Pambianco News reports that economy giant China, may possibly be under-retailed. According to Peggy Yu Yu of Dangdang, China’s response to Amazon, “China remains an under-retailed country, and customers’ needs are very strong overall. I live [in] downtown Beijing, and I drive [in] any direction, and one hour later, [I’m] still within Beijing. I don’t see [any] good stores anymore, be it supermarket or clothing store.”
With their growing e-commerce industry, the Chinese government has staunchly been trying to positively grow consumption domestically, but according to reporters from CNN Money, this would not be ideal. With their online retail market growing as much as 120 percent annually starting in 2003, China will definitely overtake the United States (growing at only 17 percent) as the largest e-commerce market by next year.
Today Chinese consumers are able to purchase everything from clothing to books via their mobile phones, seventy percent of which, comes from c-to-c transacions. McKinsey’s recent report also claims that Chinese consumers end up spending more online than they normally do offline. With China’s quick delivery system that allows customers to fit and double check an item before purchase, the Chinese delivery system has now turned into an innovative “mobile fitting room”.
Moreover, McKinsey also notes that, “shoppers in low-tier cities spend as much online as higher-tier cities even though their consumers spend less money.”