To what extent does China dominate the online retail market?
McKinsey Quarterly recently published a study into the extent of China’s Internet boom and how that has affected online shopping. We look into the data from a business perspective.
China boasts the largest online population. But does this translate into sales?
That does seems to be the case. In 2011 Germany had $32 billion worth of e-tailing sales, the UK had $56 billion and Japan had $107 billion, but all of these pale into comparison compared with China where online sales reached $120 billion, second only to the U.S.A.
Why is online shopping so popular in China?
Especially outside of the large cities, China cannot build enough shops to satisfy demand. It’s extremely difficult to build nation-wide stores in a country as vast as China. The variety of different cultures and the speed of development in China only make it more of a challenge to build shops across the country.
Therefore, many Chinese consumers are keen to purchase online. A vast range of products has only been available to Chinese consumers relatively recently and the Chinese consumers want to take advantage of these new developments by spending online.