Alibaba is finding success despite China’s slowing economy
China’s economy may be slowing down, but that has not stopped Alibaba from seeing impressive gains throughout 2015. During the last quarter of 2015, Alibaba reported a total revenue increase of 32%. The company attributes this growth to the growing number of mobile users in China. Alibaba has been focusing more heavily on mobile commerce in recent years and has managed to find extreme success in this young but rapidly growing sector.
Number of active monthly users has skyrocketed for Alibaba
Alibaba CEO Daniel Zhang has noted that the company has added some 47 million active users on mobile devices. This brings the company’s total active monthly mobile users to 407 million. These people are using mobile shopping apps to purchase goods and services through Tmall and Taobao, two online marketplaces owned by Alibaba. Mobile commerce has proven to be quite lucrative for Aliaba and the company is likely to continue pursuing its efforts in the mobile space for the foreseeable future.
As mobile commerce grows, Alibaba is investing more heavily in effective marketing strategies focused on the mobile sector
Increasing its focus on mobile commerce also means that Alibaba is taking mobile marketing more seriously. With the number of mobile users on the rise, finding ways to effectively engage these consumers is becoming a major priority for several companies. As such, these companies have begun investing more in mobile marketing. Advertisements designed specifically for mobile devices, either on applications or on web browsers, have proven capable of connecting businesses and consumers, fostering more mobile commerce activity.
Mobile marketing is becoming more important for companies that want to engage a mobile audience
Mobile marketing has become a very important aspect of mobile business overall. In China’s slowing economy, people are becoming more cautious about how they spend their money. Consumers have been interacting with advertisements more frequently, however, as they are conducting research into products that they may be interested in. Effective marketing strategies could influence the way consumers spend money, especially in a mobile commerce environment.
Mobile commerce began gaining momentum in China when Alibaba, the country’s leading online merchant, began supporting mobile shopping through its e-commerce store Taobao. Consumers quickly showed strong support for mobile shopping because of its convenient nature. The use of QR codes to initiate mobile transactions is quite popular throughout the country, as consumers can simply scan one of these codes with their smartphones in order to purchase products. Apps like WeChat have become very powerful tools in the retail space, pressuring merchants to become more mobile-centric.