Chinese Ecommerce Potential Essay

News, online price tag sales made up 1 . several Trillion Yuan (200 Billion USD) which represents 6, 3% of China total retail sales to get consumer goods. In 2020, this volume is expected to be nearly multiplied by 10 to reach 10 Trillion Yuan and 16% of retail revenue. (Source: Chinainternwatch and AliResearch)

In comparison to UNITED STATES market 210 Billion UNITED STATES DOLLAR in 2012, Chinese e-commerce already surpassed USA in deal amount. By 2014, the gap will reach 74% in favor of Chinese suppliers sustained expansion. (Source: http://techcrunch.com/2010/03/08/forrester-forecast-online-retail-sales-will-grow-to-250-billion-by-2014/)

Few factors can clarify the situation in China:

-The penetration charge of online retail in growing very much than in US, with 10% instead of 8% in America. This can be related to specificities of the internet business which has been especially well tailored to Oriental culture with all the possibility to bargain, discuss directly together with the sellers, control the product credibility or to pay without mastercard. -With a lot more than 8% GDP growth per year, the Oriental middle class is no longer a distinct segment market and they are fashion oriented, willing to dedicate a significant a part of their earnings in high end products and brands, no matter the actual costs.

2)Future challenges

Those predicting figures however avoid consider numerous issues the Chine market is facing. The latest news regarding unpaid taxes for on-line activities (http://qz.com/62483/new-tax-rules-could-put-a-dent-in-chinese-e-commerce-sites-like-taobao/), which allowed sellers to boost their margin by 30%, will likely lower the expectations of consumers if perhaps prices happen to be suddenly growing. Secondly, industry is over centered by Alibaba's group Taobao, owning regarding 80% of Consumer to consumer activity and Tmall with 50% of the B2C trades. This lack of competition will likely have got impacts on the long run with less advancement and higher platform costs through their monopolistic condition.

However , possibly considering the characters...



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