Mobile Commerce Moves the Minnows

The developing world is rapidly becoming viable in many facets of commerce. Thanks to technology, such realizations are coming to fruition. One major area of new business growth is within mobile commerce.

Yes, it's due to the cell phone that the emerging economies are having a huge impact on their domestic economy. The exponential type growth of cell phone users in Asia and Africa have set a new trend in people's day to day business and personal transactions.

According to McKinsey & Co., a 10% growth of wireless users in India, China, and the Philippines can increase the GDP by about 0.5 percent, which is about $12 billion for a country like China.

Hi-tech end use such as ordering your food, tickets (transportation, movie, etc.), stock trades, or even reservations for dinner are some examples taking place in these emerging markets.

While this fact remains true, countries like India have had a substantial growth in cell phone use in day to day businesses on the lower economic end. People in banking, finance, hi-tech, and other major industries have had these units since the mid/late 90's. As it was known then, commodities such as cell phones were only available for the rich. In the past 5 years that fact is not there anymore. The Bhaajiwaalas (vegetable vendor), who normally would go around the city shouting to the masses trying to market his fresh produce, nowadays carries a cell phone calling his regular customers or vice versa to make his daily sale. Even the fishmongers are using these tactics nowadays.

Better yet, you have the cleaning ladies telling their clients that if they are needed for any specific time or task, then they are to call ahead on their cell phone to make a reservation. It might seem odd to our culture here in the USA about such requests, but in reality such were never made by cleaning ladies in India. Thanks to the cell phone, the social strata has been impacted too.

Due to the telecommunication infrastructure in such countries not being so great, the integration of mobile networks has been the main spark. Some people do wonder why the USA has fallen behind on cell phone usability, and that is one main reason. SMS has been a long standard way of communication in Europe and Asia for sometime now, since it was cheaper and a quicker means of communication.

Of course these burgeoning economies can't only rely on the cell phone to make their economies more viable, but it is a start. I feel that some well established economies like the US need to get more of a 'mobile culture' built in to the day-to-day life, which could help in reducing certain cost factors. Right now as I see it, we're still far behind.