The Chinese ecommerce market is predicted to grow to $3 trillion by 2024, according to figure from GlobalData.
Chinese online sales are also expected to grow 17.2 per cent and will surpass offline sales for the first time in 2021 according to a study published by eMarketer.
The report estimated that 52 per cent of China’s sales will take place online, up from 44 per cent in 2020 after the pandemic has accelerated the growth of ecommerce.
Ecommerce giants such as Alibaba and JD.com accounted for over 75 per cent of ecommerce sales in 2019, with the latter recently securing a partnership with luxury western brand Louis Vuitton.
China’s national bereau of statistics found that total retail sales of consumer goods fell by 3.9 per cent last year, however online retail sales of physical goods increased by 14.8 per cent.
The ongoing Chinese boycott of fashion brands such as Nike and H&M over the government’s alleged human rights abuses hasn’t affected the ecommerce market, with it seeing a compound annual growth rate (CAGR) of 12.4 percent.
“Chinese e-commerce evolved rapidly over the last five years, supported by high Internet and smartphone penetration, increasing consumer confidence in online shopping, emergence of e-commerce platforms, and the availability of alternative payment solutions such as Alipay and WeChat Pay,” GlobalData’s banking and payments analyst Nikhil Reddy said.
“The COVID-19 pandemic has further accelerated this trend as consumers are increasingly using online channel for their purchases.”
Alipay and WeChat Pay collectively account for over half of total e-commerce sales in the country.
Buy now, pay later schemes are also being integrated as popular methods of payment on Chinese ecommerce sites.
Alipay offers a service called Huabei and tech company Tencent have introduced something similar into its credit feature in the WeChat app.
While Alibaba owns a large proportion of the ecommerce market share, the Chinese government are cracking down hard on the tech company, with regulators issuing it a record $2.8 billion antitrust fine.
The report from eMarketer said the average growth figure in European economies was around 13 per cent.