Chinese E-commerce Enters the Great Era

2014-10-28 22:03 1200

QINGDAO, China, October 28, 2014 /PRNewswire/ -- Alibaba has attracted the attention of the global media for roughly a month, because it created the biggest American IPO. Although glory and questions coexisted, it's undeniable that the Chinese enterprise brought enormous room for imagination to the world. It changed China's model of consumer behavior in only 10 years and thus promoted the spontaneous transformation and upgrading of China's economy. A report by Ehaier as follows:

The largest contribution of Alibaba is that it greatly enhances the acceptance of the Chinese people of online shopping. As the largest shopping website of Alibaba, Taobao has more than 7 million merchants and 800 million kinds of products at present. From everyday cosmetics, clothing, shoes and hats to major appliances such as TVs and refrigerators, and even the leasing of boyfriends and girlfriends, Taobao includes almost everything people want.

According to relevant data, the total turnover of Chinese retail platforms of Alibaba (Taobao, Tmall and Juhuasuan) in the first half of 2014 reached RMB931 billion, only a short step away from RMB1 trillion; however, the total turnover of retail platforms of Alibaba Group in 2012 just crossed RMB1 trillion.

From the online shopping data, it can be seen that shopping groups and product categories are changing. In China, the groups that are involved in online shopping include both young people with novel ideas and middle aged and elderly people aged from 50 to 60. In addition to clothing and shoes, large household articles such as TVs, refrigerators, cupboards, beds and sofas are included in their online shopping list too.

According to an online shopping analysis report about China, the turnover of China's online shopping market of household appliances in the first half of 2014 reached RMB83 billion, up by 56.6 percent over the previous year, among which, the turnover of major household appliances was RMB23 billion, up by 67 percent over the previous year. Chinese E-commerce is transforming to large household articles and life services from traditional retail platforms focused on small commodities.

According to analysts, the further solution of distribution, installation, after-sales service and warranty problems is the key to whether people can gradually accept online shopping of major household articles. For Chinese consumers, unlike small household appliances worth several hundred yuan such as soybean milk machines, induction cookers and microwave ovens, the prices of large household appliances such as refrigerators, washing machines and air conditioners range from several thousand yuan to ten thousand yuan, so consumers will suffer great losses if they buy large household appliances by mistake.

"Large commodities like household appliances cannot adopt general express delivery process applicable to traditional goods, so online shopping of large commodities is restricted by the delivery zone and those consumers who're living in the area beyond the seller's delivery zone cannot buy such commodities online. The problems such as a long delivery time, extra charge and downstairs delivery will get consumers into trouble," the principal of an express company said. He joked that it's all about the "big size."

The development of large cargo logistics is the key to whether people can gradually accept online shopping of large household articles such as household appliances and furniture. Nowadays, Chinese E-commerce enterprises are successively making arrangements in the logistics field. Last December, Alibaba Group entered into a strategic partnership with Haier Group, so as to develop a leading household appliance and large cargo logistics and service network covering markets at all levels.

Alibaba thought highly of Haier Group's powerful logistics system. RRS Logistics of Haier Electronics Group has nine forwarding bases and 90 logistics distribution centers nationwide and has a warehouse space of more than 2 million square meters. It has established logistics distribution stations and more than 17,000 service outlets in more than 2,800 counties nationwide, which form a nationwide service network integrating warehousing, logistics, distribution and installation of household appliances and large commodities.

According to relevant practitioners, in most cases, the delivery specifically aimed at large commodities can realize door to door service and some delivery personnel can provide value-added services such as upstairs delivery. In terms of delivery time, the delivery to neighboring provinces usually takes two to four days and the delivery to remote areas usually takes four to six days. Besides, RRS Logistics of Haier Group launched "fast buy" service and promised that major appliances bought online via "fast buy" channel would be delivered to buyers within three hours and buyers can get such appliances free of charge if RRS Logistics failed to delivery such appliances to buyers within the stipulated time.

Ms. Zhao, a white-collar worker in an advertising agency, registered a Taobao account three years ago. She opened an online banking account and enabled Alipay service. At the beginning, she just bought small commodities such as clothing and shoes and kept the purchase price below 500 yuan. As time went by, her consumption concept and habits gradually changed. "All of my household appliances and furniture are bought online now," she said.

A lot of Chinese consumers choose online shopping, mainly because they feel that the prices of products purchased online are relatively cheap. As the quality of after-sales services for products bought online is improved and the delivery becomes easier and faster, the shopping mode of sitting at home to wait for products becomes a favored choice of many consumers. Especially in terms of the purchase of large household articles, more and more people begin to choose articles in physical stores, then compare the prices in physical stores with the prices in online stores, and finally buy them from online stores.

For more information, please contact:

WANG Xiaoru, +86-183-1092-5583
Ehaier Service Hotline: 4008-281-919

Source: Ehaier