China’s vast population makes it an extremely attractive market for Western brands. Growing internet access across the country means that more brands are beginning to develop their digital strategy to address the Chinese market.
China is a major player in the world of e-commerce. In 2016, 47% of all e-commerce transactions originated in China. eMarketer estimates that by 2020, the Chinese share of e-commerce sales will have increased to 60%. Due to the volume of sales it generates, China is a very important market for any brand which operates an e-commerce store. Understanding the current landscape and the trends which are fuelling this e-commerce boom can help your business to
compete
The number of people with internet access in China is steadily increasing. At the start of 2017, 730 million people in the country had access to the internet, which is comparable with access figures for the whole of Europe. Official estimates from China suggest that around a third of the population (around 470 million people) use the internet to buy goods and services. While internet access is higher in large cities such as Beijing and Shanghai, smaller cities and towns are now using the internet to buy Western brands.
In recent times, there has been much focus on the slowdown in the Chinese economy. However, annual GDP growth of 6.9% in Q2 2017 is a number that many developed nations can only dream of.
Another factor coming into play are the results of the one-child policy, China has an ageing population. The Chinese National Development and Reform Commission estimates that by 2030 there will be 80 million fewer Chinese citizens aged 15 to 59 when compared to 2015.
While this demographic change could impact consumer demand, it is likely to be counterbalanced by the size of the population (1.37 billion) and the growing middle class, which is predicted to include 76% of the population by 2022.