China’s burgeoning e-commerce market has driven the country to the top of the latest Retail E-commerce Index. Author: Ashley Curtis
China’s burgeoning e-commerce market has driven the country to the top of the latest Retail E-commerce Index by global consumer data company A.T. Kearney, retailgazette.co.uk reports.
The country’s digital attractiveness, infrastructure and regulation of numerous fast-growth markets, as well as its overall retail climate, were key factors in China’s rise to the top of the index.
Furthermore, the country’s total sales from e-commerce are expected to increase from $23 billion to $81 billion in 2016, making it a haven for online payment processing firms to ply their trade.
According to warc.com, 164 million of the country’s 513 million web users buy goods via the web, with firms like Amazon and Walmart looking to capitalise on the thriving sector. However, firms looking to enter China will have to settle for a long-term strategy as the index notes that building a reputable brand in a developing market can take time.
However, one expert urges China to improve its supply chain offerings outside of main shopping hubs in order to fully embrace the potential of e-commerce.
Mike Moriarty, A.T. Kearney partner and co-leader of the study, commented on China’s e-commerce ambitions: “China’s infrastructure challenges hinder realisation of the country’s full e-commerce potential.
“Delivery infrastructure varies outside of metropolitan hubs and inhibits the efficiency and effectiveness of the ‘last mile’ of online retail product delivery,” he added.