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C H I N A
E - C O M M E R C E & O N L I N E P A Y M E N T S
C h i n a i s t h e s e c o n d l a rg e s t e c o n o m y i n t h e w o r l d a f t e r t h e U S . T h e c o n d i t i o n s a re r i g h t f o r e - c o m m e rc e t o t a ke o ff i n t h e n e x t f o u r t o fi v e y e a r s .
A p r i l 2 0 1 6
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150 MILLION
people
“Urban Middle Class”
INCOMEAt or Above
US$10,000
The main consumer group in China is called
We call the “Urban Mass” INCOME
US$5,000-US$6,000
The rest of urban class ~60%
The Chinese government aims to double real income of the “Urban Mass” between 2010 – 2020. This growth in income can
potentially bring a couple of hundred million people to the “Urban Middle Class”.
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Source: Goldman Research
Brick-and-mortar commerce in China is still underdeveloped
And low car ownership limits shoppers’ ability to get to the shops
But with widely available internet, low shipping costs
And cheap products sold online,
4% car ownership
<US$5
shipping cost
US$6 unbranded jeans
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Source: Goldman Research
The conditions are right for e-commerce to
take off
688 MILLION
Online USERS
413 MILLION
Online SHOPPERS
US$276B online spend per year
US$670 average online spend per shopper
So far, there are
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More than 50% of all e-commerce sales are done on mobile
600M Chinese still don’t have internet accessBy 2020, China’s e-commerce market will be
larger than the US, UK Japanese, French and German markets combined
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Source: Economist
USA Hong Kong Japan UK Australia
84%
58%52%
43% 39%
The US is the most popular country where the Chinese consumer purchase goods
Most popular cross-border shopping categories
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#1
Consumer electronics
#2
Apparel
#3
Health & Beauty
Source: DLA Piper
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Most popular payment method by Chinese consumers
50%13%
Other18%
Alipay and Tencent represent 69% of the online payment volume in China
19%
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350Musers
260Musers
200Musers
Offering Alipay, Union Pay and Tenpay as a payment option enables access to million of online Chinese consumers
