2014 is set to be the year of mobile commerce as more and more Chinese consumers are shopping on their mobile devices. In 2013, China has over taken US in e-commerce. With more than 500 million mobile users expected to come online, 2014 is set to be the year of exponential growth in e-commerce in China.
According to industry leaders gathered at the pre-Congress China focus day at World Retail Congress Asia Pacific 2014, the exponential growth could well be driven by China’s deteriorating air quality.
Increased monitoring on air quality has led to a sharp uptake on awareness about air pollution and its side effects. This has shaped consumer behaviours in fundamental ways, with a growing trend of consumers choosing to shop online to escape the pollution. A clear example of this relation is demonstrated by Alibaba, the leading online retail platform in China. The company recorded gross merchandise value worth US$1 trillion in 2012 – this is the highest the company has hit since the platform was launched in 2003 which coincided with one of highest pollution readings in China in that year.
“Consumers are staying home a lot more than going out but that is not to say that consumers are completely focused on shopping online. Shopping in brick and mortars stores continues to be a key past time. Physical retail still makes 60% of all retail sales in China,” said James Roy, Senior Research Analyst, China Market Research Group.
Despite the growing popularity of e-commerce, there is still appetite for traditional retail experiences. Companies globally are working to complement the e-commerce trend with some offering a seamless shopping across online and offline platforms to enhance customer experience.
Explaining further, Redmond Yeung, Vice Chairman, Gap Greater China said: “Multi-channel retail is a key area that international retailers have looked at to maximise their customer engagement. Gap China combines offline and online experiences by providing customers the option of browsing store merchandise through an iPad before locating the physical product. This simplifies shopping in today’s world where people are time scarce.”
It remains to be seen whether the insights gained during the pre-Congress China focus day would be reflected across the sessions which will be held during the main Congress which begins tomorrow. Upcoming sessions on the first day of Congress, include “Working with the drivers of change: Monopolising on regional fortunes and the ever-changing consumer demographics”, “Omni-channel retailing strategies: Creating the ultimate fully-integrated customer experience”, and “Digital retailing innovations in Asia: Transforming strategy to grow competitive advantage in the new world” amongst others.
Source: Bell Pottinger Asia
