Why does online shopping in China lead the world?

1. The retail market is highly dispersed, and the strength of traditional retailers is not enough.

Different from the traditional retailers in Europe and America, the coverage of retailers in China is not wide, which provides a good opportunity for the development of e-commerce. In 20 10, the top 50 retailers in the United States accounted for 48% of the market, while the top 50 retailers in China only accounted for 1 1%.

2. Traditional channels are inefficient and easy to be used by new formats.

There are structural defects in traditional channels in China, and there are many difficulties in channel management, profit distribution, marketing and production management, which provides opportunities for the development of new formats such as e-commerce.

Predicament of traditional consumer market;

(1) Channel: There are many distribution links, high management cost and limited regional and finished product expansion.

(2) Market: The investment in brand building is large, and the marketing cost is high, so it is difficult to conduct accurate marketing and understand the market demand in time.

(3) Profit: the bargaining power of manufacturers is weakened, there are many middlemen, the profit distribution is multilevel, the channel cost is high, and the profits are filtered layer by layer.

(4) Production: The information gap between production and marketing leads to the overstock of inventory or insufficient supply, which is difficult to meet the individual needs of consumers.

3. Compared with developed economies, the cost of social logistics in China is obviously high, and new information flow and logistics mode are needed to achieve a breakthrough.

Compared with Japan and the United States, the operation efficiency of China's logistics industry is low, and the proportion of logistics expenses in GDP is high. This difference lies in that e-commerce is only a supplement to traditional retail formats in developed economies, but it can form strong competition with traditional retail channels in China. The leading e-commerce in China may not only become a giant in the retail industry, but also become a large-scale logistics and information organizer like UPS.

4.PE/VC's's financial support, as well as a more radical e-commerce price war strategy. In the past few years, a large amount of PE/VC funds have promoted the rapid development of domestic e-commerce. In 20 1 1 year, the PE/VC investment of domestic e-commerce reached 5.35 billion US dollars, an increase of more than five times over the previous year. With the help of these funds, domestic e-commerce has vigorously strengthened logistics construction, and at the same time, it has been able to continue the price war in the summer of loss.