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China Briefings

Reports on China issued by Samsung Economic Research Institute

The Current Status of China's Online Shopping Markets

The Current Status of China's Online Shopping Markets

Samsung Economic Research Institute Beijing Office

July 17, 2009

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1. Introduction

Thanks to the spread of Internet use, increased stability in electronic payment systems and completion of a delivery system, the Chinese online shopping market has grown rapidly.

- Since online shopping markets have less fixed costs than offline shopping malls, companies can provide products at low prices while consumers can compare products in a relatively short time.

- Disadvantages of online shopping markets include shrinking sales in offline shops due to emergence of online shops on the company side and poor delivery service on the customer side.

- China's online shopping market has grown an average of 145% annually for the past five years.

The online shopping markets which was only worth 5.49 billion yuan in 2004 reached 122 billion yuan in 2008 with the number of users increasing from 22.4 million to 80 million.

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