Boston Consulting Group: China ecommerce hits USD 750 bln in 2016

Wednesday 10 May 2017 13:37 CET | News

In 2016 Chinese consumers spent about USD 750 billion online, outspending both US and UK online purchases combined, according to Boston Consulting Group.

The rate of of ecommerce in China is going to grow twice as fast as the US and UK at about 20% annually.

Retailers dealing with the impending death of the US mall could take a hint from the Chinese marketplace and the habits of its consumers.

Digital shopping hit the internet in the 1990s, which coincided with a growth in disposable income in China, whereas in the US, shopping in brick-and-mortar stores had already been ingrained as a habit. 

Chinese shopping habits:

1. On average Chinas consumers spend about 30 minutes each day on the ecommerce marketplace Taobao, about three times as long as the average American.

2. Shopping online is a social experience focused on exploring new ideas and engaging with friends through online marketplace platforms that act as virtual malls, like Alibaba, which connects sellers and buyers through games, video, news, talk shows, and online communities.

3. Purchases made on mobile phones in China are far ahead of other countries (by 2020 mobile ecommerce is expected to make up 74% of total ecommerce in China, outpacing the US growth rate). The products Chinese consumers are buying on mobile phones are everything from food to luxury vehicles.

In US, Facebook has added a payment function through its messenger, and Pinterest has added a function to identify products available for purchase that are similar to those that appear in photos of outfits shared on its site.

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Keywords: Boston Consulting Group, ecommerce, China, US, UK, online, purchases, consumers
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce