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Opportunities and Challenges of E-commerce Development in China Essay Example

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Opportunities and Challenges of E-commerce Development in China

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Opportunities and Challenges of E-commerce Development in China. The survey suggested that convenience was the second most important factor after price that motivated them to shop online (Hoffman, Lannes, & Dai, 2012). The majority also showed their interest in the product variety they got while shopping online. In fact, 19% of the participants stated that convenience was their primary reason for shopping online and 15% stated that variety inspired them to shop online (Hoffman, Lannes, & Dai, 2012). These triggers are essential to understand for a new company looking to open business in China.Another trend worth mentioning is Chinas e-commerce ecosystem. Over the years it has become so efficient that it now acts as a catalyst for e-commerce. This ecosystem includes sourcing, delivery and payment.

It is developed with such proficiency that retailers can quickly build and scale their own sites gauging their e-commerce potential. These businesses can be a serious threat to online-only businesses as they can quickly set up their off-line resources and set up a funnel to channel the customers from the online world to their product sales pages. Among this fierce competition one needs to look at the changing trends. For instance, an upcoming trend in China e-commerce dynamics is group buying (Chung & Chen, 2012). It is a selling technique where the seller puts a threshold on the number of buyers. If a certain number of buyers order the same item, the seller is happy to sell it. The price is usually lower than normal because of bulk selling effect.One of the primary aspect of ecommerce game is speed. Digital marketplace is a fast track business. Traditional and pure online players face different challenges and opportunities in China. More and more shoppers are heading to the web therefore, getting a store online is a critical defense to prevent the retailers existing customer line from drying up. The online platform is growing at triple the rate of traditional retailing. The pace of e-commerce activity is fast and keeping up with it is a daunting challenge.Speed can also be the point of leverage for businesses. The company or online store that keeps up the pace and is naturally aggressive in e-commerce advertising and logistics will have an edge over the others. A well-rounded e-commerce platform gives Omni channel players an affordable way to reach consumers in smaller suburbs. This is an opportunity where businesses can maximize through off-line and online. Opportunities and Challenges of E-commerce Development in China.

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References

1. Chong, A. Y. L., Chan, F. T., & Ooi, K. B. (2012). Predicting consumer decisions to adopt mobile commerce: Cross country empirical examination between China and Malaysia. Decision Support Systems, 53(1), 34-43.

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4. Hoffman, S., Lannes, B. & Dai, J. (2012) Can China earn its place as the world’s largest e-commerce market? Brain & Company. Global Editorial [Accessed online 18 March 2015] http://www.bain.com/Images/BAIN_BRIEF_China_e-commerce.pdf

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Appendices

China E-commerce Forecast1

Customers’ Characteristics and Behavior2

B2C Ecommerce Players in China3

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