As more and more Chinese consumers shop online and travel abroad, many are interested in buying foreign products online. Nearly three out of five (58%) of Chinese consumers bought foreign products online from the domestic shopping website in a six-month period.
But why do they like to buy products online so much? Let’s find out.
China opened economically in 1979, and before that, there was no business at all. As a result, China’s retail industry is very new and fragmented, with millions of small shops 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 cost-effective way to access a larger market. For customers, Taobao (run by Alibaba) serves as a one-stop solution for buying anything online.
Introduction to the post-1985 generation
The Chinese born after 1985 were only 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 G2 generation consumers, representing 15 percent of total urban consumption.
By 2020, when the G2 generation reaches 30, China will become the world’s largest consumer market with a projected total consumption of 13 billion euros.
People are consuming more as their wealth increases, and e-commerce offers international buyers a great opportunity for exposure to China’s growing consumer base.