EMERGING M-COMMERCE
IN TIER 2 & 3 CITIES
Xiaobin Liu
2014 April
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
SMARTPHONE PENETRATION IN LOWER TIER IS ALSO HIGH
The penetration of smartphone is high not only in developed regions, but also in tier 3 and
tier 4 cities.
Smartphone Penetration by City Tier (%)
100
80
72
79
72
74
74
Tier 2
Tier 3
Tier 4 & below
60
40
20
0
Total Mobile
Users in China
Tier 1
Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples
Interview Methodology: CATI (computer aid telephone interview)
2
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
SINCE SMARTPHONE IS NOW AFFORDABLE TO BLUE
COLLARS
Smartphone Penetration by Group of People (%)
100
80
85
84
88
72
81
71
69
60
40
31
20
0
Total Mobile
Users in
China
Student
White collar Management Blue collars
Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples
Interview Methodology: CATI (computer aid telephone interview)
Free lancer
and small
business
owners
Farmer
Unemployed
and retired
3
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
ANDROID CONTRIBUTES MORE FOR SMARTPHONE
PENETRATION IN TIER 2 & 3
OS Share (%)
OS Share
OS Share
100%
17
23
1
22
1
21
14
18
15
56
64
62
58
Tier 1
Tier 2
Tier 3
Tier 4 &
below
60%
2%
2%
16%
21
80%
18%
15
19
40%
61%
20%
0%
Android
Apple iOs
Windows Mobile
Symbian
Unknown/Others
Android
iOS
Symbian
Unknown/Others
Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples
Interview Methodology: CATI (computer aid telephone interview)
Windows Mobile
4
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
PENETRATION OF SMART TV IN TIER 2 & 3 IS ON PAR WITH
TIER 1
Penetration of Household Electronics
Tier 1
Tier 2
Tier 3
Tier 4
TV
89
94
Wash Machine
95
91
92
91
Fridge
94
90
91
90
Fixed Phone
73
Air Condition
92
Water Heater
91
Wireless Router
84
Smart TV
TV Box
95
89
Data Sources: Nielsen’s CCI Research in Q1 2014, 3580 samples
Interview Methodology: CATI (computer aid telephone interview)
39
95
97
80
56
46
97
96
84
79
85
84
62
57
61
57
60
60
39
42
5
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
APP USAGE IN TIER 2 & 3 IS RELATIVELY LOWER THAN TIER
1, BUT THE GAP IS NOT BIG
Mobile APP Usage
Tier 1
Tier 2
IM
47%
Wechat
46%
News
26%
Mobile Video
26%
Mobile Reading
24%
Search
23%
Tier 3
Tier 4
42%
44%
31%
18%
38%
32%
16%
29%
18%
20%
17%
16%
19%
17%
16%
15%
20%
Offline Game
20%
12%
15%
14%
Microblog
20%
13%
15%
14%
14%
9%
Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples
Interview Methodology: CATI (computer aid telephone interview)
12%
16%
Online Game
Shopping
10%
15%
12%
10%
11%
6
Penetration and Growth Landscape - Mobile APP
Hi
•
•
• Mobile shopping
Mobile payment
Online game
•
•
KIK
Search engine
•
Microblog
Lo
Lo
•
Video
•
Growth Rate
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
THOUGH THE PENETRATION IS SLOW, MOBILE SHOPPING
AND PAYMENT ARE HAVING FASTEST GROWTH
Penetration
Data Sources: several researches on mobile users in China in Q4 2013, 2000 samples
Interview Methodology: CATI (computer aid telephone interview)
•
Surfing &
Reading news
•
E-books
IM
Hi
7