McKinsey e-commerce will become the main consumpti

2022-08-13
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McKinsey & Company: e-commerce will become the main consumption trend in China

on May 23, Beijing time, according to Fortune magazine, McKinsey & company recently released a report entitled "china's e-tail revolution". The report believes that China will undoubtedly become the world's largest consumer of e-commerce, and more importantly, China's economy may be partially transformed into a consumption driven economy through e-commerce. This is what all Chinese and the world want to see. The following is a related report:

just as those consumers in developing countries who lack cash jump over blow molding machines and directly embrace mobile devices, low-income consumers in China are also skipping physical retail stores and turning to e-commerce stations

according to a recent report by McKinsey & company, China achieved $190billion in sales through e-commerce channels last year, which is almost equal to the United States, which ranks first in the world. It is estimated that by 2020, the scale of China's retail industry will reach 420billion US dollars, which will be larger than the combined market of the United States, Japan, Britain, Germany and France. China is sure to surpass the United States in market size next year

China's past economic development surprised the world, but this time, e-commerce stood out. Since 2003, China's e-commerce market has maintained an annual growth rate of 120%, which is in sharp contrast to the 17% year-on-year growth rate in the U.S. market. And there is no sign of any slowdown in the Chinese market

McKinsey is not only interested in substantial market growth, but also the potential of e-commerce to transform China's economic development model: it can become a carrier for the government to develop consumption and share part of the growth momentum for China, the world's second largest economy that relies on infrastructure construction to drive its economy. McKinsey wrote in the conclusion of the report entitled "china's e-tail revolution" that consumers get more than they give up in physical stores. E-commerce is driving consumers to buy new things for the connection between regulated power supply and digital, especially in the so-called third and fourth tier, low-income cities, where the number of categories displayed in physical retail stores cannot be compared with that of e-commerce. According to Ms. Yu Yu, one of the co founders of Dangdang, China's current retail industry is not fully developed, but at the same time, consumer demand is very strong. I live in the center of Beijing, and I will still be in Beijing within an hour's drive in any direction. But in such a large area, no matter in supermarkets or clothing stores, I don't see any good stores

more than 70% of China's e-commerce industry is C2C (consumer consumer) mode. There are millions of small businesses on Taobao, tmall and paipai. However, jd.com is also in the second tier cities, and some analysts believe that jd.com will also enter the third and fourth tier cities

since many orders of e-commerce stations are processed after placing orders with mobile applications, the combination of high-tech and traditional methods is used in distribution, which is very in line with the appetite of Chinese consumers. For example, jd.com provides the same day delivery service, which is usually delivered by couriers riding electric vehicles. Another example is that customers in small cities like to pay on delivery, and businesses provide so-called mobile fitting room services

the most surprising thing in McKinsey's report is that there is basically no significant difference in the number of expenditures between consumers in China's third and fourth tier cities and consumers in major cities. You know, the disposable income of third and fourth tier consumers is far lower than that of big cities. Moreover, e-commerce stations are revealing the real demand in small and medium-sized cities and even rural areas. Many customers are beginning to try e-commerce shopping for the environment and enterprises. This means that those low-income consumer groups who began to buy goods that they could not buy before are beginning to drive China's economy forward. Although some people doubt whether China can transform into a consumer economy, this trend is the best news for China, which is becoming the center of world e-commerce

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