According to IDC’s Top 10 Predictions for Chinese Internet industry, mobile e-commerce will become the focus of competition in Chinese e-commerce market in 2014, as the number of mobile Internet users and mobile e-commerce transactions increases rapidly.
The “Double Eleven” online shopping festival in 2013 not only reported record Internet retail sales, but also sounded the clarion call of China’s Mobile e-commerce: A quarter of the RMB 35 billion transactions were completed via mobile terminals such as mobile phones or tablet PCs, and users’ receptiveness to mobile e-commerce providers had significantly improved compared to the approximately 10% mobile terminal transactions at the beginning of the year.
IDC predicts that the scale of Chinese mobile e-commerce market will reach RMB 155.22 billion in 2014, up 67.9% compared to 2013 and far exceeding the 28% average growth of Internet retail market for 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, Vertical Industry Research and Consulting of IDC China.
IDC estimates there will be three main development themes for mobile e-commerce in 2014: 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.
Promotion of mobile e-commerce client terminals: Taobao, TMall and Jingdong and other e-commerce platforms will promote the use of mobile client terminals by increasing subsidies, so as to conform to the transfer of self-owned user groups to mobile client terminals. This trend had become very evident in 2013.
Competition for social mobile-Internet portals and new business model exploration: The integration of “Weibo” with Alibaba e-commerce platform in 2013 did not result in significant sales conversions, and on the contrary accelerated user flight from platform “Weibo” to platform “Wechat”. Competition for socialized Mobile e-commerce portals between “Laiwang” and “Wechat” will become more intense in 2014, accompanied by business model exploration based on social and mobile relationships built by the two platforms.
Mobile terminal membership marketing and management by brand vendors: Brand vendors in the era of Mobile e-commerce, will gradually learn not to “rise in revolution” by passively following the channels or platforms. This is because no matter how the channel type and model change, it is most important to focus on ones’ own products and services and strengthen the brand.