China represents the second biggest economy in the world in terms of GDP, and is the largest exporter of goods and services as well. Now, with the advent of ecommerce, China stands on top of the global ecommerce market as well.
China has grown into the world’s largest powerhouse for e-commerce, with a global market share of more than 40%. China has been dominating the e-commerce market, getting ahead of economically strong countries such as the United States, France, and the United Kingdom. Let us explore some factors that contribute to China’s influence in the e-commerce market.
There has been a significant increase in the number of internet users in China.
China has over 800 million internet users, and nearly 30 million used the internet for the first time in 2018. China’s dominance can be seen in its presence versus competing countries, with a higher number of internet users than the three most populous countries combined. The widespread use of internet stands as the backbone of China’s development in the ecommerce industry.
Internet users in China are huge fans of online shopping.
As phones and payments become more mobile, more individuals in China’s population began online transactions on mobile devices. Apart from their online purchasing, China has also been catering in their international online platforms, with similar B2C websites such as Shein, Temu, JD.com and AliExpress. Alibaba Singles' Day is China’s biggest e-commerce event that celebrates being single–a day to counter Valentine's Day–and consists of a one-week-long online shopping festival. China’s 2023 Singles' Day led to a new highest record of $156B in sales.
China’s e-commerce market is supported by a vast logistics ecosystem.
Chinese entrepreneurs have developed efficient networks and systems to manage high order volumes through companies such as Alibaba and JD.com. Alibaba manages delivery firms that have the ability to process up to 30 million items on a daily basis, while JD.com aims to provide same-day delivery before 11PM the day following the order placement. As the ecommerce industry continues to advance, the demand for reliable and outsourced logistics solutions continues to grow.
China’s position in the e-commerce industry has fueled their need to build an international presence. This presents an excellent opportunity for investors to adopt China as a potential country for the booming e-commerce market. The MBE Master Franchise can help to enter a rapidly growing industry, while also helping Chinese companies advance their international presence goal with innovative marketing and logistical solutions.
(Photo: Unsplash)
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