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.
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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 in 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.