Mobile e-commerce will be focus of Chinese Internet commerce growth this year
Mobile e-commerce will be the focus of competition in the Chinese e-commerce market this year, predicts market research firm IDC.
The value of that industry in China is expected to reach RMB 155.2 billion ($25 billion) this year, an increase of 67.9 percent year-over-year, compared to a 28 percent average increase for the Internet retail market during the same period.
"The development of mobile e-commerce market will not be a simple migration from PCs to mobile terminals; it will be an individual-consumer-centric reconstruction of industrial models," says Jialin Jiang, senior market analyst for vertical industry research and consulting at IDC China.
During the "Double Eleven" online shopping festival held in China last year, one-quarter of the transactions were completed via mobile terminals such as mobile phones or tablet PCs. Users' acceptance of mobile e-commerce had significantly improved compared to the approximately 10 percent share mobile terminal transactions had at the beginning of 2013, according to IDC.
The Double Eleven festival, sponsored by online retailer Alibaba, is held every year on Nov. 11, celebrated in China as Singles Day. IDC estimated that RMB 35 billion ($5.6 billion) in online transactions took place on that day last year.
The research firm expects three main development themes for Chinese mobile e-commerce this year: "promotion of mobile e-commerce client terminals, competition for social mobile-Internet portals and new business model exploration, and mobile terminal membership marketing and management by brand vendors."
Mobile e-commerce growth is only part of China's shift to mobile technology, a trend noted by FierceMobileIT earlier this year. "With close to 1.4 billion people, the Chinese market is a gold mine," I noted in a Jan. 15 Editor's Corner. "The sky is the limit in terms of mobility. China's potential is only limited by the imagination of the firms vying to serve the market."
- check out the IDC's release
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