China’s e-commerce market, the world’s largest, is expected to see strong growth of 10.4% in 2022 as consumers increasingly shift from offline to online.
Market expected to grow 10.4% in 2022 to 14.5 trillion yuan ($2.3 trillion), forecast GlobalDataa leading data and analytics company.
According to GlobalData E-commerce analysise-commerce sales in China grew at a compound annual growth rate of 13.3% between 2018 and 2021 to reach 13.1 trillion yuan ($2.1 trillion) in 2021.
China accounted for more than 37% of the global e-commerce market, in terms of payment value in 2021. The country was followed by the US with $1.5 trillion, while the UK was far behind behind with $292.1 billion in 2021. The global market The e-commerce landscape is unlikely to change in 2022, with China expected to retain its top spot.
Ravi Sharma, Banking and Payments Senior Analyst at GlobalData, comments: “China’s e-commerce market has evolved rapidly over the past five years, supported by growing internet and smartphone penetration, rising consumer confidence in online shopping, the emergence of e-commerce platforms and the availability of popular alternative payment solutions such as Alipay and WeChat Pay.
“The COVID-19 pandemic has further accelerated e-commerce business in China as distrustful consumers increasingly use the online channel for shopping to avoid exposure to disease vectors, a trend that continues beyond the pandemic.”
The growth of the e-commerce market is also supported by improved e-commerce business in rural areas. According to China’s Ministry of Commerce, online retail sales in rural village communities grew 35.3% year-on-year in the first quarter of 2021.
Online shopping events such as Singles Day (or Double 11) also contribute significantly to overall online sales. Chinese e-commerce giants, including Ali Baba and JD.com collectively recorded a massive sale of $139 billion during the Singles Day event in 2021, registering a jump of 8% and 28%, respectively, compared to the previous year.
Sharma concludes, “China’s e-commerce market will continue to grow, supported by increasing consumer preference for online shopping, improved payment infrastructure, and the proliferation of payment tools. The e-commerce market is expected to grow at a robust CAGR of 8.7% between 2022 and 2026 to reach 20.2 trillion yuan ($3.2 trillion) in 2026.”