China is in position to be the number one E-Commerce Market for quite some time and Chinese consumers are hungry for International Products
Sometime in early 2014, China will lay claim as the leader in Global E-commerce. Last year saw Chinese shoppers spend 1.3 Trillion yuan ($213 Billion) online, just slightly less than the $225 Billion tally in the U.S. The Chinese online retailing market has grown at a scorching 71% compound annual growth rate since 2009, about five times as fast as its American counterpart. It is now predicted that the estimated 193 Million online shoppers in China will increase to more than 350 Million by 2015, generating a transaction scale of 2.6 Trillion yuan.
Chinese Consumers Love “Made in USA” Products
The rising Chinese middle class is the biggest story of our time. However, many US companies are missing the opportunity. US exports to China account for only 6% of China’s total imports. On November 11, China’s “Single Day” shopping festival, online retailers Tmall (B2C) and Taobao Marketplace (C2C) generated a record revenue of $3.1 Billion, more than the total sales in the U. S. on Black Friday and Cyber Monday combined.
Better yet, Chinese consumers love American goods and are willing to pay more for them. A recent study by Boston Consulting Group indicates that more than half of Chinese consumers prefer American products to Chinese products. Over 60% of them are willing to pay more for products that are “Made in USA.” That’s why Foxconn, a Taiwanese manufacturer that produce electronic parts for companies like Apple and Dell, is looking to the U.S. to open manufacturing plants.
Research also shows that the premium that Chinese consumers are willing to pay ranges from 10% to 80% or more. For example, Chinese consumers pay a 30% higher premium price for iPhones despite their relatively lower incomes compared to American consumers. Colgate Total Oral Care premium toothpaste costs approximately 200% more than local brands.
See more interesting numbers about the China E-commerce in this Infographic, courtesy of Search Laboratory.