Over the past years, China has experimented numerous shifts at all levels.
Internet penetration has driven technological changes to make easier Chinese’s daily life.
The main change is the rapidly growth of China’s economy which has driven the rest of them. Since China became the world’s largest economy, the society has also evolved due to the increasing the middle-class. Besides, the rising disposable incomes are increasing people’s access to new products including luxury goods.
China has experienced a strong technological advance during the past years. Thanks to the mobile and internet penetration in Chinese society, it have been developed many digital services that make easier Chinese’s daily life.
Maybe, e-commerce service is the best example of these technological advances that Chinese consumers have rapidly embraced. China is currently experiencing huge growth in e-commerce. In 2015, it is expected that e-commerce in China will reach US$540 billion.
What are the factors that are boosting the e-commerce in China?
E-commerce success is strongly linked to the number of Chinese users connected to Internet through mobile devices, tablets or computers. In China there are more than 600 million internet users and about 500 million mobile internet users. Nonetheless, Chinese government plans to connect 1.2 billion people via internet mobile by 2020.
E-commerce is booming in China due to different factors. The main factor is the convenience offered to Chinese consumers to buy products. However, another important aspect is that allows access to a huge number of products, including foreign brands and items.
Mobile devices play an important role in the e-commerce success. According to a survey, about 60% of Chinese online shoppers make their purchase through smartphones.
In addition, Chinese consumers have the chance to buy products from cross border e-commerce platforms such as Amazon or Sasa. These websites offer some brands or products that Chinese shoppers can’t find on Chinese e-commerce sites. As normally the new collections of foreign brands arrive late to China, shoppers who desire to have these new products as soon as possible they are able to buy those products through e-commerce cross border sites.
Increasingly more, Chinese consumers have curiosity to try foreign products and e-commerce gives them the opportunity to do it.
E-commerce is driving the development of several sectors
E-commerce has driven the development of other businesses such as online payment services that encourage Chinese shoppers to purchase products online due to the confidence and safety that these services offer to consumers. AliPay, TenPay, Union Pay are the most popular electronic payment platforms in China.
Online payment platforms have become very popular among Chinese shoppers. These services have extended their business allowing Chinese consumers to pay via their mobile devices instead use cards or cash. Chinese users can use mobile payment to pay taxis, utility and credit card bills and also make money transfers.
Other companies that have benefited of e-commerce success are those related to logistic and delivery services. Chinese consumers expect to receive their online purchases as soon as possible and here is where logistic companies play an important role.
Thanks to technological advances, Chinese consumers can buy all kind of products and services and receive them in their own doors without the necessity to get out of bed.
However, it is not that easy as create an e-commerce site to sell products. Companies that want to sell their products in China via online must develop online marketing strategies in order to let people know about their products and services. If people don’t know about your products they will never purchase them.
If you are interested to expand to business to China or improve your sales, don’t hesitate to contact us.