China’s ecommerce market, the world’s largest, is expected to register a strong growth of 10.4% in 2022, as consumers are increasingly shifting from offline to online.
The market is expected to grow by 10.4% in 2022 to reach CNY14.5 trillion ($2.3 trillion), forecasts GlobalData, a leading data and analytics company.
According to GlobalData’s ECommerce Analytics, ecommerce sales in China grew at a compound annual growth rate of 13.3% between 2018 and 2021 to reach CNY13.1 trillion ($2.1 trillion) in 2021.
China accounted for over 37% share in the global ecommerce market, in terms of payments value in 2021. The country was followed by the US with $1.5 trillion, while the UK stood at a distant third with $292.1 billion in 2021. The global ecommerce landscape is unlikely to change in 2022 with China expected to retain its top position.
Ravi Sharma, Banking and Payments Lead Analyst at GlobalData, comments: “The Chinese ecommerce market evolved rapidly during the last five years, supported by the rising internet and smartphone penetration, increasing consumer confidence in online shopping, the emergence of ecommerce platforms, and the availability of popular alternative payment solutions such as Alipay and WeChat Pay.
“The COVID19 pandemic has further accelerated the ecommerce activities in China, as wary consumers are increasingly using online channel for purchases to avoid getting exposed to disease vectors, a trend that continues beyond pandemic.”
The growth in the ecommerce market is also supported by the improving ecommerce activities in rural areas. According to the China’s Ministry of Commerce, online retail sales in rural village communities increased by 35.3% yearonyear in Q1 2021.
Online shopping events such as Singles’ Day (or Double 11) also contribute considerably to the overall online sales. Chinese ecommerce giants including Alibaba and JD.com collectively registered a massive sale of $139 billion during Singles’ Day event in 2021, registering a jump of 8% and 28%, respectively, over the previous year.
Sharma concludes: “The Chinese ecommerce market will continue to grow supported by the rise in consumer preference for online shopping, improved payment infrastructure, and proliferation of payment tools. The ecommerce market is expected to grow at a robust CAGR of 8.7% between 2022 and 2026 to reach CNY20.2 trillion (US$3.2 trillion) in 2026.”
Source: Thailand business News