Online retail sales in China to hit US$1 trillion this year
Online retail sales in China are rising faster than previously predicted, and likely to surpass US$1 trillion this year according to a new report from Forrester.
In the broader Asia-Pacific market, one in every four dollars spent on retail will be spent online by 2022, with China and South Korea the principal drivers.
Forrester says rapid growth in mobile shopping and burgeoning online sales of fashion and food are likely to result on US$1.1 trillion in spending in China this calendar year.
China already accounts for 83 per cent of online shopping in the region, although a projected annual growth rate of 4.6 per cent in the number of individuals buying stuff online suggests the market is becoming mature in terms of participation. Future growth will be driven by Chinese consumers buying more goods online rather in store.
By 2022, Forrester estimates 631 million Chinese will shop online, compared with 502 million now.
Japan is Asia-Pacific’s second largest online market, likely to account for $97 billion in sales this year, followed by South Korea with $69 billion. Australia is next, with $31 billion, followed by India, the region’s fastest-growing market, but currently worth $27 billion. India is expected to overtake Australia next year.
Finally, Forrester projects mobile devices will account for 80 per cent of online retail sales in the region by 2022.