Daily Management Review

Growing online presence in China is propelling activities in other markets


08/27/2018


The number of Internet users in China exceeded 800 million, which is more than in the United States, Japan and Russia combined. Analysts say that the rapid growth of Internet popularity in China is stimulated not only by the online sales of goods and media content, but also by related industries, for example, traditional retail trade.



Indi Samarajiva via flickr
Indi Samarajiva via flickr
According to the China Information Center for Internet and Network Communications, the number of Internet users in China increased by 30 million and reached 802 million in the first half of this year. At the same time, the penetration rate of the Internet in the PRC remains low - only 57.7%. It is reported that in June, seven out of ten Chinese users made purchases on the Internet, and about 566 million Chinese people used mobile payments, which is 7.4% more than six months ago. Last year, during the Chinese sales day (Bachelor Day, November 11), the Internet giant Alibaba sold goods for $ 25 billion, setting a new record. The company managed to sell 39% more than last year.

However, the rapid growth of the Internet in China gives huge opportunities for business development not only for high-tech companies, but also for other market participants. Alibaba already owns Hong Kong company Intime Retail, which manages 32 department stores and 30 shopping centers in China. In addition, Alibaba bought shares in the retail network Suning Commerce Group (electronics sales) and the chain of hardware stores of the Beijing Easyhome Investment Holdings Group. Alibaba also operates 57 grocery supermarkets Hema in China.

The Chinese company extends its concept to other countries, stimulating tgrowth of competition in local retail markets. For example, Alibaba has already become one of the fastest growing retailers in Australia, competing with local networks of Kathmandu, Woolworths, etc. Alibaba does not hide that it is developing a "new retail" which includes a combination of online and offline sales. "The online sales channel does not cancel offline. Both these channels complement each other - after all, many consumers want to first look at a pair of jeans, try something in person," said James Hudson, head of the Alibaba marketing department in Australia, in an interview with the Australian resource News.com.au. "We are committed to following the needs of customers and help them to use a convenient way for them to buy."

source: news.com.au






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