Business Information 7 – Electronic Commerce in China

The population of cross border e-commerce consumers has increased by nearly 10 times over the past three years according to a report by thepaper.cn.
The study the report was based on, released by China Chamber of International Commerce, Deloitte and AliResearch, showed China’s consumption growth has promoted sustainable development of import business and that post -’90s and ’95s consumers have become the largest consumers of imported goods.

The penetration rate of China’s cross border e-commerce retail import, which refers to the proportion of people buying imported goods through cross border e commerce platforms, rose from 1.6 percent in 2014 to 10.2 percent last year, according to the report. The number of consumers at Tmall Global, the cross border e-ommerce site of Alibaba Group, increased 10 times from 2014 to last year.

In addition, the site introduced nearly 19,000 overseas brands from 3,900 categories in 75 countries into the Chinese market over the past four years, more than 80 percent of which entered China for the first time.

Imports of personal care products, clocks, clothing, home furnishing, food, cultural and educational goods grew in varying degrees last year, of which imports on personal care products and milk powder increased 48.6 percent and 40.4 percent respectively. The report showed the European Union, the United States, ASEAN, Japan, New Zealand and Australia are the main suppliers of imported consumer goods to China. Consumer goods imported from the EU amounted to 4.36 trillion yuan last year, accounting for 3 .7 percent of China’s total consumer goods imports, the largest share.

Source: www.iyuba.com

The emergence of China’s e-commerce market inaugurated a new era in the country’s economy. In 2021, the added value of the digital economy accounted for nearly 40 percent of the country’s GDP. More than a quarter of China’s physical goods retail sales were sold online, far above the global average of 18.8 percent. Furthermore, the e-commerce sector has created over 67 million jobs. Despite the Coronavirus pandemic, China remained the forerunner in e-commerce, outpacing the United States by more than 400 billion dollars in revenue. Today, China has the largest digital buyer population in the world, amounting to nearly 850 million. In recent years, new features such as live streaming and rapid delivery have been integrated into China’s e-commerce landscape, further enhancing the customer experience.

Discussion

Why is China’s e-commerce consumption develop so rapidly?