A new report suggests the world’s largest ecommerce market this year will be China – with ecommerce spending set to account for half of all retail spending in the country within a decade.
These predictions and more are included in management consultancy Bain & Company’s report, cited by warc.com, which suggests that direct access to the internet and the rise of smartphones and tablets is fuelling growth in China.
In terms of hard figures, China’s ecommerce market has grown at an average rate of 71 per cent from 2009 to 2012 compared to 12 per cent in America. In addition, the sector’s total size is expected to reach 3.3 trillion yuan ($539.07 billion) by 2015.
However in order to reach such a figure, China needs to massively improve the quality of its logistics sector, adds the report. At the moment, leading ecommerce site Alibaba is working hard to improve ‘nationwide infrastructure and delivery networks’; a stronger logistical arrangement with ecommerce sites could encourage even more Chinese consumers to make an online payment for goods and services.
Serge Hoffman, co-author of the report and a partner at Bain, commented on the rise of China’s ecommerce sector: “It’s a massive change. It just means you need to be on the web, whether you like it or not.
“Whether you’re an online player or an offline player, you need to have a meaningful, credible presence on the web,” he added, cited by reuters.com.