Consumer Attitudes & Online Retail Dynamics in China

Synopsis

Consumer Attitudes & Online Retail Dynamics in China' provides in-depth analysis of the latest trends in online consumer shopping, covering drivers of online shopping, consumer insights, market dynamics (covering 25 product categories) and reviews of latest best practice in online retail site design. Based on the latest data, the report not only provides details of the size and growth of this increasingly important channel, it also provides essential contexts on the penetration of online sales by product groups, how growth has developed over time and the key drivers of this market in the future.

Summary
This report is the result of ICD’s extensive market research covering the online retail industry in China. “Consumer Attitudes & Online Retail Development in China” provides the magnitude, growth, share, and dynamics of the online retail market and is an essential tool for companies either active in this sector or which are seeking to target this channel. The report provides core insights into consumer behaviour and highlights the latest online trends and their impact on online product sales. Core data sets give both historical context and a view into the future - providing data from 2005 through to 2015 and allowing marketers to update their strategic planning and fill gaps in their knowledge about this rapidly evolving channel. By examining best practice from leading national large-scale online retailers (but specifically excluding the likes of Amazon whose sites are well-known and vary little by country), as well as reviewing innovative approaches from smaller players, the report also provides insights and ideas about how best to approach growing online sales for your business. Together these three core elements; market dynamics, consumer understanding and best practice examples will allow readers to easily understand the nature and development of online retail in China and provide insight into how best to exploit the opportunities in the market.

Scope
The report analyses online consumer behaviour, market dynamics and best practice approaches to online retail in China. In particular, core market data sets cover 8 product groups and 25 individual product markets within China. Product Coverage: Clothing & Footwear Jewelry & Watches Luggage & Leather goods Printed Media Stationery & Cards Communications Equipment Computer Hardware & Software Consumer Electronics Household Appliances Photographic Equipment Drinks Household Products Packaged Food Personal Care Tobacco Unpackaged Food Floor Coverings Furniture Gardening & Outdoor Living Home Improvement Home Wares Games Software Music & Video Sports Equipment Toys & Games

Reasons To Buy
This report provides readers with unparalled levels of detail and insight into the development of online retail sales within China: - Understand consumer behaviour and online trends in China - Understand which products will be the major winners and losers in the coming years - Assess the impact of economic recession and recovery on market growth - Learn from best practice approaches outlined in the case studies of leading online retailers - Improve market and strategic planning using highly granular, forward-looking market data

Key Highlights
During the review period, the Chinese economy recorded significant growth and inflation. According to the latest figures released by People’s Bank of China, GDP in China grew by X.X% during the first quarter to 2011, which represented higher growth than industry and government forecasts. In addition, inflation in China has increased above the 4% level, reflecting rising food prices. Moreover, latest estimates indicate inflation in China will increase to X.X% by the third quarter of 2011, despite aggressive measures by the Chinese government to curb growth. Between October 2010 and July 2011, interest rates in China increased by 100 basis points, with another two 25 basis point rises expected in the second half of 2011. Furthermore, reserve requirements in the country have increased to a record high of XX% and are expected to be raised by another 100 basis points during the forecast period. In China, the economic conditions have been further exacerbated by the country’s reduced dependence on exports and increasing reliance on domestic demand to fuel growth.

Table of contents

Introduction
What is this Report About?
Definitions
Summary
Methodology
Overview
The triangulated market sizing method Industry surveys in the creation of retail market data Quality control and standardized processes Consumer Insight: Online Shopping Attitudes and Behaviours Overview of the Chinese Online Shopping Environment China to add 293 million new internet users by 2015 Mobile broadband connections dominates China broadband market 3G uptake low but growing aggressively Consumer Attitudes and Behavior Cheap offerings and convenient shopping experiences strong drivers of online retail in China Online retailers take advantage of the lack of personal customer interaction Government introducing measures to tackle the counterfeit products market M–commerce levels low in the country, however growing at an aggressive pace Third party payment platforms most popular mode of payment, share of credit cards negligible Delivery and logistics in China a significant challenge Online Channel Dynamics Online Share of Total Retail Sales China Online vs. Offline Channel Forecasts Online Penetration: Global and Regional Comparisons Channel Dynamics China Retail Category Dynamics – Future Performance Channel Group Share Development Individual Channel Performance Category Dynamics Online vs. Offline Retail Sales Comparison by Category Group 2010 Online Retail Market Dynamics by Category Group Online Retail Sales Share by Product Group Online Retail Sales Growth by individual Product Categories Food and Grocery Categories Market Size and Forecasts Electrical and Electronics Categories Market Size and Forecasts Music, Video and Entertainment Software Group Market Size and Forecasts Apparel, Accessories and Luxury group Market Size and Forecasts Books, News and Stationery Group Market Size and Forecasts Sports and Leisure Equipment Product Group Market Size and Forecasts Furniture and Floor Coverings Product Group Market Size and Forecasts Home and Garden Product Groups Market Size and Forecasts Case Studies: Leading Online Retailers in China Retailer 1: 360buy.com Business Description Site Experience Retailer 2: Taobao Mall (Tmall) Business Description Site Experience Other Innovative Retailers in China Dangdang Vancl Appendix Methodology Contact us About ICD Research Disclaimer

List of Tables
Table 1: China Exchange Rate CNY–US$ (Annual Average), 2005–2010
Table 2: ICD Research Retail Channel Definitions
Table 3: ICD Research Retail Category Definitions
Table 4: ICD Research Retail Country Coverage
Table 5: China Online vs. Offline Retail Sales and Forecast (CNY billion), 2005–2015
Table 6: China Online vs. Offline Retail Sales and Forecast (US$ billion), 2005–2015
Table 7: China Online vs. Offline Retail Sales and Forecast (CNY billion), 2005–2015
Table 8: China Online Sales vs. Global Average
Table 9: China Online Sales vs. Asia-Pacific
Table 10: China Overall Retail Segmentation (CNY billion), by Channel Group, 2005–2015
Table 11: China Channel Retail Sales and Forecast (CNY billion), by Channel Group, 2005–2015
Table 12: China Channel Retail Sales and Forecast (US$ billion), by Channel Group, 2005–2015
Table 13: China Channel Retail Sales and Forecast ( % Share), by Channel Group, 2005–2015
Table 14: China Channel Retail Sales and Forecast (CNY billion), by Channels, 2005–2015
Table 15: China Channel Retail Sales and Forecast (US$ billion), by Channels, 2005–2015
Table 16: China Retail Sales Split (CNY billion), Online vs. Offline, 2010
Table 17: China Retail Sales Split (US$ billion), Online vs. Offline, 2010
Table 18: China Online Retailers Market Dynamics, by Category Group, 2005–2015
Table 19: China Online Retail Sales and Forecast (CNY billion), by Category Group, 2005–2015
Table 20: China Online Retail Sales and Forecast (US$ billion), by Category Group, 2005–2015
Table 21: China Total and Online Retail Sales in Food and Grocery Product Categories (CNY billion), 2005–2015
Table 22: China Total and Online Retail Sales in Food and Grocery Product Categories (US$ billion), 2005–2015
Table 23: China Total and Online Retail Sales in Electrical and Electronics Categories (CNY billion), 2005–2015
Table 24: China Total and Online Retail Sales in Electrical and Electronics Categories (US$ billion), 2005–2015
Table 25: China Total and Online Retail Sales in Music, video and entertainment Categories (CNY billion), 2005–2015
Table 26: China Total and Online Retail Sales in Music, video and entertainment Categories (US$ billion), 2005–2015
Table 27: China Total and Online Retail Sales in Apparel, Accessories and Luxury Categories (CNY billion), 2005–2015
Table 28: China Total and Online Retail Sales in Apparel, Accessories and Luxury Categories (US$ billion), 2005–2015
Table 29: China Total and Online Retail Sales in Books, News and Stationery Categories (CNY billion), 2005–2015
Table 30: China Total and Online Retail Sales in Books, News and Stationery Categories (US$ billion), 2005–2015
Table 31: China Total and Online Retail Sales in Sports and Leisure Equipment (CNY billion), 2005–2015
Table 32: China Total and Online Retail Sales in Sports and Leisure Equipment (US$ billion), 2005–2015
Table 33: China Total and Online Retail Sales in Furniture and Floor Coverings Categories (CNY billion), 2005–2015
Table 34: China Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ billion), 2005–2015
Table 35: China Total and Online Retail Sales in Home and Garden Products Categories (CNY billion), 2005–2015
Table 36: China Total and Online Retail Sales in Home and Garden Product Categories (US$ billion), 2005–2015

List of Figures
Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Total Internet Users and Penetration, 2005–2010
Figure 3: China Internet Penetration According to Region, 2010
Figure 4: Total Fixed Broadband Internet Subscribers (million), 2005–2010
Figure 5: Mobile Phones and Penetration, 2005–2010
Figure 6:China Online Retail Sales Annual Growth vs. Total Retail Sales Annual Growth, 2005–2015
Figure 7:China Online Payment Methods, 2008
Figure 8: China Online vs. Offline Retail Sales and Forecast (US$ billion), 2005–2015
Figure 9: China Online Sales vs. Global Average (% of Total Retail)
Figure 10: China Online Sales vs. Asia-Pacific Countries Average (% of Total Retail)
Figure 11: China Overall Retail Market Dynamics, By Channel, 2005–2015
Figure 12: China Retail Sales and Forecast (CNY billion), by Channel Group, 2005–2015
Figure 13: China Retail Sales Split, Online vs. Offline 2010
Figure 14: China Online Retailers Market Dynamics, by Category Group, 2005–2015
Figure 15: China Online Retail Sales and Forecast (US$ billion), by Category Group, 2005–2015
Figure 16: 360buy.com- Usage of Online Space
Figure 17: 360buy.com – Organized Product Page
Figure 18: 360buy.com- Product Image and Zoom-In Tool
Figure 19: 360buy.com- Mobile Edition of Site
Figure 20: Taobao Mall - Usage of Online Space
Figure 21: Taobao Mall – Organized Product Page
Figure 22: Taobao Mall – Mobile Phone Recharge
Figure 23: Taobao Mall – Zoom in tool
Figure 24: Taobao Mall – Android Application
Figure 25: Dandang – Online Product Read Section
Figure 26: Vancl – Official Blog

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Related research categories

By sector: Retail (in Off-trade), Consumer (in Trends)

By market: China (in Asia), China (in BRICM)