According to Credit Suisse First Boston report, the Chinese consumer is going to replace the US consumer as a primary engine of global growth by 2014.
China’s online shopping market is expected to grow to $18.45 billion this year compared to last year’s figure of $8.2 billion according to Shanghai-based tech consultancy iResearch. Wow.
80% of Chinese youth under 24 use the Internet.
Most popular purchases? Books & Publications, Audio/Video, Clothing, Mobile phones, Home goods, MP3 players and Cosmetics.
Downside to growth? The same issues that have hurt the Chinese e-commerce market from the get go. Trust, payment systems and logistics. The good news is that new payment solutions like Alibaba Group’s payment system Alipay, and a universal link into direct debit systems called IPS, are helping to allay fears of fraud with a population that is not accustomed to making purchases on the web.
With over 250 million internet users, who are now getting more comfortable with the web, China is going to be THE GIANT.