The State and Prospects of the Development of M-commerce and Social Commerce in the Republic of Serbia

Abstract

The development of information and communication technologies has led many companies from different
sectors, especially in the trade, to become digital. In addition, many companies operate outside of the national markets,
that is, internationalize their business, so the need for mobile communication increases significantly. According to
current statistics, the mobile industry already contributes greatly to the global economy. More than half of the world's
population (84% in Europe) uses mobile phones, many of which are smartphones. All this points to the creation of the
basis for the development of mobile commerce. Along with the development of mobile commerce, the development of
social networks and social marketing, there is the emergence and development of a new form of trade known as social
commerce. This form of trade in recent years has attracted great attention from the academic public, but also from
business people. Bearing in mind the growing importance of mobile commerce and social commerce, the subject of
research of this paper relates to the achieved level of development of these forms of trade in the world and in the
Republic of Serbia, as well as the perspectives of their further development. The aim of the paper is to point out the
possibilities and limitations of the development of these forms of trade in the Republic of Serbia market. Starting from
the defined subject and the goal of the research, the paper will first analyze the characteristics of mobile commerce.
Theory and practice testify that its importance in the world is growing, year after year, which is supported by statistical
data on the trend of mobile revenue growth worldwide. Thus, in 2014, mobile trade revenues (at the level of the world)
amounted to $ 184 billion, while for 2019 it is projected that these revenues will amount to $ 669 billion. The use of
smartphones and their penetration into the market shows a growing tendency, causing mobile commerce to become an
increasingly important area that attracts great attention, both in academic circles and in various industrial sectors.
Namely, the global sales in the field of mobile commerce grew by 40.3% in 2017, representing 6% of the total
expenditures of the population. Markets with a significant share in mobile trade include China, Japan, South Korea,
the United Kingdom and the United States. Growth was helped by consumers who felt more comfortable buying via
their mobile phones, and in some regions a greater choice of cheap products. For example, China only achieved 67.1%
of sales in m-trade in 2017. It is expected that sales will be almost triple higher by 2021.