Chinese are estimated to spend around 1 billion hours on the internet each day, making it the world’s largest internet market.
Yet relatively little is known about the perceptions or preferences of Chinese consumers when it comes to online shopping.
Mike Clemes, New Zealand’s Lincoln University’s senior lecturer in marketing, through his analysis of online shopping in China, found out Chinese consumers viewed factors such as perceived risk (which had the strongest influence) and service quality as key factors influencing their decision to shop online; concluding that businesses selling online to Chinese consumers may need to invest in risk-reducing strategies such as high-end encryption technology to mitigate any consumer concerns.
Of particular interest, however, is the seemingly high influence a consumer’s resources play when it comes to online shopping. For instance, well-educated employees appeared more inclined to shop online, with the suggestion being that this may be due to greater literacy, computer competency, and ready access to internet technology, he says.
Business-to-consumer marketers should consider providing computer training courses, or increasing the provision of public computers; especially in the case of those businesses which have a physical retail presence who could use the opportunity to educate customers visiting their store.
He added falling out of the research were interesting observations relating to social factors and demographics. For instance, the online shopping behaviour of friends and family appears to be a major influencer of e-shopping uptake. This is especially the case when it comes to female e-shoppers. In fact, the research found that, in China, female consumers are overall more likely to shop online than their male counterparts; a trend that is becoming increasingly pronounced. E-retailers, therefore, may want to consider providing online forums and chat rooms for female consumers to share their experiences.
Somewhat related, the research also suggests that, in the interest of creating brand loyalty, an e-retailer may want to consider personalising the online shopping environment to make it more aligned to individual preferences.
High-income Chinese consumers have a much lower inclination to shop online. This may be a tied to a preference for more up-market products, with the consumers preferring to physically examine the product and take advantage of any support services offered in an in store environment. As such, it is suggested that e-retailers wanting to attract high-income customers may want to put extra emphasis on after-sale service.
“Understanding the decision process and behaviours associated with online shopping is tremendously important in the ever growing virtual marketplace. What’s particularly interesting about China, however, is not only how little is known about e-shopping behaviours, but how few Chinese consumers relative to the country’s population actually use the internet for their purchases,” said Clemes.
