China is the largest e-commerce market in the world. The Chinese shop online much more often than the rest of the world. Among the products that the Chinese buy online are clothes, cosmetics, electronics, and even food (more than 50% of customers). At the moment, the Chinese e-commerce market is worth over 1 billion dollars and is continuously growing. The middle class in China is growing, and so is consumption. Online shopping became very convenient, particularly when using extremely popular mobile payments. New trends and interest in foreign and luxury goods also contribute to the rapid development of e-commerce in China. Domestic products cannot meet these needs. E-commerce gives foreign suppliers an opportunity to sell their products and speeds up procedures, benefit from favorable tax policies, and, what’s most important, they don’t have to license their operations.
We present to you an interesting infographic „10 facts about e-commerce in China”.
Fun facts about e-commerce in China
Alibaba Group dominates the Chinese e-commerce market. Alibaba is the owner of the biggest online shopping platforms. One of them is Tmall – as many as 97% of Chinese online customers use it.
Online retail in China is accounted for 1⁄3 of the overall retail market in China. In the aspect of using smartphones and mobile payments, we can observe an upward trend. More than half of Chinese customers use mobile payments to pay for their purchases. Shopping via mobile devices is already more common than shopping in-store (46% compared to 52% of Chinese customers buying via mobile). Using desktop computers to shop online is getting less popular than using smartphones.
E-commerce festivals in China are also a reason for the rapid growth of e-commerce in China. Singles’ Day, also known as Alibaba’s Double 11 Shopping Festival, is a large online shopping event for customers worldwide. It’s extremely popular even outside of China. In 2017, during the 24-hour shopping spree on Alibaba platforms, the sales reached more than 25 billion USD in revenue. It’s more than Black Friday and Cyber Monday in 2017 combined. The discounts during this November festival gain increasing popularity. In 2017, the revenue increased by as much as 40% compared to the previous year and after the first hour already reached 1⁄3 of total sales.
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The E-commerce market in China – predictions
Retail e-commerce sales in China is accounted for more than half of the global retail e-commerce sales. According to the projections, by 2020 e-commerce market in China will be bigger than the American, British, Japanese, German, and French e-commerce markets combined.
The chart below shows the rate of e-commerce sales growth in China. It is predicted that it will reach 32,7 billion RMB by 2019.
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