The Warc Blog

The Warc Blog

Ecommerce in China: the $500bn opportunity
 
Emily Barley, Editorial Assistant, Warc
 
Emily Barley

China is the world's largest ecommerce market, having grown at 71% annually since 2009 and set to be worth $541bn by 2015. Of the country's 591 million internet users, 49% made an online purchase in 2013 – ahead of the global average of 40%. Online shoppers tend to be younger and more affluent, and enjoy the convenience of online for price comparison (a big motivator) and accessing product reviews.

These insights come courtesy of Ecommerce and Search Engine Marketing in China, an infographic shared with us by Search Laboratory, a search engine marketing agency.

Click image to view full infographic:

In terms of electronic payment method, Search Laboratory finds two companies dominate (Alipay and Tenpay), though cash payment on delivery is still popular, emphasising the need to integrate online and offline retail. China's Singles Day is a particularly big ecommerce opportunity, with $5.7bn online sales in one day in 2013.

This market represents a massive opportunity not just for domestic retailers, but those overseas too. Purchases from overseas have doubled annually for the past three years. Retailers participating in this market would do well to consider SEO in China as 60-65% of people click on top-ten websites, with only 2-4% clicking on websites in positions 21-30.

Global search engines are usually blocked, and in China listings are formulated in a way that prioritises content over keywords, meaning retailers should ensure a good user experience to feature highly.

Baidu continues to be the dominant search engine, though Search Laboratory reports that its share has declined to 63.16%. Baidu's search listings promote websites which have high quality original content, offer good user experiences, offer useful information and have high click through rates, but may exclude websites that rank highly for keywords whilst featuring poor quality content.

More on digital in China:

2014 Asia-Pacific Digital Overview
We Are Social gives a run down on internet usage across Asia

How to reach "digital divas" in China
How female early-adopters in China use technology

Chinese ecommerce: how brands are exploiting the O2O trend
How Chinese retailers are adapting to online-to-offline and offline-to-online consumer journeys

The drivers of digital media use in Asia: Findings from Social Media Matters
Chinese consumers' use of the internet is distinctive from other markets, particularly in social media

2013 China Digital Playbook for brand advertisers
Highlighting key areas of digital marketing for brand advertiser success in China

Buick Encore: The SUV for the post-80's generation
How Buick used digital to launch an SUV at China's post-1980 generation

Nestlé: BenNaNa Brings Magic Fun
Using digital – including video content and a game – to launch a novel ice cream product in China

Brand-building lessons from China's 50 most valuable brands: Insights from Millward Brown's BrandZ
Identifying trends in China's top-50, including cultural distinctiveness

The drivers of the digital revolution
Lessons from Chinese messaging services

Partnering for Growth in Emerging Markets: Why Advertising Agencies Need to Lead, Not Follow
The importance for global advertisers and agencies to establish a presence in emerging markets

Big Data: P&G says thank you to moms
Five key planning processes to make the most of Big Data



Subjects: Digital, Marketing, Media

20 February 2014 15:39
 

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