China’s expanding internet digital media hit 638 Million and e-commerce markets offer opportunities for companies that understand the country’s Internet users.
China’s internet sector has reached a new stage of development and has been increasing over the years but that growth might just not slowed as yet , as 638 million is just one third of the potential market
this potential growth is fuelled by growth and commonlization of the smartphone market , as a pocket communication for everybody with easy availability that boost smartphone market in China which is now being driven by lower-cost, domestically produced smartphones, especially within rural areas.
China which just opened its market to industrialation since the last 30 years were just re-born to be ready for this monstrous giant commodization of the smartphone and this gave China the opportunity to be almost 100% ready for its mobile penetration, monetization of the internet is being spurred by mobile gaming, mobile application , increased e/m -commerce and new forms of mobile payments.
By the end of 2014, the number of mobile phone users in China exceeded one billion, with more than 50% of these being smartphone users. Market watcher estimates that the penetration rate for smartphones in China will reach 90% or higher this year and China now is the biggest smartphone producer and local smartphone brands, such as Lenovo,oppo , Xiaomi and Coolpad, are pricing at around half the price or less than the latest Apple iPhone. The average purchase price of a smartphone in China dropped to USD 280 plus per unit and even cheaper for those with least feature function
With the emergence of affordable, domestically produced smartphones, many people in rural areas will be able to access the internet for the first time via mobile phones. China with it largest network of magnetic highspeed train see itself with a small task objective, the government beleive they will be the first World most populated country with the best internet coverage throughout all both major and rural cities with improved connectivity both in desktop broadband to all the Newest Gs in Mobile connectivity
Although it has 630 Million user ,The China Internet Network Information Center (CNNIC) describe there remains a huge untapped population of 450 million people who live in rural areas without service.
The CNNIC who has did sufficient reseach analysis on China Mobile's penetration capacity said most of the rural users in China have little education and little need to go online. They recommended that the government focus on education and Internet learning in rural schools, reports state.they estimated Rural use on mobile internet will comprises about 198 million Chinese Internet users.
Social media use has slightly been clamp down as the government's recent crackdowns on corruption and social media sites has been ongoing but China 's undertsanding that the economy needs this new Mobile technology drive especially in messaging , as the world has seen the recent US$19 billion acquisition of messaging service WhatsApp by Facebook reflects the potential of mobile internet monetization. WeChat, a messaging service owned by Tencent, in terms has a similar massive potential initiatives to monetize its large china user base.
The Chinese recognize this potential and Tencent’s share price soared over 90% in 2013 alone. WeChat has 660 million users in China .currently (and 100 million overseas) – numbers that would be hard to replicate anywhere else. With WeChat, Tencent will likely surpass its success with PC internet users and benefit from the new type of consumer behaviour emerging via the mobile internet.
Considering its nearby neighboring countries in Asia , together China in Asia commands access to he highest number of entertainment and computer game players globally. Mobile-gaming and entertainment related advertisement revenues in China / Asia have grown fivefold in the past two years alone and are likely to remain a sweet-spot for monetization in the years to come. Entertainment is a key factor for internet usage in China in particular , especially among lower-income youth, due to easy access and affordability. By leveraging its large user base, Major internet companies has established clear revenue streams from online games and media apps , which have contributed more than 50% to its total revenue since 2013. With smartphone commoditization, mobile games will likely sustain this growth momentum as online media enterprises continue to migrate from PC to mobile. All in all the pie is worth about 13 billion yuan for 2015
The mobile internet is Now the biggest new growth engine for e-commerce in China and the rest of the world . Online shopping is booming because of its convenience and cost-effectiveness. And it’s not only young affluent urban dwellers who are purchasing luxury items online at cheaper prices than shopping malls – residents in less-developed regions are buying products that are not available in their home towns. Online transactions reached a value of 2.5billion yuan in 2014, accounting for 7.8% of total retail sales in China,
Research companies compared the recent turnovers after the listing of Alibaba on Wallstrret , and it indicates the total transaction value of mobile shopping in China grew by 185% to 188 billion yuan, taking a 13 % share of the total online shopping market , and is likely to reach one trillion yuan by 2017, accounting for almost a quarter of the total e/m -commerce space (B2C and C2C). The share of mobile shopping is expected to rise. the whole online consumer market has noticed the recent migration of Chinese online shoppers from PC to mobile. Firstly, e-commerce giants such as Alibaba and many other China Online Giant players are encouraging users to adopt mobile shopping through heavy promotion efforts. Meanwhile Consumers are also deciding to use their fragmentary time to shop online via their smartphones and tablets as opposed to stepping down to the mall.( save money on transportation and Time is getting expensive )
Many other large e/m -commerce operators have lost no time recruiting more users by launching similar mobile IM tools, such as Alibaba’s Laiwang, Netease’s Yixin and Suning’s Yunxin. They’ve also made efforts to partner with telcos to lower the traffic threshold to acquire mobile users. Even though Alibaba is the market leader in e-commerce for desktop user , it still needs to catch up in the mobile internet users . in 2013/14 , in collaboration with China Unicom and China Mobile, Taobao (Alibaba’s online shopping website launched a “free traffic” plan by subsidizing users of mobile Taobao and Laiwang in some cities with 2GB of free traffic per month.
As e/m -commerce in China enters a more mature phase, the focus is now shifting towards the logistics front, including timely delivery of goods and low-cost storage for sellers. The trend of service integration will likely continue and Alibaba is playing the leading role from China .
