Mobile Application Development Taking Into Account The Development Of Mobile Commerce

Abstract

The high tempo of life and a dynamically developing environment make people plan their time and use modern technologies for a more competent distribution of resources, including financial ones, in order to find time for entertainment and relaxation. Currently, the market of mobile application services is growing rapidly. But despite the fact that at the moment a huge number of diverse applications are presented on the mobile application market, applications in various fields of activity continue to appear. At the same time, there is a need to optimize their use. In this connection it can be assumed that the next stage in the development of such technologies will combine the functions of various applications in one platform with the ability to intersect data in a quick, intuitive way without switching from application to application. In the process of doing the work, it was revealed that the level of competition in the market of mobile applications is very high. But in order to remain competitive in this industry, it is necessary to clearly determine the target audience for which a mobile application will be offered. In the work there were examined existing products with which new mobile applications would have to compete in the market. The idea of creating a mobile application is not only interesting, but also attractive from a financial point of view, since it does not require large initial investments and has a relatively short payback period.

Keywords: Mobile applications marketmobile commerceconsumer preferences

Introduction

The development of the market of mobile applications is facilitated by global mobilization. It is now much more convenient for people to use the services of a mobile phone than a computer; Geolocation, when the phone itself reads the geolocation and offers the best options for choosing various services. E-commerce can act as a driver of mobile consumption growth. Mobile commerce changes the usual consumption model, it allows you to implement the full functionality of e-commerce on a personal device. All the benefits of e-commerce are available in a handheld device, and some extremely useful features are added to them, that simplifies the process of finding products.

Recently, the development and use of mobile applications have become widespread throughout the world. Today, websites have been created to help create mobile applications (https://habr.com), and news agencies publish statistics on their use (Арр Annie, 2013; Sydow, 2013). The study of the problems of the implementation and functioning of mobile applications is carried out by scientists from around the world, among which are works of Golitsyna (2015), Gui, Zhao, and Hoyt (2019), Hermes (2015), Mukherjea (2016), Panhale (2016), Kim and Ryu (2015), de Souza and de Aquino Jr (2014), Zobova, Moreva, and Yakovleva (2017), Zubkova (2016) and others.

Problem Statement

Mobile App Market Forecast. According to the data provided by the company App Annie, by 2022 the market of mobile applications will reach $ 6.3 trillion. In 2016, this figure reached $ 1.3 trillion. The growth driver is the purchase of goods and services in hypermarkets, taxi services and travel applications, to which users “bind” cards.

Although people on average have not started downloading more applications, App Annie expects that the number of users around the world will almost double to 6.3 billion over the next 5 years, and the time spent in applications will more than double. And this will increase the money turnover in the application market, which includes in-app purchases, advertising costs and, most importantly, e-commerce.

Expenses using applications will grow from $ 379 to $ 1.008 per person by 2021. App Annie has a huge impact on mobile commerce statistics with purchases through giants such as Amazon and Alibaba, as well as payments for Uber taxi services and travels booked through apps that contain credit information. Consumers who buy the applications themselves and make in-app purchases, along with advertising revenue, created 10% of the turnover ($ 134 billion) of the mobile application market in 2016, and in 2021 the share of these revenues will be halved till 5%.

Thus, mobile commerce will not only become the largest part of the application market, but also show the highest annual growth rate of 39%. Payment in application markets and in their advertising will grow at a rate of 18% and 23%, respectively.

Research Questions

Development of the mobile application market in Russia and in the world. The market for mobile applications shows one of the highest growth rates for the market of intelligent products and therefore is attractive to investors. Rapid revenue growth in the application market is also observed (Figure 01 ). Market volume of mobile applications in the world in monetary terms for the period 2009 - 2018 increased by more than 30 times, due to the expansive nature of market growth.

Figure 1: Revenues from global application stores (Source: authors based on data All Correct Group (2016).)
Revenues from global application stores (Source: authors based on data All Correct Group (2016).)
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Users spend the greatest amount of time in social applications and instant messengers. Global market research shows that about a half of the owners of mobile devices download and install additional applications (not pre-installed on the device), two-thirds of this number use applications regularly. At this stage, mobile applications are becoming increasingly popular mainly due to advertising on social networks and due to the growing popularity of mobile banking and payment systems.

In 2017, the global market for mobile applications grew by about 28-29%. Among them, $ 65 billion came from app purchases and subscriptions, $ 101 billion from mobile advertising and app promotion. At the end of 2016, app purchase costs are estimated at $ 52 billion, and advertisers' expenses at $ 77 billion. Thus, the advertisement became the driver of the market growth.

Most of the advertisement is placed in social networking applications, as well as in video services and games. The share of large brands amounted to only 12.5% of the total volume of advertisements, which reflects the characteristic difference between online advertising and mobile advertising from traditional advertising channels - small advertisers with limited budgets prevail here. According to experts, the mobile advertising market in Russia in 2016 amounted to $ 430 million.

Purpose of the Study

In the light of the above said, the goal is to study the relevance of a new mobile application to optimize the interaction of a group of people spending their leisure time together. The following tasks are identified: the analysis of the market of services in the field of mobile applications; the study of the main types of existing mobile applications in the field of tourism and the identification of their advantages and disadvantages, description of the idea of creating a new mobile application for a group of people resting together, and the means to market it.

Research Methods

The mobile application market is divided between large developers which receive about 80% of all orders, as a result, they are heavily overloaded. For example, such companies as: Yandex taxi, wats app, all maps, Google translator and many other applications that can be found on the phone of almost every user can be noted.

According to experts, by 2025 the number of connected devices will increase by almost 5 times and amount to 75.44 billion units (Figure 02 ). Such a sharp increase in the popularity of mobile applications will allow their developers and owners to receive huge amounts of income (Figure 03 ). The volume of revenue in 2021 will amount to $ 4101 billion, which is three times more than the value of 2015.

All of them have the status of favorite or trusted applications, that keeps an extensive audience for a long time. It is practically impossible to compete with such companies for new market players, as the main market players not only determine the situation on the market, but also have the ability to withstand the emergence of new players in the market due to monetary and human barriers for entering into the market.

Figure 2: Forecast on the number of devices connected by the principles of the Internet of devices worldwide from 2015 to 2025 (Source: authors based on Habr (2015).)
Forecast on the number of devices connected by the principles of the Internet of devices worldwide from 2015 to 2025 (Source: authors based on Habr (2015).)
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Figure 3: Revenue volume of the mobile fitness applications market, in billions of US dollars (Source: authors based on data All Correct Group (2016).)
Revenue volume of the mobile fitness applications market, in billions of US dollars (Source: authors based on data All Correct Group (2016).)
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The Russian mobile market is relatively young. At the same time, it shows stable growth dynamics, which is supported by the rapid spread of mobile Internet. Thus, for new developers there are many opportunities to occupy a market niche. In particular, in the West, many travel companies have their own program with prices and a list of tours, adapted to work on IOS- or Android-smartphones (Table 01 ).

Table 1 -
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However, in Russia, where more than two-thirds of mobile devices run on Android, whose popularity is steadily growing, such programs for the development of the tourism sector are not observed. Based on this, we can conclude that in creating your own application development business you should focus on unfilled market niches that small companies can freely enter. This is due to the fact that due to the lack of opportunities, resources and audience, small companies cannot create an application that does not need to be supplemented and modernized, that ensures healthy competition.

The applications presented in Table 01 are free or imply a single donation not exceeding 100 Rub. This is due to the fact that the profit is mainly generated through advertising, which is a lot in applications, but looks as harmonious as possible.

As a rule, successful applications include several basic functions: firstly, geo-targeting, it allows users not to waste time filling out information about the place where the user is located. Secondly, working offline, as it’s not always during while traveling, the user has constant availability of communication, and failure to work without a network greatly obscures the impression of use. Thirdly, an intuitive interface, most users will not understand the application for more than 20 minutes. Fourthly, the presence of shares and additional benefits for the consumer.

Of course, these are not all factors affecting the success of the application, many non-significant factors can scare away an anxious client. For example, such as the amount of memory used, the availability, the number of foreign languages and the quality of their presentation, the relevance of the information and its structure, the availability of user ratings and much more.

Findings

Description of the idea of creating a mobile application for people spending free time in a group. The target of the application is to create a social network, which main objective is the full support and organization of the proposed team profiles.

Thanks to information about the group’s content, budget, time spent together, age and minimum preferences, the following problems and difficulties can be solved: organization of a collective trip, calculation and recording of events with expenditure statistics throughout its duration, maintaining the budget of colleagues at work, students, sports section or a friendly company, the selection of a varied entertainment program.

Release of the application is a difficult task, which involves registering a developer account in the AppStore and Google Play, distributing the application to potential customers for testing, hosting services, regular updates, fixing minor bugs, constantly monitoring work, adapting to new digital technologies and products. At the same time, one of the biggest problems is the constant maintenance of the application, maintaining its health and productivity.

According to a study by Distimo (Mcllroy, Ali, & Hassan, 2016), most developers of mobile applications in the AppStore and Google Play have experience in development and some experience in this field, and only 2-3% of the most popular developers in the AppStore and Google Play are newcomers, which confirms the difficulties in creating a really worthwhile, useful and exclusive application for a new member. The average development time of the first version of a mobile application for a particular platform is an average of 18 weeks.

For the success of a mobile application on the market, it must fulfill its fundamental functions. Firstly, it is important to have clear application navigation, the application interface should be simple and contain a basic structure that will be understandable to absolutely any user. Secondly, the ability to determine the location when you turn on the geolocation that determines the location of a person; the application will provide him with the necessary information about hotels, restaurants, places of entertainment that are located nearby. Thirdly, the most important application should include a function for a joint trip of a company of several people, which consists in calculating the total budget of the company, the total and separate costs through the general payment system. This function will allow you to quickly pay the total bill in any institution and calculate the share of each of the total costs.

On average, 13,000 users are sufficient for the success of the application, which is relatively small by the standards of the application market. Therefore, it is important to determine the target audience, since the number of active users of the application depends on this. The target audience of the proposed mobile application are young people with an average income, such as students.

The best explanation of the principles and functions of the application will be a direct case from life. Therefore, the easiest, cheapest and most understandable way to attract users is to conduct a contest among young people, consisting of testing the application on video by a participant. The winner receives a trip as a prize.

Also, for this application, advertising using geo-targeting and selecting an audience of interest from data based on Internet requests of users, their age, gender and interests will be extremely convenient.

This feature appeared on the advertising market relatively recently, but has already shown excellent results compared to standard methods. This method of advertising will allow you to advertise the application to those who are just planning or want to travel with the company, who spend much time in a certain group of people, such as colleagues.

The main distinctive quality of the developed application is to give the team the opportunity not only to see the budget of each of the participants, but also the general one, as well as to capture basic information about the user and his interests. Based on these data, the application offers on the map a list of places, current and budget considerations, age, gender and interests.

Next, payment for services from any of the gadgets and, as a result, a note in the statistics and a check. The key positive feature of the application is the ability to act one person on behalf of the company. For example, the work team regularly encounters the problem of collecting money for birthdays, lunches, holidays and other regular expenses of the average city resident.

For trips, the ability to select check participants is important. If the company during the trip does not go to the restaurant or the museum, but only partially, then before paying in the application it is necessary to select only the performance participants from the team and share the costs and much more. Thus, you can not only adjust the costs after payment, but also keep statistics. These functions make it possible to save time significantly, simplify the reporting team and the organization of its leisure. The application should fit harmoniously into life, of almost any age, which gives a positive forecast for the number of users, and as a result, investors.

Conclusion

After the study, we can conclude that the current stage of economic development, characterized by wide computerization and the widespread introduction of all kinds of technological innovations into human life, the conditions for creating and developing new mobile applications are the most successful. Users are interested in new products, competition in the Russian market of mobile applications is not high, which indicates the prospects for the development of new applications.

References

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Publisher

European Publisher

First Online

01.04.2020

Doi

10.15405/epsbs.2020.04.20

Online ISSN

2357-1330