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09/292013

How to enter in E-commerce in China- Shanghai #2013


Total spending by Chinese consumers in E-commerce reached $212.4 billion in 2012, compared to $228.7 billion in the U.S. It has risen to RMB 1.3 trillion in 2012 and will surpass what is spent online in the United States in 2013. It is expected to continue on a trajectory of 32 per cent average annual growth, reaching RMB 3.3 trillion by 2015. In addition, in just two years, China e-commerce spending will be 50 per cent more than that of the U.S.

 

A study realizes by Bain explain a survey including 1,300 shoppers spread across China in large and small cities, and across age, education, and income levels. The report shows the relationships between online and offline shopping and shows that for many consumers the boundary between shopping experiences is blurring.

 

Half of Chinese shoppers now research products and prices online before they purchase them in stores

Two-thirds of Chinese shoppers overall now rely on smartphones to browse or buy products. And the number is nearly three-fourths for upper-income consumers

Lower price is stated as the single most important reason that drives consumers to shop online, by almost half of shoppers

Digital penetration has reached six per cent of retail value in China overall as high as nine per cent in Tier1/Tier2 cities

 

 

In select categories, digital penetration has shown sharp increases in the past two years.

The survey shows a alteration in China's e-commerce evolution and integration when you create a new E-commerce website.

 

How to enter and thrive in this new environment:

  • Invest early

Leaders stay ahead of the curve by having a clear vision and strategy to either grow organically or make key acquisitions.

  • Build a dedicated digital team

A successful team incorporates digital capabilities into different functions.

The site must be strong enough to win new consumers and earn their loyalty.

  • Expertly manage assortments and price

Pricing and merchandising are essential tools for retailers to differentiate themselves from pure-play e-commerce sites.

  • Develop a seamless cross-channel experience

Winners create an enriched shopping experience by integrating their online, mobile and social-media presence and taking full advantage of their stores.

 

SOURCE

http://www.bain.com/about/press/press-releases/china-e-commerce-spending-poised-to-bypass-us-in-2013.aspx



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