The next evolutionary step for e-commerce in China is e-mobileComments Off
The day the e-commerce will go mobile
When the e-commerce industry in Western countries is becoming mature, in China, it is a huge market that has a lot of untapped potential! The opportunity of having a 600 million clients visibility is attracting businesses from all over the world so why not you ?
Maybe some numbers will help: in 2013, it is 618 million Chinese that were using Internet with a penetration rate of 46% of and it is not even half of the population. Within this population, 300 million of them were already shopping on-line last year.
Who is controlling the Chinese Internet?
The three giants on the Chinese Internet are well known in the Industry : Baidu (the favorite search engine of Chinese), Tencent (which owns WeChat and SnapChat) and Alibaba (which owns Weibo and Tango). They all have a net profit of at least 1,465 billion euros and enjoy a growth of sales and turn over very advantageous.
A huge potential in the B2C Market 2013
If Internet used to be the place where customers were making business with customers the trend is now turning around. In 2010, only 13.7% of transactions were from Business to Customer. And the Customer to Customer type of transactions ruled 86.3% of the Internet. Now, B2C represent 35.1% of the market and this is far from over. In 2017, experts expect that they will be more B2C transactions (52.4%) than C2C transactions (47.6%).
The opportunity of smart phone on e-commerce
In 2013, if the Internet users were 618 million, the mobile Internet users were already 500 million. The penetration on this sector has a 83% growth! It is the highest of the world(followed by South Africa and Hong Kong). Concerning tablet, it is the first one in the world as well with 39% (followed by Mexico and Singapore). What does that mean? It means Chinese will more likely buy through their Smart phone that any other nationality.
Indeed, there are already 69% of Chinese that bought a product on their mobile compared to 46% of American. China passed the hurdle mid 2013. By this time, more people were shopping through their smartphone (81%) than their computer (70%). On Double 11, which is on Nov 11 nicknamed Bachelor’s Day by Chinese, 127 million consumers spent 650 billion euros on Taobao Mobile. It is 560% more than in 2012 and convered 21% of all Taobao’s transactions. This website is one of the favorite of Chinese, 2/3rd of netizens (400 million) used it in 2013.
The mobile shopping market in China has showed incredible growth and opportunity. In 2011, it generated “only” 1.37 billion euros transactions, in 2012, already 7.44 billion euros and in 2013 almost 20 billion euros. In 3 years, this sector has experienced a huge boom and by 2017, transactions should reach 117 billion euros. How come ? Thanks to the new means of mobile payment, the penetration of smartphones in the countryside, the increase of the 3G coverage and the WIFI hotspots and the Offline to Online tools.
Who will be smart enough to catch this wave though ? Taobao Mobile already has 81.45% of the market share and Jingdong Mobile 6.67% but trend can still change.
What are the trends expected in the future?
In addition, the forecasts are all very optimistic when it comes to the evolution of this sector. In 2012, the total transaction value was equal to 354 billion euros and in 2013 over 218 billion euros. With a 40% growth, from one year to another, the sector should expect to reach 488 billion euros transaction by 2017. It is the biggest on-line e-commerce market in the world. Experts predict that by 2020, it will be bigger than the e-commerce of USA, Great Britain, Germany, France and Japan combined.
The rise of e- tourism in ChinaComments Off
Chinese tourists are more and more visiting other countries in the world, and this growth is expected to continue in the coming years. One of the key trends among Chinese tourists nowadays the e- tourism, i.e. using the internet for everything related to the Chinese travel and Chinese potential travelers. Why and how is internet used in this area? Here is some essential information when you are interested in this market.
More and more Chinese tourists in the world
Internet in China
David, specialist of Travel in Asia explain that “ 70% of Chinese travelers book online today! We must therefore be aware of the importance of the Internet in China, and also in the tourism sector.”
Major platforms booking
Social networks and KOL
Search on Baidu
To conclude we can say that e-tourism has become an integral part of the lives of Chinese and is an important means to adapt to this growing market. If you want to take advantage of the million Chinese tourists expected in the world in the coming years, it is essential to adapt to the habits of the country, including e-tourism.
If you are a company of the industry sector, don’t wait to increase your e- reputation on the Chinese web, and your notoriety in the country, in order to attract many Chinese tourists and increase your Chinese customer base.
Real Estate websites in ChinaComments Off
Real Estate websites in China
At first sight, the websites about renting an apartmet in China can appear messy. Let’s try to have a quick insight about what kind of actual site and services you can find there. Fist of all, the online Chinese real estate websites can be divided in two categories. The websites aimed at the Chinese public and the websites for expatriates. These two categories have quite distinct characteristics.
Real Estate Websites targeting the Chinese customers
Within the first category, you find the websites of the large real estate companies in China, like Century 21, or Wo Ai Wo Jia « 525j », that was successful and extended its internet site to home supplies. These are the standards websites advertising properties for a specific real estate company.
Apart from these websites, a couple of specialized webportals have been very successful advertising real estate in China. The most important of them are Soufun (), 58.com (58.com ) and Ganji (www.ganji.com). These websites have the largest selection of apartments available in China.
The general problem of real estate in China is that the market is wild and many frauds do occur. The general information is inaccurate since the agency’s target is to attract customers. The classifieds advertise appartements that are not available, some of them might even have never been available at all since the agencies actually collect pictures of any kind of apartment just to give the feeling of a large choice.
Often the agents masquerade as owners just to maximize their commission and get a supplementary commission from the tenant. Actually, if the monthly rent is over 4.000 RMB, only the landlord usually pays a commisionn if the price is under 4.000 RMB, they try to get the commission both from the landlord and the tenant. Overall, this is a market which is very poorly regulated, with very little means for the administration to control anything, so that anything can happen.
Actually, most of these websites are never used by foreigners since almost none of them are translated in english. This is one of the simple main reasons why the foreign customers/domestic customers are separated.
The situation is a little bit specific for the expatriate real estate.
Real Estate websites targeting foreigners
Just as it is the case for Chinese citizens, there is two kinds of websites, the general websites with classifieds and the websites specialized in real estate. The most popular classified websites for foreigners are sites such as City Weekend, (http://www.cityweekend.com.cn/shanghai/) , the Beijinger (http://www.thebeijinger.com/). The trouble on these websites are exactly the same than for the Chinese websites : everything is possible since there is very little control. Real Estate agents just try to get into contact with customers and rent them any apartment they actually have at their disposal.
This would have no tragic consequences if the agents you might get in touch with had a real sense of service. The trouble is that in China, many of them are unable to actually understand the expectations of customers, even less the expectations of a foreigb customer. Nevertheless, you can find very good renting opportunities and very professional agents on the general expat classifieds websites, but be aware that there might be diapointments.
Some agencies are specialized in real estate for foreigners, among those, there is Scout Real Estate (http://www.beijingrelocation.com/), Lihong … among others.
The big advantage of these agencies is that since they are targeting the specific market of expatriates, they have foreign staff, some of them are even foreign managed (Scout Real Estate) and they understand better the expectations of foreigners in China and are more service oriented.
However, this type of agency has very few low budget apartments and have almost no rental under 6.000 a month, and many of them are not interrested by rentals under 10.000 RMB a month. Be aware that if you are looking for this type of budget, they can be a real best choice, for they negociate the rent and commission in accordance with the actual market and are less likely to advertise apartments that actually do not exist, and you are more likely to deal with the legitimate landlord. One another thinbg can be noted is that these site benefit from a real large choice of apartments since the Chinese landlords appreciate to rent to foreigners that they perceive as more careful than Chinese tenants that can sometime turn apartments in a mess.
Whatever the solution or classified you answer on the internet, you should be careful enough to check the credentials of the person who is introduced as a landlord and compare the prices online, with some prudence you can avoid most scams and enter a truthful relationship with the agent or the landlord.
China Raises Mortgage Rates(0)
After Sunday’s move, the rate for mortgage loans longer than 5 years will be 4.30 percent, and 3.75 percent for those of five years and shorter. China’s central bank raised interest rates by 25 basis points on Saturday, the second time in just over two months, in a bid to contain the country’s stubbornly high inflation.
“This will further increase the cost of home purchases and will, to some extent, curb investment demand in the property market,” the official Xinhua news agency cited Chen Ming, marketing chief of real estate 5i5j, as saying.
Beijing started tightening the property market late last year, but house prices have remained out of reach for most middle-class families in many cities, although house price has slowed recently.
Land cost, a major contributor to high housing prices, have showed signs of rebound in recent weeks, triggering concerns of fresh tightening steps by the central government.
Source : Konaxis
China to Boost Minimum Wage(0)
The government wants to increase domestic demand to ease China?s dependence on exports and narrow the gap between rich and poor, the Hong Kong-based English-language newspaper said, citing Huang, vice-chairman of the National Council of Chinese People?s Political Consultative Conference and chairman of the All-China Federation of Industry and Commerce.
Source : Konaxis
China Will Expand Cross-Border Yuan(0)
The government will push for further opening of its financial markets to increase channels for overseas investors to obtain and use the Chinese currency, the People?s Bank of China said in a report. It will also look at setting up exchange-rate mechanisms between the yuan and some ?minor? currencies on China?s interbank market, the report said.
Source : Konaxis
Bain Converts Gome Electrical Bonds(0)
Shareholders will vote this month at a meeting, called by Gome?s imprisoned billionaire founder Huang Guangyu, on whether the three directors representing Bain will remain.
Source : Konaxis
Limits on Foreign Investment(0)
Liu Yajun, director-general of the Commerce Ministry?s Foreign Investment Department, told a conference in Shanghai that the revised catalogue would decrease the number of sectors that were restricted or off limits for foreign investors.
Source : Konaxis
Tourism Booming in China and Hong Kong(0)
That will come as good news for the city, whose tourism industry is powered by the millions of visitors who cross the border each year.
Source : Konaxis
Schwarzenegger High-speed Rail(0)
His own state budget $19 billion in the red, Schwarzenegger says he is hoping for some “creative financing” from Asia to help lower costs and get California’s proposed high-speed rail lines up and running.
Source : Konaxis