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Powered by But companies like Steve Madden, Walmart, Macy’s and JCPenney have all cautioned that new tariffs could hurt their business. Four in five Chinese e-comm dollars (80%) are spent using a mobile device, compared to just 64.4% worldwide. WordPress.com VIP. In 2012 I had the opportunity to visit Shenzhen China. E-commerce represents a rising share of ⦠Payment and shipping is also separate in American e-commerce, where in China they are integrated. The ⦠eMarketer projects the worldwide e-commerce market to hit $3.535 trillion in 2019, a 20.7% rise over last year. Chinese consumers are ahead of the rest of the world when it comes to shopping via their cell phones, both in terms of buying on mobile and in using mobile payment apps for online/in-store purchases. QQ and Ali Wan Wan are the two most common chat systems for doing domestic Chinese business – and people of all ages use it, not just kids. This May, President Donald Trump ordered a tariff increase from 10% to 25% on $200 billion worth of Chinese imports — the third tranche of tariffs since the dispute ramped up last year — and also threatened to hike levies on another $300 billion worth of products. With the rise of Wechat and the Wechat wallet the Chinese consumer, from college student to grandparent has connected their bank account to their phone. The figure is especially impressive given that the nation only overtook the U.S. as e-comm’s worldwide leader six years ago. Traveling to China can often feel like visiting the future. There he has resources for entrepreneurs and business interested in doing business in Asia. Will my personal information be safe when passed to this seller? Its also used as a way to check before you buy. I’ve been based in China since the end of 2007. In 2017, Chinese consumers spent more than ⦠What’s the Real Value of Content on E-commerce Sites? That is how America was built to be such a creative and dynamic land. As we said above, the delivery is made after payment is deposited into the seller’s account in USA, whereas in China it’s in escrow. In the US, consumers spent $513.61 billion online in 2018, an increase of 14.2% from last year. ecommerce usa vs china $ online sales could reach 650 billion by 2020 usa china Chinaâs etail industry posted 1.4b 317m 120 % compound annual growth since 2003 *US: 17% 230 5% $ 210 >6% $ size of ecommerce market (2012) billion billion ecommerce ⦠Many buyers like to see if the buyer is online, and chat for a few reasons, to bargain (we’ll cover below) as well as to just make sure the seller is “alive” and not a cheat. It is truly becoming a cashless society with the battle of online payments between two ecommerce giants – Tencent’s Wechat Wallet / Wechat Pay vs Alibaba’s Alipay. It’s not just in China that e-comm spending is soaring; the rest of the Asia-Pacific region is shopping online more than ever, too. Following my visit, I interviewed Michael about his experience living and doing business in China. When buying online, the “e” part, we cannot meet our seller or buyer face to face and must use the E, or Internet, as a medium to complete the transaction. America is a much younger culture, therefore they trust much quicker – as there isn’t any pre-existing family business relationships and “Circles” in industries. Americans aren’t accustomed to chatting….it started with AOL in the 90s, and was mostly for teenagers to gossip and waste time. I define e-commerce as basically the “E” or electronic addition to normal e-commerce, which is the exchange of goods or services for other goods or services – normally now currently traded for goods or services. Retailers Ask Supreme Court to Weigh In, © 2020 Fairchild Publishing, LLC, a subsidiary of Penske Business Media, LLC.FN and Footwear News are registered trademarks of Fairchild Publishing, LLC. In November 2020, China's total retail sales of consumer goods reached 3,951.4 billion yuan (about US$600.70 bn), up 5% year-on-year, 0.7 percentage point faster than that of the previous ⦠E-commerce market in China â predictions . When it comes to e-commerce sales, no country even comes close to China. US v Chinese e-commerce industry development. Today, China has the largest digital buyer population in the world, amounting to ⦠Furthermore, China's e-commerce sales surpassed the combined total of Europe and the United States. 2 e-comm market. Again, the advantage Chinese e-commerce has over USA is that it learned from American systems and built a better system from the ground up. In 2012 I had the opportunity to visit Shenzhen China. E-commerce sites in China tend to be louder, busier, more colorful, more texts, and use smaller photos. Meanwhile, mobile payment apps are used by 81% of Chinese shoppers, while only 27% of Americans pay using this method. China is poised to become the worldâs top retail market in 2019, surpassing the US by more than $100 billion, according to eMarketerâs latest worldwide retail and ecommerce forecast. Maybe thatâs why USA has a debt problem? It makes people take more time when conducing business transactions and requires that they build enough trust in the business relationship before conducting business. Still active both in USA and Chinese e-commerce, I will take this post to outline differences I have noticed along the way doing Chinese e-commerce and “American” or English or “international” e-commerce. Chinaâs E-Commerce share is expected to reach half of the global market by 2020. Less professional seems more real, that the seller actually has possession of the goods, and isn’t just pulling them off the internet and putting them on his / her online shop. For ecommerce, Chinaâs dominance means that 62.6% of all digital sales will take place in Asia-Pacific. A proposed 25% levy on the fourth tranche of tariffs, which would have impacted footwear, apparel and other accessories, was suspended at the end of June. China will dominate the global online fashion market with a revenue of more than US$285bn in 2021 3. If the price is too high and unreasonable, then they will go on to the next seller, they won’t bother to try to bargain. People had to make business happen, and didn’t have prior experience and networks to go on. If you have ever thought about doing business in Asia or just want to stay up to date with the current business environment in Asia then I encourage to get ahold of Michael over at his site Global from Asia. Here are five ways the U.S. and China trade war is impacting ecommerce â in some ways you may have never considered. Asia-Pacific will account for 42.3% of retail sales worldwide, North America will capture 22.9%, and Western Europe will make up 16.2%. Although there are more people shopping online in China than in the U.S., only 14% of Chinaâs population shop ⦠I like to say, Americans don’t like to waste time bargaining. All rights reserved. The quoted price is never supposed to be the actual price, its always up for negotiation. Therefore a few things cross our minds before giving this seller our money….in any country or any culture: Is this seller real, will they honor the transaction by shipping my goods on time, and making sure I am a satisfied customer even after the transaction. Payment and shipping is also separate in American e-commerce, where in China they are integrated. For those of you reading this – most likely you have already ordered a product from the Internet. Beijing retaliated with duties of 5% to 25% on $60 billion in U.S. goods. Please fill out this field with valid email address. 1. e-Commerce: China vs. the US Whitepaper 2017 e-Commerce & Retail 1. e-Commerce in China will grow by 17.4% on average each year; growth in the US will be significantly smaller 2. Something I haven’t noticed in America as much, but Chinese value foreign brands and quality. Companies like Apple and Walmart have filed letters of opposition to the U.S. ⦠Credit cards are more commonly used in USA, but growing fast in China. E-commerce gross merchandizing volume (GMV) growth % year-on-year E-oee oss ehaniin ole oh % year-on-year SOURCE: McKinsey China Digital Consumer Trends 2019; eMarketer 2014 15 16 17 2018 134% 14% 47% 27% 15% 31% China ⦠India and the Philippines both have seen 30%-plus increases in growth this year, with gains above 20% in China, Malaysia and Indonesia. The real difference between China and US E-commerce. Ebay is now trying this with “best offer” prices in its platform, but again, this is just how TaoBao and Chinese e-commerce is done. Payment for Chinese e-commerce is also commonly held in an escrow (alipay) and then released once the delivery confirmation is made in the shipping system (which is integrated). With a rich history of corporate responsibility, Deckers Brands embraces a holistic approach to doing the right thing. We ⦠BEIJING â JD.com, a major Chinese e-commerce company, is looking to become the technology platform of choice for U.S. customers in a cloud computing market dominated by Alibaba. Meanwhile, scores of footwear and apparel brands say they’re looking to move their production out of China and into alternative sourcing hot spots like Vietnam and Mexico, moves that could have negative implications for China’s economy. The internet has become a critical element of China⦠10 LinkedIn Marketing Hacks That Are Guaranteed to Get you More Connections, 4249 E Pratt Ave Suite B, The ways we build trust is different in different cultures…and e-commerce clearly defines these cultural differences. Amazon Prime is working on speeding up US delivery times, but China is way ahead of America in the speed of delivery. Online retail sales in China ⦠In 2016, Chinaâs e-commerce ⦠But in China, more People Chat online instead of making calls or emails. According to the projections, by 2020 e-commerce market in China will be bigger than American, British, Japanese, German and French e-commerce markets combined. US Census Bureau Retail Trade site Monthly Retail Trade - Quarterly E-Commerce Report Historical Data This Javascript allows the page in IE to resize to the minium width of 783 pixels ⦠In addition, Chinese make contracts/agreements much more complex – and discuss each point in detail. What Are Topic Clusters and Why You Need them! In conclusion, people are people, in many ways the same between cultures. E-commerce growth: China vs. According to a recent eMarketer report, online sales in China are expected to reach $1.935 trillion in 2019 — more than triple the projected $586.92 billion in sales for the U.S., the world’s No. This type of a payment, escrow, delivery, release system in China also shows the level of distrust people have. Spokane, WA 99202. I saw an interesting piece of statistic on US e-commerce market this morning from RetailSails newsletter (really good retail blog on US market, recommended), and decide to compare the stats between China and US.. The current state of e-commerce in China. Chinese consumers have adopted to mobile payments much faster than in America. This has enabled the e-commerce sector in China to flood in prominence, as selling on the web is the least expensive and most effortless path for more small-scale organizations to gain more access into a more substantial market and customer base. When it comes to e-commerce sales, no country even comes close to China. This system did enable Chinese e-commerce to grow to the level it is now and it also simplifies the dispute process. e-Commerce in China will grow by 17.4% on average each year; growth in the US will be significantly smaller China will dominate the global online fashion market with a revenue of more than ⦠China has the most mobile users in the world and more e-commerce activity than any other country in the world. China's retail market will become the largest in the world, exceeding sales in that of the United States in 2019 and topping $6 trillion in 2020, an analysis says. The ongoing strength in its e-commerce business is good news for China, which has been involved in a yearlong trade dispute with the U.S. Below are the insights he shared with me on the differences between doing business online in China vs the US. But it’s cultural experience that defines us. According to a recent eMarketer report, online sales in China are expected to reach $1.935 trillion in 2019 â ⦠Taobao has built bargaining into its platform, allowing the price to be adjusted for each transaction. High-speed rail and public transport. In addition, taking me to some great restaurants Michael took me around to tour local a hackerspace, a local Shenzen startup as well as the Baidu headquarters (the Google of China). I had originally made the trip to Shenzhen for business and was there for a little over a week doing training for a newly launched website for DOWIN Lightning Technologies. Starting in July 2018 the U.S. government levied a 25 percent tariff on over 800 categories of goods imported from China. I had originally made the trip to Shenzhen for business and was there for a little over a week doing training for a newly launched website for DOWIN Lightning Technologies. BEIJING: China has over taken the US to become the world's largest online retail market as its E-commerce revenues grossed USD 439 million last year constituting 7 per cent of its GDP, according to a new report. This stands for online to offline, and with the rise of mobile payments in China, and the usage of QR codes, you can order a breakfast on the side of the road from a cart and pay with your phone. In the USA, people want to see professional photos, so that they see the seller put the time and care into the product listing and therefore will put the time and care into your order. ⦠While there I had the opportunity to meet with Michael Michelini a talented entrepreneur and Internet marketer who is well versed in Co China/US commerce. Much more direct, the quoted price is supposed to be the end price. E-Commerce is in its heyday in China, representing approximately 35% of the overall retail market, it is a global leader. ⢠E-commerce Adoption: E-commerce sales in the U.S. totaled $448 billion in 2017, representing ~8% of the $5.6 trillion in total retail sales. Still, e-commerce is a young industry in China and there is room for much more growth. Are E-Commerce Sites Covered by the Americans With Disabilities Act? Payment for Chinese e-commerce is also commonly held in an escrow and then released once the delivery confirmation is made in the shipping system (which is integrated). ⦠China is a much more established culture, and in a way that culture element holds the country back. Maybe that’s why USA has a debt problem? One of my friends recently ordered a TV online around midnight and it was at his door about 4pm the next day. in China, O2O is all too common. If not in 2013, no later than 2014, China's e-commerce will have a bigger gross merchandise volume than in the United States. Chinese bargain more, way more, than Americans. Below I’ll cover a few key topics in an e-commerce transaction: In China, customers want to see real photos of a product. I have been selling online in USA since 2004, and started selling online in China in 2008. Everything You Need to Know About Nordstrom’s Black Friday & Cyber Monday Deals, COVID-19 Turned Nordstrom Into a 'Majority-Digital' Business -- What Analysts Are Saying About the Department Store's Strategy, Farfetch, Alibaba & Richemont Join Forces on Game-Changing China Luxury Deal, Dior Will Release a Collection Exclusively for China's Singles' Day, US-China Trade War May Send Imports to a Record Low. In China⦠Despite all of this China is growing & changing quickly- and the newer generations are much more curious and open-minded. E-commerce services such as trading platform services, logistics distribution and electronic payment have been intensively developed to support and facilitate the development of cross-border e-commerce. Global infrastructure improvements could mean more cross-border e-comm, the report notes, with demand for luxury goods, including designer apparel, driving the trend in China. According to the RetailSail stats, From 2000-2012 total U.S. retail sales grew 3.2% compounded annually, while e-commerce ⦠Chinaâs cross-border e-commerce ⦠US. Want to read more articles like this one? Again, the advantage Chinese e-commerce has over USA ⦠In addition, taking me to some great restaurants Michael took me around to tour local a hackerspace, a local Shenzen startup as well as the Baidu headquarters (the Google of China). First let’s define E-commerce, or buying Online. The eBay plan of action in the United States ⦠This is a big opportunity for foreign brands looking to tap into the Chinese e-commerce market, as the growing middle class continues to budget for Western goods. Please be aware that China's total retail sales is still ⦠Retail e-commerce sales in China is accounted for more than half of the global retail e-commerce sales. What is considered pretty and useful in US is so different from that of China. 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