How Will China eCommerce Look Like in 2018?

TMO Group
China eCommerce forecast 3

China eCommerce sales will keep going strong, even 2 years after today. The latest research from iResearch indicates that overall online sales in China, including both retail and consumer-to-consumer (C2C) sources, will reach 7.5 trillion Chinese Yuan ($1.16 trillion dollars) by 2018, with annual growth rates slowing slightly from more than 30% in 2016 to just over 20% two years from now.

China eCommerce forecast

Meanwhile, the report also points out that by the year 2018, B2C eCommerce retailers will gradually become Chinese consumer’s No.1 choice when shopping online, other than C2C sources. One major reason of this shift is the share of cross border eCommerce sales attributed to retail vs. C2C transactions.

According to iResearch’s estimates, retailers’ share of such transactions will pass 50% in 2016, reaching 56.4%.

China eCommerce forecast 2

While a number of factors might be responsible for this shift, it suggests China’s online retailers are getting more sophisticated in sales, marketing and distribution strategies. Whereas a few years ago, China’s young eCommerce industry was driven primarily by peer-to-peer transactions within the country’s borders, increasingly the online shopping landscape is dominated by mid-size and larger firms from abroad selling brand-name goods.

The rise of Tmall, Alibaba Group’s business-to-consumer site, is one example of the shift. Q3 2015 data on retail eCommerce share in China from iResearch found that Tmall controlled nearly 58% of all transactions.

 

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