$125 billion – The total transactional volume of China’s online retail market by the end of 2012. This accounts for 5.2 percent of China’s overall sale of consumer goods. With a staggering growth recorded in the last 5 years, Chinese ecommerce market is apparent to scale new heights. We could see some of these in 2013, if not all.
China will surpass US to become the biggest online commerce market
According to a recent study, Chinese ecommerce market will reach $251 billion by the end of 2013, which is annoyingly close to US’ $252 billion. Chinese ecommerce market is leveraging the surge of their internet users. With this in mind, the Chinese ecommerce companies are improving their ecommerce ecosystem to become the world’s largest ecommerce market, which is backed by their government. According to them, this target is a high-priority task in 2013.
Second-tier cities will join the ecommerce bandwagon
According to Alibaba group, the Chinese ecommerce behemoth, sales growth in the top Chinese cities like Shanghai, Beijing and Guangzhou were below 40 percent, while the same in the smaller cities rose above 60 percent. Alibaba recorded a massive $160 billion in revenues in 2012.
The main reason for this phenomenon is because of the growth in the number of online shoppers from the inland provinces, who are shifting to online for the first time. Besides that, internet offers wide range of products and services to these users, who are unable to find these in their local stores. Also the developments in the logistics and safer shopping procedures made ecommerce a popular choice among rural Chinese shoppers.
Mobile will become more dominant
According to China Internet Network Information Center (CNNIC) 37.5 million online shoppers made purchases through mobile phones, an increase of 59.7 percent from last year. Mobile phones accounted for 5 percent of the total transaction volume of all online shopping in China. This is expected to reach 15 percent by 2015.
The biggest reason for this would be the advancement of mobile payments and improved 3G networks in China. The proliferation of mobile devices like tablets and smartphones will amplify the growth of mobile commerce and will keep the desktop computers at bay. iResearch, a market research firm in china predicts that the Chinese mobile payment market will grow beyond 40 percent year-on-year in another 5 years.
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