E-Commerce: the Growing Trend

When you think of Internet usage in China, government censorship is often the first thing that comes to mind. Look beyond politics though, to the possibility of doing business over the Web in China, and the potential is hard to ignore. A massive population with rapidly increasing access to high-speed connectivity has led to an e-commerce boom. In fact, recent studies show that China’s Internet economy reached 45.67 billion Yuan (approximately 7 billion USD) in the last quarter of 2010. Here’s what you need to know and some tips on getting involved.

The Chinese population has no qualms about buying goods online. In 2010, e-commerce was hailed as the fastest growing online activity in China. The number of online shoppers grew by 50 percent to 160 million within the year. Online sales grew by 370 percent to $78.79 billion. What does the future look like? With most Chinese consumers accessing the Internet through their mobile phones and phone companies steadily introducing new ways to conduct transactions on the go, the sky is the limit. So how can your business benefit?

Online business is a relatively cost-effective way to reach consumers directly. Not sure you’re ready to make a brick-and-mortar investment in China yet? Consider a much smaller initial investment in an online sales presence to get a feel for the marketplace. Already selling in China? Amp up your Web presence to give customers an additional way to interact with your business. Also, use online advertising as a cost-effective way to drive sales and build a brand presence. Online ad revenues in China are forecasted to reach $6.95 billion by 2012.

All in all, the exponential growth of online transactions in China creates a new avenue for U.S. businesses looking to enter the marketplace or further establish themselves. Make an online presence a key factor in your overall China business plan – another way to ensure the growth and success of your venture.