includes credit card transfer service, maid-hiring, beauty and cleaning services, etc. Careem has tapped into the sensitivity of the region towards data and security. It allows its users to seamlessly perform multiple functions under a single platform that stores their location and payment information.
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7. Tata’s Super app- To exploit the full potential of the emerging super app market in India, Tata has joined hands with Walmart in a $25 billion deal. The partnership of Reliance Jio and Facebook is the leading Super app player in the country with over 1.39 billion people. Tata’s Super app will give direct competition to Jio by providing an omnichannel experience to its users by helping them access Tata’s multiple business offerings like healthcare, lifestyle, OTT services, fashion, education, grocery, bill payments and more under one platform. 

 
Few observations for the future of global ecommerce- 

• Ecosystem expansion is imperative for growth in the digital environment as it helps in retaining consumers. For instance, Rakuten is following the lead of Amazon by offering an exclusive OTT platform called Rakuten Viki that streams East Asian entertainment content. 
• Digitally indigenous markets like India, Latin America and Africa are likely to witness a boom of Super apps.
• The UAE has several apps other than Careem that provide multiple services under one platform. Noon is into retail ecommerce, digital wallet, grocery and food delivery. It is adding multiple functions under its platform and holds the potential to emerge as a super app. Etisalat and Talabat are the other names with the requisite scope and potential to grow as Super apps in the region. 
• Global retail giants are entering into partnerships and buying stakes in trailblazing Super apps. They are further working on their iterations to amplify their digital growth locally. 
• As a payment mechanism, Super apps supersede traditional banks by steering clear of data silos. It holds implications for accurate customer targeting and ultimately successful conversions.

 
Being the digital pioneers of the region, Etisalat Information Services is the best digital marketing and IT solutions company in the Industry. The sophisticated technical know-how of our IT experts creates a brilliant UX for our clients. 
 
If you are looking forward to developing a smooth and interactive mobile app for your brand or need any assistance from a digital marketing expert to help your business ace the ecommerce game, stop searching and contact us!