3 Ecommerce trends in China in 2021
The China e-commerce market is the largest in the world. With a growth rate of 6% on average, the e-commerce revenue in China is expected to reach 2 trillion USD in 2025. As such, China’s e-commerce sector is more than three times the size of the US market, which ranks second. Though the Covid thing grew on a massive scale in China, yet the eCommerce industry is still going strong there. The best part there is that it’s not the conventional e-commerce industry but a lot of innovations going around the e-commerce network in China. Online networks and social commerce on buzzing apps like WeChat, TikTok, and Sina Weibo have long become an integral part of China’s everyday life. The lockdown in China in early 2020 has changed consumer habits too. There has been a surge in the increase of mobile commerce users, as well as browsing on social media. The lockdown has also affected the tendency of consumers to give greater importance to the eCommerce industry to improve their well-being. Let’s see how the main trends of e-commerce in 2021.
- Social Commerce - This hot new trend, social commerce, is forecasted to reach more than 600 billion dollars globally by 2027. The increased use of social media channels and mobiles created social shopping, known as social commerce. Platforms such as Facebook and Instagram provide an option to the merchants online to upload their products and showcase the products to the customer. Features like FB live and Insta Live are the advanced forms of social commerce for customers to check the products.
- Group Shopping - This trend is a specialty of China and most characterizes the company, Pinduoduo. Chinese consumers value the significantly reduced prices, particularly lower-tier consumers who take advantage of the group-buying model. Each product on Pinduoduo has two prices- one is the official price and the other is the group price. It is not only just cost-effective but also provides an offline shopping experience to the buyers where multiple friends/relatives/knowns can get together and decide to purchase a particular item.
- Live Streaming in Shopping - Live streaming, short videos, Live videos, are currently conquering the Chinese market. Behind the success of live streaming in China, there are some specific characteristics. First of all, the increase in this type of content is part of the trend of moving from textual content to video content. These formats are more engaging and interesting and keep the users glued to the screen. Taobao Live, the dedicated live streaming channel launched by E-commerce giant Alibaba in 2016, generated amazing sales of 20 billion yuan ($2.85 billion) during Alibaba’s Singles’ Day 2019 shopping holiday on November 11, which accounted for around 7.5% of the company’s total sales roughly equaling 268.4 billion yuan.
Just not the methods of shopping, the method of payments have also largely altered in China. As a nation of smartphone lovers, it follows that China has quickly adopted digital wallets, which are now used to pay for the majority of e-commerce payments. They take a 54 percent market share or $620.5 billion in sales. From shortlisting the products to making payments, China has evolved massively. It has brought in technologies via which you need not step out of your comfort zone but also enjoy the warmth of offline shopping.