![]() ![]() The online-to-offline (O2O) business model is transforming the retail industry.īoth Alibaba and JD.com are focusing on the millions of other physical stores in Mainland China, as they believe a physical store is a place where consumers can be targeted to drive further penetration of payment platforms and e-commerce. For example, the largest e-commerce platform in China, Alibaba recently invested $2.9 billion in China’s biggest offline retail group, Sun Art. This concept involved the integration of online and offline retail elements, including physical stores, products, services, logistics, big data, marketing, management, and so on.Ĭurrently, in China, online players are taking the initiative to drive this integration. Since the term “ new retail” was used by Jack Ma in 2016, it has been an important topic for manufacturers and retailers alike. A new form of retail: online and offline integration Thanks to various online platforms, such as, Tmall Global, and JD Global, Chinese consumers now have broad access to products from overseas. For this reason, the number of Chinese online platforms and cross-border shopping sites where high-end and niche international brands are growing in popularity and are also driving the consumption updating movement. Middle- to upper-class consumers are now increasing their demand for goods that are not available domestically. The demand for fashion is growing much faster than other consumer demands. With the rise of disposable income, consumers are more confident in spending their money on a number of categories such as food, cosmetics, and clothing. Consumption upgrade in the Chinese E-commerce sector These shopping festivals are a perfect opportunity for new brands to enter the Chinese market. For example, over 79% of consumers said they participate in Double 11.ĭouble 11 and some other online shopping festivals are a key opportunity for local and international brands to leverage the enthusiasm for shopping among Chinese consumers.Ĭhinese consumers are looking to experience, try new things, and buy products that may be new to them. ![]() The boom of social media and e-commerce integration in China: social e-commerceĮ-retailers are creating more shopping festivals and themes to increase consumer engagement.A new form of retail: online and offline integration.Consumption upgrade in the Chinese e-commerce sector.Five key trends driving Mainland China’s E-Commerce market However, the emerging middle class and middle class will remain the largest consumer group in many categories, particularly in rapidly evolving consumer goods such as personal care products and detergents. That compares with a 5% growth rate among emerging-middle-class and middle-class consumers. In addition, the rapid expansion of cross-border e-commerce in the Chinese market is creating opportunities for small and medium-sized enterprises to participate in world trade.Ĭonsumption among the upper middle class is still growing fast, at over 17% per year. Alibaba’s e-commerce sales are now growing slower than the overall e-commerce growth rate of 34.3% with Alibaba’s sales forecast to increase by just 22.8%. Alibaba’s share is shrinking as the market diversifies with the emergence of retailers and newcomer Pinduoduo’s recent success.įrom 2015 to 2018, Alibaba’s market share of e-commerce sales in China fell from 77.6% to 53.5%. Top e-commerce platforms in Chinaīack in 2017, eCommerce sales outpaced estimates by $44.41 billion, driven largely by sales from leader Alibaba’s Taobao and Tmall. It’s expected to represent more than 60% of total retail sales in the country. The Chinese e-commerce market is on its way to surpassing expectations as it is expected to reach 3 trillion dollars by 2024. Let’s take a look at some of the most popular Chinese e-Commerce platforms and understand their specificities. Therefore, how can a company choose the most suitable Chinese e-commerce platforms for its sector? Some are specific to some industries, others are better for smaller or larger companies. Those are China’s major e-commerce players. In 2022 we can group the most popular Chinese eCommerce platforms as below: Over the past 10 years, many eCommerce platforms have developed, and improved to adapt to the demanding and ever-changing needs of Chinese consumers. Use the internet daily to do any type of business from chatting to online shopping.Contact us The engine of growth in consumption is the new generation of Chinese consumers which is characterized by a motivation to: ![]()
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