Monday, November 19, 2012

E-Commerce in China

In the world's second biggest economic, online retailing is becoming the backbone of the retail industry, spurring growth and promoting innovation.

The big difference between the us and Chinese retail industries lie in proliferation of large and well managed retail chains. In the US the brick and mortar operations have great consumer reach, offer great shopping experience for customers and operate in an increasingly efficient ways. In contrast, Chinese brick and mortar retailers do not have the same clout. They have limited presence in the countrysides, where the majority of the population lives, and they are not efficient.
Presently,the e-commerce in both countries has an equal percentage, 5%, of the market share. However, it seems that China may become the frontier country in terms of the e-commerce in the near future. This outlook is in the plans of
China's largest on-line retailer Alibaba. The company sees a bright future for e-commerce in China. It plans to employ the big data strategy and turn such concepts as user-generated innovation and mass customization in reality.
Is it possible that in the near future, US retailers will be turning their gaze westwards to find innovation and inspiration?

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