Alibaba unveils plans to support retail sector that may have implications for mobile commerce
Alibaba, China’s largest online retailer, has unveiled plans to revolutionize the country’s e-commerce sector. Commerce throughout China has been changing in recent years, driven by the growing number of people that are beginning to rely heavily on their mobile devices. The emergence of mobile commerce has encouraged many companies within China to take the mobile space more seriously, and Alibaba intends to utilize the momentum that mobile commerce has generated to make drastic changes to the e-commerce scene.
Company to invest $16 billion in support for the e-commerce sector
Alibaba intends to invest some $16 billion in logistics and support to the e-commerce field through 2020. The company believes that this investment will help open up China to hundreds of millions of new customers, which could eventually translate into higher revenues for online retailers throughout China. E-commerce is expected to account for a fifth of all retail sales in China within the next 5 years and many of these sales will come from those making purchases from mobile devices.
Mobile commerce is growing in China
Mobile commerce has been gaining momentum throughout China, but few retailers have yet to embrace the mobile space. Support from Alibaba may help retailers become more accommodating of mobile consumers, developing websites and other services that are optimized for mobile use. While Alibaba is not solely focused on mobile commerce, the support that it is bringing to the retail industry may help retailers engage mobile consumers more effectively.
Lack of security could slow growth of mobile commerce
There are risks when it comes to the expansion of mobile commerce. Identity theft and other types of fraud are becoming more common within the mobile space with every passing day. Without adequate security measures, the growth of mobile commerce is expected to be sluggish among consumers that are concerned for the safety of their financial information. Security concerns are also prevalent in the e-commerce sector, where consumers are leery of platforms they are not familiar with.