China's online shopping spending to hit $1 trillion by 2020

Updated: 2013-11-07
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Online shopping is a growing trend in China and such receipts were worth $126 billion in 2012, second just to $206 billion in the United States, according to a report released by Jones Lang LaSalle on China's e-commerce sector.

China's online shopping spending is expected to hit $1 trillion by 2020, more than any other country and equivalent to the world's 16th largest economy today, the report predicted.

China's cyber population amounted to 564 million as of the end of 2012, the largest in the world, according to official figures. The popularity of portable devices like smartphones and tablets has made it easy for consumers to search for and purchase goods online.

However, only 40% of China's total population go on the Internet, compared with 70-80% in developed countries. Annual online spending averaged just $501 per person in 2012. All this points to huge growth potential in the years to come.

Over the past decade, the size of China's online shopping has grown 90% annually, well above 17% in the United States.

Online shopping will have a much greater impact on brick and mortar stores in China than the impact on other developed economies because the inchoate Chinese retail market has no leading and dominant brands, the report argued. Small clothing retailers are said to be at the greatest risk of dropping out.

The report recommended the community shopping complexes in China to offer entertainment and dining space, bigger discounts, free Wi-Fi and easier transport to lure shoppers.

China's e-commerce industry directly employs 2.2 million people and 16 million people indirectly as of the end of June 2013, according to a report on the development of the nation's e-commerce market.
 
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