The rising of Mobile commerce is not a new phenomenon in the digital world. After the crazy explosion of mobile spending in 2014, 2015 will be the next step in the E-Commerce history in China : a half of mobile spending will be on mobile this year. China has become a hub for mobile technology, where different actors like Tencent Group or Alibaba encourage this future mobile supremacy on the desktop. This situation represents a huge challenge for overseas retailers which progress in market where the desktop still holds the majority of the revenues.
- In 2015, 50% of the E-Commerce spending will be on mobile.
Like said before, 2015 will be the birth of a new age for the china’s digital eco system, Chinese consumers are increasingly likely to make their online purchases and bill payments through mobile devices (mobile phone or tablet), rather than via desktops.
Last July eMarketing estimate shows that mobile commerce has grown exponentially throughout China since 2013. According to the report, mobile commerce was worth by $180,40 billions in 2014 after a huge inscreasement of 211,5% compare to 2013. 2015 marks a transition on the digital ecosystem but it is also very interesting to notice the future trends.
The report expects this growth to continue, reaching $1,410,72 billions by 2019 with 71,5% of retail E-commerce sales thanks to mobile.
Observing the Alibaba Group (Tmall and Taobao) 2015 Q2 financial results, the inconstable China’s E-commerce leader with a combined market share of 85%, come to confirm this new phenomenom.
For the first time ever, the company said its mobile revenues accounted for more than the half of its total revenues in China.
The key facts we have to remind :
– Alibaba’s mobile revenue increased to 225 % compare 2014 Q2 .
– Alibaba reached 307 million monthly active mobile users
– Alibaba’s mobile users spent an average of US$195 per person per quarter, up from US$159 during 2014 Q4.
- WeChat permits you to integrate your E-Commerce platform
With over 600 million users, WeChat (Tencent Group) is no doubt the most influent media in China. It becomes more and more necessary for foreign companies operating or seeking to develop in China to be present in an appropriate way on this platform.
WeChat with its tight ecosystem where friends or colleagues, merchants (e-commerce shops and malls) and payment systems (credit cards, 3rd party mobile payment solutions like Tenpay) are all built in, gives you huge opportunities to develop your M-Commerce revenues.
During all the buying process the user may never have to leave WeChat and his smartphone.
WeChat integrated E-Commerce with the will to see Tencent ecosystem and third parties application work together.
WeChat gives lot of opportunities to develop M-Commerce. For example, companies could create WeChat Official accounts like Service Account or Subsription Account where is possible to setting up their own WeChat shop. Companies could also integrate loyalty cards for location-based promotions and member offers.
- 3rd Party Payment applications : a key in the M-Commerce development
According to iResearch, China third-party mobile payment GMV hit 2,001,560 millions Yuan in Q1 2015, up 139.2% from a year earlier and increasing 11.7% from the previous quarter.
Tencent with Tenpay and Alibaba with Alipay occupied 90.7% of China third-party mobile payment market. They already developed complete and secure solutions in order to interfere in the daily lives of Chinese Internet users, follow their new digital habits and give incredible opportunities for retailers to develop sales on mobile.
Phoceis Asia – www.phoceis.asia
Sources : www.techinasia.com, www.iresearchchina.com, http://www.emarketer.com