E-commerce is booming in China as consumers and vendors look to the Internet to save money in tough economic times, but the main beneficiary of their migration may be online payment providers.
Chinese payment providers like 99Bill Corp. have soared on the growth of Internet shopping, changing user attitudes and their own success at offering new payment options in a country where credit cards remain rare.
More at: The Industry Standard
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 $8.2 billion according to Shanghai-based tech consultancy iResearch. Wow.
80% of Chinese youth under 24 use the Internet.
Most popular purchases? Books & Publications, Audio/Video, Clothing, Mobile phones, Home goods, MP3 players and Cosmetics.
Downside to growth? The same issues that have hurt the Chinese e-commerce market from the get go. Trust, payment systems and logistics. The good news is that new payment solutions like Alibaba Group’s payment system Alipay, and a universal link into direct debit systems called IPS, are helping to allay fears of fraud with a population that is not accustomed to making purchases on the web.
With over 250 million internet users, who are now getting more comfortable with the web, China is going to be THE GIANT.
What are the top three items to consider when building trustworthiness globally? I don’t know. But here are three that come to mind.
Culture correctness – Understanding cultural values and distinct no-no’s can make or break your e-commerce efforts. Doing business in China? Pictures of clocks may symbolize death. Tell you what – stay away from clocks for now. Also, stay away from the numbers 4 and 7 which may relate to death. Death – I say!
Available payment options – In general, providing at least three payment options increases conversion at checkout by up to 20%. This is especially true in the global market. In Germany Direct Debit and Real Time Banking (like Giropay) are preferred payment options over credit card. According to the Bank of international Payments, 60% of online payments in Germany are via Direct Debit. Not offering Direct Debit solutions in Germany is like not offering cards at a US coffee shop. Not going in there again! What does this have to do with trustworthiness? Let’s just say not everyone in the world trusts credit cards and leave it at that.
Language – Translating your site can be a pain in the #$%. However, if you are serious about attracting business from a specific market, it can make all of the difference in the world. According to Overture France, the French consumer will look for information on the web in the French language approximately 94% of the time. They are not attracted to English advertisements. You think you can sell to China, Japan and Brazil without language translation? OK.
Please share with us your comments on trustworthiness in the global e-commerce market…
