- POSTED: 12 Dec 2013 20:44
This graph is an experimental feature that tracks number of views over time.
Electronic retailers in China have kicked off an online shopping festival, with the hope of encouraging more consumers to shop using their mobile phones.
BEIJING: Electronic retailers in China have kicked off an online shopping festival, with the hope of encouraging more consumers to shop using their mobile phones.
Known as "Double-12", it follows the success of a similar shopping campaign last month.
From consumer electronics to groceries, Chinese consumers are increasingly turning to the Internet for their shopping
Hoping to cash in on the year-end spending spree, online retailers have come up with a fresh campaign.
On Thursday, apart from the usual consumer items, 16 horses, more than 30 houses and cars from judicial auction - seized in lawsuits by local courts - were put up for sale on the website of China's largest e-retailer Taobao.
This latest campaign comes in the wake of the deep discounts offered in conjunction with Singles Day on November 11.
On that day alone, Taobao sites generated more than US$5.7 billion in revenue.
This time around, to tap into the increasing number of smartphone users in China, Taobao spent nearly US$6 million buying all possible winning combinations of lottery tickets for the day and distributing them to its mobile users, just so one of its mobile platform users will win the top prize of US$800,000.
Analysts said the sums work out, considering the increased business opportunities.
Wang Gao, professor of marketing at China Europe International Business School, said: "(For the cellphone, because of its smaller screen), you do not have to offer so many items for consideration and you can do selective recommendation.
“For example, now that I only have 10 places, I can ask for a higher price. And because they are two different platforms, you have to pay for the PC and also pay separately for the mobile platform. That generates a lot of opportunity for Taobao. Taobao is the second-largest company online that gets its income from advertising, only after Baidu."
With more than 500 million Internet users and some 220 million online shoppers, China is one of the most attractive e-commerce markets in the world.
Online retail sales reached US$210 billion last year.
Mobile Internet transactions currently only make up less than 10 per cent of overall Internet purchases. But given the number of consumers starting to shop online, analysts said it is a sector with tremendous growth opportunity.
This is especially so when recommendations by close friends one has in one’s contact list could translate into online purchases, with the click of a button.