China to Become Biggest Market for Online Shopping
A report that was released by Alibaba together with Accenture stated that China will be the largest market for buying and selling products online and across internationals borders by the year 2020. The total amount of products that will be sold by online retailers to overseas consumers is estimated to reach US$994 billion by 2020 and China will be the driving force of the growth.
A stronger growth is even expected for cross border retail that is expected to increase to 27 percent annually and will hit US$ 1 trillion as consumers shopping products online will be triple. Much of the increase will be driven by Chinese consumers that have been buying up foreign products outside China or buying online. Also a growing number of online retailers that is led by Alibaba and JD.com is capitalizing on the strong domestic appetite for buying foreign products ranging from milk powder, diapers and designer bags.
Around a 100 million Chinese residents travelled abroad and spent more than a trillion yuan on shopping as cross border retail increase by 30 percent, it is predicted to climb up higher to around 6.5 trillion by next year.