Tag: mobile commerce china

China’s mobile commerce sector dominated by highly competitive company

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.

Chinese mobile commerceRumors 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.

Mobile commerce set for major growth in China

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 iMobile Commerce China Growthn 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.