Why is e-commerce only on fire in China? Deep down, these conditions are not available abroad

I've read some articles about why e-commerce is so hot in China, and most of them talk about taxes, price inconsistency, institutional favoritism, and insufficient regulation, which are all "favorable" conditions that have contributed to the booming development of China's Internet, especially e-commerce!

I do think, said a bit of sense, but too superficial, did not reach the deep thinking,

China's Internet can develop so fast, become the world's benchmark for learning, far more than the system of laxity this point so simple!

The following I will talk about 6 points, you will find that these conditions are indispensable, and look around the world, only China has all of them, which is China's electric business fire in a mess of the fundamental reasons!

1, the population of the base and density

Talk about the base

China's population of almost 1.4 billion people, we all have to live, around the market demand for food, clothing, housing, transportation and music is very large, which is a necessary condition for doing business, that is, the market demand has to be strong!

For the production of products, the larger the volume, the lower the individual cost, raw materials, equipment, labor, plant rent, the more efficient use of raw materials, equipment, labor, the higher the utilization efficiency, this is the issue of marginal cost!

Talking about density

China's average population density per square kilometer is 143 people, about 3.3 times the world's population density, and China's population distribution is very uneven: the eastern coastal areas are densely populated, more than 400 people per square kilometer; the central region more than 200 people per square kilometer; and the western plateau area is sparsely populated, less than 10 people per square kilometer

The population density of the Internet for e-commerce. p>Population density is important for Internet e-commerce because it involves the cost and efficiency of item delivery!

In contrast, how many countries in the world can reach both China's population base and density? India, Pakistan, Indonesia, Nigeria, and Bangladesh, for a **** it! Read on, and you'll find the remaining few conditions even harder to meet!

2, the land, regional differences

China is the third largest country in the world, slightly less than Canada, slightly larger than the United States, east and west, north and south, whether it is the climate, humanities, products, people's habits are very different!

This difference can create such an ecological environment, that is, the north want to eat all kinds of fruits, a large number of southern, southern factories need a lot of cotton, northern Xinjiang, is because there are big differences in the place, will create a large number of logistics supply chain!

Imagine, China has only one province, Hunan, everyone's habits are almost the same, your home my family wants the same thing, downstairs supply are the same, need so many e-commerce online shopping? No need!

Looking at the world, similar to the size of China, and at the same time have great regional differences in a few countries? The United States, Brazil, India can be counted among them!

3, perfect road infrastructure

Chinese e-commerce is the reason why the development of fast, you can beat the offline stores, the most fundamental reason is the price advantage, the reason why online merchants dare to buy what are shipping, is because the logistics and distribution costs are cheap,

One is the density of the large, can be delivered in bulk, and the second is the road infrastructure is perfect, well-connected to be able to do the road through!

Imagine if the road is not good, whether the courier boy delivery to the home, or that the parcel is placed in the courier point, by the buyer to pick up the parcel, is a very troublesome thing, buy a 30 yuan of goods, the result of the courier fee needs to be 15 yuan, do you see the online shopping people still more or less?

Still looking at the world, what are the countries with good road infrastructure?

This is very much, but most of them are developed countries, like the above mentioned India, Indonesia, Brazil, Pakistan, these Asian countries, the infrastructure is very poor, far from reaching the degree of like China so that the goods are still cheaper than offline stores after the package!

4, booming times

People's Daily commented on Ma Yun a sentence I think is very good, it is the times created Ma Yun, rather than Ma Yun achievements of the times, even if China does not have Ma Yun, Internet e-commerce platform will still be on fire, just may not have now done so well!

Very simple example, there have been no less than a hundred shopping platforms, like Mushroom Street, pat, Vipshop, Dangdang, Vancl, etc. Yes, just now either fell or disappeared!

Look at the history, those developed countries, Japan, the United States, Britain, Germany are experiencing a period of booming development of the country, only now it has been developed, in a period of slow growth and stabilization!

As it happens, the first ten years, China is in a period of booming development, so the chaotic world of heroes, talent, each kind of breakthroughs!

On the contrary, Japan, better technology, higher quality, infrastructure, why e-commerce dry entity, the reason is that others offline has been developed very mature, the system is also perfect, many things have been entrenched, there is no need to force e-commerce!

So, the historical period of China's development has created today's Chinese e-commerce, but not e-commerce created the Chinese era, this logical order don't get it backwards!

5, China, the global factory

226 countries around the world, can be called the world's factory of the country, only China, product categories, cheap, supply chain is perfect, especially close to the life of the clothing, food, housing, transportation and music, it is rich in produce, sprinkled with all!

Corresponding to you look at today's Internet e-commerce products, the vast majority of the sale is not closely related to people's clothing, food, housing and transportation? Rarely do we see e-commerce sell steel, sell ships, sell cutting-edge technology, right?

The market is like this, China's population is large, indicating that the demand is strong, but you have to have a corresponding supply of goods, in order to achieve the supply and demand of the hot degree, right!

Still looking at the world, how many factories in the world can achieve good product quality, high production, perfect supply chain and low cost? Only China!

6, loose regulatory system

To the end, still can't get around or China's system of e-commerce development of loose and favoritism, which includes taxation, quality of goods, advertising law, monopoly, 996 work system and so on!

If you go back to the perspective that we are still a developing country and think about it, these issues are well understood, and sometimes it's not a question of right or wrong at all, but rather a question of which is more important!

China is in a period of development, need a lot of exploration and innovation, in the process, mistakes, flaws are inevitable, can not be seen because of some bad things, to give up the whole process of exploration and the results have been revealed, some sacrifices are unavoidable, the overall look is in the progress of this is the key!

Get the Internet is the same, his merits far outweigh his flaws, so, on the issue of regulation, we are a little clearer?

Final summary:

Back to the beginning of the article, why is e-commerce the only fire in China in a mess?

I said six points, they are the population base and density, the vastness of the land, regional differences, perfect road infrastructure, booming development era, China, the world's factories and lax regulatory system, here which point is not the development of e-commerce must be important conditions?

Being able to meet these six points at the same time, looking around the world, only China, I think this is the reason why e-commerce in China is developing very good deep reasons!