Daily Digital Pulse Of China : China E-commerce, China Mobile Payment, China Retail
Youku And Sina Weibo Form A Partnership
Two of China’s web giants, Sina Weibo and Youku Tudou formed a partnership today, agreeing to promote videos on the Twitter-like service from the Youtube-like video site. According to techinasia.com, Youku’s announcement underlines the fact that 76 percent of Sina Weibo’s daily active users access Weibo through mobile devices. At the same time, Youku Tudou accounts around 170 million daily mobile video viewers. In July we are going to see the video content promotion which will take “multiple forms including through personalized recommendation section embedded between micro-blogging posts”. Also “search results for movies and TV dramas will provide direct thumbnail links to watch the title instantly”.
Experts Urge To Secure The Future Of Mobile Payment
While the online retailers are talking about the benefits and convenience of mobile payments in China, the consumers are quite skeptical about paying via their mobile devices. Last year a survey by KPMG International was underlining that 84% of Chinese shoppers are willing to pay via their mobile wallets if it is safe, pleasant and convenient. According to EBay Greater China CEO John Lin, “(mobile) payment is a painful experience, if you don’t overcome it. In many countries of the world, payment is a huge hurdle, because of security risks.” Today third-party payment vehicles are emerging as a preferred alternative in online shopping in order to avoid security risks. iResearch pointed that 61.3% of online buyers paid via a third-party vehicle in 2012.
Retailers Chase Growth In China’s West
More and more retailers are trying to test the waters in West China since the region has a lot of potential to become a new engine to drive private consumption. According to chinadaily.com, economic growth in the region has surpassed the more developed eastern shoreline for six consecutive years with double-digit growth logged by all western provinces in 2012, above the 7.8 percent for the whole nation. Consumption in this area is taking a greater share in the region’s economic growth. Retail sales grew more than 16% in nearly half of the region in 2012, compared to a 14.3 percent growth nationwide. The same source cites Lian Ping, chief economist with the Bank of communications who agreed that “The rise of consumption in west China underscores the penetration of investments and business activities into China's hinterland.”