An increase in competition is cited as the catalyst for a rise in ecommerce in China.
An increase in competition is cited as the catalyst for a rise in ecommerce in China.
That’s according to new figures from research firm Analysys International, cited by warc.com, which found online retail revenues increase by 45 per cent year-on-year in the second quarter of 2012 – reaching RM279bn overall.
The country’s growing digital audience – which mainly comprises young people – is another trend found on the research, as price wars continue to intensify in major online markets.
Retail firms Taobao and Tmall have taken the lion’s share of the market, boasting an impressive 76 per cent and sales exceeding 200 billion yuan. cites peopledaily.com.cn. In addition, electronics site 360buy accrued 5.5 per cent – while Tencent, one of China’s largest internet companies, managed to secure 4.5 per cent of the market.
Overall, making an online payment to a web store is becoming more popular than ever, especially as big name brands like Levi’s and Zara are attempting to tap into China’s ecommerce market.
Yujun Qui, an analyst at Planet Retail, commented on China’s ecommerce boom: “Taobao is the absolute leader in the Chinese ecommerce sector. Taobao’s success lies in its low prices and wide range of products, especially those not commonly available through other channels.”
Additional figures from McKinsey, a consultancy, suggest online retail revenues will hit RMB2.2tr in 2016.
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