E-commerce development in China

September, 2013

Online shopping is rapidly establishing itself as a new player in the commerce sector in China. According to estimates by the Chinese Ministry of Commerce, by the end of the year the transactions will reach 1,800 billion yuan. This phenomenon represents a high potential business for operators, including foreigners, who want to enter the market.

The number of users of online shopping in China reached 87.88 million, with an increase of nearly 14 million in six months, while the use of online payment increased by 4.8% (China Internet Network Information Center CNNIC). The applications of market for online business transactions are increasingly, posing a sector with high potential, with plenty of margins for development. The number of Chinese Internet users, which now amount to about 500 million, is expected to still growing as a result of government subsidies for access to broadband and high speed internet. At present, more than 240 million Chinese people choose online shopping: it is a market where they are sold, on average, 48 000 products per minute.
“Do not jump into the Chinese market means losing part of a flow of exports which in the future will become essential. The cost to get into it is not so high”.

Roberto Liscia

President at NetComm

In 2012, sales reached 1,320 billion yuan, according to a study of China's E-commerce Research Center. This result is also due to government guidance contained in the 12th Five-Year Plan (2011-2015) which, among other things, raised the revision of the economic model to the diffusion of new technologies in the fields of information technology and telecommunications (www.agichina24.com). Among the reasons for the popularity of online shopping among users, in particular, the opportunity to buy products not yet available in traditional retail stores, the efficiency of the logistics network and the final prices lower than in the direct retail purchases. The potential of this market appear, therefore, extraordinary, especially for foreign companies. For the Made in Italy, fashion, food and furniture could be the sectors to achieve more success in China through online platforms (Vincenzo De Luca, the Italian Consul in Shanghai).
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