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    Business Geography Of Online Shopping In China

    2012/2/28 15:04:00 13

    Business Geography Of Online Shopping In China

    Compared with other retail formats, online shopping has great potential and unlimited potential in the future. However, in different regional markets, the space and potential of online shopping are different.


    Although the proportion of online shopping in the retail industry is not high, there is no substantial impact on the traditional retail formats such as supermarkets, but online shopping is constantly eroding the market share of traditional retail formats with its lower channel cost.

    No matter in terms of market space or development potential, online shopping has become a major channel for future retail sales.

    Take online shopping orders as an example, in the 1-11 months of 2011, most provinces in the country grew by more than 100% over the same period last year.


    The market will be large in the future.

    CNNIC

    data

    As of the end of June 2011, there were about 485 million Internet users in China, accounting for about 35.6% of the total number of users using the Internet, or 170 million. Although the number of users has been a lot, the penetration rate of online shopping is still less than half that of the United States, Japan and South Korea.

    Online shoppers account for only 27% of the total number of consumers in the city, and most consumers still do not have access to online shopping.


    At present, the frequency of online shopping in China is relatively low.

    According to the consultation data, more than half of the Internet users purchase 10 times a year, while most of the consumers in developed countries do not buy online for more than one month.


    There is great potential for future development.

    Although China's current online shopping penetration is not large, its potential is very large.

    By comparing the proportion of traditional retailers in total retail sales and Internet coverage, we can see that China's Internet coverage is faster than that of retail integration.

    That is to say, from the perspective of future development, online shopping has more advantages.

    The current speed of development is also quite amazing. Taking group buying as an example, in the first half of 2011, the number of Chinese group buying increased from 18 million 750 thousand at the end of 2010 to 42 million 200 thousand in 2011, and the annual growth rate reached 125%, becoming one of the highest user growth rate network applications.

    The proportion of group buying among netizens increased from 4.1% to 8.7%.


    The development of group buying is mainly due to the development of online retailing. Users' acceptance of online shopping, payment and sales is getting higher and higher. Group buying mode is catching up with the rapid growth of e-commerce applications in China, making group buying service.

    mode

    It can grow steadily on the Internet consumption mode of Chinese netizens.


    At present, the types of products in online shopping market are relatively concentrated. Compared with offline stores, 60.7% of B2C users are more willing to buy clothing and footwear products online.

    35.9% of users are more willing to buy books and audio-visual products online, and 23.9% of users are willing to buy computer communication digital products online.

    In addition, there are 10.9%, 10.6% and 8% purchases of furniture department stores, household appliances and mother and baby products online.

    3.5% of users are willing to buy diamond jewelry online.

    It can be seen from the data that at present, online shopping products are relatively single. With the upgrading of credit and logistics, more products will enter the mainstream of online shopping in the future.


    At present, the distribution of online shopping has obvious regional characteristics.

    The long distance logistics cost is high and the time is long, which is an important reason hindering the penetration of online shopping.

    The average customer price of supermarket consumers is 77.8 yuan (data source: CCFA). If online shopping is conducted, according to the average logistics cost of 10 yuan, the consumer will increase the additional cost of 13%, and the average delivery time is more than 2 days.


    At present, the main network consumption orders are concentrated in the big cities of Jiangsu, Zhejiang, Shanghai and Pearl River Delta, which are gathered by network operators, developed in logistics industry and low in distribution costs.

    From a nationwide perspective, the areas with high penetration of online shopping are concentrated in the eastern coastal cities and the economically developed cities in the central and western regions.


    January 4, 2012 Taobao and Taobao mall

    Release

    Annual data show that Taobao and Taobao mall daily package total has more than 8 million, accounting for nearly 6 of the total express industry package.

    That is to say, in the future, we will change the current pattern of logistics deciding the online shopping market, and turn to the state of deciding logistics distribution by online shopping.


    Comparing the current network penetration rate of various provinces and cities and the number of online shopping orders per capita (the total number of online shopping orders / netizens), we find that the number of online shopping orders per capita in East China and North China is relatively high. It can be judged that the development of online shopping market in these areas is at the forefront of the whole country, while the development of the western region is lagging behind.

    By comparing the two data, we can easily judge the future potential of online shopping market. In Guangdong, Liaoning, Shandong, Fujian, Shaanxi and Hebei provinces, the penetration rate of Internet users is relatively high, but the number of online shopping orders per capita is relatively low. In addition, the per capita income of these areas is relatively high, which can be regarded as the potential area of future online shopping market.

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