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China’s E-commerce Market Soon To become Word’s Largest

According to the management consultancy firm, Bain & Company, the public should expect China’s e-commerce market to skyrocket this year, passing the United States and coming up on top, as the world’s leader by total consumer spending.

Times changing

onlineshopFrom the data gathered by the Chinese e-commerce firm Alibaba Group, online shopping has become more popular and will soon account for 50% of all Chinese retail spending in ten years’ time. Compared to $228.7 billion in the U.S., the total spending by Chinese buyers via online shopping reached $212.4 billion in 2012. This sudden change in shopping habits is due to the increase of availability of access to the Internet of almost half of the country’s population. Currently,80% of China’s population of 1.3 billion now own smartphones or tablets.

The future is online

From 2009 to 2012, China’s e-commerce market has grown at an average rate of 71% while the growth in America remains at 13%. While offline shopping is still larger by far when it comes to revenue, the growth of online sales is progressing at a much faster pace.

Nicholas Studholme-Wilson, a senior analyst at Sun Hung Kai Financial in Hong Kong, even predicted, “Soon retail companies may have to take a leap of faith, shutting their bricks and mortar outlets to reduce overhead costs and hope that customers will turn to their online stores.”