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In 2015 Q3, China’s Mobile Internet Market Kept Growing, Greatly Spurred by Pan Life Areas: Tourism, Group Shopping and Mobility
In 2015 Q3, China had as many as 780 million mobile Internet users, a rise of 4.8% quarter on quarter or 10.2% year on year,
  • 31 Dec, 2015
  • Travel
  • 1419
In 2015 Q3, China had as many as 780 million mobile Internet users, a rise of 4.8% quarter on quarter or 10.2% year on year, benefiting from continuous traffic rate cut and explosive growth of 4G users, shows the Quarterly Monitoring Report on China’s Mobile Internet Market 2015 Q3 published by the Analysys Industry Database.

In 2015 Q3, the mobile Internet market was sized up to RMB 816.81 billion, representing an increase of 23.4% quarter on quarter or 123.5% year on year.

In the opinion of Analysys, in 2015 Q3, the market share of the mobile life service kept growing, and exceeded 20% to 20.5%, mainly contributed by the tourism, group shopping and mobility areas. Now, it is normal that mobile tourism users make real-time decisions with mobile devices, the mobile client now has dominated the online reservation channel, assisted by the PC client. At the same time, online tourism vendors make every effort to develop local tourism and entertainment products and increase the Internet level of destination products, which has further reinforced users’ habit of using the mobile client. The group shopping market returned to rational competition, the mobile client’s traffic of group shopping users grew quickly and mobile group shopping made a contribution of as high as 90%. The growth of the mobile mobility market mainly came from mobile mobility vendors’ expansion of other business lines and some achievements in cultivating users of original business lines.
 

 
Traffic operation became the focus of competition among communication carriers
After the implementation of the speed rise and fee cut measures, the traditional business volume of communication carriers kept falling, and traffic operation became the key competitive area. For one thing, carriers enhanced the network capacity and marketing capacity to assure user experience and enlarge the 4G user base. For another, they guided the terminal industrial chain, promoted integrated sales of terminals, phone cards and 4G packages and accelerated the user migration to the 4G service to further improve the possibility of traffic consumption.

The proportion of mobile online shopping first exceed 50%, which will make e-commerce advertisement to go online at a faster speed
In 2015 Q3, mobile online shopping took an even higher share in the online retail market to 55.4%, and the “mobile” era of the online retail market has formally come. In the opinion of Analysys, China’s Internet market, “game, advertisement and e-commerce” are described as three scenes that will generate cash flows. At present, the e-commerce business, particularly e-commerce platforms highly depends on the advertising revenue. The arrival of the mobile shopping time means traditional Internet advertising and marketing service will accelerate the pace to migrate to the mobile client, and the fragmentation feature of the mobile client will also impact the traditional advertising and marketing mode to some extent.

Mobile marketing service system evolves to go lean
In 2015 Q3, the mobile marketing market was sized up to RMB 25.52 billion, representing an increase of 15.3% quarter on quarter or 90.3% year on year. In the analysis of Analysis, mobile marketing vendors now depend on new technologies, personalized services and other measure to improve the experience of user platforms and stabilize their operating revenues. At the same time, they rely on big data to develop the precise marketing business and realize a higher conversion rate of commercial values. In future, different business lines will be segmented in greater depth in the mobile marketing market, and vendors will focus more attention on scene-based services and optimization of life services, and build an even sounder, leaner mobile marketing service system based on the accumulation, mining and analysis of user data.  

IP has become the core value of pan entertainment
The growth rate of China’s mobile gaming market rebounded. During the summer vacation in Q3, several vendors released several highly welcomed IP masterpieces, including The Journey of Flower, Mir 2 and, A Chinese Odyssey, and strengthened marketing. The player activity obviously rose, and the revenues also grew step by step. The quantity of genuine works owned by China’s mainstream mobile reading platforms is now gradually growing. Now, the teleplay, film and game circles are violently struggling for IPs, highlighting the importance of high-quality IPs. The mobile reading market has entered the time of competition in user and content. Mobile karaoke/show applications have continuously enriched product designs and contents to retain users by stimulating the young users born in the 1990s and 2000s to capture the entertainment demand of the major consumer group. In future, the market will see increasingly fierce competition.

The importance of pan life services rose, and the market share of mobile life services kept growing
The swift growth of the online tourism market stimulated the growth of the transaction size of the mobile client. At the same time, higher extent of standardization of tourism products and mobile Internet help users shorten the reservation cycle. Now, it is normal that mobile tourism users make real-time decisions with mobile devices, the mobile client now has dominated the online reservation channel, assisted by the PC client. At the same time, online tourism vendors make every effort to develop local tourism and entertainment products and increase the Internet level of destination products by converging fragmented tourism resources and expand the market scope during the journey, which has further reinforced users’ habit of using the mobile client.

The active user traffic of the mobile group shopping end still keeps growing fast. The LBS-based graphical location service realizes the consumption scene that users can make a group shopping order after arriving at the store, and the innovation of “Shanhui” and preferential mobile phone payment has further driven the development of the mobile group shopping business. Now, almost over 90% of the total transaction volume of group shopping comes from the mobile end, which has fully established its principal position.

In the wedding and love market, wedding and love users quickly move to the mobile client, and Internet wedding and love vendors have continuously developing innovative mobile client products, which have obviously improved the user activity and viscosity of the mobile client. However, the diversion of more social applications on the mobile side and quick flight of wedding and love users from the platforms after they go mobile have prevented wedding and love platforms from effectively extending their interests, and they will still need to explore the mode and profit increase of the mobile side.

Affected by the overall economic climate, the growth rate of China’s mobile education market slowed down to some extent. The number of projects receiving round B and C financing fell down, and most of the projects focused on round A and pre-A financing, which sent down the total market investment to decline. However, the number of venture capital projects remained stable, so their market valuation was basically stable. The fierce battle in the O2O family education market temporarily came to an end, the entire capital market returned to rationality, and the capital tightened the investment strategy but will not miss good projects. K12 and preschool education remain the major force in the market, and interest education and university student education emerged and attracted attention.

A fresh force is now emerging in the mobile recruitment market. They focus on vertical recruitment, have explicit user positioning: they focus on blue collar users, university student groups or comment & sharing, or part-time jobs. However, all these vendors stay at the stage of product exploration. These new products will inject fresh blood into China’s Internet recruitment market and drive continuous development of the market.

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Definitions:
Mobile Internet: The current scope of statistics is the mobile phone Internet, which includes four income sources, namely, communication bill (traffic bill) based on mobile phone Internet, total spending paid by users for the mobile Internet service, transaction cost (mobile commerce) of users based on the mobile Internet, and advertising expense of advertisers based on mobile phone media.

 Research Note:
To deliver the industrial analysis, Analysys mainly employs the industrial analysis model and combines the model with the market, industry and vendor research methods to mainly reflect the current market status, trend, deflection point and rules as well as the current status of vendors based on macroscopic industrial data, quarterly final user survey data, vendors' historical data and quarterly vendor monitoring information.

Analysys believes data derived from the aforesaid industry research methods fall into the error range generally accepted in the industry and can accurately reflect the industry trend and rules.

Research results obtained from the professional research methods are for reference only. For actual data of vendors, please inquire a about their financial reports.

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