Online Shopping Industry in China

Topics: Online shopping, Retailing, Electronic commerce Pages: 7 (2394 words) Published: April 4, 2013
Online shopping industry in China

Online shopping industry in China

The Table of content:
Instruction of Online shopping industry----------------------------------3 The advantage----------------------------------------------------------------5 The prospect and interest---------------------------------------------------11 Conclusion--------------------------------------------------------------------13

The instruction of the online shopping in China today:

According to the latest research report by the Boston Consulting Group in 2011, the number of online consumers in China reaches 145 million, which is the second largest in the world. By 2015, the number of online consumers in China will surge to 329 million people, the market value will exceed 2 trillion RMB, China is expected to surpass the U.S.A as the world`s largest E-commerce market. Refer to the article from the <New York Time>, China has passed Japan to become the secondly-largest economy in the world and just behind United Stated after three decades of spectacular growth. (The New York Time published August 15 2010) With China’s economic rapid growth, online shopping becomes popular in China in 2010. I-Research, which is a marketing research consultancy, has introduced “2010-2011 China Online Shopping Industry Annual Monitoring Report” and “2010-2011 China Online Shopping User Research Report”. (From China’s online shopping market published)The result of report shows that in 2010 the annual turnover of Chinese online shopping market , and it has reached to 461 billion Yuan, compared to 2009 of online shopping, it increased 75.3%. The essay will discovered that the reason of online shopping growth so fast, moreover, it will tells people that the advantage and disadvantage of E-commerce in China. Why E-commerce does have a striking success in China? With the economic growth, the internet is becoming prevalent. More and more people are using internet in their life, especially for young people. According to the "25th Statistics Report on China's Internet Development" reported by CNNIC (China Internet Network Information Center), the number of Chinese Internet users reached 457 million as of the end of 2010. The popularization of the Internet in China has prompted the explosive growth of online shopping in China.(From China’s online shopping market) In China, most young people are experienced over pressured lifestyle during each day, while gaining relatively low income. However, China’s inflation rate is booming, it grows fast than everyone expected. Young people realized that their income could not meet their daily spending. But, some of the E-commerce websites have sellers who introduces low price with high quality products, which matching young people’s consumption willingness.

The advantage

In China, the competition is about focusing on how to put the technology to work. This often means duplicating or tweaking existing ideas to get an edge in the market, cheaply and quickly. Because of the technology improvements, information can be spear faster than people’s expectations. For example, people use twitter to share their preferences on different types of goods. And the majority of the users of these internet social working are young people. They know products by other people’s comments and recommendations, and then these comments will help young people to make a decision on consumption. During the past weeks, there was a camera became very well- known in recent North America market, that is because of those social networking. And people tends to buy it in store, however, the best selling product can be gone pretty fast. Therefore, some young people will decide to shop it online. Although the open door policy attracts many foreign countries start businesses in china, these businesses still cannot satisfy Chinese’s purchasing power. There is a biggest online shopping web called “TAOBAO” which is a free-to use...

Bibliography: 1.”Online shopping is growing rapidly in China” BBC News. 29 August 2011
2”E- commerce to make even bigger gains” Internet society of China
3 “Prospects for the development of Online shopping” WGY.COM
4.“China online shopping statistic” Business internet China 29/11/2007
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