Mobile gadgets overtake PCs in China''s online retail sales

Beijing, November 28

Transactions through mobile phones have exceeded those made through personal computers in China, an indication that smartphones and tablets are fast becoming the preferred mode for online shopping.

With the domestic smartphone makers expanding their features, gadgets have become increasingly affordable and mobile internet connections reaching 594 million.

Share of mobile sales in online sales nationwide gained 3.2 percentage points from the first quarter this year to 50.8 per cent in the second, the first time more transactions occurred on mobile gadgets than on personal computer (PC), a report released by consultancy iResearch said.

China's largest online retailers have been pushing for more sales of their mobile apps amid growing penetration of smartphones in the country.

More than 594 million people had access to mobile internet by the end of the first half of this year, up 6.7 per cent from the same period a year ago, according to China Internet Network Information Centre.

In August, Chinese e-commerce giant Alibaba said in its quarterly results ending June 30 this year that mobile transactions account for 55 per cent of gross merchandise value on its online marketplaces Tmall.com and Taobao.com.

Alibaba's rival JD.com also said in its second quarter results that mobile orders nearly tripled year-on-year in that period to account for 47 per cent of all orders.

Over the past two years, domestic smartphone makers Huawei, Xiaomi and Lenovo have been expanding their offering of budget phones, most with a price tag around 1,000 yuan (around 160 US dollars).

This has made smartphones increasingly affordable, especially among rural Chinese, reported state-run Xinhua news agency quoting iResearch.

China's online retail expanded nearly 40 per cent year on year in the second quarter of this year to 872.41 billion yuan, accounting for 12.3 per cent of total retail sales in the country. — PTI