Around the Net
Mobile Driving Commerce Spending in China to $1 Trillion
- TechCrunch, Monday, February 9, 2015 9:15 AM
A new report by Forrester finds that online spending in China will reach one trillion dollars by 2019. The growth will be fueled by mobile apps and improving logistics networks, which have helped e-commerce companies reach new customers in smaller cities. This is good news for Alibaba, which saw its shares fall after its latest earnings reporttriggered concerns about the impact of its investment in mobile on its revenue growth. Forrester’s report also says that despite JD.com’s efforts to grow, which include partnerships with Tencent, one of China’s largest Internet companies, Alibaba’s Tmall and Taobao will continue to dominate the market. China became the world’s largest online retail market in 2013, when total sales reached $307 billion. Forrester estimates that figure will hit $440 billion in 2014 (or 9.8 percent of total retail sales in China) and continue to grow at a compound annual rate of 19.9 percent every year until it reached $1 trillion by 2019.
