Tag: mobile commerce china

M-commerce in China expanded by 168 percent in the first quarter

This massive market is still seeing smartphone based shopping growth at an exponential rate.

The m-commerce market in China has seen a tremendous growth throughout the first quarter of this year, according to the figures that have been released in a report by a company called iResearch, which is based in Beijing.

The report indicated that in Q1 of this year, there was an increase in mobile shopping by 168 percent.

This brought the Chinese m-commerce market up to an estimated $59 billion. The growth rate in that market was tremendously greater than the overall mobile shopping increase seen globally, which was a very healthy 45 percent. The iResearch figures were based on measurements of the gross merchandise volumes (GMV). The prediction that was made based on the data is that there will have been a continued rapid growth throughout Q2 2015.

M-commerce purchases made up almost half of all online shopping that occurred in China during Q1.

M-commerce - Chinese FlagThe amount of online shopping that occurred over mobile devices more than doubled from what it had been during the same quarter last year, when it had been a much lower 22 percent. The data from last year’s fourth quarter showed that the GMV was peaking at $61.25 billion, after which, the figures dropped by 4.7 percent in the following quarter.

It was pointed out by iResearch that online shoppers in China have been increasingly embracing researching products and making purchases over their smartphones and tablets, and that growth of traffic over PCs has started slowing down.

The largest contributor to mobile GMV was Taobao Wireless (which is owned by Alibaba), but even that share fell from having been 87.4 percent in the first quarter of 2014 to be 84.5 percent in the same quarter, this year. The reason is that competitors are starting to gain some meaningful share. These include companies such as Vip and JD.com. Vip is now up to 2.8 percent while JD.com has increased to 5.2 percent (after it was at 3.3 percent, last year)

According to iResearch, this m-commerce competition has become increasingly intense, as each of the major participants battle to be able to grab hold of a greater share through new efforts and initiatives.

JD.com finds success through engaging in mobile commerce

JD.com IPO raises $1.78 billion from US investors

American investors may be strongly interested in Chinese Internet companies, thanks to the recent success of JD.com’s IPO. JD.com is an e-commerce organization based in China, which launched an initial public offering recently to great success. The IPO raised some $1.78 billion for JD.com, which exceeded the company’s expectations by a significant margin. The warm reception that JD.com has received may bode well for other Chinese companies that are preparing to launch their IPOs in America.

Chinese retailers engaging mobile consumers are attracting the attention of investors

Like other companies that have placed a priority focus on e-commerce, JD.com has been working to engage the mobile audience in China. More consumers are becoming reliant on their mobile devices, using smartphones and tablets to interact with one another and shop online. Companies like Alibaba and JD.com have taken notice of this trend among consumers and are positioning themselves to become powerful forces in the mobile space.

Alibaba’s IPO may benefit from efforts in the mobile commerce space

Mobile Commerce - China and the USAlibaba is on the verge of launching its own IPO in the U.S., hoping to generate a great deal of interest among investors. Alibaba has been working to establish a strong presence in the mobile commerce space and has managed to find significant success in this endeavor in recent years. Engaging the mobile space may help Alibaba’s forthcoming IPO performance. JD.com has also been working to engage mobile consumers more effectively and this effort may have had a significant impact on the company’s IPO in America.

Investors are eager to involve themselves in companies that have a mobile commerce focus because of the promise of return

Investors have been showing interest in companies that engage a mobile audience because of the growing popularity of mobile commerce. The advent of mobile technology sparked a major shift in commerce, which is becoming more noticeable as consumers begin to rely more heavily on their mobile devices in daily life. Investors are eager to support companies that are finding success in the mobile space and reap some of the benefits in doing so as well.