1. Smaller Chinese Cities Lead Way in Shift to Online Shopping
Lack of choice in local malls is cited as a factor for spurring trade on online retailer Taobao
Many
in
the
West
may
know
that
China
is
home
to
the
world’s
largest
online
population,
and
that
e-­‐commerce
is
turning
into
a
powerhouse
industry.
But
who
are
the
most
generous
online
spenders
in
China?
Surely,
it
must
be
the
modern
citizens
of
Beijing
or
Shanghai.
A
new
study
by
Taobao,
China’s
largest
electronic
trading
website,
surveyed
2,006
counties
in
2012,
suggests
otherwise.
It
shows
about
30
million
people
bought
goods
with
a
combined
value
of
179
billion
RMB
($29.2
RMB)
on
Taobao,
an
87%
increase
on
2011.
Last
year
online
shoppers
from
third-­‐
and
fourth-­‐tier
cities
spent
an
average
of
5,628
RMB
per
person
on
Taobao,
outspending
the
4,700
RMB
by
those
in
higher-­‐tier
cities.
The
reason
for
the
higher
consumption
of
customers
in
remote
areas
is,
according
to
Boston
Consulting
Group,
that
more
middle-­‐class
families
were
created
in
lower-­‐tier
cities
than
top-­‐tier
ones
and
their
purchasing
power
was
growing
fast.
"In
addition,
people
in
lower-­‐tier
cities
have
even
more
reasons
to
shop
online
than
those
in
top-­‐tier
cities
as
many
of
them
cannot
find
the
brands
they
are
looking
for
in
their
own
cities"
BCG
said.
BCG
expects
an
impact
on
traditional
shopping
centres
as
consumers
increasingly
look
to
online
retailers
for
some
of
their
day-­‐to-­‐day
purchases.
From
South
China
Morning
Post
For
more
information
contact
Christian
Brüel
christian.bruel@schultz-­‐co.com