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.
Lack of quality could drive consumers away from mobile commerce
Econsultancy, a market research and consultancy firm, has released a new report called “Mobile Commerce Compendium.” The report aims to provide comprehensive insight to the challenging mobile commerce sector. Mobile commerce is currently highly competitive due to its relative youth when compared to other sectors and the challenges that exist in this sector can often be overwhelming. While many startups and larger companies have their own perspective when it comes to what a mobile commerce platform should be, the report suggests that quality is the most important aspect of these platforms.
Consumers favor quality above all
Quality, or lack thereof, is one of the main points of criticism that exists with modern mobile commerce initiatives. Low quality services have given consumers throughout the world a poor experience when it comes to mobile commerce and has discouraged their continued participation therein. Quality can often determine whether a mobile commerce platform can be considered viable by a consumer and the report shows that consumers tend to favor platforms that offer better experiences than their competitors.
Mobile sites play a major role in consumer satisfaction
The report also shows that many consumers use their mobile devices to compare prices on particular products offered by retailers. These consumers will make an effort to find the best prices they can before making a purchase in-store. The report also shows that the load time for mobile websites factors into the quality issue that consumers have with mobile commerce. Slow-loading sites tend to annoy consumers, making them less inclined to participate in mobile commerce or make a purchase of any sort.
Report notes that mobile sites are integral to marketing
The report notes that mobile sites have become an integral part of any successful marketing campaign. With more people relying more heavily on their mobile devices for nearly every aspect of their lives, websites that are not optimized for these devices are not well received by consumers. Providing a mobile site for these consumers is also not enough to win their favor, as these sites must function properly and boast of high quality mobile commerce options.
