Insights into the growth of Chinese eCommerce
Digital User Insights
There are currently 649.57 million eCommerce users in China, who spend $899.06 USD online annually. Four years from now, an expected 931.8 million online shoppers will spend approximately $984.91 USD.
Dividing internet usage into age groups gives a better picture of the Chinese eCommerce market – 96% of 16-24 year olds, 96% of 25-34 year-olds and 74% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing a 38% and 21% daily penetration rate, respectively.
Total Chinese eCommerce revenue across all product categories is 584 billion USD, and is expected to grow to 917.7 billion USD by 2022. Fashion is currently the leading product category in China, accounting for 195.17 billion USD market share, followed by Electronics & Media, which generates 131.8 billion USD in sales.
By 2022, Fashion will become the most purchased online category, with an estimated value of 310.25 billion USD, and second favorite, Toys, Hobby & DIY, will have an expected worth of 193.69 billion USD.
In 2016, China was ranked 27th in the World Bank Logistics ranking.
Preferred Online Payments
80% of Chinese shoppers like to pay via online payment (PayPal, Amazon Pay etc) when shopping online.
Where does China buy from?
Hong Kong supplies China with 285 billion USD in imports – ranging from gold to iron ore. China’s other key import partners are South Korea ($124 billion), the United States ($115 billion), Japan ($113 billion) and Germany ($85.4 billion).
Internet and Device Usage
Internet penetration in China is currently 73.9%, and should reach 81.8% by 2022. Smartphone penetration is much less (50.4%), but is projected to grow to 58.8% in the next four years.
48% of online shoppers in China buy via desktop, a stark contrast to the amount of smartphone (35%) and tablet (12%) shoppers.
In 2017, an estimated 52.23 billion USD of China’s ad spend was spent on internet advertising.
616.5 million people in China are active social network users, thanks to WeChat, QQ and Weibo, which are the leading social networks.
For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets.