Written by ι Stock Market Media Group Staff — October 24, 2013
Americans love to shop and statistically we’re shopping online and with our mobile devices more than ever before. Recent numbers released by the research firm eMarketer are good news for companies like LifeApps Digital Media (OTCQB: LFAP) whose business model is primed to take advantage of a real explosion in e-Commerce purchases driven by a drastic uptick in Mobile Commerce (m-Commerce) sales transactions.
The research firm eMarketer reports that mobile commerce in 2013 is on pace to crush the same type transactions from 2012 by more than 68 percent. According to eMarketer, mobile commerce-enabled transactions in the U.S. will total about $41.68 billion in 2013, up 68.2 percent from 2012 totals of $24.78 billion.
LifeApps Digital Media designs some of the applications (apps) consumers are using on their mobile devices. The company is a leading, authorized developer, publisher and licensee for Apple iOS (iPhone, iPod Touch, and iPad), and Android tablets on Google Play and Kindle Fire and Androids via Amazon Mobile Marketplace, so these numbers are music to its investors’ ears. And, according to eMarketer the forecast points to a continuing trend that will mean more and more business for those who are involved in designing the popular mobile outlets consumers visit to do their shopping.
Commenting on the overall commerce in the U.S., the firm stated, “eMarketer believes mobile devices contribute to overall commerce sales growth in two ways, both as a driver of total sales, as more consumers make purchases on their smartphones and tablets, and, increasingly, as a shopping research tool, driving consumers into stores or back to desktops where they complete transactions.”
LifeApps is squarely in the fight for those m-Commerce dollars through the apps it designs, but the company also competes for a piece of the overall e-Commerce business in this country with its own wholly-owned subsidiary, Sports One Group, a wholesale e-Commerce sporting goods supplier to distributors in the promotional products industry. The subsidiary serves a specific niche in the $12.8 billion a year supplier industry in the promotional products market.
In eMarketer’s report, they point out that e-Commerce has exploded over the past year to the tune of potentially more than a quarter of a trillion dollars in electronic commerce purchases. The firm forecasts that total U.S. retail e-Commerce sales are expected to reach $262.3 billion, growing by 16.4 percent year-over-year. What is clear from eMarketer’s report is that each year Mobile-based transactions account for a larger share of the total e-Commerce sales equation.
Statistics show that m-Commerce will drive 16 percent of total e-Commerce sales this year, up from 11 percent a year ago, and the report states mobile transactions are on pace to drive 19 percent of all e-Commerce sales in 2014 which corresponds to sales of $56.72 billion. Forecasts from eMarketer show mobile transactions will represent 26 percent of digital retail transactions in 2017, reaching an eye-popping $113.57 billion, an increase of close to $90 billion in just 5 years.
This growth is sure to keep companies like LifeApps busy developing apps that can deliver to consumers what they crave – another option for making their shopping decisions.