E-Commerce on WeChat 5.0?
WeChat 5.0 is to be launched soon and there are high expectations that the application will take a major jump towards e-commerce. According to analyst Cao Junbo, so far, WeChat has not been able to provide a positive online shopping experience. However, Junbo maintains that this could change if WeChat 5.0 provides users with a well-elaborated mobile payment method. Analyst Yang Weiqing, expands on additional problems WeChat will have to overcome in order to achieve a new e-commerce identity and mentions that as long as mobile phones cannot provide users with the ability to compare prices between different websites, then the future of e-commerce on mobile phones is uncertain.
Source: iResearch via Chinadaily.com
E-Commerce – is the Party Over?
“B2B, B2C, C2C”. Thanks to the rapid rise of e-commerce in China, these acronyms no longer seem like foreign words – they are synonymous with the information age. However, according to CCID Consulting, China’s largest consulting company, now suggest that the C2C e-commerce may not continue to grow at such a rapid rate. Data collected by CCID show that e-commerce transactions accounted for 740 billion rmb in 2005; an increase of more than 50% on the previous year. In 2013, Alibaba Group’s annual sales figures emphasized its dominance of the B2B market – net profit increased by 200%. The ever-increasing B2B market share of Alibaba.com and its subsidiaries, Taobao, Tmall and Aliyun, but to name a few, will lead to a decline in C2C e-commerce. Individuals will be unable to compete with Alibaba Group’s economies of scale, and will be forced to sell to consumers outside of Mainland China.
Foreign Products Lose their Supremacy in the Eyes of Chinese Consumers
It seems like Chinese consumers no longer see foreign brands as superior to local brands. In fact, according to a study by Epsilon marketing agency, while 65 percent of Chinese consumers still view competition from foreign companies as good, they are still experiencing a rising preference to buy products made in their own country. The study indicates that Chinese consumer’s preference to buy products made in China has risen from 31 percent in 2011 to 43 percent in 2012. This change in consumer preferences has been accompanied by betterment in the quality and sophistication of Chinese brands. Moreover, regardless of preference of domestic and overseas brands, the study also indicates that consumer brand loyalty in China has also increased from 41 percent in 2011 to 58 percent in 2012. According to the study, consumers are loyal to a specific brand for the following reasons: best values of money (50%), consistent good quality of services/products (46%), good after-sales service and support (42%) and services/products tailored for their lifestyle (38%).
Source: Retail in Asia