An estimated 352 billion yuan was spent by Chinese consumers via online channels, according to figures from iResearch Consulting Group. Cited by warc.com, the figure represents a 17 per cent decline from the same period a year earlier but annual sales in 2013 are still expected to exceed those in 2012.
For instance Zhang Jing, an analyst for iResearch, believes second quarter sales are expected to reach 425 billion yuan, with calendar year sales looking set to almost hit the two trillion mark.
Consequently, it appears as if an increasing number of Chinese consumers are willing to make an online payment for goods and services.
“We estimate the turnover increase of China’s online shopping industry will be around 40 per cent year-on-year in coming quarters,” said Zhang. “Annual turnover could hit 1.85 trillion yuan in 2013, so I would not be surprised if turnover breaks 425 million yuan in the second quarter.”
Furthermore, Zhang also believes there were a number of factors for the decline in spend in the first quarter.
Speaking to chinadaily.com.cn, Zhang added: “Several large-scale promotional campaigns at the end of 2012 consumed buyers’ purchasing power – that’s the major reason for the decline.
Finally, Zhang admitted that price will become less of a factor in beating competitions as retailers will look to boost their “service quality” to attract customers.