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Tag: mobile shopping

  • Hongkongers at home with mobile shopping

    Hongkongers at home with mobile shopping

    Mobile shopping in Hong Kong and has now become a vital part of local consumers’ online purchasing habits, with more than two in every five of them having made purchases via their mobile device in the last three months, according to the latest Mastercard Online Shopping Survey.

    The survey was carried out across fourteen markets in Asia Pacific — Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore,   South Korea, Taiwan, Thailand and Vietnam. A total of 8,738 consumers were polled online in November 2016.

    Results show that well over three quarters (80%) regarded security of payment facility as a key consideration when shopping online.

    The survey revealed that 44% percent of local consumers made a purchase through their mobile phones in the three months preceding the survey, up from 43% in 2015 and 38% in 2014, when the survey was first launched. An additional 14% did not make any purchases but intend to do so in the first half of 2017.

    Convenience (55%) continues to be the key driver for mobile shopping, followed by the growing prevalence of apps (42%) that make it easier to shop and the ability to shop on the go (26%).

    Regarding their mobile shopping habits, half of local consumers said they had downloaded a shopping app on a mobile device in the last six months. Clothing/accessories (34%) remain the key category purchased through mobile phones, followed by cinema tickets (26%).

    Purchase of airline tickets shot up to 21% in 2016, compared to 10% in 2015, while transactions on hotel accommodations (21%) and personal care/beauty-care products (120%) remained relatively stable.

    In terms of tools, group buying (29%) is increasingly used in Hong Kong, followed by digital wallets (17%) and financial investment apps/ in-social network marketplace apps (15% each).

    The majority of consumers in Hong Kong (88%) made at least one purchase online in the three months preceding the survey, representing a 4% increase from 84% in 2015. Four in five local consumers revealed plans to shop online in the first half of 2017.

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  • APAC consumers shop more on mobile

    APAC consumers shop more on mobile

    Mobile users in APAC purchase more frequently from their devices, but are less satisfied than their counterparts elsewhere, according to a new survey.

    The in-depth survey of mobile users from around the world was conducted by the Interactive Advertising Bureau (IAB).

    APAC consumers take the lead

    The IAB surveyed 3,800 respondents in 19 countries, including regional countries such as Singapore, China, Japan and Australia, and found that APAC consumers take the lead in frequent mobile purchases.

    Specifically, a third of mobile users make a weekly purchase on mobile in APAC, which is higher than the worldwide average of a quarter of mobile users. China in particular boasts of a 47% weekly purchase rate on mobile.

    On the flip side, respondents in APAC are 50% more likely to have a previous negative purchase experience, with only three in four consumers satisfied with their mobile purchase in the region compared to four in five globally.

    As a result, APAC consumers are also 11% less likely to make a repeat mobile purchase in the next 6 months, says the IAB report.

    The findings underscore the need for marketers in the region to be more transparent in their marketing efforts, and to address the negative purchase experiences cited as a key barrier to repeat purchase.

    “Many markets in APAC are mobile-first, and consumers are now mature online buyers with more discerning tastes than the global average,” says Miranda Dimopoulos, CEO IAB Singapore.

    “Advertisers who make an effort to understand their needs and craft the right messages have a tremendous opportunity to cut through the noise and seize market share.”

    “While mobile purchasers are high in APAC, poor buying experiences have dampened initial enthusiasm,” says Regina Goh, IAB mobile committee chair and managing director at ad-tech provider Blis. “Sellers in the region need to consider the consumer’s journey from the first click to post-purchase to ensure customers are delighted and come back for more.”

    The full IAB report can be downloaded here.

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  • Shopping by mobile devices rises

    Shopping by mobile devices rises

    More shoppers are using smartphones and tablets to do business with Korean online retailers – both Koreans and foreigners.

    Chinese shoppers – particularly those who have visited Korea and fallen in love with its products – have been a particular boon to the online shopping business.

    According to Statistics Korea, online shopping transactions rose 18.8 percent in June compared to a year ago, hitting 5.18 trillion won ($4.64 billion). Mobile shopping via mobile devices surged 34.4 percent during the same period, and accounted for 51.2 percent of total online shopping, or 2.65 trillion won.

    “Mobile payment services have improved recently so more customers are using mobile devices compared to the past,” said an official from Statistics Korea.

    Mobile device transactions accounted for only 29 percent of all online transactions in April 2014. The figure topped 40 percent early last year and surpassed 50 percent in December. It continues to grow.

    Even though transactions rose from a year ago, they dropped from the previous month. Online shopping transactions dropped 0.3 percent in June compared to May and mobile shopping fell 2.2 percent during the same period.

    By sector, people purchased more cosmetics and travel services online, while the figure for food, including agricultural produce, livestock and fishery products fell.

    People spent 52.1 percent more on cosmetics in June compared to the previous year, and the figure for travel services increased by 42.3 percent.

    “The number of Chinese tourists visiting Korea rose in general, and they were interested in buying cosmetics at both brick-and-mortar stores and online retail shops,” an official at Statistics Korea said.

    According to Statistics Korea, Chinese tourists visiting Korea rose 201 percent from 223,000 in June 2015 to 671,000 in June 2016. The outbreak of Middle East respiratory syndrome (MERS) lowered the number of tourists last year. The first MERS fatality in Korea occurred on June 2, 2015.

    “More Chinese entered Korea and this also helped travel services transactions grow,” said an official at the agency.

    Statistics Korea surveyed a total of 983 online retailers for its data.

    Meanwhile, foreigners buying Korean goods rose 83 percent year-on-year in the second quarter of this year compared to the previous year, hitting 497.4 billion won.

    Koreans buying goods through foreign online retailers increased by 5 percent during the same period, recording 411.8 billion won.

    Chinese purchasing goods through Korean online retailers jumped 103.1 percent year on year in the second quarter of this year to record 373.2 billion won. The figure for Japan rose 72.1 percent and the European Union (EU) countries increased by 95.7 percent.

    “Cosmetics were the most popular products for foreigners and they accounted for 67 percent of total transactions by foreigners,” said Sohn Eun-rak, a director at the statistics agency.

    Americans purchasing goods through Korean retailers were the highest at 266.9 billion won in the second quarter, followed by the EU (79.2 billion won) and China (33.2 billion won)

    The most popular items that Koreans bought from foreign online retailers were clothes and fashion-related goods. Koreans bought 149.4 billion won worth of fashion related goods from foreign online retailers in the second quarter of this year, down 1.6 percent compared to the previous year.

    BY KIM YOUNG-NAM

  • Shopping by phone keeps rising

    Shopping by phone keeps rising

    More Koreans are shopping online via smartphones and tablets than on their laptop or desktop computers.

    According to Statistics Korea Thursday, online shopping transactions rose 11.3 percent in April compared to a year ago, hitting 4.76 trillion won ($4.0 billion). Mobile shopping via mobile devices surged 31 percent during the same period, and accounted for 50.7 percent of total online shopping, or 2.41 trillion won.

    “Mobile payment services have been introduced to allow customers to purchase goods via mobile devices more easily than before, and retailers are improving their mobile apps to attract more customers,” said Sohn Eun-rak, a director at Statistics Korea. “Moreover, customers like to purchase goods via smartphone because retailers offer more promotions and discounts in their mobile apps.”

    Mobile shoppers accounted for only 29 percent of all online shoppers in April 2014. The figure exceeded the 40 percent-level early last year and finally surpassed 50 percent in December.

    Even though transactions rose from a year ago, they dropped from the previous month. Online shopping transactions dropped 8 percent in April compared to March and mobile shopping fell 9.2 percent. In March, overall online shopping transaction recorded 51.7 trillion won, but then fell back to the 40 trillion won-level.

    By sector, people purchased more cosmetics online, while the figure for travel and reservation services fell.

    People spent 32.5 percent more buying cosmetics in April compared to the previous year, while they spent 2.1 percent less for travel and reservation services.

    “The number of Chinese tourists visiting Korea rose 12.1 percent year-on-year in April, and they were interested in buying cosmetics at both brick-and-mortar stores and online retail shops,” said Sohn. He added that reservation service dropped because fewer people went to the movies.

    “In April 2015, there were more people visiting theatres due to hit movies such as ‘Avengers: Age of Ultron’ and ‘Furious 7,’” Sohn said. “Moviegoers in general fell by 2.72 million in April from a year ago, and I think this might have affected the reservation services sector.”

    About 60 percent of online shoppers bought goods such as clothes, shoes, cosmetics and baby supplies via their mobile devices, according to the data.

    Shoppers buying goods at online-only retailers rose 4.2 percent year-on-year in April, while it rose 23.3 percent for retailers that have both online and brick-and-mortar stores.

    Statistics Korea surveyed a total of 991 online retailers.

     

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  • 43% of Hong Kong consumers shop on smartphones

    43% of Hong Kong consumers shop on smartphones

    Mobile shopping has taken hold in Hong Kong, with more than two in five consumers making purchases via their mobile device in the past three months, the latest MasterCard Online Shopping Survey reveals.

    The widespread use (98.8%) of internet-enabled smartphones in the city has set the backdrop for more and more Hong Kong consumers (42.9%) choosing to engage in mobile shopping, marking an 18.3% increase since 2011.

    The survey also indicated that an increasing number of local shoppers are now embracing new payment technologies, with 11.2% currently using digital wallets compared to 7% last year.

    Similar to previous years, convenience (53.2%) continues to be the key driver for mobile shopping, followed by the growing availability of apps that make it easy to shop (33.8%) and the ability to shop on the go (28.4%).

    Almost half (48.6%) of local respondents said they had downloaded a shopping app on a mobile phone in the last six months, and the most popular items bought via mobile shopping include clothing and other fashion accessories (24.3%), movie tickets (21.9%) and toys and gifts (16.2%).

    Hotel accommodation (14.3%) and items from supermarkets (12.4%) also climbed up the list as some of the most common spending categories among local consumers.

    The majority of Hong Kong consumers (84.2%) made at least one purchase online in the past three months, and their average length of online shopping experience is 3.2 years. And 81.8% of local consumers planned to shop online in the next six months.

    But over three quarters (77.8%) regarded security of payment facility as a key consideration when shopping online.

    When asked about the major improvement area for online shopping, more than half of the respondents (54.4%) also expressed that one should be assured that transactions are secure.

    “While Hong Kongers cited convenience as the top motivating factor for mobile and online shopping, we also understand that security of payment facility remains a key consideration,” said Anna Yip, head of Hong Kong and Macau, MasterCard.

    Overall, consumers in Asia-Pacific are embracing new payment technologies with one in five (19.5%) using digital wallets, a two-fold increase from two years ago (9.7%). Emerging markets are leading the way with smartphone users in China (45%), India (36.7%) and Singapore (23.3%) being the region’s biggest adopters of digital wallets.

    In terms of online shopping, China continues to lead the Asia-Pacific region as in previous years, with almost every respondent (97%) having shopped online at least once in the previous three months. However, when it comes to mobile shopping, India surpassed China (76.1%) for the first time, with 76.4% of respondents indicating that they had made a purchase through their smartphones.

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  • China quick to adopt digital wallets

    China quick to adopt digital wallets

    Nearly half of consumers in China who took part in a new survey shop with digital wallets.

    Overall, the study shows that digital wallets are the fastest-growing payment technology in the region, with one in five of those surveyed using the technology.

    MasterCard’s latest mobile shopping survey shows that digital wallets are used by 19.5 per cent of respondents in Asia Pacific, a two-fold increase from two years ago (9.7 per cent).

    Emerging markets are leading the way with 45 per cent of smartphone users surveyed in China using digital wallets, 36.7 per cent in India and 23.3 per cent in Singapore. The results are based on interviews with 8500 people aged between 18 and 64 years across 14 markets in October and December.
    While mobile banking apps (31.8 per cent) are still the most widely used, among new mobile technologies such as in-app shopping and mobile NFC payments, digital wallets have had the fastest uptake over the past two years.
    Also, 48.5 per cent of respondents overall have used their smartphone for shopping in the three months before the survey. India tops the region at 76.4 per cent – up 29.3 per cent from two years ago – followed by China (76.1 per cent), South Korea (62 per cent) and Thailand (61.1 per cent). After India, growth has been most marked in Vietnam (up 17.7 per cent from two years ago) and Singapore (up 17.1 per cent).
    “New forms of mobile payment technology, such as MasterCard’s digital wallet MasterPass, are making transactions easier and safer, online, in-app and in-store,” says MasterCard’s Asia Pacific group head for digital payments, Raj Dhamodharan. “As more and more merchant apps provide shopping and services, consumers need a digital wallet that provides the best balance between security and convenience.”

    For example, consumers in Singapore are using their MasterPass wallet to pay bills and book taxis.
    Across Asia Pacific, 53.9 per cent of respondents cite convenience as the key driver for shopping on their smartphone. Other motivating factors include the ability to shop on the go (42.9 per cent) and the growing availability of apps that make it easy to shop online (41.4 per cent).
    Clothing and accessories (35 per cent), personal care and beauty products (20.9 per cent) and movie tickets (20.4 per cent) are the top mobile purchases. In China, 64.6 per cent of respondents use their smartphones to buy clothing and accessories, followed by 42.5 per cent in India and 42.1 per cent in Korea.

    Nearly half of consumers in China who took part in a new survey shop with digital wallets.

    Overall, the study shows that digital wallets are the fastest-growing payment technology in the region, with one in five of those surveyed using the technology.

    MasterCard’s latest mobile shopping survey shows that digital wallets are used by 19.5 per cent of respondents in Asia Pacific, a two-fold increase from two years ago (9.7 per cent).

    Emerging markets are leading the way with 45 per cent of smartphone users surveyed in China using digital wallets, 36.7 per cent in India and 23.3 per cent in Singapore. The results are based on interviews with 8500 people aged between 18 and 64 years across 14 markets in October and December.
    While mobile banking apps (31.8 per cent) are still the most widely used, among new mobile technologies such as in-app shopping and mobile NFC payments, digital wallets have had the fastest uptake over the past two years.
    Also, 48.5 per cent of respondents overall have used their smartphone for shopping in the three months before the survey. India tops the region at 76.4 per cent – up 29.3 per cent from two years ago – followed by China (76.1 per cent), South Korea (62 per cent) and Thailand (61.1 per cent). After India, growth has been most marked in Vietnam (up 17.7 per cent from two years ago) and Singapore (up 17.1 per cent).
    “New forms of mobile payment technology, such as MasterCard’s digital wallet MasterPass, are making transactions easier and safer, online, in-app and in-store,” says MasterCard’s Asia Pacific group head for digital payments, Raj Dhamodharan. “As more and more merchant apps provide shopping and services, consumers need a digital wallet that provides the best balance between security and convenience.”

    For example, consumers in Singapore are using their MasterPass wallet to pay bills and book taxis.
    Across Asia Pacific, 53.9 per cent of respondents cite convenience as the key driver for shopping on their smartphone. Other motivating factors include the ability to shop on the go (42.9 per cent) and the growing availability of apps that make it easy to shop online (41.4 per cent).
    Clothing and accessories (35 per cent), personal care and beauty products (20.9 per cent) and movie tickets (20.4 per cent) are the top mobile purchases. In China, 64.6 per cent of respondents use their smartphones to buy clothing and accessories, followed by 42.5 per cent in India and 42.1 per cent in Korea.

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  • Mobile shopping is doubling in China each year

    Mobile shopping is doubling in China each year

    On the back of strong growth in household income and wealth, retail spending has been one of the few shining lights for the Chinese economy of late. The pace of growth, no matter what method used to measure it, has been phenomenal since the turn of the century.

    According to analysis produced by UBS equity analysts Xinyu Liao and Yunyun Hu, retail sales of consumer goods grew at a compound average growth rate (CAGR) of 13.8% since 2000, leaving the total amount spent by Chinese households last year at a mammoth 30 trillion RMB (US$4.6 trillion).

    From the levels of 2000, that represents a more than six-fold increase.

    As as the chart below from UBS shows, despite a recent deceleration in the pace of growth, retail sales of consumer goods, let alone services, is still growing at a rate of around 10% per annum.

    Breaking down the retail sales figure further, there’s one component that stands head and shoulder above the rest when it comes to annual growth: online retail sales.

    It grew by an astonishing 33.% in 2015, accounting for more than 10% of total retail sales, a figure that dwarfs comparable online spending figures from the US and Japan.

    With mobile usage in China exploding, so too is retail spending on mobile devices. It grew by over 100% in 2015, continuing the trend seen since late 2013.

    According to Xinhua, citing a research report from the China Internet Network Information Center (CINIC), Chinese internet traffic through mobile devices surged by 36.79 million people in the first six months of 2015, taking the total number accessing the web through smartphones to 594 million.

    Massive growth, and combined with Chinese demographics, one that looks set to see spending on mobile devices skyrocket even further in the years ahead.

    Of China’s more than 1.3 billion people, 43% are aged between 10-39 years. While less than half of the population, what they lack in numbers, comparatively speaking, they make up for in terms of internet usage.

    Nearly 80% of China’s internet users come from this age group, presenting an enormous opportunity for retailers as their numbers, and wealth, increase.

    “With younger people set to become China’s most influential group of consumers in the next few years, we expect growth in online and mobile consumption to continue, say Liao and Hu. “Equally importantly, their consumption habits are likely to influence the next generation, as more of these younger consumers go on to become parents. Thus, we believe the shift from offline to online channels could have far-reaching implications for the spending habits of Chinese consumers.”

    Based on the changes witnessed in Chinese household spending patterns over the past 25 years, those firms offering discretionary items look set to do well.

    Like most economies making the transition from developing to developed status, the proportion of household spending directed to necessities has been steadily falling, replaced by discretionary spending such as education and housing.

    Clearly the opportunities to tap into marketplace are immense, as discovered by many firms in and outside of China over recent years. However, the formula to do that successfully, particularly for foreign firms, might not be so easy to crack.

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  • Mobile shopping soar 42% as retail sales hit record high in Dec.

    Mobile shopping soar 42% as retail sales hit record high in Dec.

    Retail sales in South Korea hit a record high in December aided by brisk demand for furniture, food and beverages, and cosmetics, a government report showed Tuesday.

    Retail sales amounted to 33.19 trillion won ($27.6 billion) in December, up 2.7 percent from the 32.3 trillion won tallied the previous year, according to the report by Statistics Korea. It also marks a 2.8 percent gain from November’s 32.3 trillion won.

    The December figure marked the highest monthly amount since January 2010 when the state statistical bureau started to compile related data.

    Sales of furniture jumped 6.4 percent on-year to 423 billion won in December, with food and beverage sales rising 4.1 percent to 6.8 trillion won. Demand for cosmetics grew 3 percent to 1.5 trillion won over the cited period.

    However, sales of home appliance goods, computers and mobile phones dropped 2.2 percent on-year to 3.2 trillion won, while sales of clothing fell 3.7 percent to 5.2 trillion won.

    Department stores saw their sales fall 2.7 percent on-year in December, while large discount outlets and supermarkets basked in a 3.1 percent and 1.1 percent rise, respectively.

    Convenience stores saw their sales jump 21.5 percent from a year earlier, the data showed.

    Online shopping sales, which have been growing swiftly in recent years, jumped 15.3 percent on-year to reach a record 5.33 trillion won in December on the back of the strong sales of food products, cosmetics and clothes.

    Online shopping accounted for 16.1 percent of all retail sales in December, up from 15.3 percent the previous month.

    Purchases made through mobile devices, meanwhile, soared 41.73 percent on-year to 2.65 trillion won, accounting for 49.6 percent of all online sales in the period, according to the report.

    For the whole of 2015, Statistics Korea said the amount of retail sales reached 366.5 trillion won, up 1.9 percent from a year earlier.

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  • Koreans Embrace Mobile Shopping

    Koreans Embrace Mobile Shopping

    The total value of purchases made through mobile phones hit a record in November 2015.

    According data from Statistics Korea on Monday, the amount of mobile transactions surged 52.3 percent on year to W2.44 trillion (US$1=W1,190).

    That is almost half of the total online purchases in November, which also hit a record of W4.97 trillion, up 19.5 percent compared to the same month of 2014.

    Online purchases accounted for 15.4 percent of total retail sales.

    By product, purchases of office supplies and stationery surged 132.7 percent and 138 percent, respectively, perhaps ironically using new-generation technology to pay for the products it is gradually replacing.

    Sales of cosmetics and groceries also surged 38.2 percent and 35.4 percent.

    By retail sector, sales at convenience stores rose 33.8 percent compared to the average 4.2-percent rise in overall retail sales, while sales at supermarkets and department stores more or less stagnated.

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