Taobao.com’s advertising billboard in the street of Zhengzhou City, Henan Province. The Report on Taobao.com Trade in the First Quarter of 2007, issued by taobao.com in April 2007, revealed that the total trade volume of taobao.com exceeded 7 billion yuan in the first quarter of that year, over 100 percent higher than that of the same period of the previous year. If the soaring purchasing of the Spring Festival period is excluded, its average daily transaction volume is still close to 100 million yuan. More than 100,000 shops earned more than 2,000 yuan per month on taobao.com. by Sha Lang/CFP

China consumers click to shop. CFP

December 6, 2007: Online shopping exhibit attendees at an eBay booth. by Nan Shan/CFP

On February 2, 2007: In advance of the Spring Festival, in Beijing a professional woman shops online. A huge and growing segment of the population opts to buy gifts online during the holiday periods. by Zhao Jing/CFP

September 24, 2008: An e-business display booth of Alibaba Group at the 4th China International Software Products Expo. CFP

The number of Internet users in China continues to rise at express speed and, after 10 years of booming development, the engine of online shopping is now at full throttle.
“This sweater cost me just 30 yuan, really cheap,” said Liu Kanru proudly, holding it up for this reporter to examine. “College students, like me, don’t have much money. Online shopping saves us a lot. Stuff online is much cheaper than in regular stores. Like this sweater, it would cost more than 100 yuan at the mall.”
Liu and her 30-yuan purchase added to an overall trade volume that hit 56.1 billion yuan in 2007. According to statistics released by iResearch Consulting Group, the transaction volume was at 53.15 billion yuan in the first half of 2008, nearly equal to the total volume of last year. Reflecting the overall market scenario and specific trends in online shopping market in the last six months, the Semiannual Report of China Online Shopping Research, jointly issued by iResearch Consulting Group and taobao.com, revealed that online shopping has become a major consumption pattern for netizens – a part of daily life. It is projected that online shopping will remain a strong and expanding consumer trend.
“I like to buy things on online – one reason is the great variety. On the Internet, there is almost everything you could possibly want to buy. Clothes, cosmetics, books … from three-yuan hair pin to cars worth tens of thousands of yuan – you can even buy pets online. You don’t need to go out to get what you want at a reasonable price. It’s really great ...”
The first time Liu shopped online, she appreciated the novelty. And, not able to resist the lure of many products, she bought a lot. But she later discovered some were not in the style or material she expected; some were beautiful, but not necessary; some prices were not reasonable. After several practice runs, Liu is now a more rational and careful online shopper. “Now when I shop online, I will check the reputation of the sellers by reading consumer comments online. I’m not as blind as before.”
Not only a convenient way to shop, online savvy is also a symbol of avant-garde young people. In her office, Li Yaoyao is known for her stylish accessories and latest outfits. “To me, online shopping offers more than just a bargain. Websites like taobao.com provide not only a business transaction platform, but also gather much information and provide resources,” said Li. “They stay on top of the latest fashion and newest consuming concepts. It keeps me always in fashion – clothes and the latest concepts of living.”
The online shopper segment is mainly comprised of young urban adults. According to statistics compiled by iUserTracker of iResearch Consulting Group, the monthly online shopping population over the first half of 2008 ascended steadily, up to 120.22 million persons in the month of June. Increasing numbers of people are shopping online, including in rural areas.
Jiang Xiufen, a resident of Xinfeng Village, Shaoxing County, is an online shopping veteran. Eighty percent of the commodities in her house, ranging from small items like cups to electrical appliances, were purchased with a “click.” Clothes comprise the bulk of her online buys. Following Jiang’s lead, other villagers joined in. Well-known shopping Websites like taobao.com are now their daily supermarket. “Online shopping is convenient and cheap. It has narrowed the gap between rural and urban areas,” said a villager. Online shopping also contributes to the development of local logistics. The director of Yuantong Express in Shaoxing County said that last year they delivered about 5,000 pieces of online purchased commodities per month, on average. This year, the number is running at about 16,000. And their business volume comprises only about 20 percent of county volume.
In June 2008, research conducted by MasterCard Worldwide revealed that by 2010 China will replace Japan to become the largest online shopping market in the Asia-Pacific Region. Projections call for about 480 million online Chinese shoppers by 2010, accounting for 58 percent of the total in Asia-Pacific Region.
Despite the optimistic outlook for China’s online shopping industry, related systems, like credit and financial systems, relevant laws and regulations, and informational infrastructure, are not yet perfected. And there yet remains vast potential for advancement and expansion.