Since China started to become the world’s largest market for a lot of things from mobile phones to cars over the past few years, multinationals have given the country a firm place in their global marketing strategies.
The latest target that they need to address: The Chinese internet consumer. According to a new study published by the Boston Consulting Group on Thursday, Chinese internet users are rapidly embracing spending online and e-commerce will take off among the world’s largest internet population over the next two years.
While only 3 per cent of the Chinese population bought goods on the web in 2003, it will be close to 20 per cent in 2012, according to BCG’s research. Total consumer-related online transactions in China came to $37bn last year, but are expected to surpass $100bn in 2012, the study says.
How far Chinese e-commerce can grow will partly depend on how fast payment solutions can be developed. So far, only 28 per cent of Chinese internet users buy goods online, compared with 46 per cent in Japan and 71 per cent in the US. And only 20 per cent of Chinese ‘netizens’ pay online.
Taobao, a unit of Alibaba and China’s retail e-commerce market leader, has Alipay, its own online payment system. But the market is in for a shakeup as China’s central bank is planning to introduce another platform through which online payments between banks are to be settled.
Stefan Wagstyl
Josh Noble
Rob Minto
Pan Kwan Yuk
Jonathan Wheatley
Heba Saleh