china ecommerce market growth trends 2013 - characteristics and evolution of chinese ecommerce users

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Post on 09-May-2015




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There continues to be an unprecedented growth of online shopping among Chinese consumers. Online shopping frequency and spending amounts continue to increase year by year. Online shoppers’ average spending is around RMB 5,203, narrowing the gap with the U.S. each year. As the age group and income level of the users as well as the proportion of affluent consumers from the third and fourth tier cities increase, Chinese online shoppers desire luxury brands which enhance the quality of life, resulting in a trend of overseas online shopping through purchasing agent. International brands should seize this opportunity. The increasing number of Chinese eCommerce enterprises gives rise to fierce competition in the market as companies fight for users and traffic. eCommerce enterprises are facing common challenges such as increasing costs of acquiring new users and churn rate of existing users. To solve more fundamental management problems, different types of eCommerce enterprises need to establish the right direction of running the business and implement appropriate strategic solutions.


  • 1.Unprecedented Growth of Online Shopping among Chinese Consumers In China, nearly 50% of online shoppers purchase at least 1 time in a week, surpassing the average level of the world#In 2012, Chinese online shoppers per capita consumption reached RMB5,203 with YOY growth of 25%#12.1%6.8%RMB5,001-10,000Over RMB10,00044%37.1%50%CHINAUnder RMB1,000shop online at least once a week29%GLOBALOnly shop online at least once a weekRMB1,001-5,000Consumption Demand of Chinese Online Shoppers Top 3# Commodities Mostly Purchased by Internet UsersTop 3^ Commodities with Largest Transaction ProportionWith their spending power increase gradually, they prefer goods which enhance their quality of life such as clothing, personal care products, skincare products /cosmetics, health care products and electrical appliances.81%31.6%29.6%35%20%15%Clothing, footwear & accessoriesDaily necessities3C productsClothingEntertainment / EducationHome productsAnalysis of Demographics and Purchasing Behaviour of Online Shoppers 33.1% of online shoppers are between age 25 to 30; In China, online shoppers lean towards the middle-age group of 31 above#.Online shoppers personal monthly income continued to grow#30.3%12.6%12.6%10.2%RMB5,001-8,000RMB1,001-2,000Personal Monthly IncomeUsers Age7.1%Above RMB8,000RMB501-1,000Under 18 years old Over 40 years old12.9%Under RMB5007%18-24 years old1%6.2%36-40 years old18.4%33.1%31-35 years old25-30 years old19.2%RMB2,001-3,00029.7%RMB3,001-5,000 Purchasing Behaviour of Men vs Women Clothing, footwear, luggage & outdoor products30.9%47.3%21.2%Mobile phone prepaid packageClothing, footwear, luggage & outdoor products11.7% Cosmetics & personal careBooks & audio-visual publications 7.6%11.4% Mobile phone prepaid packageCharacteristics and Purchasing Behaviour Analysis of Mobile Online Shoppers When do the Mobile Shoppers Purchase?#Purchasing Time of Mobile Shoppers& The personal income of IOS and Android users are relatively high, mainly work in ofce with various break time in between. Before and after work, lunch time as well as night time are relatively the peak hours for browsing online.10.6%31.8%During work/ schoolQueuing up/ WaitingAfternoon/EveningMorning26.2%13.9%Unable to go online via PC53.3%During public transportAt Home1%OthersLow Peak HrsHigh Peak HrsPurchasing Behaviour of Chinese online shoppers on eCommerce websites The increased number of eCommerce websites has led internet users to be less loyal to a specic website. In 2012, the proportion of online shoppers using only one shopping website accounted for 51.1%. It has dropped signicantly by 10% as compared with 2011 and by 21.6%# with 2010.51.1%Cost for Independent merchants to acquire new users increase year by year It is inevitable that the costs for independent merchants to acquire new users increase signicantly due to intense competition and increment of advertising rates. The cost of acquiring a new user rose from around RMB20 in 2009 to over RMB100 in 2012. RMB100RMB202012200961.1% 20112012Around 10% Churn Rate of Top eCommerce Websites The major reason is mainly due to incomplete product range, leading to user loss of 47.1%#.72.7%24.2%2010Poor quality of goods47.1%Unable to locate goods they want4.5%Dissatisfactory after-sales serviceConclusion17.8%Expensive pricing of goods2.5%8.3%Deceive consumersUnable to open the website4.5%Poor delivery serviceReasons for Users to Stop Using Specic Website

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