Cross-border e-commerce is the main driver of online sales. Chinese e-shoppers overpassed more than a quarter of PRC population by the end of June
According to official data, China’s online retail sales increased 17.8% year on year to $684 billion in the first half of this year. Alibaba and JD topped the list, but new platforms such as Pinduoduo are immediately behind. The report attributed the growth of online shoppers to increasing consumption in smaller cities and rural areas, expanding international online shopping business and new marketing models.
Why does it matters? China’s National Bureau of Statistics reported how the annual growth rate of China’s e-retail market has stabilized at around 20% after falling from above 30%. This little drop comes as a broader economic slowdown takes a grip, and the US trade war escalation. On the other side, chinese firms are going global supported by international platforms of main PRC based e-tailer.
Of the total, online retail sales of physical goods came to RMB 3.82 trillion for the first six months, up 21.6% from a year ago and accounting for 19.6% of the total retail sales in the country. Let’s see in details. Cross-border e-commerce continue to be the main drivers of sales.
Eastern, central, western, and northeastern China represent 83.2%, 9.6%, 5.9% and 1.3% of the country’s total online sales, respectively. The growth rates of each region stood at 17.8%, 35.4%, 13.9%, and 20.6%. Concerning products, fresh food, cosmetics, and pet goods are the most popular categories for online buyers in top tier cities, while apparel, automobile accessories, and home appliances are favored in rural markets.
More than a quarter of Chinese citizens using e-commerce. Online retail is moving toward individualization and customization.
The number of online shoppers in China reached 639 million by June, up 28.71 million over that of December 2018, according to a report published by the China Internet Network Information Center. About 74.8% of the total internet users in China have tried online shopping, up from 63.1 % in June 2016, the report said.
Among them, 622 million shopped via their mobile phones, 29.89 million more than the figure at the end of 2018. It means the majority of netizens boungh online via smartphone. In the first half of this year, online retail businesses imported goods worth 45.65 billion yuan ($6.44 billion), up 24.3% year on year, said the report quoting the General Administration of Customs.