As more and more Chinese consumers shop online and travel abroad, many are interested in buying foreign products online. Nearly three in five (58%) of Chinese consumers bought foreign products online from the domestic buy website in a six-month period.
But why do they like to buy products online so much? Let's find out.
Why do Chinese love to shop online?
China opened economically in 1979, and before that, there was no commercial activity at all. As a result, the Chinese retail industry is very new and fragmented, with millions of small stores and hundreds of millions of factories across the country.
Alibaba has filled the gap by connecting small Chinese manufacturers with customers. For small businesses, selling online is the easiest and most profitable way to access a larger market. For customers, Taobao (run by Alibaba) serves as a one-stop solution to buy anything online.
Introduction to the post-1985 generation
Chinese born after 1985 were just 15 years old when China connected to the world through the Internet. Unlike older generations who primarily use the Internet for work, the years after 1985 are part of a generation that grew up online.
Why does it matter?
In 2012, there were 200 million Chinese consumers of the G2 generation, and they accounted for 15% of total urban consumption.
By 2020, when the G2 generation reaches 30 years, China will become the world's largest consumer market with total consumption projected at 13 billion euros.
People consume more as their wealth increases, and e-commerce offers international buyers a great opportunity for exposure to the growing Chinese consumer base.