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China's e-commerce market leads the world in online
by：VIPUTRANS
2020-07-25
With your fingers, placing orders, making payments, and receiving express delivery, online shopping has become a daily routine for Chinese consumers, making China the world's largest e-commerce market.
The 'China E-Commerce Report 2019' (hereinafter referred to as the 'Report') recently released by the Department of E-commerce of the Ministry of Commerce shows that in 2019, the scale of China's e-commerce market continues to lead the world, and service capabilities and application levels have further improved. The number of Chinese Internet users has exceeded 900 million, and the national e-commerce transaction volume has reached 34.81 trillion yuan, of which online retail sales reached 10.63 trillion yuan, an increase of 16.5% year-on-year, and the online retail sales of physical goods 8.52 trillion yuan, accounting for the total retail sales of consumer goods The proportion of e-commerce rose to 20.7%; e-commerce employees reached 51,256,500.
Since the beginning of this year, in the face of the impact of the new crown pneumonia epidemic, major e-commerce platforms have assumed greater consumption traffic, which not only meets the shopping needs of consumers to a large extent, but also provides businesses and enterprises to make a living against the trend. Strong 'consumption support'.
'Online shopping' integrates into life
'Offline cannot be transferred online!' For many Chinese consumers, the impact of the epidemic on consumption is not absolute.
Li Jing is a housewife in Changsha, Hunan, and a senior customer with 15 years of online consumption history. Among her consumption expenditures, 90% of them place orders through e-commerce channels. The monthly expenditure of more than 5,000 yuan means that online shopping has long been integrated into her life. 'During the epidemic, I feel that I am more dependent on online shopping! Before, I would still have the habit of going to the vegetable market every day to buy vegetables. Now I buy the ingredients that my family wants directly from the group buying app. I booked on the same day, second Delivered to my door every day, I can even buy the freshest fruits and vegetables without going out!' she said.
Although online shopping cannot be completely equated with offline shopping, for many young people, online shopping is still increasingly important.
'In the past, I always felt that I had to try clothes in person to know if they were suitable, so I rarely buy clothes online. Now affected by the epidemic, I don't go to the store to try on as usual. I buy clothes online. Especially the recent rise. E-commerce live broadcast allows me to see models who are similar to me trying on a variety of clothes. Judging from the recent experience of buying clothes on live broadcasts, it can actually be'scoured' to many favorites. What's more, there are many choices of online clothes styles, and the prices are cheap. In the future, I may consider buying more clothes through online shopping.” said Wang Wen, a college student in Chengdu.
Teng Haiqin, a Jiangsu girl who is engaged in the clothing industry, told our reporter that online shopping with mobile phones has long been a part of her life. 'Originally, my monthly consumption can be said to be half of online and offline. After the outbreak, many things such as toothpaste, kitchenware, cosmetics, accessories, mobile phones, etc. will be bought online.' Teng Haiqin said, now Taobao, Jingdong, E-commerce platforms such as Pinduoduo can basically meet consumer demand. There is a complete range of things to eat, drink and play, and it is very convenient to use.
So, to what extent has e-commerce integrated into the lives of Chinese people? The person in charge of the Department of E-commerce of the Ministry of Commerce pointed out that artificial intelligence, big data, small programs and other technologies are widely used, and models such as live e-commerce, social e-commerce, and cross-border e-commerce overseas warehouses have deepened innovation and conformed to Nowadays, diversified, personalized, and experience-oriented consumer demand. At the same time, the trend of online and offline integration driven by e-commerce is more obvious. Catering companies and retail stores actively expand the online market space. The traditional real economy has made new explorations and attempts in digital transformation. The extension of online retail to the field of intelligent manufacturing, and the establishment of digital connections between e-commerce platforms and all parties in the industrial chain have achieved significant results in improving the efficiency of supply chain operations and boosting industrial transformation and upgrading.
Effectively 'moisturize' market entities
E-commerce is connected with consumers at one end, and market entities of all sizes at the other end.
The crisp red plums from Hongxiang Village, Hujia Town, Gulin County, Sichuan Province are juicy, sweet and sour. However, this village is located in a remote mountainous area, and getting rich and getting rid of poverty has encountered the problem of 'good wine is also afraid of deep alleys'.
'Good fruits can only rot in the ground, and the hard work of the farmers can't just be wiped out!' Zhang Zhenfei, who was selected by the China Development Bank to be the first secretary of Hongxiang Village, was fighting for the special infrastructure project donated by China Development Bank Finance. The funds built the main road for the village, and while doing their best to connect with major e-commerce companies, they eventually sold nearly a million catties of crisp red plums in the village.
'Taobao pioneered the e-commerce live broadcast method, and promoted the upgrading of the e-commerce industry through video and content-based interaction. Data shows that Taobao live broadcast has grown by more than 150% for three consecutive years, and it is the fastest growing new economy in recent years. Mode. Especially since the outbreak of the epidemic, more than 100 offline occupations including catering companies, real estate consultants, stall owners, and counter shopping guides have all achieved “cloud resumption of work” on Taobao Live. At the same time, 60,000 Taobao farmers anchors, county chiefs, Stars jointly bring goods for agricultural products. This kind of 'village broadcast' has covered more than 2,000 counties across the country and has found a way out for unsalable agricultural products.' Taobao Live Broadcaster Xuan De told reporters.
In addition to poverty alleviation, the booming e-commerce has also brought opportunities for young people to start their own businesses. Ye Wenjian, born in 1988, graduated from Zhejiang Transportation Vocational and Technical College. After graduation, he moved to several companies to work in e-commerce operations. In 2018, by chance, Ye Wenjian tasted the chicken feet his aunt bought from the vegetable market. The sweet and sour taste made him very fond of it. So Ye Wenjian decided to move the chicken feet online, registered 'Jiang Shi Ji' on Taobao, and operated it as a part-time job. I sold 5 orders on the first day of opening, and 20 orders a week... This gave Ye Wenjian a lot of confidence. With the increase in sales, the annual sales of 'Jianshiji' soon reached 14 million yuan, and Ye Wenjian was also determined to invest full time in his business. Today, his team has reached a dozen people.
The development of e-commerce has also driven the sales of related hardware. According to data from the Ministry of Industry and Information Technology, from January to May, the electronic information manufacturing industry above designated size achieved 'double growth' in revenue and profits. Among them, the operating income of the computer manufacturing industry increased by 6.0% year-on-year, and the profit increased by 41.6% year-on-year.
In an interview with our reporter, Wan Zhe, a visiting researcher at the Chongyang Institute of Finance of Renmin University of China, pointed out that there are three reasons for the great success of e-commerce in China: First, the rapid development of China’s economy for many years has resulted in more and more people’s spending power. The improvement has created a huge market space; second, e-commerce timely and accurately compensates for the 'blank spots' between offline consumer supply and the consumption demand of urban and rural residents. The third is that China's reforms have continued to deepen and open up in recent years. Deepened, a good entrepreneurial and innovative atmosphere has been formed, which has boosted the rapid rise of a number of e-commerce companies such as Alibaba, JD.com, Suning, and Pinduoduo.
'Leveraging each other's forces' online and offline
Whether it’s Tianjin’s “Tianpin Online Shopping” or Xinjiang’s “Qinghe Seabuckthorn Festival”, judging from many cases analyzed in the Report, China’s e-commerce development and traditional offline stores are not a “zero-sum game”, but rather 'Mutual leverage.'
At 7 o'clock in the evening on July 8, Liu Zhaowen, the manager of Wu Mart’s Sanlihe store in Beijing, was not off work yet. He and his colleagues Zhang Luo were on an online and offline shopping festival promotion event held simultaneously. For Liu Zhaowen, who has worked in large supermarkets for 19 years, online and offline integration has long been the norm. He told reporters that with the help of multi-point apps, many customers can place orders online and enjoy the 'supermarket stocking and home delivery' service.
In this process, the management of supermarket stores has also been continuously optimized. 'For the vegetables in the fresh food area, we used to weigh them in bulk. Many customers have to manually pick vegetables in the vegetable area. This is time-consuming, laborious and inefficient, and it also creates greater sanitation pressure in the fresh food area. With the development of e-commerce, we will carry out standardized sorting and packaging of vegetables in advance for the characteristic that online customers have higher requirements for delivery speed. Unexpectedly, after this kind of packaging is released, it will also be welcomed by offline customers and driven From the data of Sanlihe store this year, the sales of our vegetable products “online + offline” increased by more than 30% compared with the same period last year.” Liu Zhaowen said.
Dmall Chairman Zhang Wenzhong said that since the beginning of this year, Dmall and Wumart’s innovative distribution model 'Community Anti-epidemic Delivery Station' has expanded more than 6,000 sites across the country. 'The in-depth integration of online and offline e-commerce is making a leap towards the digital economy. This has a major effect on improving consumer satisfaction and promoting consumption upgrades.'
The well-known retail giant Suning also tasted the sweetness of 'two-line integration'. Thanks to the integration of online and offline omni-channels and complementary advantages, Suning's market share in the first quarter of this year further expanded to 25.3%, leading the omni-channel sales of home appliances as the 'first place'. Wang Junjie, Dean of Suning Retail Technology Research Institute, told reporters that in the new consumer era, the “consumption support” of e-commerce is gradually being reflected in the integration of supply chain and the deep integration of online and offline, which will force retail companies Integrate the supply chain performance capabilities of various business types, 'move' offline stores to online, realize 'scene reconstruction', and achieve seamless integration of multiple consumer scenarios.
'In general, the'consumption support' of e-commerce to China's economy is very large. The objective requirements of epidemic prevention and control have undoubtedly accelerated the development of online goods and services. At the same time, e-commerce focuses on sinking the market and making goods convenient. Features such as sex, commercial credit evaluation, etc. also contribute to the improvement of consumer experience. It can be said that while maintaining the basic consumption of e-commerce, it also enables related enterprises to maintain vigorous vitality.' Wanzhe said that e-commerce will stabilize consumption in the future Aspects will occupy a more important position.
The 'China E-Commerce Report 2019' (hereinafter referred to as the 'Report') recently released by the Department of E-commerce of the Ministry of Commerce shows that in 2019, the scale of China's e-commerce market continues to lead the world, and service capabilities and application levels have further improved. The number of Chinese Internet users has exceeded 900 million, and the national e-commerce transaction volume has reached 34.81 trillion yuan, of which online retail sales reached 10.63 trillion yuan, an increase of 16.5% year-on-year, and the online retail sales of physical goods 8.52 trillion yuan, accounting for the total retail sales of consumer goods The proportion of e-commerce rose to 20.7%; e-commerce employees reached 51,256,500.
Since the beginning of this year, in the face of the impact of the new crown pneumonia epidemic, major e-commerce platforms have assumed greater consumption traffic, which not only meets the shopping needs of consumers to a large extent, but also provides businesses and enterprises to make a living against the trend. Strong 'consumption support'.
'Online shopping' integrates into life
'Offline cannot be transferred online!' For many Chinese consumers, the impact of the epidemic on consumption is not absolute.
Li Jing is a housewife in Changsha, Hunan, and a senior customer with 15 years of online consumption history. Among her consumption expenditures, 90% of them place orders through e-commerce channels. The monthly expenditure of more than 5,000 yuan means that online shopping has long been integrated into her life. 'During the epidemic, I feel that I am more dependent on online shopping! Before, I would still have the habit of going to the vegetable market every day to buy vegetables. Now I buy the ingredients that my family wants directly from the group buying app. I booked on the same day, second Delivered to my door every day, I can even buy the freshest fruits and vegetables without going out!' she said.
Although online shopping cannot be completely equated with offline shopping, for many young people, online shopping is still increasingly important.
'In the past, I always felt that I had to try clothes in person to know if they were suitable, so I rarely buy clothes online. Now affected by the epidemic, I don't go to the store to try on as usual. I buy clothes online. Especially the recent rise. E-commerce live broadcast allows me to see models who are similar to me trying on a variety of clothes. Judging from the recent experience of buying clothes on live broadcasts, it can actually be'scoured' to many favorites. What's more, there are many choices of online clothes styles, and the prices are cheap. In the future, I may consider buying more clothes through online shopping.” said Wang Wen, a college student in Chengdu.
Teng Haiqin, a Jiangsu girl who is engaged in the clothing industry, told our reporter that online shopping with mobile phones has long been a part of her life. 'Originally, my monthly consumption can be said to be half of online and offline. After the outbreak, many things such as toothpaste, kitchenware, cosmetics, accessories, mobile phones, etc. will be bought online.' Teng Haiqin said, now Taobao, Jingdong, E-commerce platforms such as Pinduoduo can basically meet consumer demand. There is a complete range of things to eat, drink and play, and it is very convenient to use.
So, to what extent has e-commerce integrated into the lives of Chinese people? The person in charge of the Department of E-commerce of the Ministry of Commerce pointed out that artificial intelligence, big data, small programs and other technologies are widely used, and models such as live e-commerce, social e-commerce, and cross-border e-commerce overseas warehouses have deepened innovation and conformed to Nowadays, diversified, personalized, and experience-oriented consumer demand. At the same time, the trend of online and offline integration driven by e-commerce is more obvious. Catering companies and retail stores actively expand the online market space. The traditional real economy has made new explorations and attempts in digital transformation. The extension of online retail to the field of intelligent manufacturing, and the establishment of digital connections between e-commerce platforms and all parties in the industrial chain have achieved significant results in improving the efficiency of supply chain operations and boosting industrial transformation and upgrading.
Effectively 'moisturize' market entities
E-commerce is connected with consumers at one end, and market entities of all sizes at the other end.
The crisp red plums from Hongxiang Village, Hujia Town, Gulin County, Sichuan Province are juicy, sweet and sour. However, this village is located in a remote mountainous area, and getting rich and getting rid of poverty has encountered the problem of 'good wine is also afraid of deep alleys'.
'Good fruits can only rot in the ground, and the hard work of the farmers can't just be wiped out!' Zhang Zhenfei, who was selected by the China Development Bank to be the first secretary of Hongxiang Village, was fighting for the special infrastructure project donated by China Development Bank Finance. The funds built the main road for the village, and while doing their best to connect with major e-commerce companies, they eventually sold nearly a million catties of crisp red plums in the village.
'Taobao pioneered the e-commerce live broadcast method, and promoted the upgrading of the e-commerce industry through video and content-based interaction. Data shows that Taobao live broadcast has grown by more than 150% for three consecutive years, and it is the fastest growing new economy in recent years. Mode. Especially since the outbreak of the epidemic, more than 100 offline occupations including catering companies, real estate consultants, stall owners, and counter shopping guides have all achieved “cloud resumption of work” on Taobao Live. At the same time, 60,000 Taobao farmers anchors, county chiefs, Stars jointly bring goods for agricultural products. This kind of 'village broadcast' has covered more than 2,000 counties across the country and has found a way out for unsalable agricultural products.' Taobao Live Broadcaster Xuan De told reporters.
In addition to poverty alleviation, the booming e-commerce has also brought opportunities for young people to start their own businesses. Ye Wenjian, born in 1988, graduated from Zhejiang Transportation Vocational and Technical College. After graduation, he moved to several companies to work in e-commerce operations. In 2018, by chance, Ye Wenjian tasted the chicken feet his aunt bought from the vegetable market. The sweet and sour taste made him very fond of it. So Ye Wenjian decided to move the chicken feet online, registered 'Jiang Shi Ji' on Taobao, and operated it as a part-time job. I sold 5 orders on the first day of opening, and 20 orders a week... This gave Ye Wenjian a lot of confidence. With the increase in sales, the annual sales of 'Jianshiji' soon reached 14 million yuan, and Ye Wenjian was also determined to invest full time in his business. Today, his team has reached a dozen people.
The development of e-commerce has also driven the sales of related hardware. According to data from the Ministry of Industry and Information Technology, from January to May, the electronic information manufacturing industry above designated size achieved 'double growth' in revenue and profits. Among them, the operating income of the computer manufacturing industry increased by 6.0% year-on-year, and the profit increased by 41.6% year-on-year.
In an interview with our reporter, Wan Zhe, a visiting researcher at the Chongyang Institute of Finance of Renmin University of China, pointed out that there are three reasons for the great success of e-commerce in China: First, the rapid development of China’s economy for many years has resulted in more and more people’s spending power. The improvement has created a huge market space; second, e-commerce timely and accurately compensates for the 'blank spots' between offline consumer supply and the consumption demand of urban and rural residents. The third is that China's reforms have continued to deepen and open up in recent years. Deepened, a good entrepreneurial and innovative atmosphere has been formed, which has boosted the rapid rise of a number of e-commerce companies such as Alibaba, JD.com, Suning, and Pinduoduo.
'Leveraging each other's forces' online and offline
Whether it’s Tianjin’s “Tianpin Online Shopping” or Xinjiang’s “Qinghe Seabuckthorn Festival”, judging from many cases analyzed in the Report, China’s e-commerce development and traditional offline stores are not a “zero-sum game”, but rather 'Mutual leverage.'
At 7 o'clock in the evening on July 8, Liu Zhaowen, the manager of Wu Mart’s Sanlihe store in Beijing, was not off work yet. He and his colleagues Zhang Luo were on an online and offline shopping festival promotion event held simultaneously. For Liu Zhaowen, who has worked in large supermarkets for 19 years, online and offline integration has long been the norm. He told reporters that with the help of multi-point apps, many customers can place orders online and enjoy the 'supermarket stocking and home delivery' service.
In this process, the management of supermarket stores has also been continuously optimized. 'For the vegetables in the fresh food area, we used to weigh them in bulk. Many customers have to manually pick vegetables in the vegetable area. This is time-consuming, laborious and inefficient, and it also creates greater sanitation pressure in the fresh food area. With the development of e-commerce, we will carry out standardized sorting and packaging of vegetables in advance for the characteristic that online customers have higher requirements for delivery speed. Unexpectedly, after this kind of packaging is released, it will also be welcomed by offline customers and driven From the data of Sanlihe store this year, the sales of our vegetable products “online + offline” increased by more than 30% compared with the same period last year.” Liu Zhaowen said.
Dmall Chairman Zhang Wenzhong said that since the beginning of this year, Dmall and Wumart’s innovative distribution model 'Community Anti-epidemic Delivery Station' has expanded more than 6,000 sites across the country. 'The in-depth integration of online and offline e-commerce is making a leap towards the digital economy. This has a major effect on improving consumer satisfaction and promoting consumption upgrades.'
The well-known retail giant Suning also tasted the sweetness of 'two-line integration'. Thanks to the integration of online and offline omni-channels and complementary advantages, Suning's market share in the first quarter of this year further expanded to 25.3%, leading the omni-channel sales of home appliances as the 'first place'. Wang Junjie, Dean of Suning Retail Technology Research Institute, told reporters that in the new consumer era, the “consumption support” of e-commerce is gradually being reflected in the integration of supply chain and the deep integration of online and offline, which will force retail companies Integrate the supply chain performance capabilities of various business types, 'move' offline stores to online, realize 'scene reconstruction', and achieve seamless integration of multiple consumer scenarios.
'In general, the'consumption support' of e-commerce to China's economy is very large. The objective requirements of epidemic prevention and control have undoubtedly accelerated the development of online goods and services. At the same time, e-commerce focuses on sinking the market and making goods convenient. Features such as sex, commercial credit evaluation, etc. also contribute to the improvement of consumer experience. It can be said that while maintaining the basic consumption of e-commerce, it also enables related enterprises to maintain vigorous vitality.' Wanzhe said that e-commerce will stabilize consumption in the future Aspects will occupy a more important position.
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