Author: Denny

Alibaba is finding success despite China’s slowing economy

China’s economy may be slowing down, but that has not stopped Alibaba from seeing impressive gains throughout 2015. During the last quarter of 2015, Alibaba reported a total revenue increase of 32%. The company attributes this growth to the growing number of mobile users in China. Alibaba has been focusing more heavily on mobile commerce in recent years and has managed to find extreme success in this young but rapidly growing sector.

Number of active monthly users has skyrocketed for Alibaba

Alibaba CEO Daniel Zhang has noted that the company has added some 47 million active users on mobile devices. This brings the company’s total active monthly mobile users to 407 million. These people are using mobile shopping apps to purchase goods and services through Tmall and Taobao, two online marketplaces owned by Alibaba. Mobile commerce has proven to be quite lucrative for Aliaba and the company is likely to continue pursuing its efforts in the mobile space for the foreseeable future.

As mobile commerce grows, Alibaba is investing more heavily in effective marketing strategies focused on the mobile sector

Increasing its focus on mobile commerce also means that Alibaba is taking mobile marketing more seriously. With the number of mobile users on the rise, finding ways to effectively engage these consumers is becoming a major priority for several companies. As such, these companies have begun investing more in mobile marketing. Advertisements designed specifically for mobile devices, either on applications or on web browsers, have proven capable of connecting businesses and consumers, fostering more mobile commerce activity.

Mobile marketing is becoming more important for companies that want to engage a mobile audience

Mobile marketing has become a very important aspect of mobile business overall. In China’s slowing economy, people are becoming more cautious about how they spend their money. Consumers have been interacting with advertisements more frequently, however, as they are conducting research into products that they may be interested in. Effective marketing strategies could influence the way consumers spend money, especially in a mobile commerce environment.

The Adyen research firm has now released their figures which showed smartphones surpassed tablets in m-payments.

For the first time in the history of mobile payments, the last quarter of 2015 represented the time when smartphones were used more often than tablets for the completion of transactions that were made online.

At the same time, it remained iPads that were able to bring in the largest average transaction value.

The figures from Adyen, a research company, have also revealed that in the last three months of 2015, one in three online transactions were carried out in the form of mobile payments. The purchases were made either by way of a smartphone or a tablet. More specifically, 34 percent of online transactions during the last quarter of 2015 were completed over mobile. This was a solid increase over the third quarter of last year, when that figure had been 30 percent.

Mobile payments are currently divided nearly equally between smartphones and tablets, though phones are growing.

In the worldwide scene, smartphones are being used for 17.5 percent of all purchase transactions completed online. This is an increase over the previous quarter, when it had been 14 percent. Comparatively, tablets were used 16 percent of the time, which is a decrease when compared to the quarter before, when it had been 17 percent.

What Adven determined was that even though smartphones were rising in popularity, it remained iPads that were being used for the transactions that had the highest overall total value. The average order value over iPads was $107. In second place – and only very slightly behind iPads – were orders made over laptops and PCs, as their average order value was $106. Android tablets took third place with $86, iPhones were in fourth place at $83 and, finally, Android smartphones had an average total purchase value of $73.

According to Roelant Prins, the chief commerce officer at Adven, in a recent statement, “Mobile payments, both in app and browser-based, are driving the growth of eCommerce, and this trend is particularly noticeable by the acceleration in mobile payments for methods such as JCB and Alipay.”