Tag: alibaba

Mobile commerce is growing in China and WeChat is helping

| October 28, 2015

WeChat is leading the way in boosting mobile commerce in China

Mobile commerce is seeing explosive growth in China, which is being powered by WeChat, one of the country’s leading social applications. WeChat has approximately 600 million monthly users, according to Tencent, which founded the company responsible for the mobile application. Tencent sees major promise in the mobile commerce space and has invested heavily to establish a foothold in this growing market. Through WeChat, Tencent has managed to accomplish this goal.

Mobile commerce infrastructure is becoming larger

WeChat has developed a comprehensive mobile commerce infrastructure, allowing consumers to use the application to shop for and purchase products that they are interested in. Consumers can use the app to purchase products either online or at physical stores, as long as these stores support mobile payments. Along with other apps, WeChat has managed to make China the world’s fastest growing mobile commerce market, opening up promising new opportunities for retailers.

Alibaba has drawn more attention to mobile shopping, and WeChat is capitalizing on the growth of the mobile market

Mobile Commerce Growth Helped by AppsMobile 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.

Security concerns could slow the adoption of mobile commerce

WeChat is expected to continue aiding in the growth of China’s mobile commerce market. As the app grows more popular, a greater number of retailers are expected to focus more heavily on mobile consumers. Security is still a concern, however, which may slow the adoption of mobile commerce among consumers. Because mobile shopping involves sending financial information over the Internet, many consumers have concerns regarding the security of e-commerce sites that support mobile payments. Without adequate security measures in place, retailers may not be able to effectively engage mobile consumers.

Indian mobile commerce firm to launch new hyperlocal service

| October 14, 2015

Paytm will be launching hyperlocal services in the near future

Paytm, one of India’s leading mobile commerce firms, is gearing up to launch new hyperlocal services that consumers may find valuable. Such services have already established a foothold in India, with consumers using them to find deals and special offers in their local areas. Paytm believes that consumers using the service will become more involved with mobile commerce, as it will allow them to rely more on their mobile devices when shopping and ordering food.

Hyperlocal services may encourage more consumers to become involved in mobile commerce

Initially, the hyperlocal service coming from Paytm will focus on food ordering, table booking, purchasing cinema tickets, and finding deals in their neighborhood. The company has patrnered with BookMyShow and Zomato in order to make the service available. Paytm has high hopes for the hyperlocal service, hoping to bring in nearly half of its total sales from this channel specifically by 2016. This goal may be very attainable, as many consumers have become heavily invested in mobile commerce as a whole.

Hyperlocal may be the next big opportunity for retailers and mobile commerce firms

Mobile Commerce - Flag of IndiaVijay Shekhar Sharma, founder and CEO of Paytm, believes that hyperlocal services are the “next big thing” for the mobile commerce space. He believes that hyperlocal services represent the perfect blend of the convenience of mobile shopping and the engagement potential that retails see in the mobile market. With smartphone penetration on the rise in India, as well as the expansion of the country’s mobile network infrastructure, more consumers are expected to become involved in mobile commerce in the coming years.

Paytm is receiving strong support from foreign companies

Paytm has reached the 100 million user mark and the company suggests that its user base, as a collective, makes 75 million mobile transactions every month. Paytm has experienced so much growth and success that it has also attracted the support of other companies involved in mobile commerce. China’s Alibaba and Ant Financial recently invested in Paytm through One97 Communications, its parent company. This investment is expected to help Paytm expand its services throughout India.