Five Greatest Growth Drivers of the Chinese E-Commerce Market
Who doesn’t know about China being the biggest e-commerce market not just in Asia, but in the whole world? Yes, you read it right. THE WHOLE WORLD. But what made China the e-commerce giant it is today?
1. The COVID-19 Pandemic
Although putting this on the list doesn’t seem right and doesn’t seem like it will do any good to anything or anyone, the pandemic really served a huge role in the boom of e-commerce in China. Because of the COVID scare, consumers looked for ways to still look and buy products from different online shopping and e-commerce sites available within the country.
2. The Availability of Various Payment Methods
This may sound unimportant, but it is indeed important as it plays an essential role in the current state of e-commerce in China. Payment methods and solutions within the country such as Alipay and WeChat Pay made big contributions to the overall e-commerce sales of China. Why is it important though? These are important as it provides customers with their preferred way of purchasing goods and services, making the possibility of them buying a product higher.
3. The Variety of E-Commerce Platforms to Choose From
Tmall, Taobao, Pinduoduo, JD.com, and Xiaohogshu are just some of the biggest names in the e-commerce industry. With hundreds of e-commerce platforms to choose from, Chinese consumers have become more interested in purchasing various products on different platforms. Having different platforms to choose from allows the consumers to have freedom of choice, it will also allow them to find the platform that best suits their tastes, interests, and preferences.
4. The Number of Migrant Workers
Migrant workers have been the most important fuel of China’s engine for growth. Having millions of migrant workers enables big companies such as JD.com and Tmall to offer same-day and low-cost delivery services within the country. This has become a very attractive offer for consumers because you know, who wouldn’t want a fast yet cheap delivery of the things you bought online, right?
5. The Rise of M-Commerce
A lot of people have been expecting M-Commerce in China to become huge at the end of 2022. This is solely due to the huge number of shoppers accessing e-commerce sites using their phones instead of desktop computers and laptops, it has been found that around 96% of Chinese consumers prefer to buy online using their smartphones. This is because it is much easier and more convenient for most of them.