China Mobile Commerce Hits $37 Bn up 251% YoY

China Mobile PaymentsMobile commerce has been an area of intense focus in recent years. According to a recently published report by iResearch, China mobile commerce reached USD 37 Billion in 3Q2014, surpassing overall ecommerce growth of ~50%YoY over the same period. During the quarter, mobile GMV accounted for ~33.4% of total online shopping GMV, some 2.8ppt higher than that in 2Q14. We attribute the robust growth in mobile commerce mainly to a growing profusion of mobile devices in China and an accompanying rapid evolution in buying behaviors. We envision an ever-growing mobile (more…)

MakeMyTrip Air Ticketing Strengthens, Structural Growth Story Intact

MakeMyTripMakeMyTrip [MMYT] asserts its focus on growing its Hotels & Packages (H&P) business by spearheading online shift & mobile platform adoption. It is cementing leadership here. Robust air traffic driven by discounting of airfares surprised positively for MMYT’s Air business.

MakeMyTrip gained market share in domestic air ticketing business increasing it from about a steady 12% for the last several quarters to around 13%+ in Sep-14 quarter. To provide context, MMYT delivered a solid Sep-14 quarter with air ticketing revenues (less service cost) of US$18.4 million in revenues i.e., 20% Y/Y (and 10.7% Q/Q) revenue growth. Management suggests that revenue per booking is low primarily because of discounted ticket prices. But there is little correlation between revenue per transaction and air ticketing margins as margins in (more…)

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