The major economies around the world are continuing to expand in ways never imagined before. With the rise of technology and Amazon.com, more and more people are forgoing their in-store purchase in favor of ordering items and goods online.
Online vendors that sell consumer goods typically have a wider variety of products than retail stores, and they often offer the same products for a lot less. We are now seeing a new trend where consumers are making their purchasing decision off of their mobile devices, and a leading nation in this category would be China.
Economic models on China’s expanding online-retail market from Forrester predicts that not only will online sales continue to grow over the years, but that more people will be making the switch to mobile shopping. They predict that online retail in China will exceed an amazing $1 trillion dollars by around 2019.
The forecasts also show mobile shopping to take over online shipping. Forrester also predicts that mobile spending will grow at an expected 44.2% compound annual growth rate, while online sales will grow at around a 19.9% compound annual growth rate.
So why are the Chinese making their big purchases from their cell phones? The most likely reason this is is that more Chinese people have a cellular phone compared to those that have a computer. Smartphones come relatively cheap in China, and for people living in less developed areas, it is their only means of connecting to the internet. It just comes down to the fact that owning a smartphone is cheaper than buying a computer.
Many online retailers are noticing these trends and are putting much more time in developing their online presence. Additionally vendors are revamping their mobile websites to be more user friendly, as many people dislike browsing a full sized webpage on their cellular or mobile device. Chinese retailers are now focusing on trying to dominate the “m-commerce” market, and even grocery-store vendors are looking to get online.
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