china ecommerce market size
Published on Jun 2, 2022

E-COMMERCE MARKET IN CHINA

A COMPREHENSIVE GUIDE - 2022

A Comprehensive Guide to E-Commerce in China - 2022

Online shopping has become more common over the past years with the latest developments in technology, the Internet becoming an increasingly important place, and more people having access to online platforms. Top eCommerce websites allow the average consumer to compare prices and, most of the time, find a better deal than stores on the street offer. Most of the online operating suppliers are able to cut down on rent by not having brick-and-mortar shops, and that reflects on prices. Not to mention that the consumer gets to access a wider range of suppliers than they would if they were having a shopping spree at their local venue since the majority of the suppliers ship anywhere in a competitive period of time. On the verge of becoming a cashless society, China is on top of the eCommerce game and is highly sought after by foreign investors. The top eCommerce websites in China, due to its 1.4 billion residents, are some of the biggest in the world. To enter the China eCommerce market, it's crucial for merchants to build a robust website, so you should pick a trusted web development agency for a successful shift to online.

How Has China’s Ecommerce Market Changed Over the Past Five Years?

During the coronavirus pandemic, China's e-commerce retail sales grew rapidly. In 2021, China's retail e-commerce sales value was estimated to be over 2.49 trillion US dollars, which amounts to 15% market growth year on year. According to projections by Statista, China's online retail sales would exceed 3.6 trillion dollars by 2025. In addition to the increase of mobile Internet users and the continuous improvement of online business services, the COVID-19 pandemic seems to be playing a role in the solid rise of the Chinese eCommerce market as well. With the latest COVID-19 outbreak, more and more people have become comfortable with making their purchases online. China eCommerce data shows that there has been a boost in the number of companies that have switched to an online business model to survive the hard times. Chinese online retailers are not only here to stay but will be the future of shopping.

What Are the Online Shopping Industry Statistics for China Ecommerce Market? (Market Size, Number of Online Shoppers, Etc.)

The number of people who shop online has shown a tremendous growth recently. It jumped from 34 million users in 2006 to a whopping 610 million users in 2018, which made a breakthrough in the eCommerce sector of China. In 2017, the buyer penetration rate reached almost 45%. This number hit 749 million users at the end of the first half of 2020. With a market size of almost $2 trillion US dollars, 190 thousand businesses, and 1.5 million people employed in the industry; China’s online shopping adventure is sure to grow.

china online shopping growth

What are the Biggest Chinese Online Retailers?

There are some big names everyone around the world is familiar with when it comes to the top eCommerce websites in China. Of course, everyone has their own personal opinions on which one is the best eCommerce company in China, and it is a matter of preference. However, market research shows that the top eCommerce websites in China are:

1. Tmall by Alibaba Group
Of course, the first platform on the list is owned by Alibaba. Tmall.com, formerly Taobao Mall, is an online B2C marketplace that operates via registered sellers on the platform. International as well as local Chinese businesses are able to deliver brand-name goods to consumers within China. Tmall is the third most visited website in the world and it is the top cross-border eCommerce marketplace in China. Tmall has a market share of 50%-60% which puts Alibaba’s market value at $480.8 billion.

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2. JD.com
JD, also known as Jingdong (formerly 360buy) is the biggest competitor of Tmall by Alibaba. JD.com is a B2C online retail and a marketplace platform at the same time. While there are third-party vendors who deliver their products to consumers, JD.com also sells items directly to consumers. In 2014, JD formed a strategic partnership with Tencent, the leading technology company in China. Right now, JD.com follows Alibaba with a market share of 15%-20% in the China eCommerce scene.

The list of the biggest Chinese online retailers continues with Suning.com for electronics, Kaola for high-quality “Western” products, and Xiao Hong Shu (Little Red Book) for young people’s lifestyle shopping.

Trends in the China eCommerce Market

China is the most prominent leader in eCommerce with a market size three times bigger than its closest counterpart, the US. So it is only fair to expect expansion and innovation in the market as technology shapes Chinese consumers’ new shopping habits. More and more companies are targeting lower-tier cities as a part of their expansion strategy and adopting new initiatives to keep up with the current China eCommerce market trends. Let’s take a look at the most important China eCommerce market trends for this year.

  • Livestreaming is already huge in China, and it’s not uncommon for Chinese influencers to endorse a product during their live stream. Together with the short video apps, it will become even more important as a sales medium and we will see the new ways it can be used.
  • Yes, we have just said that live-streaming will be even more important for sales, but there is a shift from KOL (Key Opinion Leader) marketing to KOC (Key Opinion Consumer) marketing. This means that consumers relate more to regular consumers like them who create authentic and trustable content. They always check online reviews before buying a product, so why not have them on your side?
  • There is an increasing demand for cross-border eCommerce. Alibaba’s acquisition of Kaola cannot be a coincidence, right? Consumers are interested in foreign brands more than ever before.
  • Recommerce or reverse commerce will come to the fore. It’s not only cheaper but also environment-friendly! Right after mentioning sustainability, it’s time to talk about cruelty-free products. Animal testing has been mandatory in China but policymakers are moving away from these regulations as the number of animal rights activists increases. Nǐ hǎo vegan brands!
  • The importance of big data seems to be on the rise. Chinese consumers love using their smartphones, so it’s the ideal place to put data-oriented C2M (Customer to Manufacturer) marketing into use. Group buying will gain more traction, especially in lower-tier areas. Alibaba and JD.com have already launched their own group-buying functions!
  • On 29th August 2020, China Construction Bank introduced its Digital Currency/Electronic Payments(DCEP). This government-sanctioned cryptocurrency is planned as the digital version of RMB. China is on the verge of becoming a cashless society, and this is the time for eCommerce to shine.
  • Faster, faster, and faster delivery. It is no surprise at this point that it’s the reason market leaders are investing in warehouses all over the country.
  • Vertical eCommerce websites will be more popular among consumers as they create a community for like-minded consumers to interact.
  • Fintech companies in competition with institutions delivering traditional financial services are having a good run. With Artificial Intelligence and Machine Learning powered technologies, the loan terms are customized to the needs of the applicants, which allows small businesses to be included in China’s eCommerce scene.
  • Mini programs will gain more importance as it’s easier to shop within the same app without having to download another one.
  • Chinese consumers show a strong preference for omnichannel retail services where they can find the benefits of physical stores combined with the advantages of online shopping platforms, and it seems to be getting more popular with the increasing trust in eCommerce platforms and online transactions.

Which Devices Do Online Shoppers Prefer?

It is no surprise that China is the land of smartphones. However, it may come as a surprise that mobile devices account for 80% of retail eCommerce sales. This is quite ahead of the global average, which is currently at 64%. Mobile devices play a crucial role in connecting B2C. Thus, all eCommerce sites are optimized for mobile without exception. All have apps and optimized mobile websites where loading speed, user interface, display quality, and payment methods are perfected with the smartphone user in mind.

Popular Online Payment Methods in China

The advancement in online payment methods has paved the way for eCommerce, and vice versa. After the COVID-19 outbreak, it has become even more common with the action launched by the Payment & Clearing Association of China (PCAC) advising people to use online payment. The most popular online payment methods in China are Alipay, WeChat Pay, and UnionPay. In fact, these are very common payment methods in China, so they’re not only used for online shopping but also at the checkout of many physical stores. The idea of scanning a QR code sounds more quick and sanitary than dealing with worn-out cash, looking for coins, or paying the fees that banks charge in the case of a merchant.

Alipay's payment method revolutionized the way payment is executed in China. It is the oldest among all its competitors having launched 10 years earlier than its closest rival, WeChat Pay. Despite coming into the scene 10 years later, WeChat Pay managed to own a competitive share in the market - thanks to having its own system built on the most popular social media platform in China, WeChat -as if you couldn’t tell-. WeChat Pay has more than 900 million monthly active users in its pool of 1.1 billion monthly active users while Alipay boasts more than 1.2 billion active users every month. Alipay remains a leader with a 55.4% market share, followed closely by WeChat Pay at 38.8%.

Challenges of the China eCommerce Market

There could be many challenges awaiting businesses aiming to enter the Chinese market. It might sound tempting to do business with the largest economy in the world, but you should be prepared well in advance to avoid any issues in the China eCommerce market.


~~~ ~~~ ~~~ CHINA eCOMMERCE MARKET TRENDS BUY SELL eCommerce Trends in China ~~~ ~~~ ~~~ ~~~ ECOMMERCE INDUSTRY IN CHINA A COMPREHENSIVE GUIDE - 2022 eCommerce Trends in China ~~~ BAŞLIK Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt BAŞLIK Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt BAŞLIK Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt BAŞLIK Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ~~~ ~~~ ~~~ ECOMMERCETRENDS INCHINA ~~~ LIVESTREAMING MARKETING Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ex ea ECOMMERCE Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ex ea Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ex ea SUSTAINABILITY Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ex ea ~~~ LIVESTREAMING MARKETING Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonum-my nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper sus-cipit lobortis nisl ut aliquip ex ea ECOMMERCE Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonum-my nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper sus-cipit lobortis nisl ut aliquip ex ea Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonum-my nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper sus-cipit lobortis nisl ut aliquip ex ea SUSTAINABILITY Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ~~~ ECOMMERCE TRENDS IN CHINA 中国 直播 行销 电子商务 可持续性 ~~~ COMPETITION DISCOUNTS You should start by taking your competitors seriously. In the China eCommerce market, the competition is fierce. You should conduct a market research in advance and make sure the Return of Investment (ROI) makes ends meet, to say the least. OPTIMIZATION You have to be very active and you need to constantly optimize your online store. Keep searching for new sources to gain good quality traffic, work on your ads, and participate in special events. You should also be quick in responding to the consumers’ questions or consider outsourcing the management to eCommerce agencies. Chinese consumers love discounts and search forever until they find the best deal. Discounts can decrease your margin and affect the brand image. So, try to have discounts on special events like 11.11 or apply discounts to bundled items rather than single ones so it’s harder to compare. PHYSICAL STORE To be able to get accepted into major platforms like Tmall and JD, you might be asked to have a physical store or showroom where consumers can visit and see the products before they decide to buy it. That is if you are just starting your journey, it’s better to work on your brand and expand the business before you apply for those platforms. BRAND NAME You have to make sure that your brand name or slogan makes sense in the Chinese culture and doesn’t carry any offensive hidden meanings. To avoid any issues, get assistance from a company that offers Chinese translation services. LOCALIZATION Always localize your content! Chinese consumers want to relate to the content you are publishing and they expect you to reflect their values. Make sure you work with an experienced Chinese localization company. CHALLENGES OF ECOMMERCE IN CHINA 中国 竞争 打折 优化 实体店 品牌名称 本地化 ECOMMERCE TRENDS IN CHINA 中国 ~~~ 竞争 打折 优化 实体店 品牌名称 本地化 LIVESTREAM RELIABILITY Livestreaming is already huge in China and it’s not uncommon for Chinese influencers to endorse a product during their livestream. Together with the short video apps, it will become even more important as a sales medium and we will see the new ways it can be used in. OPTIMIZATION You have to be very active and you need to constantly optimize your online store. Keep searching for new sources to gain good quality traffic, work on your ads, and participate in special events. You should also be responsive to the consumers’ questions, and a lot of them. You should have a team to make sure they get the right answers at the right time, or you might want to outsource the management to eCommerce agencies. Yes, we have just said that livestreaming will be even more important for sales, but there is a shift from KOL (Key Opinion Leader) marketing to KOC (Key Opinion Consumer) marketing. This means that consumers relate more to regular consum-ers like them that create authentic and trustable content. They always check online reviews before buying a product so why not have them on your side? PHYSICAL STORE To be able to get accepted into major platforms like Tmall and JD, you might be asked to have a physical store or showroom where consumers can visit and see the products before they decide to buy it. That is if you are just starting your journey, it’s better to work on your brand and expand the business before you apply for those platforms. BRAND NAME You have to make sure that your brand name or slogan makes sense in the Chinese culture and doesn’t carry any offensive hidden meanings. To avoid any issues, get assistance from a company that offers Chinese translation services. LOCALIZATION Always localize your content! Chinese consumers want to relate to the content you are publishing and they expect you to reflect their values. Make sure you work with an experienced Chinese localization company. ~~~ ~~~ E-COMMERCE CHINA 中国 A COMPREHENSIVE GUIDE - 2022 MARKET IN CHINA ~~~ E-COMMERCE MARKET IN CHINA ~~~ 中国 A COMPREHENSIVE GUIDE - 2022 ~~~ E-COMMERCE MARKET IN CHINA 中国 A COMPREHENSIVE GUIDE - 2022


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KAAN DEMIREL

Published on Jun 2, 2022

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