Before talking about what marjor factors influncing Chinese fresh food online shopping market. I am going to give some details about current statement of China's e-commerce as the background.
As we know, China is not country which found E-commerce, and also the definition of e-commerce was accepted by Chinese people which later than other western countries and U.S. But in the following figures show a series of data about the development of e-commerce in China which is composed of three aspects: online buyers, online shoppers and retail e-commerce sales. These figures illustrated that the rate of growth of China’s e-commerce market is faster than western countries where e-commerce originated in the recent years. Internet World stats, 2010 notes that by the end of June, 2010, internet users in china reached 420 million, a 9.36% increase from the end of 2009 and the number of user is predicted to increase during the next decade. As result of the growing ability of internet access, increasing quantities of Chinese customers are willing to use the internet to purchase variety of goods from many countries through online retails.
As we know, China is not country which found E-commerce, and also the definition of e-commerce was accepted by Chinese people which later than other western countries and U.S. But in the following figures show a series of data about the development of e-commerce in China which is composed of three aspects: online buyers, online shoppers and retail e-commerce sales. These figures illustrated that the rate of growth of China’s e-commerce market is faster than western countries where e-commerce originated in the recent years. Internet World stats, 2010 notes that by the end of June, 2010, internet users in china reached 420 million, a 9.36% increase from the end of 2009 and the number of user is predicted to increase during the next decade. As result of the growing ability of internet access, increasing quantities of Chinese customers are willing to use the internet to purchase variety of goods from many countries through online retails.
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| Online buyers in China, 2010-2016 eMarketer.com |
As
the right picture demonstrates that online buyers (millions) from 2010 to 2016.
Chinese people become more intresting and enjoying with online shopping. the
number pf online buyers on the mianland will rise to nearly 424 million in
2016. Moreover, eMarketer forecasted there will 423.4 million people in China. The fast growth rate in China's B2C ecommerce sales
will be able to take its market far ahead of other contries. And according to
eMarketr's forecast period data, China can lead the globlal ecommerce
growing .
We can see from the left two figtures, the first one shows
that retail e-commerce sales and growth since 2008 to 2006. Obviously,
quantities of China sales is just 20 Billion USD, dramatically raised up around
five hundred Billion USD within 6years which increase about 25 times equally.
In 2009, China year – on year growth rate reached the peak point 105.2%.
In the second figure, China online shopper penetration
increased gradually from 2009. And in 2015, it reached top around 51.8%. The
number of china online shoppers has occupied a half quantities of China
internet users. It seems to me that the number of internet users are proportional to online shoppers and online buyers,
because network provides merchants a potential market to be exploited without
limited and buyers could find anything they want to buy. “Many traditional
retailers are developing E-commerce platforms that are driving B2C online
retailing market growth and attracting more consumer interest in purchasing
products online” (zhu,2013). Due to a huge potential business chance in B2C
market, a large proportion of traditional retailers have changed over their
retail shop into e-commerce market in order to attain more profit. Therefore
they prefer to pay more attention and expenses to their retail online. “Online shoppers have a very usable website and launch
50 new stock keeping units (SKU) every day and refresh all their products on a
three-day cycle, hence their inventory is always fresh and exciting, which
helps to draw in more interest from potential buyers”(Radovic, 2014).
From the above staitis, we could know online shopping market in China has adequate online users and online shoppers. That means that Chinese people are interesting and familiar with geting sources from internet. Therefore there are some other reasons lead to food online shopping become a barrier in China's e-commerce. Shopping online for Chinese, Alibaba group company is playing an important role in China's e-commerce market. So it is essential stage that analysing Alibaba group development. In the next post I will give Alibaba group in detail.
Reference:
- eMarketer, 2016, An evolving online shopping marketplace in China, [Online] Available at: [http://www.emarketer.com/] [Accessed 16th February 2016].
- Internet World, 2016, internet usage stats and population report, [Online] Available at: [http://www.internetworldstats.com/asia/cn.htm] [Accessed 13th February].
- Radovic.A, 2014, E-commerce in china: Alibaba is just the beginning. [Online] Available at: [http://www.clickz.com/clickz/column/2373776/e-commerce-in-china-alibaba-is-just-the-beginning] [Accessed 13th February].
- Weijing.zhu, 2013, China's luxury e-commerce trends, [Online] Avaibable at: [http://www.theworldofchinese.com/2013/07/chinas-luxury-e-commerce-trend/] [Accessed 20th February]
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