This is an overview of the size and opportunity of e-commerce in China and the most popular payment method by Chinese consumers.

1. C H I N A
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C h i n a i s t h e s e c o n d l a r g e s t e c o n o m y i n t h e w o r l d a f t e r t h e U S . T h e
c o n d i t i o n s a r e r i g h t f o r e - c o m m e r c e t o t a k e o f f i n t h e n e x t f o u r t o f i v e
y e a r s .
A p r i l 2 0 1 6

2. E - C O M M E R C E A N D O N L I N E P A Y M E N T S I N
C H I N A
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150
MILLION
people
“Urban Middle Class”
INCOME
At or Above
US$10,000
The main consumer group in China is called

3. We call the “Urban
Mass” INCOME
US$5,000-US$6,000
The rest of urban class ~60%
The Chinese government aims to doublereal income of the
“Urban Mass” between 2010 – 2020. This growth in income can
potentially bring a couple of hundred million people to the
“Urban Middle Class”.
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C H I N A
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Source: Goldman Research

4. Brick-and-mortar commerce in China is still underdeveloped
And low car ownership limits shoppers’ ability to get to the shops
But with widely available internet, low shipping costs
And cheap products sold online,
4%car
ownership
<US$5shipping cost
US$6unbranded jeans
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C H I N A
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Source: Goldman Research
The conditions are right for e-commerce to take
off

5. 688MILLION
Online USERS
413MILLION
Online SHOPPERS
US$276Bonline
spend per year
US$670 average online spend per shop
So far, there are
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C H I N A
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More than 50% of all
e-commerce sales
are done on mobile

6. 600M Chinese still don’t have internet access
By 2020, China’s e-commerce market will be larger than
the US, UK Japanese, French and German markets
combined
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C H I N A
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Source: Economist

7. USA Hong Kong Japan UK Australia
84%
58%
52%
43% 39%
The US is the most popular country where the Chinese consumer
purchase goods
Most popular cross-border shopping categories
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C H I N A
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#1
Consumer electronics
#2
Apparel
#3
Health & Beauty
Source: DLA Piper

8. E - C O M M E R C E A N D O N L I N E P A Y M E N T S I N
C H I N A
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Most popular payment method by Chinese consumers
50%
13%
Other
18%
Alipay and Tencent represent 69% of the online payment volume in China
19%

9. E - C O M M E R C E A N D O N L I N E P A Y M E N T S I N
C H I N A
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350M
users
260M
users
200M
users
Offering Alipay, Union Pay and Tenpay as a payment option enables
access to million of online Chinese consumers