In this article, Bain & Company addresses the budding role of the digital retail industry in China.
Bain & Company analysts predict online retail will grow three times faster than overall retail in China. Analysts attribute future e-commerce growth to Chinese consumers’ preference for mobile retail and “heavy investment from logistics players.” China’s distribution infrastructure allows retailers to ship products anywhere in the country in as little as four days. The convenience and efficiency of online shopping attracts Chinese consumers to “make the leap to mobile retail.”
The article delineates market trends within the e-commerce sector: price remains the primary motivator, 80% of online shoppers use smartphones, and social media grows as a “critical customer engagement channel.” Companies, such as CocaCola and Walmart, tailor marketing initiatives and mobile apps to capture the growing digital market.
The “e-commerce boom” indicates a secure and expanding middle class in China. As the landscape of China’s marketplaces changes, so does its consumers. Mobile retail demonstrates the growing complexity of Chinese consumers in an increasingly diverse market. Digital retail gives consumers freedom to choose. Consumer freedom creates a competitive environment, forcing companies to adapt to satisfy customers. Thus, e-commerce represents a healthy growth opportunity in the now ‘normalized’ Chinese economy.
Source: Forbes article