This year China will be the largest e-commerce market in the world. By the end of this year this Asian superpower will surpass the United States. This is stated in a report from advisory firm Bain & Company.
Last year, the American e-commerce market had a $228,8 billion value, approximately $14,4 billion more than its rival China. Putting in perspective, the Chinese market grows with 71% annually. The United States market annually grows with 13%. With a such a growth rate, the Chinese will surpass United States’ market, this year.
Above all, consultants conclude that the Chinese e-commerce market will continue to grow spectacularly because of an ever increasing middle class. According to expectations, by the year 2015, China’s e-commerce market value will reach an approximate $539 billion value. According Serge Hoffmann, advisor at Bain, consumer behavior in China is evolving staggeringly fast. By estimate, half of all Chinese people has an internet connection, of those, 80% even has a tablet or smartphone at his or her disposal. For all companies, within offline and online retailing, a clear conclusion can be drawn: only if retailers constructively built their presence in a credible manner, they will be protected against this future script, in the long-term.
According to the strategic advisory firm, the most important stumbling block for expanding online retail in China is the country’s logistic infrastructure. Nonetheless, it is under construction when logistic efforts undertaken by Chinese e-commerce organizations are considered.