Application and Development of Mobile Commerce in China?

Research on Development Strategy of Mobile E-commerce

Abstract: The combination of e-commerce technology and mobile communication technology produces mobile e-commerce. As an important business operation mode, mobile e-commerce has brought great influence to people's lives. This paper mainly analyzes the development technology, bottlenecks and existing problems of mobile e-commerce, and puts forward corresponding solutions to the development panorama and future problems of mobile e-commerce in China, and briefly analyzes the prospects of China's 3G services for the development of mobile e-commerce.

Keywords: mobile e-commerce; Outlook; Mobile communication technology; 3G service

Mobile commerce refers to an e-commerce system that combines mobile communication devices such as mobile phones, palmtop computers and notebook computers with wireless Internet access technology.

Mobile e-commerce originated from the concept of e-commerce. Compared with the traditional e-commerce through computer (desktop PC, notebook computer) platform, it has a wider user base, so it has a broader market prospect. Compared with traditional e-commerce, mobile e-commerce increases the mobility and diversity of terminals. Wireless systems allow users to access services anywhere within the coverage of mobile networks and communicate directly through conversations and text files. Due to the widespread use of mobile electronic telephone handheld devices. It will have a wider user base than personal computers. Mobile e-commerce has the characteristics of mobility, personalization and convenience. Compared with traditional e-commerce, mobile commerce can really let anyone get the information and services of the whole network at any time and any place.

On June 7th, 2009, China 3G license was officially issued. Since then, China TO-8CDbIA has entered the era of full commercialization, and the full application of mobile Internet is just around the corner, and 3G has ushered in the spring of industrialization.

1 technical classification and development of mobile e-commerce

The perfect combination of Internet, mobile communication technology and other technologies has created mobile e-commerce. The technologies (protocols) to realize mobile e-commerce are:

1. 1 Wireless Application Protocol (WAP)

Wireless access point is one of the core technologies to develop mobile e-commerce. Through W AP, mobile phones can access the Internet conveniently and quickly anytime and anywhere, and truly realize mobile e-commerce without time and geographical restrictions.

1.2 General Packet Radio Service (GPRS)

GPRS breaks through the mindset that GSM network can only provide circuit switching. Packet switching mode is introduced into GSM network. It only realizes packet switching by adding corresponding functional entities and partially reforming the existing base station system, thus improving resource utilization.

1.3 mobile IP technology

Mobile IP realizes the seamless roaming of mobile computers in the Internet by changing the IP protocol of the network layer. Mobile IP technology enables a node to switch from one link to another without changing its IP address or interrupting the ongoing communication. Mobile IP technology can support the application of mobile e-commerce to a certain extent.

1.4 Bluetooth technology

As a low-cost, low-power and small-scale wireless communication technology, Bluetooth enables computer devices such as mobile phones, personal computers, personal digital assistants (PDA), portable computers and printers to communicate in short distance without cables.

1.5 mobile positioning system technology

One of the main application fields of mobile e-commerce is location-based business, for example, it can provide local news, weather and hotel information to tourists and company employees who go out to work. This technology will bring huge business opportunities for the development of local tourism, retail, entertainment and catering industries.

1.6 the third generation mobile communication system

3G wireless communication products will provide people with broadband multimedia services with a rate as high as 2MB/s, support high-quality voice, packet data, multimedia services and multi-user rate communication, and will completely change people's communication and lifestyle.

At present, mobile e-commerce has been applied in China. China Mobile Communications Group Corporation launched the commercial trial network of "GSM" wireless application protocol WAP (Ⅳ wireless application protocol 1) for the first time, and WAP mobile phone users can use roaming internet service. Subsequently, China Mobile launched Monternet Plan, and China Mobile opened SMS (Short Message Service) and WAP platform to domestic Internet content provider ICP(Intemet content provider), * * * cooperated to develop mobile Internet services and implemented the cooperation mode of benefit sharing.

On May 24th, 2008, the Ministry of Industry and Information Technology, the National Development and Reform Commission and the Ministry of Finance jointly issued the Notice on Deepening the Reform of Telecommunication System, encouraging China Telecom to acquire China Unicom's CDMA network (including assets and users), China Unicom and China Netcom to merge, China Satcom's basic telecommunication business merged into China Telecom, China Tietong merged into China Mobile, and the number of domestic telecom operators changed from six to three. In February, 2008, the executive meeting of the State Council adopted resolution 3 1, and agreed to start the issuance of 3G licenses. 3G sounds like a technical term, but the essential change is that the wireless transmission speed is faster than the current mobile phone network. The gradual listing of 3G services of telecom operators has brought new business opportunities to the mobile Internet market. Up to now, among the 670 million mobile phone users in China, the number of netizens using mobile phones has reached 1. 1.76 billion, and the huge mobile phone user base has laid a solid development space and foundation for the rapid development of mobile commerce.

In recent years, China Mobile has fully launched "GPRS (General Packet Radio Service 1 Network)", which has the advantages of always on-line and charging according to traffic, enabling mobile e-commerce to be carried out on a stable and fast network, and mobile e-commerce in China has entered a new stage.

2 China mobile e-commerce application prospect analysis

Mobile e-commerce services provide users with operational convenience, which is very important for financial institutions and commercial institutions. But also reduces the cost and improves the efficiency. Eliminate the risks and troubles caused by cash transactions, such as short money, counterfeit money, storage and carrying, and speed up the collection. Moreover, in the process of credit card transaction, the bank verifies the valid identity of the bank card holder and the authenticity of the transaction. Printing the receipt voucher immediately after the transaction is completed, which also ensures the safety of merchants in the transaction. The following are some unique mobile e-commerce applications:

2. 1 POS

In early July 2004, NTTDoCoMo, a Japanese mobile phone giant, launched a mobile phone settlement and authentication service using a built-in contactless IC card, and launched four mobile phones supporting this service. Users can use their mobile phones like credit cards without pressing buttons at all. In addition to replacing wallets, new mobile phones can also be used as train tickets and other identity cards. This mobile P0S service is an extension of wired P0S service. It uses SMS or GPRS as the communication carrier to transmit transaction data, getting rid of the restrictions of business premises and communication lines, and conducting credit card transactions anytime and anywhere.

2.2 wireless CRM (w-CRM)

Wireless CRM refers to the creation and delivery of highly personalized and cost-effective sales, marketing and service products through electronic mobile devices and wireless devices. Wireless solutions help to maintain customer satisfaction and loyalty, such as banks reminding customers of transaction status through SMS (short message service); The club sends the latest information to its members by SMS; Financial and insurance institutions use PDA to provide some on-site recommendations to customers, and restaurants use PDA to enter orders.

2.3 mobile booking

This service can send the news of the nearest restaurant, cinema or theater to the mobile phone through location technology. Users can book movie tickets or eat through their mobile phones.

According to a recent report on the future development prospects of mobile phone reservation business issued by JuniperResearch, a British market research company, this service will occupy most of the mobile commerce market in 2007. In 2009, the market scale will expand to 39 billion US dollars, accounting for nearly half of the total transaction volume of 88 billion US dollars in the mobile commerce market. Users are interested in booking tickets by mobile phone. This trend is particularly evident in Europe and Japan. Most mobile phone bookings will be used for train or bus tickets. Movie tickets or theater tickets. And parking tickets.

2.4 Mobile gambling

You can participate in gambling, lottery, horse betting, sports betting and other activities through your mobile phone. At present, all kinds of lottery tickets have been legalized in many countries, and whether the state allows other kinds of gambling activities is the biggest factor affecting the development scale of this kind of business. At present, the large-scale promotion of sports lottery in China has laid a good foundation for the success of this business. Mobile gambling appeared in Europe in the late 1990s, and then became popular in the Netherlands, Germany, Sweden, Britain, Austria and other countries. In these countries, ordinary mobile phones can be used to buy lottery tickets, bet and join lottery gambling.

2.5 Mobile stock market

Mobile stock market service means that users can query the price and stock market anytime and anywhere through their mobile phones, and can also be used for stock trading. The mobile phone stock market provides a Chinese menu interface, and many operations can be completed by scrolling, including market inquiry, price prompt, stock trading, trading information saving and inquiry.

2.6 Mobile Banking

Mobile banking, also known as mobile banking, is the abbreviation of using mobile phones to handle banking business. It can be regarded as a "convenience business" developed by financial institutions with the help of the new technology platform of mobile communication operators. Bank users who use this service can handle a variety of financial services with their mobile phones, breaking through the limitations of time and space. According to the prompt information on the screen, you can enjoy the personal financial services provided by the mobile banking service of Bank of China, and realize the functions of account information inquiry, deposit account transfer, bank-securities transfer, securities trading, personal firm foreign exchange trading, payment agent, financial information inquiry and so on. Users use mobile phones with built-in smart chips to conduct electronic financial services such as bank passbook, cash card business and online banking. Users can use it on the ATM of the bank, and even roam in some neighboring countries, regardless of time and space.

Two Cases of Mobile E-commerce Application in China;

2.6. 1 mobile wallet

As a service jointly launched by the banking system and China Mobile * * *, the mobile wallet is supported by the savings card account, and the mobile phone is used as a transaction tool to bind the customer's savings card account with the mobile phone number. Through the layer-by-layer encryption technology-T-segment, the functions of shopping consumption, payment, transfer, return, account balance and telephone balance inquiry are realized. China Mobile's mobile wallet business is currently open to Beijing Global Connect customers.

Follow the electronic circuit

The internet goes with you. You only need to insert the GPRS network card and the dedicated data sIM card into your laptop or PDA, and you can access the Internet wirelessly without relying on any other external equipment. Let the internet go with you. There is no trouble connecting. "Follow the e-line" to realize wireless Internet access. At present, most cities in China have opened E-bank business.

3 the future development trend and influence of mobile e-commerce

Internet technology is constantly updated, e-commerce is also constantly maturing, and people's consumption consciousness is constantly changing. The development of mobile e-commerce will have a good platform and will also drive many changes in the economic structure.

3. 1 The development of mobile e-commerce will have a great impact on operators and enterprises.

Mobile operators and communication equipment manufacturers will make a big publicity around the mobile Internet, because they have invested huge sums of money in data communication equipment and operating licenses. These companies will do their best to awaken users' awareness and make them accept this kind of communication. With a large number of commercial application services put into operation, it can be predicted that mobile communication operators will shift the sales target of their services from end consumers to enterprise users, and those operators who can successfully achieve this strategic shift can not only win market share, but also increase their income per user.

3.2 Consumers use mobile devices mainly for information, not for trading.

For consumers, they mainly get information such as e-mail, idle stock market, weather, travel routes and flight information through mobile phones. However, although these services do not represent direct business opportunities, under the guidance of e-commerce, these services help to establish customer relationships and create indirect business opportunities.

3.3 Technical Development of Mobile E-commerce

Embedded bar code reader will be integrated into mobile phones, which brings a new atmosphere to mobile commerce. The display screen of smart handheld devices will be improved, but the input of tables and raw data is still a problem. Higher resolution display screen and bar code reading function will make mobile devices more humanized. Mobile security will become a hot issue. As people began to gradually accept the use of mobile devices to access the Internet, they also began to pay more and more attention to security issues like PC. When using mobile communication devices to enjoy data, the functions of mobile devices are more and more, and this security problem is more prominent. Voice network navigation is still under study, because voice seems to be the most natural interface of mobile communication devices, but there will be no breakthrough in the research of voice access to the Internet in the near future, let alone commercialization.

3.4 3G services have created development opportunities for mobile e-commerce.

Due to the arrival of 3G, the market structure of SMS has been completely changed. 3G technology will bring more technologies to enterprises and end consumers. For example, streaming media application technology will be applied to 3G services such as enterprise video surveillance and logistics video collection, and will also bring location-based services, such as LBIS services and mobile positioning technology, and will be applied to public safety services, intelligent traffic management, logistics distribution and other fields. The CDMA technology provided by Unicom can accurately locate within 5 meters. Mobile phone identification technologies, such as two-dimensional code identification of camera phone, RFID identification of mobile phone, fingerprint identification of mobile phone, etc., have also brought richer experiences to enterprises and consumers with the arrival of 3G. In addition, WAP applications will translate various Internet applications to mobile phones at a faster speed, and the access to the original e-commerce system will be changed from Pc and Internet to WAP and mobile phones, so it is not necessary to develop any mobile phone plug-ins, and enterprises can save a lot of investment.

Based on the good expectation of the mobile information market, the giants in the communication industry and IT industry have begun to deploy relevant technical products and market actions, including operators such as China Mobile, China Unicom and China Telecom, bottom-level resource providers such as Microsoft and Intel, IT integrators such as IBM and Hewlett-Packard, and mobile phone manufacturers such as Nokia, Motorola and dopod.

With the continuous listing of various 3G services, surfing the Internet through mobile phones will gradually become one of users' living habits, which will promote the rapid growth of the full-featured smartphone browser market. The latest news shows that Tencent is testing its mobile browser, and its interface is similar to UCWEB browser. Judging from the current situation, in the professional browser market, UCWEB, Opera and Mozilla have taken the initiative in the market. Among them, through cooperation with international mobile phone manufacturers such as Nokia, Opera has successively launched two mobile browsers, namely 0peraMiniOperaMobile, and Fennec, the mobile version of Mozi's Firefox browser, has also been listed.

With the development of mobile intelligent terminal products such as PDA, smart phone and PDA, the market potential of mobile terminal software is huge. At present, many software developers and system integrators have been providing users with mobile terminal application software development services, such as mobile POS development, public security departments and industrial and commercial mobile PDA. In the future, the development of mobile terminal software will become a hot spot in the software industry. As pioneers of mobile informatization, independent software developers such as Digital Paradise have built a formed mobile informatization technology and product system, and are providing the market with a full set of professional services from technology research and development to solutions as a whole mobile informatization solution provider.

4 China mobile e-commerce development problems and solutions

4. 1 Problems in the development of mobile e-commerce in China

4. 1. 1 The wireless channel resources are short and the quality is poor.

Compared with wired, wireless bandwidth is smaller due to the limitation of spectrum and power. The bandwidth cost is high, and the development of packet switching makes the channel become * * *; Large time delay; When the coverage area is exceeded, the connection reliability is low. The service denied access. Therefore, service providers should optimize the use of network bandwidth and increase network capacity to provide more reliable services.

4. 1.2 The usability and functionality of the mobile network need to be improved.

High-resolution display screen and bar code reading function will make mobile devices more user-friendly, but narrow display screen and cumbersome data input methods are still the main obstacles limiting the usability and functionality of mobile Internet. It is expected that the data input mode and screen size will not be greatly improved in the near future.

4. 1.3 security

Security is a key issue affecting the development of mobile e-commerce. Compared with the traditional e-commerce model, the security of mobile e-commerce is weaker. How to protect users' legal information (account number, password, etc.). Freedom from infringement is an urgent problem to be solved. In addition, at present, China should also solve the security problems such as electronic payment system and commodity distribution system. The method we can adopt is to absorb the security precautions of traditional e-commerce and develop lightweight and efficient security protocols according to the characteristics of mobile e-commerce, such as application-oriented encryption (such as electronic signature) and simplified IPSEC protocol.

4. 1.4 tariff issues

After ending the "free lunch" of mobile Internet access, China Mobile Communications Group announced that mobile phones using W AP service will start charging. However, the current price is still a preferential policy price. If the tariff problem can be solved, there will be a significant change in China's mobile market.

4.2 China mobile e-commerce development countermeasures

1. Improve the quality of wireless channel resources. Compared with wired, wireless spectrum and power limitations make its bandwidth smaller and its bandwidth cost higher. At the same time, the development of packet switching makes the channel become * * *. The connection reliability is low, beyond the coverage area, and the service refuses to access. Therefore, service providers should optimize the use of network bandwidth and increase network capacity to provide more reliable services.

2. Improve the usability and functionality of the mobile network. High-resolution display screen and bar code reading function will make mobile devices more user-friendly, but narrow display screen and cumbersome data input methods are still the main obstacles limiting the usability and functionality of mobile Internet. It is expected that the data input mode and screen size will not be greatly improved in the near future.

3. Develop a portable and efficient security protocol. Compared with the traditional e-commerce model, the security of mobile e-commerce is weaker. How to protect users' legal information (account number, password, etc.). Freedom from infringement is an urgent problem to be solved. In addition, at present, China should also solve the security problems such as electronic payment system and commodity distribution system. The method we can adopt is to absorb the security precautions of traditional e-commerce and develop lightweight and efficient security protocols according to the characteristics of mobile e-commerce, such as application-oriented encryption (such as electronic signature) and simplified IPSEC protocol.

4. Deal with tariff issues. China Mobile Communications Group announced that mobile phones using WAP services will be charged. However, the current price is still a preferential policy price. If the tariff problem can be solved, there will be a significant change in China's mobile market.

5. User-oriented business needs to be improved and strengthened. As far as the current application situation is concerned, the application of mobile e-commerce is more focused on personal applications such as obtaining information, booking tickets and stock trading, and lacks more and more attractive applications, which will undoubtedly restrict the development of mobile e-commerce.

6. Improve the equipment of the mobile terminal. In order to attract more people to engage in mobile e-commerce activities, it is necessary to provide convenient, reliable and multifunctional mobile devices.

5 China 3G business development prospects of mobile e-commerce.

Due to the arrival of 3G, the market structure of SMS has been completely changed. 3G technology will bring more technologies to enterprises and end consumers. For example, streaming media application technology will be applied to 3G services such as enterprise video surveillance and logistics video collection, and will also bring location-based services, such as LBIS services and mobile positioning technology, and will be applied to public safety services, intelligent traffic management, logistics distribution and other fields. The CDMA technology provided by Unicom can accurately locate within 5 meters. Mobile phone identification technologies, such as two-dimensional code identification of camera phone, RFID identification of mobile phone, fingerprint identification of mobile phone, etc., have also brought richer experiences to enterprises and consumers with the arrival of 3G. In addition, WAP applications will translate various Internet applications to mobile phones at a faster speed, and the access to the original e-commerce system will be changed from Pc and Internet to WAP and mobile phones, so it is not necessary to develop any mobile phone plug-ins, and enterprises can save a lot of investment.

As early as 2004, operators launched mobile TV service based on 2.5G network with great fanfare, hoping to open up a new continent in mobile value-added services. However, the inherent problems of 2.5G network, such as tariff, image quality and speed, have been puzzling the development of mobile TV market. However, 3G terminals collect the latest research results of many IT technologies, involving the development of many key technologies of software and hardware. Mobile TV business highlights new development opportunities, which makes the commercial prospects of 3G gradually clear. At the same time, personalized services such as mobile phone search, mobile phone positioning, mobile phone games and mobile phone music are widely used, and mobile applications of enterprises will be more extensive, and mobile e-commerce based on mobile Internet will also usher in new development opportunities.

The emergence of mobile commerce enables users to access the network anytime and anywhere, especially in the 3G era, faster network speed and richer services provide users with diversified choices. Traditional Internet consulting, e-commerce and other services can be smoothly extended to the mobile Internet, so great changes may occur.

Mobile e-commerce can provide users with the required services, applications, information and entertainment anytime and anywhere, and at the same time meet the needs of users and businesses for conformity, security, socialization and self-realization. On the one hand, mobile e-commerce can not only provide consumers with a convenient and quick information platform to obtain products and services, but also meet their needs of expression and interaction anytime and anywhere through the interactive community platform, so that they can share the value of the delivery platform with friends while putting forward more demands to merchants; On the other hand, mobile e-commerce can provide a platform for merchants to publicize and publish product information, and at the same time, it can learn more about consumers' specific needs and wishes through interaction, and realize "viral" marketing through word of mouth.

The survey shows that the market distribution of mobile commerce applications is relatively balanced, which indicates that there is a demand for mobile commerce applications in many industries. Government departments and manufacturing, circulation and finance industries are the main industry markets for mobile commerce applications at present, and the main industries for mobile commerce applications of enterprises in the future are logistics, circulation, finance and other business mobile and service industries, such as catering and travel agencies.

At present, some domestic enterprises have achieved considerable return on investment by implementing mobile commerce applications. As more and more enterprises understand the application mode and technical realization scheme of mobile commerce, more and more integrators realize the huge market of enterprise-oriented mobile commerce, and mobile commerce will truly enter enterprises and become an important part of social life.

Although mobile e-commerce has made some progress in China, due to the limitations of mobile communication operators, banks, merchants and mobile e-commerce service users at this stage, the irreplaceable characteristics of WAP have not been highlighted. At present, China Telecom has entered a period of adjustment and transformation, and the business focus of major telecom operators has shifted from traditional voice services to data services and mobile value-added services. Seeking value-added business space and providing personalized services have become the key factors for the telecom industry to achieve sustained growth.

At the same time, e-commerce has entered the second spring and entered a period of rational development, and the mutual trust between payment means and commerce should be greatly improved. Moreover, mobile operators have the natural advantage of integrating the e-commerce industry chain, and the booming e-commerce can also bring them new ways to integrate value-added services. Therefore, vigorously developing mobile village commerce is the correct strategic choice for mobile communication operators and e-commerce.

Today, China is experiencing a revolution from desktop to handheld, so the development prospect of mobile e-commerce industry is very broad. Based on the unique technology of information flow and mobile communication, it will certainly bring about changes in commercial value. For global operators, 3G is not only a technological revolution, but also a revolution in operating concept and mode. For major enterprises, the emergence of mobile commerce is full of opportunities and challenges.