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.
Survey shows that China may be more accepting of mobile commerce than other countries
Mobile commerce has been growing more popular among the populace of China. Draftfcb China has released the results of its latest survey concerning mobile commerce and its appeal to consumers around the world. The survey was conducted in eight prominent markets, including Brazil, the U.S., and China. Notably, Chinese consumers seem to be more accepting of mobile commerce than those in other countries. This may be due to the growing availability of smartphones and tablets and the fact that young consumers have been heavily immersed in the world of mobile technology.
Chinese consumers are eager to embrace mobile payments
According to the survey some 57% of Chinese consumers claim that they are prepared to purchase products using their mobile device. The survey shows that, on average, approximately 49% of consumers are ready to embrace mobile commerce in any significant way. The survey shows that 67% of Chinese consumers that have participated in mobile commerce were satisfied with their experience. Another 77% claimed that mobile commerce was simply more convenient for their needs as opposed to making a purchase from a physical store.
Mobile Internet allows brands to reach new markets
Young consumers are cited as one of the major contributing factors to the growth of mobile commerce in China. This is not the only factor, however, as the growth of mobile technology has allowed brands to reach markets that had previously been unreachable. Mobile devices have taken the Internet to rural parts of China, where large brands are somewhat scarce. Through the Internet, these brands have been able to engage a new demographic of consumers, and much of the interaction between these consumers and brands comes in the form of mobile commerce.
Consumers show more interest in benefits of mobile commerce than risks
China is quickly establishing itself as a hub of activity in the mobile commerce field. The country is home to some of the largest online retail brands in the world and these companies have shown a strong interest in mobile commerce and the benefits that it offers. Consumers have also proven that they are ready to engage in mobile payments and have shown relatively little concern for the security concerns that have cropped up around mobile commerce.
