China M-commerce Market Research 2012





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Published on May 15, 2013

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2012 is a triumphant year for e-commerce in China.

Alibaba, the owner of Taobao and TMall online store has reached top place as the most profitable Internet company in terms of net profit in Q4; several leading e-commerce providers are contending for larger market share while continuing to fuel the growth of the market. M-commerce is also booming.

Here's a look at what China market holds for M-commerce in 2012 and beyond.
First of all, M-commerce user base has been growing steadily since 2009, it reached 149 million by the end of 2012 and expects to top 352 million by 2015.

In terms of market share, No one can beat Taobao's dominance at 62.7%. Jingdong, previously called 360 buy, remains a distant second at 16.7%, followed by a few other players like QQ, Suning, Vancl, Dung-dung and Yihaodian.

Moneywise, total revenue of M-commerce was merely 100 million US dollars in 2009, the figure topped 7.7 billion mark in 2012 and expects to reach 40.8 billion by 2015.
For M-commerce users, almost equal percentage of men and women shop online, the difference is less than 1%. However the number of women users is expected to catch up with men quickly.

China still has a regionally imbalanced economy. Most M-commerce shoppers come from affluent areas in the eastern part of China characterised by mega cities and dense population. For instance, 31.3%, 22.2% and 17.2% shoppers are from south China, east China and north China respectively where three largest metropolitan cities Guangzhou, Shanghai and Beijing are located.

There're quite few choices for smartphone operation system. Android leads the market at 62.5%, followed by iOS at 32.7% and Symbian at 4.5%, which is still used on large number of low-end devices. Windows has got only 0.3% and there is lots of catch up to do for Microsoft.

Shoppers on Android, iOS and Symbian follow similar trends in time of shopping. However, while shopping on Android and iOS peak during the rush hours in the morning and afternoon, on the other hand, a large number of users on Symbian shop close to midnight.

Women and men have quite different tendencies in products bought. Women's top purchases include women's clothing, shoes, bags, cosmetic and skincare, and mother and baby products; men's purchases include men's clothing, women's clothing, and 3C products.

Now, the average monthly spend for Q1, Q2, Q3 and Q4. While the spend under 8 dollars went down from 27.2% to 19.7%, spend in the 8 dollars to 48 dollars range has shown steady growth throughout the year. The spend level is expected to grow along with the improvement of living standard and maturization of large payment on mobile phone.
Concern for payment security is clearly indicated in payment method. 33.2% shoppers choose cash on delivery and 32.6% 3rd party payment such as Taobao's Alipay. Only 13.2% choose online banking and 11.2% mobile payment. Less than 5% pay through China Mobile payment Easyown, and 2.4% through bank transfer.

For delivery method, around 67% shoppers use privately-run courier services due to price advantage and speed of delivery, around 21% choose EMS, a service run by China Post for security and better coverage as it's often the only option for delivery to remote regions in China.

For users not choosing online shopping on mobile phone, the leading concerns are payment security, small screen that doesn't provide good user-experience and slow network speed. Other concerns include, heard too many negative reviews, it's troublesome to set up mobile payment, don't have the right resources, worry about not good at using mobile online shopping, don't know how to set up, don't like online shopping, and don't know smartphone can do online shopping.

This video infographic is presented by Advangent -- a digital link to your business in China. Visit us to find more at www.advangent.com. Thank you for watching.


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