E-commerce in China represents a growing and promising market. In fact, more and more Chinese are shopping online and the numbers keep increasing. According to a study conducted in 2018, e-commerce in China already accounted for more than 30% of global commerce. The Chinese therefore have considerable purchasing power and Western companies are keen to develop in this market.
China and e-commerce: a promising relationship
E-commerce in China is booming and promises to be the future of commerce. China already has more than 700 million Internet users, more than half of its population, and that number continues to grow. Furthermore, Chinese consumers are increasingly comfortable with online shopping, which is a good sign for e-commerce.
Chinese e-commerce platforms are already very popular with consumers and merchants. The main e-commerce platforms in China are Alibaba, JD.com and VIP.com. These platforms offer a wide range of products and are very easy to use. In addition, they offer very competitive prices.
Alibaba is China’s largest e-commerce platform. It was created in 1999 and now has over 400 million active users. Alibaba offers a wide range of products from clothing to electronics to food. Prices are very competitive and deliveries are fast.
JD.com is the second largest e-commerce platform in China. It was created in 1998 and now has over 300 million active users. JD.com offers a wide range of products from clothing to electronics and food products. Prices are very competitive and deliveries are fast.
VIP.com is an e-commerce platform specialized in the sale of luxury products. It was created in 2011 and today has more than 100 million active users. VIP.com offers a wide range of luxury products, from clothing to watches and bags. Prices are very competitive and deliveries are fast.
The advantages of e-commerce in China
E-commerce in China is booming and represents huge potential for Western companies. The advantages of e-commerce in China are numerous: the Chinese population is very large and has significant purchasing power, the country is becoming a major global economic power and many Chinese consumers are already buying products online. Furthermore, e-commerce allows companies to directly reach Chinese consumers and offer them a wide variety of products. Western companies, therefore, have every interest in embarking on e-commerce in China.
Why e-commerce is the future in China
The rise of e-commerce in China is undeniable. The numbers are staggering: The Chinese e-commerce market surpassed US$1.1 trillion in 2013, according to iResearch, and is expected to reach US$2.29 trillion by 2017. in 2010 to 7.3% in 2013, and is expected to account for 12.9% of total retail in 2017. The main drivers of e-commerce are the urban population and the growth of the middle class, the improvement of infrastructure and the rise of mobile phones.
The success of e-commerce in China can be explained by several factors. First, the urban workforce has increased significantly in recent years. According to China’s National Bureau of Statistics, the urban population represented 61.6% of the total population in 2013, up from 57.3% in 2010. This trend is expected to continue as the number of migrants working in cities is expected to continue to increase. . The urban population is generally more educated and has a higher standard of living than the rural population, which makes them more likely to shop online.
Second, the Chinese middle class is growing. According to McKinsey, the Chinese middle class is expected to make up 70% of the total population by 2025. The middle class has a higher standard of living than other socioeconomic groups and is therefore more willing to spend on non-consumer goods . . Furthermore, this middle class is largely concentrated in large cities, where they can easily access e-commerce sites.
Third, the infrastructure has improved considerably in recent years. The number of Internet users in China has increased dramatically, from 21 million in 2000 to 618 million in 2013, according to CNNIC. Furthermore, the number of broadband connections increased 20 times between 2009 and 2013. These improvements have allowed Chinese consumers to easily access e-commerce sites and the products they offer.
Finally, the rise of cell phones has also played an important role in the success of e-commerce in China. According to the China Internet Network Information Center (CNNIC), the number of mobile phone users reached 1 billion in 2013, nearly double the number of personal computer users. Cell phones offer greater flexibility and connectivity to Chinese netizens, allowing them to easily access e-commerce sites where they can shop.
The challenges of e-commerce in China
The rise of e-commerce in China is a recent phenomenon. However, the country is already the second largest e-commerce market in the world, with a total transaction value estimated at US$1.1 trillion in 2013. China also has the largest number of Internet users in the world, with 618 million people connected to the Internet in 2013. These numbers continue to grow as the Chinese population is increasingly affluent and has access to a wide range of products and services online.
However, e-commerce in China presents considerable challenges. Due to the country’s economic and political importance, Chinese authorities have put in place a complex regulatory and legal framework for e-commerce. In addition, language and cultural barriers can make it difficult for foreign companies to engage in e-commerce in China.
Despite these challenges, e-commerce in China represents a huge opportunity for foreign companies. Chinese consumers are increasingly shopping online and are willing to spend large sums on products and services they consider to be of high quality. Furthermore, Chinese e-commerce platforms offer foreign companies direct access to Chinese consumers, allowing them to bypass traditional distribution channels.
To succeed in e-commerce in China, foreign companies must adopt a unique approach, taking into account the specifics of the Chinese market. It is important to understand the motivations of Chinese consumers and adapt to local tastes and preferences. Companies must also be prepared to invest in the technology and resources needed to grow in this dynamic and complex market.
E-commerce in China: a booming sector
E-commerce in China is growing and represents a very promising sector. Indeed, according to the latest statistics, the number of Chinese consumers who bought online increased by more than 50% in 2016. This growth is mainly explained by the fact that more and more Chinese have access to the Internet and online payment methods. In addition, e-commerce platforms are increasingly numerous and offer a wide variety of products. Finally, product prices are generally lower on the internet than in physical stores.
However, there are still some obstacles to the development of e-commerce in China. In fact, most Chinese consumers still trust brick-and-mortar stores and established brands. Also, paying online is often considered riskier than paying in cash. Finally, delivery of products purchased online can take several days, which is a major inconvenience for consumers.
Despite these few obstacles, e-commerce in China represents a real future and the outlook is very promising. In fact, according to experts, the number of Chinese consumers shopping online is expected to double by 2020. In addition, many e-commerce platforms are developing and offering quality services. Finally, product prices tend to fall, which makes e-commerce even more attractive to consumers.
E-commerce in China is booming and promises to become a leading market in the coming years. Capital investments and technological advances are the main factors driving the growth of e-commerce in China. In addition, the Chinese population is young and dynamic, which makes it particularly receptive to new technologies and innovations. The outlook is therefore very promising for e-commerce in China.