Moxian, Inc. (NASDAQ:MOXC) Targeting Chinese O2O Market and its Projected 20% Year-Over-Year Growth
New York, New York, 08:30 EST Jan 17, 2017 (NetworkNewsWire) – Moxian, Inc. (
NASDAQ:MOXC) is positioning itself as a leader in China’s O2O services market as the sector enjoys a 20% surge in year-over-year growth. iResearch Consulting Group, in its ‘2015 China Online-to-Offline (O2O) Services Model Research Report’ published in January 2016 (www.iresearchchina.com), stated that the Chinese O2O market was on course to grow from $53.78 billion in 2015, to $68.71 billion in 2016. The report also forecast growth of 20% year-over-year through 2018 to more than $90 billion (http://nnw.fm/Jyj1C).
The reason for the quick growth is a high level of usage of the online services sector. Tencent Penguin Intelligence’s ‘2015-2016 Report on the Year’s Internet Trends in China’ noted that online-to-offline services were purchased by more than three-quarters of Chinese internet users between 20-40 years of age. Women were responsible for more than half of the O2O purchases, such as food delivery services and travel bookings. The report also found that higher educated consumers used the services more often, with more than 80% of respondents who made an O2O purchase having a bachelor’s degree.
The growth of O2O in China might also be attributed to relatively low levels of auto ownership, as compared to the U.S. As a result, delivery services to the home are particularly attractive. The O2O sector represents a click-and-collect market of services that can be ordered online, then paid for at point-of-service, eMarketer reports.
According to an April 2016 report on Chinese digital consumers from McKinsey (http://nnw.fm/XhMG3), half of the digital consumers surveyed use social media to view products or get recommendations, and 31% of the WeChat consumers it surveyed actually made a purchase on that platform — double the figure from the year before. Impulse purchases are driven by social media, particularly in categories such as personal care and apparel. McKinsey also reported that O2O’s convenience and discount expectations were stimulating greater online spending in China.
In its survey of 3,100 online users in China, titled ‘How Savvy, Social Shoppers Are Transforming Chinese E-Commerce’, McKinsey found that the future of commerce and O2O service has tremendous potential. Future growth, it states, will be near term. Mobile devices are used to access the internet across China. McKinsey found that, after buying travel services from O2O vendors, 77% of consumers surveyed said their total spending on travel increased. Furthermore, 65% of consumers spent more after using other O2O services. They spent it on dining and increased mobility, the report stated. “This suggests that O2O services offering a unique value proposition could power additional growth in China’s online market over the years to come,” McKinsey analysts noted.
Finally, the report observed that vendors serving the rapidly expanding O2O markets have attracted huge sums of capital from investors as the next big thing in digital China. Moxian, Inc., did just that when it raised $10 million in new capital in 2016 through a public offering of its common stock. Moxian traded at $3.25 per share as of January 17, 2017.
The company’s headquarters are in Shenzhen, China, and it also has an office in Beijing. In addition, it reported to the SEC in its 10-K for the fiscal year ended September 30, 2016, that it is expanding, with offices planned for Shanghai and Guangzhou. What Moxian says makes it unique is that it signs up merchants initially, then builds its user base from their customers.
For more information, visit www.Moxian.com
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