Why Ecommerce is important for your business?
E-commerce market in China is most lucrative in the world. More than 800 million Chinese
are now connected to online and 350 million middle-class consumers actively engaged in
the e-retail purchase.
According to the National Bureau of statistics, the Chinese Ecommerce market growth
increased by 26.2% in 2016. Chinese e-commernce market continues to see high double-
digit growth year on year. 11 th November 2017, is known as Singles’ Day on that day single
people in China celebrate and has become a popular shopping holiday.
Key factors driving Chinese e-commerce market
- Shopping festivals
E-trailers are creating more themes and shopping festivals to know the customers’ desires.
On the basis of Nielsen ‘s survey before Double 11 this year, 79% of the customers give
their positive reply to participate in Double 11.
As per the data of the Alibaba 168 billion RMB in sales and 39% growth on Singles’ Day. The
main competitors JD.com scored RMB 127 billion during 1-11 November over 50% growth.
Double 11 and similar shopping festivals are the great opportunities for local as well as
foreign brands to attract the Chinese customers.
It is the perfect opportunity to enter the new products in the market as a customer are
looking to experiment, try new products and buy the items which are new to them. So it is
the perfect opportunity for the new brands to enter the market and get noticed.
- Upgradation in consumption
Increase in the disposable income means that consumer is more confident in spending their
money on a number of categories such as food, cosmetic and clothing. The more emphasis
on quality and fashion growing much faster than other customer demand.
The middle to upper-class people is increasing their demand for the good that is not
available in their country. Using online platform the international brands are easily
accessed. Increased popularity, cross-border shopping sites are leading in the consumption
Chinese consumer pays the attention to quality, health, design and safety for an imported
item. Chinese use Kaola.com, Tmall Global and JD Global are popular platforms. The
consumer of China has broad access to the products from around the world.
- Digital Payment
The most popular onlone payment in China are Alipay and Wechat. They are already an
integral part of e-commerce platforms like Alibaba, JD.com etc.
The popular online financial companies such as Ant Financial (Alibaba’s) and Baitiao
(JD.com’s) are popular among the Chinese especially young borrowers. As it has a low fee
and excellent user experience.
- Online platform to media platform
Using social media people start to interact with one another. But later make it an ideal place
to share, comment on the products. Due to the rise in mobile users, the importance of
social media has increased.
Due to the concentration of mobile commerce the transition of the e-tail advertising
ecosystem from open to closed loop. The social media has become an important tool for
marketing, especially when communicating and engaging with potential customers.