An Analysis of Chinaa E-Commerce Industry - 1488 Words

An Analysis of China’s E-Commerce Industry Introduction A little more than 10 years ago, China’s path to e-commerce leadership would have been difficult to foresee, even as the tech boom in the US and other markets saw the development of e-commerce as an important B2C and C2C channel. In 2000, China had yet to develop any e-commerce applications, and had only 2.1 million total internet users. Payment systems and physical delivery mechanisms to facilitate the development of e-commerce transactions were well-developed in other markets, but were simply lacking in China. Fast forward to the end of 2013: with Chinese internet users quickly approaching 600 million, China is on pace to pass the US and become the largest e-commerce†¦show more content†¦We can see from the chart below that by looking at the total e-commerce sales per country, China is the second-largest player in the global market, losing out only to the United States. Market trends Within the e-commerce industry in China, we are able to identify several market trends that shape the nature of the industry and also give us insights into how the industry will evolve in the near future. By comparing C2C and B2C transaction value over the pst few years, we can see that B2C has been gaining market share gradually, and will reach about 50% by 2016E. Also, we notice that there is rapid growth of mobile shopping, which is defined as customers who shop online using their mobile devices. Also, we notice that the amount of transactions that are processed using mobile devices has been slowly increasing over the past few years as well. Mobile Data from CNNIC indicate that mobile phones had become the number one terminal for surfing instead of computers by June