Unprecedented Growth of Online Shopping among Chinese Consumers
In China, nearly 50% of online shoppers
purchase at least ...
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China eCommerce Market Growth Trends 2013 - Characteristics and Evolution of Chinese eCommerce Users


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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.

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China eCommerce Market Growth Trends 2013 - Characteristics and Evolution of Chinese eCommerce Users

  1. 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% RMB5,001-10,000 Over RMB10,000 44% 37.1% 50% CHINA Under RMB1,000 shop online at least once a week 29% GLOBAL Only shop online at least once a week RMB1,001-5,000 Consumption Demand of Chinese Online Shoppers Top 3# Commodities Mostly Purchased by Internet Users Top 3^ Commodities with Largest Transaction Proportion With 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 & accessories Daily necessities 3C products Clothing Entertainment / Education Home products Analysis 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% RMB5,001-8,000 RMB1,001-2,000 Personal Monthly Income Users’ Age 7.1% Above RMB8,000 RMB501-1,000 Under 18 years old Over 40 years old 12.9% Under RMB500 7% 18-24 years old 1% 6.2% 36-40 years old 18.4% 33.1% 31-35 years old 25-30 years old 19.2% RMB2,001-3,000 29.7% RMB3,001-5,000 ∞ Purchasing Behaviour of Men vs Women Clothing, footwear, luggage & outdoor products 30.9% 47.3% 21.2% Mobile phone prepaid package Clothing, footwear, luggage & outdoor products 11.7% Cosmetics & personal care Books & audio-visual publications 7.6% 11.4% Mobile phone prepaid package Characteristics 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 office 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/ school Queuing up/ Waiting Afternoon/Evening Morning 26.2% 13.9% Unable to go online via PC 53.3% During public transport At Home 1% Others Low Peak Hrs High Peak Hrs Purchasing Behaviour of Chinese online shoppers on eCommerce websites The increased number of eCommerce websites has led internet users to be less loyal to a specific website. In 2012, the proportion of online shoppers using only one shopping website accounted for 51.1%. It has dropped significantly 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 significantly 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. † RMB100 RMB20 2012 2009 61.1% 2011 2012 Around 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% 2010 Poor quality of goods 47.1% Unable to locate goods they want 4.5% Dissatisfactory after-sales service Conclusion 17.8% Expensive pricing of goods 2.5% 8.3% Deceive consumers Unable to open the website 4.5% Poor delivery service Reasons for Users to Stop Using Specific Website