Mobile commerce competition is intensifying in China
As China’s mobile commerce market continues to boom, Tencent is beginning to feel extreme pressure due to competition from Alibaba. Competition in the mobile space is growing fierce, but Alibaba currently controls 84% of the market. Tencent does hold a strong place in China and beyond, however, because of its popular WeChat messaging application and mobile gaming platform. Tencent has been working to turn its messaging app into a mobile commerce service with the help of JD.com.
Tencent hopes to expose millions of consumers to mobile commerce in the coming years
Alibaba has generated a great deal of momentum in the mobile space. The company has seen a great deal of success in its mobile commerce endeavors recently, which has generated questions regarding whether or not companies like Tencent and JD.com can compete. JD.com is currently China’s largest online retailer, in terms of direct sales, making it a strong competitor with Alibaba, and Tencent has influence over millions of consumers because of its messaging app.
China’s online population is growing at a rapid pace
China boasts of more than 600 million Internet users, making it home to the world’s largest online population. The number of Internet users is growing quickly, and Tencent may have to ramp up its efforts if it wants to find success in the mobile commerce space. Earlier this year, Tencent purchased a 15% stake in JD.com and the two companies have been blending their businesses together ever since. Tencent is hoping to convert JD.com shoppers into WeChat users that will make us eof the app’s mobile commerce features. Thus far, this strategy has proven relatively successful.
Startups may be a source of strong competition in China
Alibaba has established a strong lead in the mobile space, but cannot show signs of complacency if it wants to keep this lead. Tencent is not the only company that is competing with Alibaba and several new startups are showing promise in their ability to engage mobile consumers and offer retailers a chance to compete in the mobile space.