The document compares and contrasts e-commerce in China and the United States. It finds that while China's e-commerce market is growing rapidly at 400% annually, the more established US market currently generates more total e-commerce revenue. Both countries see e-commerce as an important driver of economic growth. China uniquely promotes large online shopping days and has a highly developed mobile commerce sector, while the US provides more government support for digital trade. Looking ahead, the document predicts that global online retail will grow to $1.4 trillion by 2015 and $4.2 trillion by 2020.

1. International Diversity
Management
A study of
E-Commerce
sector in China
and USA
Purav Patel
13020241105, IB-B
SIIB, Pune
China-USA: E-commerce 1

2. China: GDP USA: GDP
China: Unemployment Rate USA: Unemployment Rate
China-USA: E-commerce 1

3. Index of Economic Freedom
China USA
Population(2012) 1,35,06,85,000 31,75,58,000
HDI(2012) 0.699 0.937
Overall Freedom 51.9 76
Fiscal Freedom 70.2 69.3
Business Freedom 48 90.5
Financial Freedom 72.3 69.2
Investment Freedom 25 70
Trade freedom 72 86.4
Monetory Freedom 71.6 76
Labor Freesom 62.5 95.5
Property Right Score 20 35
Freedom from Corruption 36 71
http://index-of-economic-freedom.findthedata.org/
China-USA: E-commerce 2

4. The top 5 growth industries through 2015 are:
China
• E-Commerce (set to
grow 400%!)
• Outstanding Corporate
Bonds
• Life Insurance
• Wealth Management
• Personal Computer
Sales
USA
• VOIP Providers
• Wind Powers
• E-Commerce
• Environment
Consultancies
• Biotechnology
China-USA: E-commerce 3

5. • An e-commerce transaction is the
sale or purchase of goods or services
over internet
• It describe business that rely on the
Internet, such as e-mail, instant
messaging, shopping carts, Web
services, UDDI, FTP, and EDI, among
others.
E-Commerce: Introduction
• More than 85% of the world
population used internet source
to make purchase
• 73% population prefer online
purchase
• 41% books purchased by online
across the global.
China-USA: E-commerce 4

6. E-Commerce sector: CHINA & USA
China-USA: E-commerce 5

7. WEAKNESS
• Security, Fake websites, Fraud
• Fewer discounts and bargaining
• Long delivery timing
• No idea about quality and physical
condition of the product
• Limitation of products
• Lack of personal services
• More shipping cost
• Customer Satisfaction
STRENGTH
• Boundary less (global location)
• Time saving, No time constraints
• Price/product comparison,
• Cost effective, Lowers transaction
cost
• Direct communication with
consumer
• Improved customer interaction
• Flexible target market segmentation
OPPORTUNITIES
• Changing trends
• New technologies
• Global expansion
• High availability (24 hour and seven
days a week)
• Wide business growth
• Cut down on local competition
• Advertising
THREATS
• Competitors
• Changes in environment, law and
regulations
• Innovation
• Privacy concerns
• Fraud, Risk
S
W
O
T
A
N
A
L
Y
S
I
S
China-USA: E-commerce 6

8. China: E-commerce History
• In 1994, Professor Wang Ke from the Chinese academy of social
science has introduced first time E-commerce concept in China
• In1997, Xinhua Book store of Hangzhou city opened first online
bookstore in china
• Chinese e-commerce in 1998 with Alibaba.com, a business-to-
business online platform born.
• 2003 was a turning point for Chinese e-commerce with the release
of Alipay, Alibaba's version of PayPal.
• In 2003, first western MNC ebay entered in Chinese market.
• In 2004 Amazon.com entered controlling stack with joyo.com in
china.
• In 2009, China's e-commerce market totaled 263 billion RMB
(approximately $38.5 billion) with growth equivalent to about 105%
increase year-on-year.
China-USA: E-commerce 7

9. China’s online shopping market (B2C&C2C) reached 72.5 bn USD in
2010 and is expected to grow at a CAGR of 70% for the next five years
China Online Shopping Market (bn USD, 1997-2015f)
China-USA: E-commerce 8

10. China: E commerce Uniqueness
• The government supports e-commerce due to its economic benefit and
potential for job creation.
• The Chinese government has heavily subsidized the rollout of high-
speed access, so internet penetration now approaches rich-country
levels.
• China’s ‘Singles Day’ occurs on November 11 each year. The month and
day are represented by ‘ones’ (11/11).
• In 2013 11/11’ online sales rose by 80 percent from the previous year,
to over USD5.7 billion.
• At present there are some 48,000 registered domain names in China,
On average, two e-commerce sites per day are being registered.
• This combination of high-tech online shopping with traditional delivery
methods is a creative approach to the development of e-commerce in
China.
China-USA: E-commerce 9

11. Commodities most frequently
bought by Chinese online shopping
user
China’s online shopping market
Transaction volume includes B2C
and C2C market
China-USA: E-commerce 10

12. USA: E-Commerce History
• Amazon.com, It was founded in 1994 by Jeff Bezos and was one of
the first American ecommerce companies to sell products over the
Internet.
• Dell.com is another one of the most recognizable e-commerce
brands online. Dell.com’s website was launched in 1994 with a
single static web page and their online presence quickly grew.
• Ebay is also one of the pioneer e-commerce MNC started in 1994
year.
• In 1998, PayPal launches its alternative payment service; eBay
acquires PayPal in 2002
-Google, the future king of search, debuts
-Yahoo launches selling platform Yahoo Stores
• In 2005 zapoos.com acquired by Amazon.com
China-USA: E-commerce 11

13. USA: E-commerce Uniqueness
• E-commerce spending in the
United States will hit
approximately $262 billion
this year, up 13.4% from
$231 billion in 2012,
according to a new
projection from Forrester
Research Inc.
• In 2017, online spending will
reach $370 billion, which
represents a nearly 10%
compound annual growth
rate from 2012
USA: E-commerce, Government
Support
• To promote the more effective
use of electronic processes
internally within government, to
use e-commerce to achieve
other government objectives,
such as:
• Export promotion
• To resolve regulatory or tax
issues seen as being affected by
the spread of e-commerce,
• The application of state and
local sales taxes
China-USA: E-commerce 12

14. GDP contributed by Internet
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15. Top 10 engaged companies
China
• Alibaba.com/Tmall.com
• 360buy.com
• Sunning.com
• Amazon.cn
• Dandang.com
• Vancle.com
• 51buy.com
• Coo8.com
• Newegg.com.cn
• YiHauDian.com
USA
• Amazon.com
• Dell.com
• EBay
• Buy.com
• Cosco.com
• JCP.com
• Smartbargain.com
• Abebooks.com
• AE.com
• Gap.com
China-USA: E-commerce 14

16. Conclusion
• A developing country can be rationalized and mechanized if it
introduces e-commerce effectively and efficiently. It will
enhance its output and gives competitive advantage.
• Many development organizations will be impeded from
entering into e-commerce because of high entry costs and
technical barriers.
• The successful companies of the future will be those that take
e-commerce seriously, dedicating sufficient resources to its
development. E-commerce is not an IT issue but a whole
business undertaking.
China-USA: E-commerce 15

17. Future Outlooks
• Online Retail globally:
• By 2015, It will grow to $1.4 trillion industry
• By 2020, It will grow to $4.2 trillion industry
• In USA, it will grow to $325.25 billion expected e commerce
market worth
• In China, it will grow to $320 billion expected e commerce
market worth
China-USA: E-commerce 16

18. Bibliography
• http://www.go-globe.com/blog/ecommerce-in-china/
• http://www.businessweek.com/articles/2013-11-21/china-is-about-
to-take-americas-online-shopping-crown
• http://www.statista.com/topics/1007/e-commerce-in-china/
• http://www.iresearchchina.com/views/Ecommerce/
• http://edition.cnn.com/2013/09/19/business/on-china-alibaba-e-
commerce/
• http://chineseculture.about.com/od/businesseconomy/fl/Chinas-E-
commerce-Culture.htm
• http://www.economist.com/news/leaders/21573981-chinas-e-
commerce-giant-could-generate-enormous-wealthprovided-
countrys-rulers-leave-it
• http://steveblank.com/category/china/
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