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Nascent Mcommerce in China Shows Explosive Growth

Digital commerce remains dominated by PC-based channels

Mcommerce is skyrocketing in China, according to a report from consulting group iResearch detailing the country’s mobile shopping market in Q2 2012. The company reported that the gross merchandise value for mcommerce in China was RMB11.64 billion ($1.8 billion) in Q2 2012, a staggering 488% year-over-year increase.

The growth of mobile shopping in China is also expected to be aided by continued smartphone adoption and the increasing prevalence of 3G networks. eMarketer estimates that mobile internet users in China will number 424.6 million by the end of 2012, then increase to 631.7 million by 2016.

However, excitement about the sharp mcommerce growth rate should be tempered considering the relatively low penetration of mobile internet commerce, which China is in the earliest stages of adopting. This is reflected in the fact that PCs remained the predominant channel by which shoppers in China were making online purchases. In fact, PCs were responsible for an estimated 95.7% of internet commerce in Q2 2012, compared with 4.3% for mobile.

Those doing their shopping on smartphones showed a distinct preference for domestic retailers. Tmall Wireless held the lion’s share of the mcommerce market, with 75.6%. 360buy was in distant second place with 6.2%. The only foreign-based retailer, Amazon China, held a market share of 0.9%.

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Check out today’s other articles, “Consumers' Expectations High for Luxury Brands on Mobile” and “Unilever Uses Digital Video to Spotlight Today's Evolving Man.”

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