E-commerce in China

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Questions and Answers

Since 2013, which country has been the leader in online retail sales?

  • Germany, a major European economy with a strong manufacturing base.
  • The United States, due to its early adoption of e-commerce.
  • China, driven by a large online population and smartphone usage. (correct)
  • Japan, known for its technological advancements and online infrastructure.

What unique cultural aspect significantly influences Chinese online buyers?

  • A disinterest in mobile shopping platforms, preferring traditional computers.
  • A strong reliance on online reviews and discussions before making purchases. (correct)
  • A tendency to avoid online shopping due to concerns about product authenticity.
  • A preference for purchasing goods exclusively from international brands.

How do Chinese online shoppers in major cities differ from those in smaller towns?

  • Shoppers in smaller towns prefer luxury goods and big-ticket items.
  • Shoppers in major cities prioritize price and deals on everyday goods.
  • There is no significant difference in shopping habits between major cities and smaller towns.
  • Shoppers in major cities are more likely to purchase branded luxury goods and big-ticket items. (correct)

Which of the following reflects a strategy adopted by sellers, like Nike, to engage with Chinese online consumers?

<p>Actively participating in Chinese chat and messaging sites. (D)</p> Signup and view all the answers

What is the estimated potential online market size in China, based on the content?

<p>Around 650 million people, representing the number of people with an internet connection. (A)</p> Signup and view all the answers

Which factor significantly contributes to the continued upward trend in online retail sales in China?

<p>An overall upward trend in economic growth in the country. (C)</p> Signup and view all the answers

Besides Amazon and eBay, what are examples of domestic Chinese e-commerce sites mentioned?

<p>JD.com and Tmall. (D)</p> Signup and view all the answers

What percentage of Chinese Internet users report going online multiple times a day?

<p>More than 90%, demonstrating highly active internet engagement. (C)</p> Signup and view all the answers

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Flashcards

China's E-commerce Role

The country that leads in online retail sales since 2013.

China's Internet Users

Approximately 650 million in China have some kind of Internet connection, representing a massive online market.

Popular E-commerce Sites in China

Chinese online shoppers frequently use domestic sites like JD.com and Tmall, along with U.S. sites like Amazon and eBay.

Online Review Influence

Chinese online buyers highly value and consult online reviews more than shoppers in other countries.

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Sellers' Engagement with Chinese Chat Platforms

Nike actively participates in Chinese chat and messaging sites like Sina Weibo and WeChat to connect with customers.

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Shopping Preferences in Major Chinese Cities

In major Chinese cities, shoppers often purchase branded luxury goods and big-ticket items.

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Shopping Preferences in Smaller Chinese Towns

Consumers in smaller Chinese towns are generally more price-conscious and seek deals on everyday goods.

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Regional Differences in Chinese E-commerce

Sellers in China need to consider regional differences within the country due to diverse consumer preferences.

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Study Notes

  • Electronic commerce started in the US but shifted dramatically, with China leading online retail sales since 2013.
  • A growing proportion of China's online sales are made on smartphones.
  • China has 1.4 billion people, with approximately 650 million having some form of Internet connection.
  • Over 90% of Chinese Internet users report going online two to four times daily.
  • Online retail sales in China are expected to increase, driven by economic growth.
  • Chinese online shoppers use U.S. sites like Amazon and eBay, and domestic sites such as JD.com and Tmall.
  • Chinese online buyers consult online reviews and discuss purchases online more than shoppers in other countries.
  • These cultural traits led to independent online review sites and sellers such as Nike engaging on Chinese chat platforms like Sina Weibo and WeChat.
  • Within China, shopping habits differ by region; major cities focus on luxury goods, while smaller towns seek deals on everyday items.
  • Distribution and delivery can be difficult due to underdeveloped roads and shipping practices so some companies are creating their own distribution systems.
  • JD.com built over 80 warehouses in 34 cities to improve delivery speed and reliability.

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