Tag: JD.com

JD and Tencent will be expanding their partnership in order to improve mobile marketing

JD.com, one of China’s largest online retailers, and Tencent, a prominent provider of Internet services in China, have announced that they will be expanding their partnership in order to transform mobile marketing throughout the country. A growing number of consumers with smartphones and tablets has lead to a higher demand for new marketing solutions in order to effectively engage mobile consumers. Retailers are finding it somewhat difficult to catch the attention of mobile shoppers, especially those that are becoming more involved in mobile commerce.

China is becoming a very powerful mobile commerce market

China has become a leading mobile commerce market, with many consumers showing favor for shopping with their smartphones. New mobile marketing solutions are needed in order to ensure that retailers can continue to engage these consumers. JD and Tencent will be exploring new avenues to leverage Tencent’s social platforms in order to create more favorable marketing solutions. Together, the companies intend to make use of the big-data resources that Tencent has access to, as well as the e-commerce information that JD has collected over the years.

New marketing solutions could help retailers engage mobile consumers

Through the expanded partnership, JD and Tencent intend to develop new online tools that will ensure that retailers can target mobile consumers in a more dynamic fashion. Mobile marketing has proven to be an effective way to engage new generations of consumers that are becoming more reliant on smartphones and tablets. These devices have become powerful tools in changing how consumers shop online and in the physical world. In China, retailers have seen the rise of mobile commerce, which is pressuring them to become more mobile-centric.

Mobile marketing expected to thrive in China

As mobile marketing becomes more robust in China, many more consumers are expected to begin participating in mobile commerce. New marketing solutions may make it easier for retailers to connect with consumers. Through mobile marketing, these companies can offer consumers better deals and shopping opportunities that they may not have had access to in the past.

Shopping over smartphones and tablets is moving ahead in a striking way within that country.

Emarketer has now released data that has shown that the m-commerce marketplace in China, representing shopping occurring over smartphones, tablets, and other types of mobile devices, will be reaching $334 billion, this year.

That figure represents a record breaking 49.7 percent of the total expenditure over online channels.

This prediction suggests that over 10 percent of the total retail sales in China will be occurring over m-commerce by next year. This trend in China is an important one, and it is an estimated 450 percent greater than what is going on in the United States. In the U.S., it is believed that sales over mobile commerce will rise by 32.2 percent. The retail sales over smartphones and tablets will represent 22 percent of the total online shopping. That said, from a broader perspective, they will make up only a tiny 1.6 percent of all retail sales in 2015.

This is microscopic next to China’s m-commerce portion of all sales, which is 7.9 percent.

It is clear that the Chinese retail market is seeing notably faster and greater mobile commerce growth than the trend throughout the world. That said, its own marketplace continues its direction toward the digital sphere. Online retailers are working hard to ensure that they are continually prepared to evolve as consumers expect, and they are working hard to help to bring that same ease of shopping into areas of the country that are harder to reach.

Two giants – JD.com and Alibaba – are making major investments into the rural communities of China, where there is the most room for online shopping growth within the country. In fact, the current rate of mobile commerce use is greater in the rural areas than it is in the large urban centers. This makes sense, considering that people in the major cities have a much greater availability and selection of products than those who are away from the ocean of brick and mortar shops.

That said, m-commerce needs to be implemented strategically. Even Alibaba has seen less than one tenth of its online purchases shipped to rural areas despite the massive potential there.