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Tag: China

  • Xiaomi, Nokia sign alliance and patent de

    Xiaomi, Nokia sign alliance and patent de

    Xiaomi and Nokia have signed new a multi-year business collaboration and a patent cross-licensing agreement covering each vendor’s cellular standard-essential patents.

    As part of the transaction, fast-growing Chinese handset vendor Xiaomi has also purchased patent assets from Nokia.

    Under the business cooperation component, Nokia will meanwhile provide network infrastructure equipment designed to meet the high capacity, low power requirements of large web providers and data center operators.

    The two companies will also work together on optical transport solutions for data center interconnections, IP routing based on Nokia’s new FP4 network processor and a joint data center fabric solution.

    Xiaomi and Nokia will likewise explore opportunities for further collaboration in areas including the internet of things (IoT), augmented and virtual reality as well as artificial intelligence.

    Xiaomi now has a presence in over 30 markets, and is a leading IoT player as well as smartphone vendor.

    “As a company seeking to deliver more exciting technological innovations to the world, we are excited at the opportunity to work more closely with Nokia in future.”Xiaomi is committed to building sustainable, long-term partnerships with global technology leaders,” Xiaomi CEO Lei Jun said.

    “Our collaboration with Nokia will enable us to tap on its leadership in building large, high performance networks and formidable strength in software and services, as we seek to create even more remarkable products and services that deliver the best user experience to our Mi fans worldwide.”

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  • Aigle opens store in Suzhou

    Aigle opens store in Suzhou

    Aigle, a French outdoor leisure brand with a history of over 100 years, has opened a store in Jiuguang Department Store, Suzhou.

    Founded in 1853, Aigle is sells leisure jackets and rain boots with both fashionable designs and functions. Its classic works include the handmade rubber boots “Miss Juliette” and “Miss Julie”. The brand entered the Chinese market in 1998, with the Chinese sportswear brand Lining as its agent.

    As a master brand of handmade rubber boots, Aigle’s craftsmanship is over 100 years old. The materials of its rain boots are all from rubber plantations in Southeast Asia and Africa, featuring unique molecular structures to ensure superior durability and tear resistance. Even in extremely cold conditions, they can still provide unparalleled comfort and flexibility.

    In regards to functional casual clothing, Aigle used new patterns in its Full Summer series of the latest season. It added linen shirts, oriental cherry blossom patterns, and sailing elements like anchors in its details.

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  • China Telecom joins HomeGrid Forum

    China Telecom joins HomeGrid Forum

    China Telecom’s main research arm the China Telecom Shanghai Research Institute has joined the HomeGrid Forum to support the deployment of G.hn technology in Asia.

    The Institute has been working on G.hn related products for more than three years, with China Telecom selecting G.hn as its home networking technology of choice.

    China Telecom Shanghai announced its first public tender request for G.hn devices earlier this year, marking the start of commercial deployments of the technology in China.

    In addition, the Institute has expressed an interest in establishing a HomeGrid Forum Certification facility at its Shanghai labs, adding a third point of call for silicon and system vendors to certify their products in the region after Shenzhen and Taipei.

    “Welcoming China Telecom Shanghai Research Institute as our newest member is fantastic. We look forward to gaining its invaluable insight and perspective into the Chinese and Asian markets as we continue to expand our presence in the region,” HomeGrid Forum president Donna Yasay said.

    “We’ve been championing G.hn technology for many years and support from an organization of this caliber validates our efforts. When combined with other technologies, such as wireless, home mesh networking and Ethernet, G.hn creates an unrivalled hybrid that can extend connectivity further than other products on the market. G.hn is the vital backbone for the kind of seamless connectivity that is now in demand around the world.”

    Chian Telecom will join operators including Chunghwa Telecom and KT as promoting members of the Forum.

    G.hn is the gigagbit home networking technology designed to utilize multiple existing last mile connections including coaxial, copper pairs, powerline and plastic optical fiber.

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  • DHL and Latvian Railways join forces to boost Baltic-China trade

    DHL and Latvian Railways join forces to boost Baltic-China trade

    Baltic and Nordic exporters can look forward to faster, cheaper and more reliable logistics connections to China’s immense export market, following the signing of a new agreement between Latvia’s State Joint Stock Company Latvijas dzelzceļš (LDz) and DHL Global Forwarding.

    The Memorandum of Understanding and Cooperation (MUC) signed between both companies will see both organisations focus on establishing multimodal rail connections between China and Latvia, including both freight connections and consolidation services centred in Riga City. Under the MUC, new connections will include guaranteed transit times and simplified customs and handling procedures for inbound and outbound cargo, as well as support for more flexible shipments such as Less-than-Container Load (LCL) freight.

    “So far, very few Baltic or Nordic businesses have fully tapped into the immense market opportunities that China and the broader Asia Pacific region currently offer,” said Steve Huang, CEO, DHL Global Forwarding Greater China. “The two regions’ exports made up only 0.7% of China’s imports on average between 2011 to 2015, despite China’s demand for overseas goods which both regions excel in — like high-quality food products, textiles, and pharmaceuticals — growing rapidly in this time.[1]”

    “With the economies of Latvia and its neighbours expected to grow faster than the rest of the European Union,[2] businesses in the region will need to look to new markets like China to fuel their expansion. By building rapid, reliable logistics connections between the Baltic and Asia Pacific, we hope to give the region’s businesses a strong foundation for ongoing growth.”

    The MUC comes as DHL begins service along its newest Asia-Europe multimodal route connecting Shenzhen to Minsk via rail. DHL holds similar agreements with national rail providers in Belarus, Chengdu, and other major hubs along China’s proposed “Belt and Road” trade routes.

    “DHL has led the way in realising the Belt and Road’s opportunities for numerous countries, including the Nordic states that its Shenzhen-Minsk route will directly service,” said president of LDz, Edvīns Bērziņš. “This new agreement will give Latvian businesses the flexibility and confidence to engage in freer trade with Chinese and Asian markets, as well as establish Latvia as a strategic gateway along the Belt and Road to other parts of Europe — a twofold boost to the country’s production and logistics industries.”

    The MUC also includes provisions for ocean freight and intermodal shipping between Latvia, Scandinavia, and the UK and Ireland, as well as air and road freight connections to major cities across continental Europe.

  • Ford’s China sales post strongest growth of year in June

    Ford’s China sales post strongest growth of year in June

    Ford Motor Co said its China sales surged 15 percent in June, their strongest pace of the year, as the industry puts the phasing out of a tax cut behind it, adding that it was optimistic about the outlook for the second half.

    Peter Fleet, Ford’s Asia-Pacific chief, said the first quarter had been difficult after a tax on car purchases rose to 7.5 percent from 5 percent previously.

    Although Ford’s China sales declined 7 percent in the first-half from the same period a year ago, they were up 7 percent in the second quarter. Sales for June alone climbed to more than 100,000 vehicles.

    “I would expect to see for the third-quarter strong single digit percentage growth (for) the industry. That’s certainly how it looks to us based on the run rate and how the month of July has opened up,” Fleet said.

    Ford’s level of discounting tracked an overall 4 percent price decline for the industry so far this year, he said.

    “I’m not interested in driving our prices down to drive market share,” Fleet said.

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  • Nokia formally launches Nokia Shanghai Bell JV

    Nokia formally launches Nokia Shanghai Bell JV

    Nokia has announced the completion of the transaction with the China Huaxin Post & Telecommunication Economy Development Center to create the Nokia Shanghai Bell joint venture.

    The deal marks the official launch of the Nokia Shanghai Bell business, which combines the former Alcatel-Lucent Shanghai Bell with Nokia’s China business.

    But the two entities have effectively operated as one since January 2016, following Nokia’s purchase of Alcatel-Lucent in a $17 billion all-stock deal. Nokia and China Huaxin also signed a final agreement last month covering the integration of the two businesses and establishment of Nokia Shanghai Bell.

    China Huaxin is a state-owned industrial development company that owned half of the Alcatel-Lucent Shanghai Bell joint venture. Nokia owns a 50% plus one share stake in the Nokia Shanghai Bell joint venture, with China Huaxin owning the remainder.

    Nokia Shanghai Bell will become an integral part of Nokia’s global R&D operations, with around 10,000 researchers across six R&D sites in the nation. It will act as Nokia’s exclusive platform in China for the continued development of new technologies in areas such as IP routing, optical and 5G.

    Nokia Shanghai Bell also plans to support strategic R&D initiatives of the Chinese government and conduct long-term research projects as part of Nokia Bell Labs’ Future X Network program.

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  • Can Alibaba realize its global ambitions?

    Can Alibaba realize its global ambitions?

    Jack Ma, the man who turned Alibaba into China’s dominant e-commerce platform, now has his sights set on global domination.

    Over the past year, Ma met business leaders and head of states in many countries to introduce his grand vision: small businesses from all corners of the world trading freely and securely on Alibaba’s platform. His goals are equally ambitious: Ma wants Alibaba to hit $1 trillion in gross merchandise value by 2020. By 2036, the company sees itself serving two billion customers, effectively becoming the world’s fifth largest economy, with sales eclipsed only by the GDP of the U.S., China, Japan and the EU.

    But to sustain the near continuous 40% growth rate of Ma’s $300 billion empire, which centers on a marketplace connecting brands with buyers, globalization is seen as key. At home it faces heightened competition with the country’s second-largest shopping site, JD.com, which just posted record sales of $17.6 billion for its 6.18 shopping festival. Alibaba’s e-commerce dominance isn’t under threat but it nonetheless sees a “growth bottleneck” and feels “globalization is better done now than later,” said Teng Bingsheng, a professor of strategic management at the Cheung Kong Graduate School of Business in Beijing.

    Alibaba’s global footprint has grown through investments in local partners. As part of a $21 billion-acquisition spree over the past two years, the company has stakes in India-based marketplaces Paytm and Snapdeal, as well as Southeast Asia’s top shopping site, Lazada, which it now holds a 83% stake after investing another $1 billion. Its financial affiliate Ant Financial has investments in payment platforms in Thailand, South Korea and the Philippines, and is expanding in further afield in South Africa.

    Some analysts however question whether Ma might be painting an overly rosy picture for small business owners. While it is true that China has a growing appetite for niche brands from cosmetics to baby food, competition on Alibaba’s shopping sites is cutthroat.

    Already thousands of brands are selling on Tmall and the number of foreign brands on Tmall Global grew 169% last year — while total sales only grew 30%, according to Mark Tanner, founder of Shanghai-based consultancy China Skinny.

    This means another part of Alibaba’s strategy has brighter prospects. Outside the U.S., through the likes of Lazada, and its own cross-border commerce platform AliExpress, Alibaba wants to find fresh customers for Chinese manufacturers. On Lazada, for example, Taobao has opened a shop, offering a curated selection of Chinese-made clothes, gadgets and toys to tap Southeast Asia’s $22 billion e-commerce market.

    Compared with facilitating exports to China, this strategy may ultimately take on more importance. Southeast Asia, for example, is an ideal market for Chinese products, whose price advantages can win over more customers, CKGSB’s Teng said.

    What’s more, Alibaba will not only create more revenue streams by selling globally but fit itself nicely into Beijing’s vision. Through grandiose projects such as the One Belt, One Road initiative, Beijing wants to restore demand for Chinese goods along the ancient Silk Road trading route, which stretches all the way from its middle west provinces to Europe.

    But it isn’t a smooth ride either. The Electronic World Trade Platform (eWTP), Ma’s version of the World Trade Organization and a web-based approach to lowering trade barriers for small businesses in the region, is moving slowly. One year after its announcement, only Malaysiajoined the initiative, establishing in March a trading hub near Kuala Lumpur International Airport— a reflection of how stalling trade talks worldwide might be affecting Alibaba.

    That means, for now, international business remains a small part of Alibaba — contributing less than 10% of the group’s revenues in the last year. Evans said the company is on track to reaching its goal, eventually generating 40% of its revenues from international businesses over the next decade.

    The company has identified its chance of success. Aside from e-commerce, Alibaba’s payment, entertainment and cloud computing units are also expanding globally. AliCloud, for example, is wooing international customers with a price 85% cheaper than Amazon Web Services, according to CSLA analyst Elinor Leung. And Ant Financial, despite recent hurdles such as opposition to its acquisition of U.S. payment company Moneygram, has installed its service at millions of retailers in the U.S. through a partnership with payment processor First Data.

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  • Taiwan cellcos switch off 2G networks

    Taiwan cellcos switch off 2G networks

    Taiwan’s mobile operators have completed the switch-off of their respective 2G networks.

    The switch-off on Saturday has left the nation’s remaining 2G holdouts unable to place any calls except for emergency calls, or send or receive text messages or use data serices.

    At the time of the shutdown there were an estimated 60,000 2G holdouts on Chunghwa Telecom, 20,000 on Taiwan Mobile and 8,000 on Far EasTone, the report states.

    Remaining 2G customers’ numbers will be reserved until the end of December if they choose to upgrade to 4G.

    Taiwan Mobile is meanwhile redirecting customers attempting to place a call to a customer service center and will agree to temporary restart phone services if customers commit to upgrading to 4G. This redirection will last until July 7.

    With the move, Taiwan has become the latest APAC nation to transition away from 2G services to free up spectrum for 4G and other mobile services. The shutdown was prompted by the expiration of all existing 2G licenses.

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  • Capitalising on China’s cross-border e-commerce market

    Capitalising on China’s cross-border e-commerce market

    Attendees of the dialogue on GMS Cross-border E-commerce Cooperation Platform held in Yunnan province, China earlier this month discussed how to develop cross-border e-commerce businesses of ASEAN countries. More than 100 representatives from e-commerce companies and associations from the Greater Mekong Subregion (GMS) comprising Cambodia, Laos, Myanmar, Thailand and Vietnam as well as Yunnan Province and Guangxi Zhuang Autonomous Region in China participated with this event. Ray Li, vice president of SF Express International Business Division, shared his insights as a representative from the logistics sector on the import opportunities for Chinese e-commerce companies at the event.

    China’s “One Belt, One Road” initiative and Supply-Side Reform policy provides a driving force for the development of cross-border trade for ASEAN countries as well as for China itself, Ray Li said. Overseas shopping by Chinese consumers is growing at a rate of more than 50% annually, driving the rapid increase in sales of milk power made in Singapore, coffee made in Vietnam and latex products made in Thailand.

    As how to best expand into the Chinese market, in the pilot stage of business, Ray Li suggested cross-border e-commerce suppliers use B2C direct mailing services with light assets, zero inventory, small quantities and multi batch models, in order to accelerate the stock cycle and sales.

    SF Express is a Chinese express company known for its fast delivery and quality services and has a network coverage of 34 provinces and cities across China. The express service provider, which owns 51 all-cargo aircraft, is building an air logistics hub that will soon to be the first in Asia and the fourth in the world. In Southeast Asia, the company has set up service points in Singapore, Malaysia, Vietnam and Thailand with its own local service teams that can provide door-to-door international express services.

    This event was co-hosted by the Ministry of Commerce of the People’s Republic of China Department of International Trade and Economic Affairs, the Department of Commerce of Yunnan Province, and the Asia-Pacific Model E-Port Network Operational Center. The event aims to strengthen the cooperation between and the development of GMS members in terms of cross-board e-commerce, through in-depth dialogues and communications.

  • XPO expands global supply chain support for Sealed Air

    XPO expands global supply chain support for Sealed Air

    XPO Logistics has expanded its global supply chain support for Sealed Air Corporation with the launch of an integrated warehousing and logistics management program in North America.

    Sealed Air is a global leader in food safety and security, facility hygiene, and product protection. XPO’s new operation supports four Sealed Air product lines – Diversey, Cryovac, Instapack and Taski – at a 550,000 sq. ft. warehouse in Sturtevant, Wisc. The facility will serve Sealed Air’s customers worldwide with inventory management, light assembly, kitting, labeling, fulfillment and distribution of orders.

    Emile Chammas, senior vice president and chief supply chain officer for Sealed Air, said, “We selected XPO Logistics for this critical role in our supply chain based on the strength of its global experience and ability to continuously improve logistics processes. Sealed Air looks forward to innovating with the XPO team to increase operational efficiency and ensure the highest level of service for our customers.”

    XPO already provides Sealed Air with technology-enabled logistics, warehousing and transportation management services in Europe, and with intermodal and less-than-truckload transportation in North America. The new contract represents a significant expansion of the relationship between the two companies.

    “We are delighted to bring additional value to Sealed Air’s supply chain with this major expansion of our role in North America,” said Ashfaque Chowdhury, XPO Logistics president-supply chain, Americas and Asia Pacific. “Sealed Air has entrusted us with delivering an advanced solution for warehousing and distribution. We are now engaged in bringing our expertise to bear from both sides of the Atlantic, to give this important customer every advantage in serving its global network.”

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  • Kerry Logistics buys 50% stake in Lanzhou Pacific

    Kerry Logistics buys 50% stake in Lanzhou Pacific

    Kerry Logistics has acquired of 50 per cent shares in Lanzhou Pacific Logistics Ltd. As the new shareholder and joint venture partner, Kerry Logistics will join hands with another shareholder of LPL, China Railway Container Transport Company Limited (CRCTC), in the management and operations of LPL. The investment marks another strategic step in advancing Kerry Logistics’ expansion into the rail freight and multimodal services under the ‘Belt and Road’ Initiative.

    Founded in 2002, LPL specialises in intermodal brokerage services across China and Central Asia including Uzbekistan, Kazakhstan, and Russia. Leveraging on CRCTC’s extensive rail network in China, LPL has a nationwide rail freight network covering more than 100 cities and provides container freight stations and domestic door-to-door logistics services. LPL’s clientele includes a number of Fortune 500 enterprises located in China, spanning the non-ferrous metals, chemicals, auto parts, agriculture, and building materials industries.

    William Ma, group managing director of Kerry Logistics, said, “This acquisition will enable us to draw on the vast opportunities created by the Belt and Road Initiative. Not only will it further strengthen our rail freight capability throughout China and Central Asia, but also allow us to consolidate our expertise in project logistics within our global network.”

    “It will additionally strengthen the rail and road network we have established in The Commonwealth of Independent States through our new joint venture. By constructing an integral multimodal freight chain that connects China, Central Asia, and Europe, we are committed to providing new options and cost-competitive intermodal solutions to our international customers,” Ma added.

    In August 2012, China’s State Council approved to make Lanzhou the fifth state-level development zone in the country. Lanzhou has historically been used as the gateway to the West, due to its strategic location on the geographical and cultural cusps between Northwestern China and Central Asia.

    The city has been chosen to be the major hub of the Silk Road Economic Belt, and a vast network of infrastructure, logistics and industrial zones, and sea ports is being planned that will stretch from East Asia to Western Europe, spanning 60 countries.

    Kerry Logistics was the market pioneer to complete the first westbound charter freight train from Yiwu, Eastern China to Madrid, Spain in August 2016. It also set foot on the first eastbound freight train from London to Yiwu in April 2017.

     

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  • Alibaba denies links to luxury e-tailer Yoox Net-A-Porter

    Alibaba denies links to luxury e-tailer Yoox Net-A-Porter

    the Chinese conglomerate, led by founder and chairman Jack Ma, had contacted Yoox Net-a-Porter over possible capital cooperation or even a takeover, adding it had not ruled out buying shares. This news was quickly denied by sources in the company, who stated this was “not true”.

    The suggested tie-up between Alibaba and YNAP comes just days after a mega deal that saw JD.com spend a whopping US$397 million on luxury fashion e-commerce site Farfetch.

    Dubbed by some the Amazon of fashion, YNAP saw its shares jumped 9.24 per cent on Monday and Tuesday on the back of the Alibaba rumour – its biggest two-day rise since last September.

    The rally was just in time to mitigate investor concerns over mounting short interest in the stock, as the luxury e-commerce market became increasingly crowded.

    “Alibaba should still be looking into cultivating its luxury e-commerce businesses at home,”said Tang Xiaotang, founder of luxury retail consultancy Nofashion. “The market is overwhelmed by noise right now.”

    YNAP is the result of a merger between Yoox and Net-A-Porter, two of the biggest Western online luxury fashion retailers, boasting of a client base of more than 2.9 million high-splenders.

    It booked a 16 per cent increase in adjusted net profit of €69 million (US$77.6 million) last year, with a market capitalisation of 3.48 billion euros.

    Online luxury sales are predicted by Bain & Co to be the fastest-growing channel for retailing of premium goods, and top luxury fashion houses such as Prada and Burberry have been scrambling to ramp up their own online offerings.

    The most notable of all is 24 Sevres, a multi-brand online retailer launched in June by LVMH, the world’s largest luxury conglomerate that owns Louis Vuitton and Dior.

    Competition has also heated up with an influx of new market share grabbers including Shopbob and Zalando, both of which are gaining popularity for their designer fashion clothing offerings.

    However, analysts believed Alibaba could still be eyeing overseas deals in an attempt to build up a global logistics network, following the move to set up an e-hub in Kuala Lumpur as well as the buyout of Southeast Asian e-commerce operator Lazada, last year.

    “After all, Alibaba still has a ‘go global’ agenda, which can be pursued through M&As”said Ray Zhao, an analyst with Guotai Junan Securities.

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  • Nokia to expand its presence in China

    Nokia to expand its presence in China

    Nokia has announced plans to establish a dedicated unit to help major Chinese internet companies expand overseas.

    The new unit will focus on areas including data centers, cloud computing, IP routing, transport and services, as well as emerging technologies such as AI, machine learning and edge cloud.

    Nokia is taking the initiative as part of its efforts to expand its business beyond its core telecoms operator market, and to further augment its Chinese presence following the launch of the Nokia Shanghai Bell joint venture in China (formerly Alcatel-Lucent Shanghai Bell).

    Nokia separately announced it has completed the acquisition of telecoms software company Comptel. The acquisition was first announced in February and had a price tag of around €347 million ($396.8 million).

    The acquisition bolsters Nokia’s software portfolio by adding capabilities designed to help digital service providers bring new services to master faster and improve operational efficiency.

    Comptel’s suite of software will be added to Nokia’s OSS and BSS, analytics, security and cloud technology to provide a comprehensive suite of telecoms software designed to allow customers to deliver better digital experiences and operations in a cloud environment.

  • Amazon Prime Day will include China and India on July 11th

    Amazon Prime Day will include China and India on July 11th

    Amazon’s Black Friday-like event for the summer will be back for the third time. On July 11th, the e-commerce giant will hold the third annual “Prime Day,” and this time, more people will be able to take advantage of all the deals on offer.

    To start with, the event will last for 30 hours instead of the usual 24 and will begin at 9PM Eastern on July 10th. In addition, Amazon is launching the event for the first time in China, India and Mexico, which only recently joined the list of countries where the company’s Prime service is available. Customers in the US, UK, Spain, Japan, Italy, Germany, France, Canada, Belgium and Austria will be able to participate as always.

    While the event itself won’t begin until the evening of July 10th, Amazon will reveal exclusive promos for Prime members every day until then. It is possible to access the first batch of promotions starting today, which include access to Amazon Music Unlimited for 99 cents, 40 percent off Kindle Unlimited membership and 40 percent off Audible for your first six months on the audiobooks service. Alexa-exclusive deals are also to be checked out when having an Echo or a Tap speaker, a Fire TV or a Fire table, since they typically include bigger discounts than what you’ll find on the website.

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  • Prepare for a mobile payment revolution among Chinese travelling shoppers

    Prepare for a mobile payment revolution among Chinese travelling shoppers

    Mobile payments will soon overtake cash and credit cards as the preferred payment choice for Chinese travellers shopping abroad, according to a new survey.

    Mobile payments specialist Cancan and financial research authority Kapronasia have published a global study, 2017 Mobile Payment Survey: Chinese Consumers Abroad, covering the impact of Asian mobile payment solutions at point-of-sale worldwide. Over 1,000  Chinese consumers and more than 60 C-level decision-makers from global merchant companies were surveyed.

    Among the key findings, the study found that Mainland Chinese consumers expect to spend more with mobile payments such as Alipay and WeChat Pay this year and next year than in 2016 when travelling abroad.

    Most Chinese travellers spent in the range of either US$393–US$786 or US$1,179–US$1,572 for retail purchases on their most recent overseas trip, the report found, while 5.7% spent more than US$6,288.

    Some 67% of respondents reported that they use mobile payments overseas. When consumers were asked about their primary method of payment while overseas, mobile payments represented about 41% of overseas consumption.

    Nearly half of the consumers surveyed made between 10-30% of their overseas shopping purchases with QR code-based mobile payment methods; one third of consumers paid over 50% of their purchases in China with mobile.

    chinese travellers mobile payments survey - Retail in Asia

    Fashion and cosmetics/skincare are among the categories consumers were most likely to purchase with mobile payment.

    The survey found that transaction convenience and the ability to track purchases in real time were the primary reasons for using mobile payments. Not needing to carry cash and credit cards was also appreciated. “You can easily spend days in China without opening your wallet, and consumers expect that too when they are shopping overseas,” the report said.

    The main reasons for not using mobile payments were merchants not offering the facility, as well as consumers’ ignorance that it was possible to use mobile payments when merchants do offer it.

    Alipay, WeChat Pay and Apple Pay are the most popular mobile payment methods. Over 75% of the surveyed merchants accepted Alipay. Over one third of merchants who do accept mobile payments indicated that it contributed to at least 3% or more of their global sales, with some experiencing a share as high as 15-25%.

    Although customer demand is primarily driving merchant adoption of mobile payment (over 80% of respondents agreed that they were reacting to customer demand), retailers also appreciate the speed of transaction and many desire to be seen to be “ahead of the game”.

    Cancan Managing Director Candice Koo: “Global merchants can profit from the mobile payments revolution storming out of the Far East, but they need to focus on the Chinese consumer”.

    “If the overseas market continues to mirror China’s mobile payment growth and development, this will likely change over time. Loyalty and points programmes in mainland China were slow to take off but are now informing an increasing number of merchant’s digital strategy, many of whom all have domestic WeChat official platforms.”

    Cancan and Kapronasia concluded that as well as there being continued growth in mobile spending, there will also be a change in what consumers buy using mobile payments.

    “Although they started out being used for smaller value purchases, mobile payments are increasingly being used for higher value and luxury items,” the report said. “The average transaction value on Alipay went from US$82 in 2015 to nearly US$100 in 2016, an increase of +22%.

    “The implications for overseas merchants are pretty clear: mobile payments have become a way of life for many Chinese and Asians and their habits are extending overseas.”

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