An Analysis of China’s E-Commerce Industry
Introduction
A little more than 10 years ago, China’s path to e-commerce leadership would have been difficult to foresee, even as the tech boom in the US and other markets saw the development of e-commerce as an important B2C and C2C channel.
In 2000, China had yet to develop any e-commerce applications, and had only 2.1 million total internet users. Payment systems and physical delivery mechanisms to facilitate the development of e-commerce transactions were well-developed in other markets, but were simply lacking in China.
Fast forward to the end of 2013: with Chinese internet users quickly approaching 600 million, China is on pace to pass the US and become the largest e-commerce market in the world.
China’s e-commerce industry
Online retailing in China, dubbed ‘e-tailing’, has doubled every year since 2003. By 2020 the size of China’s online retail market is predicted to reach up to US$650 billion, exceeding the combined value of online markets in the USA, UK, Japan, German and France. With over 590 million internet users, China boasts the world’s largest online population - more than the US and Japan combined – and still growing at almost 10 per cent per annum.
The boom in online retail is a key element of the government’s drive to re-balance China’s economy in a way that positions consumption to make a far more significant contribution to GDP growth. China’s new leadership team - Premier Li Keqiang in particular - is actively encouraging the expansion of so-called ‘digital consumption’ - xinxi xiaofei 信息消费.
In the first six months of 2013, e-commerce revenue in China reached almost RMB 5 trillion, a 45 per cent increase year on year. Payments through mobile dev...
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...oes not dominate the entire market. The Chinese market is so large that even an e-commerce giant like Alibaba is unable to capture the entire market. Here are some other players who are in the market as well:
Conclusion
E-commerce in China is complex, unlike any other country, and in a constant state of flux. The sheer size of the industry and the sheer number of Chinese consumers - which is still steadily growing as you read this report - make it extremely hard to navigate this complex industry and even harder to find a winning strategy. However, with careful research and acute business sense, one will be able to capitalise on the unique dynamics on this industry and make investments that will make a good return in the long run. I hope that this report has helped to give you some key insights into the industry and improve on your investment process.
The future of economic competitiveness for most enterprises relies on entrance and active participation in the e-commerce market. An essential problem with e-commerce is that the controls and organization are different for each site. There is no standard way of building t...
A further reason why should focus on second and third tier cities of south-east part China is the rapid growth and penetration of Internet which would bring a booming development to the e-commerce implication in these market. Since TESCO has been successfully implement the on-line shop system in UK, it got technology advanced in this part.
The online price war, which is caused by unfair practices in China, has been a serious problem in recent years. Millions of retailers have participated in China’s online economy since 2000 due to the huge market and profit. According to the statistic in 2008, China’s online retail market was worth USD 18.8 billion, with a sustained stable growth rate of over 100 percent each year (Gong et al., 2013). Two wide-ranging online price wars happened last year. The majority of large-scale online retailers, such as alibaba, Jingdong, Suning and Gome were involved. A variety of economic issues have been caused by online price wars, which is troubling for the market economy, owning to the frequent unfair practices. It has also led to deleterious effects on social sustainability, such as the aggravated unemployment issue. This report will identify the effects and implications of online price war, focusing on China, analyze the causes and suggest possible solutions.
The protection of consumer privacy in e-business. The digital era has arrived. Blue Book information editorial board and Social Science Literature Publishing House (2010) pointed out that “China's e-commerce transaction volume reached 3.85 trillion yuan in 2009”. Utilisation of e-business services was also high amongst Hong Kong people.
Nowadays, high-speed development of the technology has changed the daily life and the computer and the Internet have become the mainstream in China markets. The expansion of the Internet rapidly leads the e-commence to develop and change the operation way of Chinese business. At present, there are many people who want to start-up a business on their own. Ma seizes the opportunity to establish a great stage ‘Alibaba’ for those small potential entrepreneurs. In order to adapt to China’s fast-growing e-commerce environment, Alibaba have growth really quick.
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
The purpose of this industry market analysis is to explore Alibaba.com, an internet-based company that provides platforms for consumer to business transactions. The e-commerce industry has become highly saturated however there are only a handful of leaders in the industry including Alibaba. Alibaba’s unique business model is designed to create an ecosystem within e-commerce. Thus, cutting operating costs and reaching a larger demographic. Despite its competition, Alibaba is the leading e-commerce company in China and is expected to continue to grow exponentially.
The Internet has become a major tool for communication and access to information for over two and half billion people (Wright 121). Although Internet has become an unavoidable reality that is consuming our planet in a web of information. This process is being shaped by our actions and choices which ultimately drives us together (Deibert 11). Nowadays China has over 538 million netizens, the world’s largest online community (Feng & Guo 335).
The Internet is rapidly becoming widespread and widely used as a tool for globalization across the world. As the Internet became more easily accessible by most people in the world, the web is bringing significant implications and changes to the way we live, including the way we shop. There is a rapid growth with e-commerce and moving businesses onto the web and retail success is no longer about stores and shopping centers. In developed countries, about two thirds of the population have access to the Internet making the option of online shopping is easily accessible to most people (Valerio). With the ease of shopping in your own home there are many benefits of doing your shopping online. Consumers can easily compare prices online, there is a larger range of products on the web, you can save time by having your shopping delivered right to your doorstep and it also overcomes physical barriers. Over the last decade online shopping has challenged and replaced the traditional means of physically going into shops as the digital world has provided customers with further convenience, flexibility and comfort from shopping from your own home.
The Information revolution is changing our daily lives. With the rapid development of computers and the internet, online commerce has become quite common and plays an important role in the modern world. Online business has been booming in recent years. US online retail sales rose an average of 11% in the first three months of 2009 (“US Online Sales Up,” 2009). The growth of online sales may be due to the growing number of consumers who shop online.
Online retail and shopping sales has been growing consistently every year, not just in the US but worldwide. Not only does online shopping give customers more convenience, more variety, and more discreetness but it also gives customers better prices. While it is quite true that Wal-Mart has product variety and cheap prices – things customers want – the physical stores do not really give the convenience and discreteness that online retail and shopping does.
Shin, N. (2001). Strategies for Competitive Advantage in Electronic Commerce. Journal of Electronic Commerce Research, 2 (4), pp. 164-171.
This report will attempt to critically analyse and assess the internal and external factors which effected the strategic decisions made by eBay. These strategic decisions consisted of the acquisitions with Skype and PayPal coupled together with an analysis on why eBay failed may have failed in expanding their online presence in eastern parts on the globe such as China.
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.