The Chinese country have over 6 million of citizen for it population and described by many economist as the “next economical power to come” defeating then, the United State which has been the economic leader for almost a major half-century. As we know, China is currently growing it economies and develop it infrastructure at a fast rate. And who say growth mean investment and spending! Which mean that the Chinese people will become the future major customer in the world according to it spending rate and the number of citizen who make it.
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Online shopping boom in China
The boom in the online shopping industry has spread to China, home to the largest Internet population, rattling traditional retailers who are scrambling to get a piece of the cyber action.
The number of online shoppers in the country rose 39 per cent from the figure last year to 88 million this year, said a report released this month by research group China Internet Network Information Centre (CNNIC). Industry revenues doubled to 250 billion yuan (RM125.84 billion), and analysts expect it to double again next year.
By comparison, total retail revenues in China grew by a relatively modest 15.3 per cent as of last month, to 11.3 trillion yuan.
Huang Xiaohua, 29, took to online shopping two years ago, when she realized it was cheaper and more convenient. In the past year, she has bought a mobile phone, a camera, a soya-bean-milk maker and even batteries on 360buy.com, a site popular among the Chinese.
The soya-bean-milk maker would have cost Huang more than 300 yuan in a regular shop. The website was selling it for 269 yuan.
“It is also convenient as they deliver to the doorstep, and you can pay by cash or card at the point you receive the product,” said the PhD student in Beijing.
The boom in China is part of a global trend. In the United States, online sales grew by 13 per cent last year to more than US$141 billion (RM484.69 billion), The Economist reported. In Europe and Asia, e-commerce brought in US$60 billion and US$40 billion respectively.
But online shopping’s potential for growth is much bigger in China. Only 26 per cent of the nation’s 360 million Internet users have made purchases online; the figure is around 70 per cent in the US.
Customers are also gaining trust in the credit and payment system, the CNNIC report added.
Established Chinese retailers have tossed their hats into the ring, to try to win customers such as Huang.
Electrical appliance giant Suning, which has 900 outlets across China, opened an online shop in August and has set itself revenue targets of 1.5 billion yuan to 2 billion yuan for next year.
Leading sportswear chain Li Ning launched its cyber store last year, and has hired IBM to design a better portal. The new site is due to be unveiled in March next year.
Other well-known brands that have gone online include Gome Electrical Appliances, computer maker Lenovo and apparel firm Metersbonwe.
“Internet shopping is rising rapidly, and traditional retailers don’t want to miss out on the tremendous growth opportunities on offer,” Meng Fanxin, an analyst with CNNIC, told The Straits Times.
Retail firms that already have a strong physical presence have a number of competitive advantages in “e-tailing”…
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