Daily Management Review

China breaks into the e-commerce vanguard


05/09/2017


Not only the Chinese market of electronic and mobile retail trade caught up with the American and European, but in a number of ways has already become a reference point for the whole world.



negativespace.co
negativespace.co
Boston Consulting Group and Chinese online retailer Alibaba have published a joint study "The New Retail: China's Lessons for the West." It reports that Chinese consumers spent about $ 750 billion online in 2016, which is more than in the same time spent by Americans and British combined.

The authors of the study are not inclined to see the cause of this only in the large population of China. When online trading appeared in the USA in the 1990s, even ordinary retail was very poorly developed in China, which was just in beginning of its market reforms. Americans, already accustomed to high standards of trade, had to rebuild and change their preferences, then the Chinese just "jumped" through consumption in the usual retail.

"As a result, e-commerce quickly became the norm in China, and its development was so rapid that China was already ahead of it in the West", the study said.

The situation developed in the same way in the segment of mobile online trade. "Many Chinese users have jumped through the PC era, immediately starting to use smartphones. This can also explain why Samsung phones with large screens became popular in China earlier than in Western countries", the authors note.
 
According to forecasts of BCG and other analysts, by 2020 online purchases made with the help of smartphones will account for 74% of all electronic retailing in China, compared to 46% in the US. At the same time, the dynamics of e-commerce in China shows no signs of slowing down. In the next five years, it will grow at an average of 20% per year. This is twice as fast as in the US or the UK.

Analyzing the market’s dynamics and consumer behavior in China and Western countries, experts conclude that all online retailers are struggling with approximately the same tasks. Among the top priorities is the creation of universal sales channels. They must combine the strengths of online and offline retail, give users an easy and at the same time effective opportunity to purchase, select and compare products and use the supply chain.

"The difference between online and offline trading will disappear in this world, and how the consumer thought and behavior will be the main determining factor for how sellers behave", the researchers expect. "Market players will focus on more active involvement of customers by personalizing the proposed range. This is what Alibaba calls the "new retail". 

source: bcg.com






Science & Technology

Baidu comes up with a self-driving bus

Developing countries are stepping up their own space programs

McAfee: Number of cybercrime attacks skyrocketed

RemoveDebris Mission To Clear Debris Of In Orbit Over Earth

British experts: Online gambling is dangerous

Vodafone Chooses ‘Highly Trafficked Urban’ Space As Its 5G Testing Grounds

Space To Become A Travel Destination By 2022

Dream Of Immortality Can Be Realised By 2045

Predicting A Patient’s Death Might Be Possible With Google’s Machine Learning Tool

Are online DNA databases dangerous?

World Politics

World & Politics

Was Trump's visit to the UK the last straw?

Prime Minister May Could Alter Brexit Strategies, Said Ress-Mogg

Le Maire: The US refused to release France from anti-Iran sanctions

One Belt, One Road is facing difficulties around the world

Qatar to raise $ 4 billion to buy Eurofighter Typhoon jets

The UK sets to turn all cars zero-emission by 2030

Brexit Minister’s Resignation States May’s Brexit Policies Weakening The Country’s Stance

Global Plastic Waste Can Wrap The Planet ‘Seven Times Every Hour’