China’s online shopping market is the biggest online shopping market in the world accounting to around USD 450 billion, in 2014. It is expected to reach around USD 780 billion in 2016. It is likely to grow at a CAGR of over 42% from 2011 to 2016 (forecast period).
Affordable rate and conveniences with regards to delivery and other services, and improved logistics are the primary drivers of this market. The online shopping China market is fragmented into application, end-users, and regions.
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Applications comprise clothes, bags, and suitcases accounted for around 27% of market share. Companies are choosing to explore health care, home décor, and maternal & kid products. This is expected to impelling the market in the coming years.
The end-users are fragmented into business to customer (B2C), customer to customer (C2C), and others. B2B accounted for around 54% of gross merchandise volume (GMV) in 2015. It is expected to expand in the coming years. Quality of goods and better services is expected to impel market growth in the coming years.
B2C is expected to continue maintaining the impetus in China’s online shopping market.
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Zhejiang, Guangdong, Liaoning, Sichuan, Fujian, Jiangsu, Tianjin, and Beijing regions of China did most of their shopping on Taobao and Shanghai. Alibaba is most preferred in provinces like Zhejiang and Hangzhou.
Shanghai, Jiangsu, Zhejiang accounted for a total of 15% of the national delivery packages. It is expected to increase to around 25% of total packages sent.
Zhejiang, Shanghai, Fujian, Guangdong, and Jiangsu have the highest receiving and delivering rate of online orders in China. While Tibet, Qinghai, and Gansu are have the lowest spending average.
Lack of traditional commerce in Xinjiang as opposed to other regions of China has boosted online shopping as an essential channel of buying products.
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