How Online Retailers Deal with the Dwindling Trade Market in China


Asian e-trade business is doing relatively well in its vast ecommerce market in China, despite the mini-tsunami that swept across its stock exchanges in June. There are two reasons for this. In the first instance, its customers are mostly average women- and men-in-the-street unlikely to play the stock markets in China in Shanghai and Shenzhen. Moreover, the virtual shopping malls had huge impetus in growth and this momentum largely kept them going.

What Drove the Meltdown in the Stock Market in China?

Market in ChinaThere is a skewed distribution of wealth in Asia’s largest economy compared to the Western mix. This means that relatively few serious investors wield disproportionate leverage when taking high-risk positions. The capital drawdown following them getting overheated jitters in June dented their wealth on paper. However this had little effect on the rank and file.

Their shopping patterns in the virtual ecommerce market in China rode the storm surprisingly well, according to American-based National Association of Securities Dealers Nasdaq.

2015 Headlines for Ecommerce Market in China

Second-largest e-retailer JD.Com saw Q2 revenue surge 61%, with Alibaba lagging with 33% growth for Q1. Analysts believe there is a strong possibility of VIPS and JMEI overshooting 70%, while local Craiglist WUMA is rumouring triple digit revenue growth for 2015.

Two Reasons Why Internet Trading Did Better

According to San Francisco-based China industry expert Kevin Carter, “While China’s publicly traded e-commerce companies are going to be affected by the overall economy, consumer confidence and spending, the secular trend is so strong that they’re going to grow, they’re going to grow at very strong rates, and they’re going to do it for probably a long time.”

Moreover, eMarket forecasting director Monica Peart believes that, “The sheer number of mobile Internet users pushes China retail e-commerce activities toward mobile devices in a way that is not yet seen in the U.S.” There is strength in numbers, and the virtual market in China has proved this once again.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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