China is rising in the ranks when it comes to the e-commerce market. The National Bureau of Statistics of China has released its latest findings, showing that e-commerce within China has increased year on year by 39.1%. The total for sales just in the first half of 2015 show that e-commerce giants have earned around CNY1.646 trillion.
Looking at the individual e-commerce items sold within China, the report shows that physical goods accounted for CNY1.376 trillion of the finances, increasing by around 38.6% compared to the previous year. Non-physical goods accounted for CNY270 billion, increasing by 41.9%.
Along with these statistics, the report also showed that China’s social consumer retail sales reached around CNY14.158 trillion, which is an increase of around 10.4% compared to last year. However, when compared to the first of 2015, this rate is .2% lower than what had been indicated at the beginning of the year.
Rural areas are also seeing an improvement in their e-commerce. The Chinese e-commerce market received CNY1.9723 trillion, an increase of 11.6% from last year. And the sales in rural areas are only expected to rise, as several e-commerce giants look at how they can reach this group of people.
Learn more about Chinese e-commerce rural growth with E-Commerce Expands in China Rural Areas and Continues to Climb
Why the Growth in E-Commerce?
The growth statistics that have been presented has many people questioning why the Chinese e-commerce world is growing so rapidly when compared to other countries. There are several reasons why, such as:
- Foreign products are easily available online which gives consumers what they want
- Shipping procedures allow for products to be received rapidly, sometimes within a few hours
- High quantity of products, offering more choices
Due to the success of Chinese e-commerce, companies throughout the world are looking to call this market home, and infiltrating this with their brand and products. This is just going to help the market to grow even bigger as these companies become more established.
E-Commerce Leaders Responsible for Growth in China
When talking of e-commerce, most likely the name that comes to mind is Alibaba. After all, this company has a relatively large stock in the market, and they continue to grow. However, other companies like JD.com, are still helping to encourage the e-commerce market to take shape.
The chart below outlines the revenue shares that were seen in the first quarter of 2015 for B2B e-commerce.
Alibaba holds a 44.13% revenue share within the market, while other sources make up the rest of the market. However, no other company holds as much of a hold as Alibaba. Even with the company taking on another e-commerce giant, Amazon of the United States, Alibaba still earns more money and has more options for the consumer.
See the Alibaba vs Amazon showdown
Overall, the Chinese e-commerce market is still succeeding where other markets are trying to succeed. There seems to be no end in sight for how big the market can become.