The Hot Zone
China's newly announced air defense identification zone over the East China Sea aims to shore up national security
Current Issue
· Table of Contents
· Editor's Desk
· Previous Issues
· Subscribe to Mag
Subscribe Now >>
Weekly Watch
Expert's View
Market Watch
North American Report
Government Documents
Expat's Eye
Photo Gallery
Reader's Service
Learning with
'Beijing Review'
E-mail us
RSS Feeds
PDF Edition
Reader's Letters
Make Beijing Review your homepage
Hot Links

cheap eyeglasses
Market Avenue

Online Sales Boom
Cover Stories Series 2012> Online Sales Boom
UPDATED: December 3, 2012 NO. 49 DECEMBER 6, 2012
New Consumption Impetus

On November 11, popularly referred to as Singles Day by Chinese Internet users, the daily sales of online retailers in China reached a new high of $4.8 billion. Similarly, online shopping on Cyber Monday in the United States topped $1.98 billion on November 26. The traditional model of in-store retailing has taken a huge hit by its online counterpart.

In recent years, China's e-commerce has embraced improving conditions. E-commerce enterprises have emerged in great numbers. Various payment technologies, including online and mobile payment, are rapidly developing. Along with the speedy rise of express delivery services, these trends are converging to create a strong infrastructure for booming of e-commerce in the country.

There are 100 million Internet users in China who are actual or potential online shopping consumers. Young people, especially white-collar workers, comprise the majority. From a toothbrush to a TV set, they increasingly turn to the Internet for their consumption needs.

According to the Bluebook of China E-business: Forecast 2013, published by the Data Center of China Internet (DCCI) on November 26, China's online sales are expected to reach $160 billion this year, accounting for over 3 percent of total consumer sales. The bluebook also predicted that online sales will exceed $223 billion in China in 2013 and its proportion of total consumer sales will reach 5 percent.

The e-commerce market is so enormous that no enterprise can afford to ignore its potential. For this reason, many in-store retailers and producers have launched online sales services.

However, many problems stand in the way of China's e-commerce sector. For instance, a credit management system has not been fully established. Intellectual property rights violations and counterfeit and fake goods remain unsolved problems. Laws and regulations are conspicuously lacking in e-commerce. Other supporting services, including warehousing, logistics and delivery, lag behind booming e-commerce.

E-commerce is an effective way for consumer goods producers to reduce costs, increase efficiency, expand markets and innovate business modes. Moreover, it will increase consumption demand and improve efficiency of resources utilization.

E-commerce is important to the transformation of China's economic growth mode, and it will play an increasingly vital role in optimizing industrial structure, fostering emerging industries and driving economic growth.

In the aftermath of every new online shopping bonanza, enterprises and concerned government departments should settle down and think carefully about how to turn soaring sales into continuous growth for the Chinese economy.

Top Story
-Protecting Ocean Rights
-Partners in Defense
-Fighting HIV+'s Stigma
-HIV: Privacy VS. Protection
-Setting the Tone
Related Stories
-Online Carnival
-Spending Spree
Most Popular
About BEIJINGREVIEW | About beijingreview.com | Rss Feeds | Contact us | Advertising | Subscribe & Service | Make Beijing Review your homepage
Copyright Beijing Review All right reserved