eCommerce in China will reach $655 billion by 2020

In a recent outlook on China’s eCommerce Evolution, Brent Cohen outlines the astonishing evolution we might be missing.

In 2012 China had a 66.5% growth rate and registered RMB 1,2 trillion ($197 billion) in eCommerce transactions. Cohen says an expected RMB 4 trillion ($655 billion) increase by 2020 is a “conservative” estimate.

China's compound Growth rate, 2003-2011 - 120% . China grew 7 times faster than the US.
China’s compound Growth rate, 2003-2011 – 120% . China grew 7 times faster than the US.

That shouldn’t be too surprising for anyone not completely blind to outside-US eCommerce. Although US still leads the way both in terms of market size and per-capita spending, China is catching up fast. It’s main assets:

  • it’s the biggest market in terms of ecommerce shoppers in the world (242 million people)
  • it has a 6.3% eCommerce share of total retail (US only has 5%)
  • it fills a gap between the large territory the country has and the relatively small coverage classical retail stores provide. Online retail in China provides a coverage of 51% whilst the brick-and-mortar retail – only 13%

Have a look at this great resource:

[slideshare id=30326092&doc=chinaecommercemarketanalysisfinalreport2013-140122203732-phpapp01]

Author: Mihai Mike Dragan

Mihai Mike Dragan is an ecommerce expert and the cofounder and COO of Oveit, a global company focusing on live experiences technology, both virtual and in-person. Mike has an experience of over 15 years in building digital products, with a focus on ecommerce. He has worked with some of the largest consumer brands in the world, advising on their digital go to market strategy.   Mike Dragan is also the author of the "Understanding Omnichannel Retail - beyond clicks vs. bricks" ebook, a guide for companies that understand consumer behaviour across media. He holds two degrees, one in International Economics and one in Computer Science.

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