Appstore could add momentum behind growth of mobile commerce
Early last month, Amazon announced plans to expand its Android Appstore to some 200 countries around the world. China, however, was not on the list of countries that Amazon had plans to expand into. These plans seemed to have changed in just under a month, as Amazon has announced that it has opened its Appstore in China, offering a bevy of applications to Kindle users and those with Android devices. Amazon’s apparent change of heart may be due to the promising mobile commerce opportunities that exist in China.
China proves to be favorable market for Amazon
China is home to a bustling e-commerce sector. According to Internet Retailer, a market research firm, Amazon’s e-commerce sales in China came in at $8.8 billion in 2012, approximately 5% of the company’s total online sales. Many of these sales came from mobile devices. Mobile commerce has been gaining a great deal of support from Chinese consumers, many of whom have shown strong favor for more convenient ways to pay for products that they are interested in.
Appstore expected to boost brand recognition and loyalty
By opening up its Appstore in China, Amazon is likely to find more traction among the mobile crowd. Consumers will have more access to the company’s products, particularly those designed for Kindle devices. The Appstore is also likely to drive brand recognition and consumer engagement, further solidifying Amazon as the dominating force in online retail in China.
Mobile commerce continues to gain traction around the world
China is just one of Amazon’s favored markets. The company has been showing a growing interest in mobile commerce as consumers around the world become more mobile. This can be seen in Europe and the U.S., as well as China. These markets have served to propel Amazon’s interest in the mobile commerce field, encouraging the company to engage a new generation of mobile-centric business that has begun a strong emergence around the world.
Mobile payments coming to fast-food sector
Fast-food chain Wendy’s has announced the launch of a pilot project that introduces a mobile payments option into its mobile application. This project is designed for a limited market and will be used to gauge the interest that consumers have in mobile commerce. Those with the mobile application associated with the pilot project will be able to participate in mobile commerce in three markets: Texas, New Mexico, and Oregon. Wendy’s future in the mobile commerce sector may be determined by the performance of this pilot project.
Mobile commerce finds most traction in retail
Mobile commerce has been gaining a great deal of momentum in various industries. Thus far, the largest industry to support mobile commerce in a significant way has been the retail industry. The restaurant business has also shown strong interest in mobile commerce, but its efforts to embrace mobile consumers have often been met with modest success. Wendy’s believes that mobile payments can be popular among its customers, as long as they can be made available in an efficient and enjoyable manner.
Application acts as a mobile wallet
Those using Wendy’s mobile application for this pilot project can create a profile through the application and associate this profile with their financial information. This information is then used to load money on to the profile. Essentially, the application acts as a form of mobile wallet. The funds pumped into the app can be used to purchase products from Wendy’s for the duration of the pilot project. When a purchase is being made, the application generates a unique code that must be read to the Wendy’s employee responsible for the transaction. This is for authenticating mobile payments.
Whether consumers will embrace mobile payments is unknown
Exactly how well this mobile payments initiative will be received has yet to be seen. Wendy’s has high hopes for mobile commerce, but consumers have yet to show strong enthusiasm for mobile payments in regards to fast-food. Thus far, mobile payments have only managed to thrive in the retail sector, where mobile consumers have been able to take advantage of the convenience offered by their mobile devices.
