Exploring Foreigners’ Online Shopping Experience in China: A Case of Taobao

Topics: International student, Student, Online shopping Pages: 19 (4233 words) Published: March 2, 2014
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.6, No.5, 2014

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Exploring Foreigners’ Online Shopping Experience in China: A Case of Taobao
Salimu Abushiri Jinyevu*, Nuran Ally Mwasha
School of Economics & Business Administration, Central China Normal University (CCNU), 152 Luoyu Avenue, Wuhan, Hubei, 430079, P.R. China
*Email of the corresponding author: salb90@yahoo.com
Abstract
This study is a result of the survey done amongst foreign students who study in different universities in Wuhan, China. The names of two participated universities will not be mentioned since there were agreements between participants not to disclose some of their details including demographic information. The universities were labeled as U1 and U2. The objective of the survey is to explore general online shopping experience among foreign students in China taking Taobao website (www.taobao.cn) as a case study for the analysis. Data were collected from a total of 150 (out of 169 distributed) self monitored questionnaires and analyzed using SPSS software through descriptive statistics. The findings show that among other factors, Chinese language played a great role as an obstruction for Taobao usage amongst many foreigners and it was suggested that, Taobao has to acclimatize with multiple language versions in their website. However, other strategies to improve foreigners’ online shopping experience were also discussed so as to enhance customers’ loyalty and satisfaction Keywords: online shopping, Taobao, internet, internet banking, foreign students 1. Introduction

China is one of the countries that have been experiencing rapid social and economic developments in an astonishing speed. This development goes concomitantly with high penetration and overwhelming revolution in online shopping that has compelled many companies to adopt it to sustain customers’ needs and wants. It eventually contributed much to the transformation of the traditional (store) shopping style for electronic shopping (E-shopping) which is faster, easier, convenient and efficient shopping method. The rapid increase in online shopping has made China to be among the global best online retail place. According to Dodds et al (2013), in 2011 China online sales to customers accounted for $120 billion supersede all her main competitors like Japan and United Kingdom and become the second largest worldwide in 2012 after the United States. The internet users increased to 540 million, which increased the online shopping for 65.5 % accounted for $190billion USD transactions, which is more than1. 1% of all consumer goods retail sales in the United States in 2012 (Zhang et al, 2013).

All these online developments have been facilitated through the efforts made by government since 1993 to implement the e-commerce infrastructure by establishing different projects and regulations to govern and lay down the framework for electronic market (Li & Suomi;—). Furthermore, the presence of e-commerce sectors which accompanied by the increase of the internet users has also contributed much in online shopping. According to CNET Asia (2013), the largest and the leading E-commerce in China at the end of 2011 include among others Tmall.com with 39.9% market share, 360 buy.com 14.7%, Suning.com 2.4% and Amazon.cn 2.2%.The current data shows that there is an increase of online shoppers over 240 million which led to an increase of market share on E-commerce relying on business to consumer (B2C) sectors lead by Alibaba Tmall accounted for 50.6 percent of total market share, followed by 360 buy and Tencent (Millward, 2013). Figure 1: Share of China B2C Websites by GMV in Q2 2013

Source: iResearch Global Inc. 2013
The market for online shopping in quarter 2, 2013 make a turnover of 437.13 billion Yuan, with the greatest 177

European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.6, No.5, 2014...


Links: makes it to become a discussion issue for many studies in electronic commerce like that of Elliot & Fewell,
(2000) as were cited by Luo (2011).
The security part for Taobao has been a fundamental issue as the emergence of the vast online theft. With
reference to the Global Legal Post, (2013), the Taobao has been very keen in IP protection to ensure maximum
part during the payment, whereas the seller will have to deliver the products to the buyer and after confirmation
is when they will be paid (Luo, 2011).
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.6, No.5, 2014
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