China to top online market

The world’s biggest online marketplace over the next few years will be China.

Investment bank Barclays Capital says it foresees China’s online retail sales to reach US$420 billion, accounting for eight per cent of all retail sales, by 2015.

That amount is more than three times higher than US$121 billion online retail sales of 2011 and 20 per cent more than the US online retail sales projected by 2015.

China currently has 193 million online shoppers – that’s 23 million more than the US number predicted by 2015. By that time, China will have more than 300 million online shoppers, says analysts.

It is also predicted that each online shopper will spend an average of US$1000 annually. One contributing factor seen is the growing middle class consumers, which at present count 200 million, and is projected to grow to 800 million by 2020.

The low cost of internet access also contributes to the growing number of online shoppers. China’s broadband internet access costs about US$10 per month, much lower than India’s US$30 and Brazil’s US$27. More and more Chinese shop online to take advantage of wider product selection, ease of comparing prices, the convenience factor and the improving and reliable shipping of products.

Apparel accounts for a large share of the current market – a contrast with the US online market where clothes account for just one fifth of sales. 

GB

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