Tag: china mobile shopping

Mobile commerce and effective marketing ensure growth for Alibaba

Alibaba is finding success despite China’s slowing economy

China’s economy may be slowing down, but that has not stopped Alibaba from seeing impressive gains throughout 2015. During the last quarter of 2015, Alibaba reported a total revenue increase of 32%. The company attributes this growth to the growing number of mobile users in China. Alibaba has been focusing more heavily on mobile commerce in recent years and has managed to find extreme success in this young but rapidly growing sector.

Number of active monthly users has skyrocketed for Alibaba

Alibaba CEO Daniel Zhang has noted that the company has added some 47 million active users on mobile devices. This brings the company’s total active monthly mobile users to 407 million. These people are using mobile shopping apps to purchase goods and services through Tmall and Taobao, two online marketplaces owned by Alibaba. Mobile commerce has proven to be quite lucrative for Aliaba and the company is likely to continue pursuing its efforts in the mobile space for the foreseeable future.

As mobile commerce grows, Alibaba is investing more heavily in effective marketing strategies focused on the mobile sector

Mobile Commerce - AlibabaIncreasing its focus on mobile commerce also means that Alibaba is taking mobile marketing more seriously. With the number of mobile users on the rise, finding ways to effectively engage these consumers is becoming a major priority for several companies. As such, these companies have begun investing more in mobile marketing. Advertisements designed specifically for mobile devices, either on applications or on web browsers, have proven capable of connecting businesses and consumers, fostering more mobile commerce activity.

Mobile marketing is becoming more important for companies that want to engage a mobile audience

Mobile marketing has become a very important aspect of mobile business overall. In China’s slowing economy, people are becoming more cautious about how they spend their money. Consumers have been interacting with advertisements more frequently, however, as they are conducting research into products that they may be interested in. Effective marketing strategies could influence the way consumers spend money, especially in a mobile commerce environment.

Chinese mobile commerce spending is taking off

Alipay, the Alibaba smartphone payments arm, released a report to describe these digital shopping trends.

In China, the trend in mobile commerce has been a rapid growth this year, according to a report that was released by the smartphone based payments branch of Alibaba, Alipay.

The report detailed the way in which the less developed western region of China has driven mobile shopping.

The Alipay report showed that over half of the online transactions that occurred at Alibaba over the first ten months of the year occurred over mobile commerce. In fact, mobile phones were responsible for 54 percent of the online transactions using Alipay from January through the end of October. Comparatively, throughout all of last year, it had represented a much lower 22 percent of total online payments volume for purchases made online through the service.

The western, inland parts of China are easily the fastest growing areas being seen for mobile commerce.

Mobile Commerce Spending - ChinaThe Tibet autonomous region, the Ningxia Hui autonomous region, and the province of Shaanxi were identified as the areas where mobile commerce was taking off most rapidly, at 62.2 percent, 58.3 percent, and 59.6 percent, respectively. Those areas are quite remote and lack a solid infrastructure of broadband internet service. Desktop and laptop computers are also still quite expensive there, making them less appealing than the far more affordable smartphone.

On the other hand, Guangdong province and the cities of Shanghai and Beijing, all well developed areas, saw growth of a much lower 27, 24, and 29 percent during that same period of time when it came to mobile shopping transactions.

According to expert in online shopping and the vice president of greater China for hybris AG (the enterprise software provider division of SAP AG software giant, based in Germany), Burghardt Groeber, who commented on this mobile commerce trend, “As mobile penetration in rural China far outpaces fixed-line Internet penetration and with continued upgrades to mobile network connectivity and the popularity of new devices, it is natural that consumers are rapidly taking up mobile shopping.” In China m-commerce is expected to reach $162 billion by the close of 2017.