China expected to see strong growth in mobile commerce sector
New research from online services and e-commerce giant Alibaba shows that mobile commerce is set for aggressive growth in China. The country is expected to boast of more than 322 million online shoppers by 2016 and many of these consumers are expected to make purchases from their mobile devices. Alibaba, which is the country’s largest online shopping company, expects that the Chinese mobile commerce sector will reach a new high in the coming years, especially as retailers become more accommodating of these consumers.
Mobile commerce sales to reach $41 billion by 2015
According to Alibaba, mobile commerce is expected to account for more than $27 billion in sales in 2014. By 2015, the mobile commerce sector is expected to be worth more than $41 billion. Alibaba notes that in 2012, mobile commerce accounted for only $7.8 billion in sales throughout the country, but this was due to the relative lack of effective mobile payments services that were available to consumers.
Singles Day proven the power of mobile payments
A 24-hour shopping spree is held in China every year called “Singles Day.” The tradition encourages Chinese citizens to visit shops and purchase products they are interested in and is very similar to Cyber Monday and Black Friday i
n the U.S. During last year’s Singles Day, more than $3 billion in mobile payments were recorded throughout China. This encouraged several companies to take the concept of mobile commerce more seriously.
Security a top priority for mobile consumers
By the end of this year, Alibaba expects that mobile commerce will account for $15 billion in sales throughout China. Several companies are still getting accustomed to accepting mobile payments, but growth is expected to pick up momentum as these companies become more comfortable with mobile commerce. Consumers have many concerns regarding mobile payments, the chief of which regards security. Alibaba, which provides mobile payments services, notes that security is such a big concern among Chinese consumers that it could potential derail the projected growth of mobile commerce. As such, Alibaba, as well as other companies, are taking steps to improve mobile commerce security.
Mobile marketing report released by Millennial Media
Millennial Media, a mobile advertising firm, has released its latest 2012 SMART report, which highlights the trends that have emerged in the mobile marketing sector over the past year. Mobile devices are becoming more common, which has increased activity in the mobile marketing sector exponentially. More advertisers are looking to engage consumers through their mobile devices, and mobile marketing campaigns have been very successful in doing this in the past. Many advertisers are looking to maintain a strong presence in mobile marketing, but have been faced with significant challenges over the past year.
Advertisers using mobile marketing to maintain in-market presence
According to the report, 39% of advertisers around the world used mobile platforms in order to maintain their in-market presence. Mobile marketing is not only considered an effective way to engage consumers and encourage them to purchase new products; it is also an effective means of ensuring that consumers do not forget that particular products are available. Using mobile marketing to maintain in-market presence has proven somewhat successful for many advertisers, helping them sustain a constant connection with a wide range of consumers.
Brick-and-mortar store traffic on the decline
The report also shows that mobile marketing is being used to build brand awareness and drive traffic to websites. Relatively few marketers are using mobile marketing campaigns to promote in-store traffic. Those that are pushing in-store traffic are primarily operating within the restaurant and retail industries. While advertisers have found some success in driving consumer traffic to actual stores, many consumers prefer to shop using their smartphones and tablets, which has had a marked impact on the retail sector as a growing number of people opt to use their mobile devices to purchase products rather than visit an actual store.
Mobile commerce helping offset the decline of physical traffic for retailers
While physical traffic for retailers may be on the decline, the prevalence of mobile commerce has offset whatever losses retailers would see from this trend. Consumers are eager to purchase products through e-commerce sites, which has helped the retailer industry see impressive gains over the past year. Mobile commerce is expected to help retailers see promising growth in several sectors, as long as these retailers provide consumers with easy-to-use mobile commerce services.
