Thursday, 1 October 2015

With 400 millions of online buyers, China is now the biggest market for e-business



       Source: http://www.arthojerajianleblog.fr/enquete-sur-lemergence-du-e-commerce-dans-le-luxe-en-chine.html

10 years ago, with only 2,1 millions of Internet users, nobody would beat that online shopping would be such a success. Today with 649 millions of users, and a penetration rate of 46 %, China is an Eldorado for e-business. Last year, this sector knew a growth of 31,4% and made an income of 13,4 trillions of RMB, and it’s not about to stop!
Chinese people see e-business as a huge gain of time and money. Indeed, online retailer offer more discount and have more choice than traditional shop. Moreover, due to massive investments in logistic by major actors of the market, deliveries are free and extremely fast in most of the times.
E-business in China hire more than 2,5 millions peoples and 18 others millions for inerrant services link to e-business, like, for example, deliveries activities.
Transaction on mobile phone are also blowing up with a progression of 240% for an income of 928 billions of RMB.
The expansion of mobile banking has also played an important part in the explosion of e-business.  Consumers can directly pay since their online wallet and even from their favorite social networks such as WeChat, which created a partnership with the site Taobao. Therefore, consumers don’t even have to leave the WeChat anymore app if they’re willing to buy online. Their buying routine is made easier and this is for sure one of the reasons that helped the major growth of e-business. 

Chinese consumers have very high standards, they want esthetic and fast web site, so that they can find easily information that lead them to low prices with a short buying process.
If companies want to sell on their own web sites, it’s essential for them to invest massively to gain confidence of Chinese consumers.
Visibility is essential to find success, and also having a good SEO strategy on Baidu - the major search engine in China with 80% of market share - and being very active on Wechat (the most used social network in China).
With cross boarding platforms foreign companies can easily sell their products on Chinese web site even without subsidiaries in China. These platforms are perfect for foreign companies, which want to sell their products to Chinese companies. Theses web site already earn confidence of consumers and have huge client data base, important assets for beginners on Chinese’s e-business.
The best part is that Chinese consumers do not have to pay import taxes, so they are more likely to order on these web-sites. All orders higher than 500 RMB, will have to pay a 10% tax.
Due to the strong attract for foreign product, Alibaba created in 2013 Tmall Global, an international version of its web-site. With Tmall foreign companies can sell their product directly to Chinese consumers.

There are a lot of chances that Chinese e-commerce will strongly evolve and change in the future. There is one thing for sure: companies willing to enter Chinese market cannot close their eyes on e-business anymore.



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