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South China Business Journal
CHINA BRIEFING
W CYUosiunrgBuseinehssaitn tCohGinraow
By: Dezan Shira & Associates
IN THE WORLD of mobile commerce, all eyes are on China. year, users spent US$15.3 billion on mobile data using WeChat.
Even as China’s economy and overall retail sales growth As the fastest growing social media platform in the world, and
drops, business-to-consumer (B2C) online sales are growing by the primary source of interaction between brands and Chinese
25 percent each year. Data gathered from iResearch in a March consumers, foreign investors looking to be successful in China
2015 report states that China’s gross merchandise volume (GMV) should take note. Chinese consumers actively embrace mobile
of the mobile shopping market reached 929.71 billion RMB in commerce due to its easy to use, cost-effective payment and
2014, increasing by 239.3 percent from the previous year. The delivery system.
growth was significantly larger than that of the overall GMV of
the online shopping market. China has the world’s largest digital There is huge potential for foreign investors to take advantage
marketplace, and is predicted to grow three times faster than of WeChat payment systems for their Chinese consumers and
overall retail. The industry is primed for growth not only in the to maximize their profits. WeChat allows foreign investors to
first-tier cities, but also in the third-tier and lower cities with an interact with their consumers in a way that has not reached
estimated half of total online sales coming from the lower tier the same scale in the Western world. Fewer than 20 percent
cities by 2018. of internet users in the United States have used their mobile
phones to pay for services and goods while more than half of
When considering the mobile commerce industry in China, one users in China have done so. Multiple incentives exist for
name stands out. Tencent’s WeChat has long been impacting Chinese consumers to make their purchases through WeChat;
the lives of Chinese consumers, and with its move to digital enabling businesses to use these schemes to generate profit.
payment systems it now has the ability to revolutionize the Loyalty cards, membership schemes and discounts for paying
mobile commerce industry in China. WeChat has a massive online all compel cost-effective shoppers to make a purchase.
scale, with over 468 million monthly active global users and In addition to this, due to the convenience of paying through
25 percent of users checking WeChat over 30 times a day. Last WeChat, there is a higher chance of impulse purchases. However,
4
CHINA BRIEFING
W CYUosiunrgBuseinehssaitn tCohGinraow
By: Dezan Shira & Associates
IN THE WORLD of mobile commerce, all eyes are on China. year, users spent US$15.3 billion on mobile data using WeChat.
Even as China’s economy and overall retail sales growth As the fastest growing social media platform in the world, and
drops, business-to-consumer (B2C) online sales are growing by the primary source of interaction between brands and Chinese
25 percent each year. Data gathered from iResearch in a March consumers, foreign investors looking to be successful in China
2015 report states that China’s gross merchandise volume (GMV) should take note. Chinese consumers actively embrace mobile
of the mobile shopping market reached 929.71 billion RMB in commerce due to its easy to use, cost-effective payment and
2014, increasing by 239.3 percent from the previous year. The delivery system.
growth was significantly larger than that of the overall GMV of
the online shopping market. China has the world’s largest digital There is huge potential for foreign investors to take advantage
marketplace, and is predicted to grow three times faster than of WeChat payment systems for their Chinese consumers and
overall retail. The industry is primed for growth not only in the to maximize their profits. WeChat allows foreign investors to
first-tier cities, but also in the third-tier and lower cities with an interact with their consumers in a way that has not reached
estimated half of total online sales coming from the lower tier the same scale in the Western world. Fewer than 20 percent
cities by 2018. of internet users in the United States have used their mobile
phones to pay for services and goods while more than half of
When considering the mobile commerce industry in China, one users in China have done so. Multiple incentives exist for
name stands out. Tencent’s WeChat has long been impacting Chinese consumers to make their purchases through WeChat;
the lives of Chinese consumers, and with its move to digital enabling businesses to use these schemes to generate profit.
payment systems it now has the ability to revolutionize the Loyalty cards, membership schemes and discounts for paying
mobile commerce industry in China. WeChat has a massive online all compel cost-effective shoppers to make a purchase.
scale, with over 468 million monthly active global users and In addition to this, due to the convenience of paying through
25 percent of users checking WeChat over 30 times a day. Last WeChat, there is a higher chance of impulse purchases. However,
4
