China’s Mobile Shopping Market Faces a New Round of Competition

According to iResearch, the GMV of China’s mobile shopping reached around 3.3 trillion Yuan in 2016. After exceeding the share of online shopping on PC in 2015, its share in the total online shopping GMV expanded to 70.2% in 2016, which indicated that mobile shopping became the main channel of online shopping. The growth of mobile shopping GMV was 57.9% in 2016, for the first time lower than 100%, implying that mobile shopping stepped into the stable development stage.

 

3.6.2

With the development window and the bonus of mobile apps, new forces started to grow and form new camps apart from the traditional camps represented by taobao, Tmall, JD and Vipshop in online shopping market. Based on the newly-boomed payment and logistics, they developed fast in their fields and heated the online shopping market by adopting creative business modes or targeting at some certain groups of customers. Mogujie in vertical fashion e-commerce, Beibei in maternal & kids market and Pinduoduo in group buying are exactly good examples.

 

3.6.3

The main advantage of mobile shopping is convenience, and smart phone directly facilitated the display of its convenience. However, with the development of Internet and the rise of smart phone ownership, the growth of internet users and mobile internet users gradually slowed down. In 2016, number of internet users exceeded 700 million and number of mobile internet user reached 660 million in China, indicating that the room for the further development of mobile internet was limited. Given that the traffic bonus is gradually exhausting and the basic services like logistics and payment channels become mature, more targeted services will be the future focus of the market, and mobile shopping market will embrace a new round of competition. To win this battle, companies should target offline market and attract new traffic based on the LBS technology, or they can take advantage of the new marketing methods like mobile social and live streaming to improve the traffic value.

Mobile Shopping Outlook

If the online bonus disappears, e-commerce companies will for certain take actions in offline markets. In the mobile e-commerce era, customers’ demand and shopping environment has significantly changed. Clients now want to buy what they need accurately anywhere anytime. Meanwhile, due to the oversupply of the products, the space for single channel development is limited, and the integration of both the convenience of online shopping and good experience of offline shopping will be an important trend in new retailing age.

In the mobile e-commerce era, customer’s consuming channels and habits have changed greatly. The players in the mobile shopping market all explore new modes to attract shoppers, for example, situational shopping, social shopping, content marketing and fans economy. The main mobile e-commerce websites started to pay attention to content marketing, changing their service from searching by customers to recommending information to customers. In this way, they aimed to improve the conversion rate by improving customer’s shopping experience with targeted services.

Source: iResearch

Date: 2017-03-06

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