China Luxury Online Sales Expected to reach $27 billion in 2013
E-commerce in China is expected to be worth $ 296 billion this year, surpassing the US to become the world’s largest e-commerce market. Washington-based market research firm Observer Solutions recently released a report showing that China luxury online sales are expected to reach $ 27 billion in 2013. China already leads the world in online shoppers with 242 million—equivalent to roughly 73% of the US population. This consumer population will continue to increase rapidly in conjunction with the overall increase in Chinese Internet users. In 2012, the average Chinese online consumer spent RMB 5,203, an increase of 25% over 2011. The average frequency of online purchases also increased dramatically, to 18 purchases every 6 months in 2012 from 3.5 in 2011. Chinese consumers have already demonstrated their willingness to make big-ticket purchases online. Thus, luxury e-commerce has significant growth potential.
Which Online Travel Brands are On Top in E-Commerce?
According to a recent report by Change Sciences, the web analytics firm, Expedia, Travelocity, and Orbitz are on top when it comes to the interactivity of their websites, and the user experience. The report found that there was significant variation among travel sites in their overall engagement, usability and conversion. The data showed how key user groups differ from one another. For example, ‘Influencers’, the group most active on social media, are not only the most likely to write and read product reviews but are 15% more likely to book a trip or hotel room as well. ‘Hold Outs’, those least active on social media, are least likely to have their decision to purchase influenced by reviews, testimonials, and photographs.
China’s First Cross Border E-Commerce Industrial Park Opens in Hangzhou
In 2012, cross border electronic business transactions amounted to 2 trillion yuan, an increase of more than 25 percent. The morning of 8th July ushered in a new era in e-commerce, with the opening of China’s first cross border e-commerce industrial park. However, this is no ordinary trading hub – it is a “grey area”, meaning that all-commerce transactions taking place here receive a tax rebate. According to Hangzhou customs officials it normally takes no more than one day for the average parcel to clear customs, and less than two hours at peak times. Because all the necessary facilities are located on site, the park is able to provide business with a one-stop, paperless customs clearance, reducing processing costs and increasing output.
Source: Hangzhou Daily
E-Commerce Transactions Increased by 46% from January to May
Data released yesterday by the People’s Ministry of Commerce showed that from January to May this year, E-Commerce transactions increased by 46%. Internet information flows also grew substantially. For example, Internet traffic from mobile devices increased by 56.8%. Home broadband access, online video, online shopping, micro media, mobile payment and mobile videos are set to be growth areas in the coming years, all of which contributed to growth of e-commerce in the first half of 2013.
Source: Changjiang Daily
Alipay Finds Immediate Success in Micro Financial Services
On June 13, the massive third-party payment platform, Alipay, in cooperation with Tian Hong Asset Management Co. lunched Yu E Bao. This service is designed to allow individuals with Alipay accounts to use the idle cash in their accounts to acquire financial products. Alipay’s Yu E Bao has had a very successful start, as in only a week after its lunch it had already attracted 1 million users. In fact, Yu E Bao exponential and immediate growth has been such that analysts argue can challenge the banking industry’s short-term financing business. However, given a significantly higher annual return for investors compared to that of one-year bank deposits, Yu E Bao is unlikely to stop attracting users anytime soon.
Source: Caixin Online