Future of E-Commerce in China

China leads the world in e-commerce. More than 40% of the world’s e-commerce exchanges currently take place in China, up from just 1% about a decade back.

Neighborhood Chinese tech champions, for example, Alibaba Gathering, Tencent and JD dominate a quickly developing e-commerce ecosystem, for the most part inside China. Chinese consumers are mobile clever, to such an extent that even older generations are comfortable with mobile commerce and obtaining online to offline (O2O) services. The fast development of this industry combined with a large and developing computerized consumer base has fuelled tremendous development both domestically and abroad by means of cross-border trade. This unique environment is propelling developments in commerce and computerized trade, with China serving as a testbed for new ideas that will propel the future of the worldwide e-commerce marketplace.

Here are five future trends to pay special mind to in China’s e-commerce landscape.

1) Cross-border e-commerce

At the 2018 World Economic Discussion Yearly Meeting in Davos, Jack Mama, the founder and executive director of Alibaba Gathering, argued: “Nobody can stop globalization, nobody can stop trade.” One of the greatest signs of the role e-commerce plays in driving globalization is the measure of cross-border e-commerce between China and the rest of the world. In 2016 the market size of cross-border retail e-commerce sales in China was $78.5 billion; this figure is expected to exceed $140 billion by 2021.

What is driving this trend? To start with, as a record number of Chinese travel to another country to work, study and travel they are picking up exposure to more international brands and items than any time in recent memory. When they return home to China, these shoppers rely on cross-border e-commerce to purchase international items that are either not available domestically or are excessively expensive in nearby lead retail outlets inside China.

Second, due to concerns around consumer and sanitation, Chinese consumers are going to cross-border e-commerce as an approach to access trusted international brands. This is especially the case for key item categories, for example, child items, health and nourishment, beauty and natural sustenance items.

Consumers can either use Chinese cross-border e-commerce stages like Alibaba’s TMall Worldwide or’s JD Worldwide, or they can rely on informal overseas sellers, otherwise called daigou. Daigou agents reside in foreign markets, purchase authentic merchandise overseas and after that use neighborhood stages like WeChat and Taobao to reach Chinese consumers.

2) The establishment of e-commerce special trade zones

As China’s existing import/export structure was created before the advent of mass cross-border e-commerce exchanges, the nation has been setting up new cross-border e-commerce pilot zones in 13 cities since 2015, which has led to tremendous development, and has quite recently approved 22 more areas crosswise over China. These pilot zones provide a streamlined system with simplified regulations for faster examination and endorsement, custom clearance, and easier data sharing for cross-border e-commerce imports and exports. What’s more, Chinese e-commerce companies, for example, Alibaba have likewise been advancing special e-commerce trade zones in countries like Malaysia and Thailand; in spite of the fact that there have additionally been some concerns on imposing business model and effect on nearby firms.

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