Enabling Technologies

Mobile Commerce Booms for Alibaba

MEDICI

Alibaba’s earnings are on the rise and the growth in the use of mobiles for the commerce transactions is becoming a key driver for Alibaba’s success. During its most recent quarter, Alibaba’s monthly active users on mobiles rose by 77% totalling a staggering 289 million users. The revenues generated by these m-commerce transactions have nearly quadrupled and make up for almost 40% of the overall sales being generated. The Chinese e-commerce giant’s revenue itself shot up by 45% in the fourth fiscal quarter.

Global m-commerce revenue has nearly reached the $500 billion mark with Asian countries accounting for almost half of that. There are over 200 million mobile consumers in China alone. Considering India’s mobile commerce market, the number of mobile shoppers (as part of the overall online shopping market) has grown from 20% to over 50%. For the US, eMarketer predicts that in 2015 around 22%of retail commerce sales will come from purchases made on mobile devices. M-commerce is growing so fast that we expect retailers/commerce players to be shifting their complete focus from web apps and desktop websites to mobile apps and mobile sites. We have a few examples for you below.

Because of the rapid increase in smartphone and tablet penetration, the growth in mobile commerce is going through the roof. With phone screens becoming bigger (yes, even iPhones), people are buying while they are on the move and even buying on their mobiles at home. According to data from Monitise on m-commerce, mobile commerce is growing at about three times the rate of e-commerce. Mobiles account for 20% of the online purchase volume worldwide. Further insights reveal that 64% of mobile shoppers rely on apps instead of mobile browsers. Mobile commerce also allows brick-and-mortar retailers to engage customers when they are near the store or in-store using proximity marketing technologies. Location-based notification is another feature that comes into play when you are shopping online.

The value of commerce transactions conducted via mobile handsets/tablets will exceed $120 billion by 2017 with a whopping 150 million users. M-commerce accounted for 15 to 17% of retail e-commerce sales in 2013, highlighting the huge opportunity for m-commerce, both online and in-store. In addition, the value of POS mobile payments is projected to grow exponentially. LTP had also released a report providing further insights into the impact of m-commerce on the overall commerce ecosystem.

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI team who collaborate to create FinTech insights.

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