Home / Knowledge / News / Apparel/Garments / Mobile e-commerce to fuel Chinese retail
Mobile e-commerce to fuel Chinese retail
08
Feb '16
Despite the slowdown in China's GDP growth, the Alibaba Group believes the country's consumer economy will weather the storm and grow handsomely, largely fuelled by mobile e-commerce.

According to a recent report titled The New China Playbook by he Boston Consulting Group (BCG) in association with the with AliResearch, Alibaba Group's research arm, even if China's GDP growth slows to 5.5 per cent, which is a full point below the 6.5 per cent government target, the country's consumer economy will expand by more than half to $6.5 trillion in 2020 from $4.2 trillion in 2015.

According to the report, e-commerce is expected to play a major role in the development of China as a consuming nation, a transition that is being accelerated by the growth of shopping via smartphones and other mobile devices.

“One of the most revolutionary changes in the Chinese consumer economy has been the astounding growth of e-commerce,” the BCG said. In 2010, online transactions made up only 3 per cent of total private consumption in China; online channels today account for 15 per cent of the total, a share that BCG projects will rise to 24 per cent in 2020 (in contrast, online shopping currently accounts for about 7.5 per cent of private consumption in the US).

The BCG does not foresee a marked slowdown in the growth of e-commerce. Over the next five years, private online consumption is expected to surge at a compound annual growth rate of 20 per cent, compared with 6 per cent annual growth in offline retail sales. Chinese consumption will grow by more than half to $6.5 trillion over the next five years from $4.2 trillion in 2015. E-commerce on the whole will account for 42 per cent of that growth.

BCG identified three distinct “megatrends.” First, rising incomes are fueling greater spending, and in new areas not seen before. Then there's the growing prominence of China's “young generation.” And finally, the shift from bricks-and-mortar retail to e-commerce will continue to play an ever-bigger role in China's economy.

Overall, an incremental $2.3 trillion in annual consumer spending that China is expected to add over the next five years is almost like adding another Japanese consumer market onto the global economy, the report said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: IFC

Apparel/Garments | On 15th Apr 2021

IFC to support Haiti in revamping garment sector

IFC, a member of the World Bank Group, is supporting the garment...

Pic: Sorbis / Shutterstock.com

Textiles | On 15th Apr 2021

US textiles & apparel imports down 6.98% in Jan-Feb 2021

The import of textiles and apparel by the United States decreased by...

Pic: Shutterstock

E-commerce | On 15th Apr 2021

Vietnam companies get Amazon boost to turn into brands

The Vietnam Textile & Apparel Association (VITAS) and Amazon have...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Good tidings expected for textile industry

Textile Industry, Head honchos

Textile Industry
Head honchos

We are staring at livelihood crisis for weavers

Textile Industry, Head honchos

Textile Industry
Head honchos

Money never disappears-it just finds new opportunities

Prakhar Singh,

Prakhar Singh

Morgan Tecnica offers the largest and most modern range of solutions for...

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Daniel Roxbury, University of Rhode Island

Daniel Roxbury
University of Rhode Island

Assistant professor Daniel Roxbury and former URI graduate student...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha & Jigar blends India's unique handcrafts...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search