China’s newest developments in e-commerce

China’s newest developments in e-commerce

The Chinese consulting firm Fiducia and its business associates Aquarius Asia (digital marketing) have completed a survey on the actual trends of Chinese B2C Business to Customer e-commerce

Already 500 million Chinese are making use of the internet and well over 150 million are online shoppers. In contrast mail order business and stationary retail show declining figures. The top 10 Chinese B2C website can be had from table 1

China E-Business

As can be seen TMall is the most popular website of this kind and is owned by Alibaba Group and the site covers 70’000 companies including major brands such as Adidas, Bosch, Dell and P & G, to name a few who have their online shops. The costs for such a shop with TMall are as follows: To register the brand name there is a one-time deposit of CNY 10000 and the business license is charged with a technical service fee of CNY 6000 annually and the tax registration certificate has a commission fee between 2 – 5 % depending on the type of product.

Who are the Chinese internet shoppers?

60 % of the Chinese internet users are younger than 29 and the online penetration rate of the age bracket 20 – 29 years is 73 %. 96 % of college/university students go online and one of five online users earn over CNY 5000 per month.

Further findings: Children in China now practically grow up online, learn about the big brands rather via internet than in practical life. The average internet user spends nearly 20 hours per week online but how the Chinese spend their time online differs a lot from users in Europe or America. Table 2 reveals details:

Popular websites in China

They use different information channels before they take a buying decision and they like interactive action such as blogs, forums, instant messaging and games. It requires a highly social, emotional and entertaining approach and by multiple channels to market and advertise products to China’s online community.

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