E-Commerce in China is booming
E-Commerce in China is incredibly booming, figures talk about themselves, the market grew 30% from last year reaching 2 trillion dollars in 2014! We heard everywhere that e-commerce is booming but one question remains here, what are the main characteristics of this e-commerce market? Here we will detail with you an overview of the market.
B2B market vs B2C market
B2B and B2C market don’t react the same way in this e-commerce wave.
B2B market is playing an important role in this e-commerce growth representing about 1.5 trillion dollars, 20% more than last year. B2B registered the most important sales results in this e-commerce wave.
On the other side, the B2C market with the retail online market is growing faster every year with the booming of JD.com and Taobao. Those e-commerce websites are developing strategies in order to attract even more Chinese people to purchase online. Take the example of the single day called “11 11”, this day Alibaba has sold about 10 billion dollars just in one day!
Towards an M-Mobile commerce
Are we switching from an e-commerce to an m-commerce?
Mobile transactions have also played a big part in the game. The market is reaching 150 billion dollars with a growth of 240%. How can we explain this phenomenon?
First, this is due to the booming of Chinese Smartphone users, more and more rural areas have access to The Internet. Rural people are representing a really interesting target customer. Concerning the urban areas, they are almost all using mobile to shop online.
Second, mobile online payment is largely eased with Wechat Wallet and Alipay payment. Chinese consumers are more confident and convenient in paying online. So this can explain the boom of shopping online.
Is this booming is profitable for all e-commerce?
A lot of companies are trying to break into Chinese e-commerce market but it is not such an easy task since there is a monopoly of some players in the market.
The competition is fierce and rude in this sector. Simple traditional advertising’s are not efficient anymore, the idea is to find the outstanding strategy to catch your audience’s attention. It is the main challenge for the new entrants on the e-commerce to find this new way to captivate and to make them buy your products.
According to the CECRC, e-commerce will probably double to reach around 4 trillion dollars by 2018.