July 24, 2018
While the imposition of tariffs on China by the U.S. could potentially disrupt trade between the two economic superpowers, a recent report serves to remind merchants of the reason the Asian country is the biggest cross-border e-commerce opportunity in the world. Simply put, the market of connected consumers in China dwarfs that of the U.S., the world’s second-largest e-commerce market, according to the 2018 China Internet Report from Chinese tech publication Abacus News and the South China Morning Post.
China is four times larger than the U.S. by population alone, but the real opportunity is for companies optimized to accept mobile online transactions. According to the report, 527 million Chinese consumers make online payments via mobile devices while only 48 million do so in the U.S.
The report also identifies four trends that will continue to drive the e-commerce opportunity in China: the idea that internet companies are reaching their tendrils into all areas of the Chinese economy, that the rural population of China will become an economic force as internet adoption via mobile in these areas continues to rise, the idea of social commerce as a force in the economy and the role of government.
The market in China is massive and consumers there look to foreign companies for quality products.