Alibaba reigns over Chinese mobile commerce
China’s mobile commerce sector has been growing at a rapid pace. The sector is currently worth approximately $41 billion and is increasing in value at a nearly daily rate. The popularity of mobile commerce has encouraged many companies to enter into this space in order to find some financial success. Unfortunately for many of these companies, however, they have to compete with the country’s leading online retailer, Alibaba. Before mobile commerce emerged, Alibaba already held a dominating presence in the online retail space. Now, Alibaba has come to dominant mobile commerce as well.
Alibaba boasts of 75% market share in mobile commerce sector
The online retail market in China is currently valued at $177 billion and Alibaba holds nearly 40% of this market. The company is so large and has established such a strong foothold within China that it has effectively shut out its competitors, including eBay and Amazon. While eBay has managed to find some room for growth in China, this growth has largely been dictated by Alibaba. In terms of mobile commerce, Alibaba currently represents 75.1% of the market.
Rumors suggest Alibaba may soon go public
Despite the sheer size of Alibaba, the company remains privately held. There are rumors suggesting that the company may soon go public, which could be a major opportunity for investors interested in online retail and mobile commerce. Given the company’s proficiency for shutting out its competitors, investment interest in Alibaba has been significant for several years. Whether the company will go public in the future remains unknown.
Security concerns derail growth in other countries
Mobile commerce is becoming a major staple in China, but has yet to establish a major presence elsewhere in the world. In the U.S. and the United Kingdom, mobile commerce has established a relatively strong foothold. In these markets, interest in mobile payments is offset by concerns regarding the security of mobile commerce platforms. These security concerns have been enough to slow the growth of mobile payments significantly in many parts of the world.
Mobile commerce may be part of Alibaba’s future
Last Friday marked a marked a major milestone for Alibaba, one of the world’s largest e-commerce companies. Alibaba is often considered to be the Chinese version of both Amazon and eBay. While both these companies have a presence in China, Alibaba represents the vast majority of online sales that occur in the country. In 2012 alone, the company reported more than $170 billion in online sales, more than that reported from eBay and Amazon combined. Now, Alibaba is looking to expand beyond China and mobile commerce may be able to help in this endeavor.
Jack Ma announces retirement via concert
Alibaba’s interests in expansion come as the company’s founder and chairman, Jack Ma, announced his retirement. This announcement was made in front of more than 40,000 people that had packed into the Yellow Dragon Stadium in Hangzhou, China, where Ma broke the news of his retirement in a semi-concert setting. Ma is succeeded by Jonathan Lu, who has served as Ma’s right hand for the past 13 years. Lu has some ambitious views for the company’s future.
Alibaba showing strong interest in the mobile sector
Alibaba operates the largest online marketplace, and this marketplace is not restricted to consumers as it caters to businesses as well. With the world becoming increasingly reliant on mobile technology, the prospects of mobile commerce have been gaining more attention. Alibaba has been somewhat aloof of mobile commerce for some time, but the company has been seeing strong competition coming from companies like 360buy due to their ambitious use of mobile commerce services. Consumers are beginning to favor this form of commerce and this interest has begun pressuring companies like Amazon to begin offering mobile commerce services. Alibaba is not likely to continue ignoring this growing trend, especially if its plans for expansion are meant to succeed.
Company may be moving to enter into new markets soon
While Alibaba’s endeavors in the mobile commerce field have yet to be fully revealed, business analysts suggest that the company is beginning to position itself to enter into the European and American markets. Over the past several months, the company has been purchasing stakes in prominent mobile-centric companies, such as Autonavi, creators of China’s most successful map application. The company has recently launched its own mobile operating system as well in order to better connect with mobile consumers.
