Online sales in China are expected to jump from 1.84 trillion yen ($303.3 billion) to 4 trillion yen ($652.9 billion) in 2016-2017, powered mainly by urban multi-channel shoppers and the newly emerging middle class.
The State of E-Commerce in China research report published by published by international research and training group Econsultancy, predicts that within a few years, multi-channel shoppers will make up nearly half of urban China’s consumers.
“This report, a first for the region, examines in detail country-specific industry developments, as well as the many challenges and risks organisations of all shapes and sizes may encounter,” Econsultancy Senior Research Manager, Monica Savut, said. “Taking into consideration that an astounding one in seven Chinese consumers turn to the internet for a purchase every day and more than 60% shop weekly, the opportunities for both local and international brands in China are indeed staggering."
Despite these opportunities and the fact that many Chinese companies use or are planning to use the Internet as a selling tool, the report finds that, in general, multinational companies have been slow to take advantage of this fast-growing channel to reach this vast new market in the last few years.
The report noted, however, that retailers who want to continue growing in China need to begin focusing on third and fourth-tier cities (such as Changshu, Dandong, Foshan and Yantai), which are likely to become the main focus for China’s retail business development as competition gets tougher in tier one and tier two cities (including Beijing, Shanghai, Nanjing and Dalian).
The report also reveals that the size of the mobile shopping market is expected to reach 1 trillion yen ($163.2 billion) by the end of 2017. With the shift from PC to mobile as a more dependent device to access the Internet, it’s natural that consumers are rapidly taking up mobile shopping.