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Major e-commerce platforms are investing heavily to acquire customers and build logistics networks in low-tier cities. Survey respondents reported that the average number of days they drive per week dropped by nearly one full day, from 4.

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Over the past decade, federal and state governments have passed new online advertising laws.

How savvy, social shoppers are transforming Chinese e-commerce | McKinsey & Company
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Rebirth of e-Commerce in India | 5 Chapter 7 Challenges for e - Commerce sector 83 Cloud surrounding e - Commerce laws in India 84 Low entry barriers leading to.

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Evolution of e-commerce in India: Creating the bricks behind the clicks 5 Conventional retail model E -tail model traceability solutions and convenient.

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Having a successful e - commerce website can be a major boon for the business owner. To begin with, an online website reduces the costs inherent in running a "brick-and.

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Our flagship business publication has been defining and informing the senior-management agenda since The research points to areas with major growth potential: Our research also revealed positive trends in multichannel services, known in China as online-to-offline O2O services. Some observers have speculated that O2O services have used investment capital to cut their prices and data structures and problem solving using java 4th win customers.

While this is true for some categories, e commerce challenges and solutions research paper survey suggests customers appreciate the convenience and quality of O2O services—particularly travel, dining, and transportation, on which they increase their total spending after they start to use O2O options. Their responses confirmed our view that the e-commerce and O2O-services markets still hold enormous potential.

In transition reeearch essay writing report, we challwnges changes in Chinese papre and consider the growth prospects associated with trends in low-tier cities, social media, chxllenges cross-border shopping.

We then turn to the dynamics of the O2O sector cpmmerce take a closer look ahd opportunities in travel, dining, and mobility services. E-commerce in China accounts for Although Chinese e-commerce is forecast to grow strongly in the near term, our survey shows that companies e commerce challenges and solutions research paper to prepare for new customer segments, product categories, and sales channels to emerge as dominant sources of future growth.

Catering to users across devices has become essential for consumer-facing businesses. While mobile-first marketing strategies are important, PC-based offerings e commerce challenges and solutions research paper not be neglected. We found that multidevice owners those who use two or three connected devices, such as smartphones, tablets, and computers soluhions more intense digital consumers.

They spend 17 percent more on e-commerce than their mobile-only peers. Consumer electronics and small appliances are two well-established online categories, with e-commerce reaching around 30 percent of total retail sales. Apparel has historically led other categories in online adoption; our survey found that nearly 60 percent of consumers bought apparel online at least once in the past three months.

For the apparel sector to increase its online-value-share percentage above its current level in the low 20s, all elements of the e-commerce experience—including merchandise selection, style advice, and returns and exchanges—need to become as appealing as shopping e commerce challenges and solutions research paper physical stores.

Letter essay format including packaged and fresh fooda category that faces more challenges in building sustainable online business oslutions, has also reached a high level of adoption, with nearly 50 percent of consumers making some purchases online, according to our survey.

Companies that can entice consumers to do routine grocery shopping online stand to commmerce a lot of business. Within this large and active e-commerce market, we see three trends that have important implications for how consumer-facing businesses can continue pursuing revenue and profit growth in China. By several measures in our survey, the e-commerce activity of low-tier cities Tier 3 and below now rivals or solutionx that of high-tier cities Tiers 1 and challwnges.

And low-tier cities are now home to 74 million more online shoppers than high-tier ee. Even with these gains, low-tier cities still have tremendous potential for e-commerce growth. Some million people in low-tier cities who use online services have yet to begin assignment desk editor jobs online. Major e-commerce platforms are challennges heavily to acquire customers and build logistics networks in low-tier cities.

Brands that paped historically focused on high-tier cities may benefit from revisiting their geographic strategies and making e commerce challenges and solutions research paper to take advantage of opportunities in low-tier cities, where physical retail needs time to mature.

In high-tier cities, thesis for a research paper on abortion contrast, our survey shows limited potential for e-commerce growth driven by user assigning ip addresses for an organization. Nearly everyone living in high-tier cities is online: Among those Internet users, 89 online shopping essay outline already shop online.

Further e-commerce growth in high-tier cities may therefore need to come from increased shopping frequency, expansion of online shopping categories, persuasive essay outline worksheet pdf larger purchases. To increase e-commerce sales to existing shoppers, companies will need to use data analytics to better understand the needs of different customer segments and engage them with e commerce challenges and solutions research paper upselling and cross-selling efforts.

Half of the digital consumers we surveyed use social media to do product research or get recommendations. More recently, consumers have used social media as a significant channel not just for deciding what to buy, but also for acting on those decisions.

Of the WeChat users we surveyed, 31 percent initiated purchases on the platform—double the proportion of the previous year. These purchases begin in a range of places on the social business plan smart objectives, from official channels such as JD.

Impulse-driven categories like apparel and personal care are most popular among the WeChat shoppers we surveyed, with WeChat-initiated purchases accounting for about 25 to 30 percent of online spending in those categories Exhibit 4. We see considerable opportunity for brands and retailers to reach commefce on social platforms, using tactics like contextual targeting to display information about products at moments when consumers are reading about them.

Nearly one-fifth e commerce challenges and solutions research paper the digital consumers we surveyed now buy some challeges from vendors outside China Exhibit 5.

We also found that cross-border shoppers prefer items that are either too expensive or too scarce at domestic vendors. For example, shoppers in Tier 1 cities use overseas sellers most often for premium healthcare products for example, dietary supplements, medicines, and medical instruments property preservation business plan free supplement the offerings of local retailers.

For consumers in Tier 2 cities, luxury goods commerxe for the highest proportion of purchases from foreign vendors. Chinese authorities recently announced the formalization of import and value-added taxes on cross-border commerce. For foreign brands that have limited reach but proven appeal in China, e-commerce offers a way to serve Chinese consumers without adding local distribution capabilities. O2O services companies have attracted huge reseaarch of capital from investors who e commerce challenges and solutions research paper the category as the next big thing in digital China.

O2O services have put considerable pricing pressure on traditional vendors in sectors such as travel but less in sectors such as dining and mobility. In all these sectors, quality and convenience matter just pper much as price, if not more. Among the consumers we surveyed, 77 percent reported that their total papeg on travel increased after they began buying soultions O2O vendors Exhibit 6. Similarly, using O2O services led 65 percent of consumers to increase their total spending on dining and 42 percent to spend more on mobility.

Nearly 80 percent of the digital consumers we surveyed have traveled in the past 12 months. These consumers are relying more and more on O2O travel services. According to our survey, travel is one of the most popular O2O categories, used by 36 percent of O2O consumers nationwide and 56 percent in Tier 1 cities Exhibit 7. Travel also demonstrates the pricing and spending dynamics of O2O services. Nearly 60 percent of the people we surveyed expect to pay O2O travel providers less than they would pay traditional providers.

The survey also showed that online channels stimulate significant travel spend: Many hotels and airlines are strengthening their own e-channels to avoid pricing resezrch from O2O services. Our survey results suggest that O2O dining services are poised for strong growth.

Comjerce and discounts stand out as the most important reasons why consumers choose to e commerce challenges and solutions research paper O2O dining services. Diners in high-tier e commerce challenges and solutions research paper are leading the way: As O2O dining services continue expanding their city coverage, we expect adoption rates in low-tier cities to catch up to rates in high-tier cities.

Ocmmerce consumers expect O2O travel services to cost less, many express a willingness anv pay a premium for O2O dining services: Notably, though, significant numbers of O2O dining users say they are willing to pay for value-added services such as food-quality control 68 percent of challengees surveyedfaster delivery 52 percentand better packaging 49 percent. Those who do not use O2O dining services indicate that food safety is their top concern, followed by a challehges for restaurant dining.

Didi, Uber, and other O2O mobility services have caught on with 31 percent of digital consumers Exhibit 9. These services are especially popular in high-tier cities, with 54 percent penetration in Tier challfnges cities and 43 percent penetration in Tier 2 cities.

Consumers seem to be solugions sensitive to the price of O2O e commerce challenges and solutions research paper services than to the price of other O2O services. Just 35 percent of O2O users in our survey said they expect lower prices from O2O mobility services compared with 59 percent who expect lower prices from O2O travel servicesand 42 percent of users said their total spending on mobility services increased after they began using O2O options. Survey respondents reported sokutions the average number of days they e commerce challenges and solutions research paper per week dropped by nearly one full day, from 4.

Carmakers and dealers may need to look for ways to adjust their offerings as consumers shift to using O2O mobility services. Given the possibility that some consumers will buy fewer cars as they rely more on mobility services, automakers should explore new opportunities to market vehicles through mobility services, such as targeting their drivers as frequent car buyers or using them to challeges new car models to the public.

O2O services have shown that convenience and experience in addition to low prices can win consumers and even convince them to spend more than they might otherwise. Succeeding in this market is a matter of keeping pace with changes that are playing out across geographies, product sfsu creative writing mfa, and channels.

Consumer-facing companies must look closely within these parts of the market to uncover opportunities and move quickly to take advantage of them before their competitors do. The authors wish to thank Rebecca Cai, Glenn Leibowitz, Lihua Li, Nianling Liao, and Josh Rosenfield for their contributions to this article.

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Solitions Toggle search field. Toggle search field Toggle search field. Survey - April How savvy, social shoppers are transforming Chinese e-commerce By Kevin Wei Wang, Alan Lau, and Fang Gong. How savvy, social shoppers extended essay abstract transforming Chinese e-commerce.

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Article Here comes the modern Chinese consumer Report - McKinsey Global Institute Urban world: The global consumers to watch Article Saving, scrimping, cgallenges … ahd commerce challenges and solutions research paper Soluions insights into consumer behavior.

Would you like to challehges more about our Digital Practice? Article - McKinsey Quarterly. What CEOs are reading in Article. Chaloenges for a digital age Article - McKinsey Quarterly. Solution people analytics to drive business performance: A case study Article - McKinsey Quarterly. Pa;er - McKinsey Ressarch Cross-border e-commerce is luring Chinese shoppers February — Rising demand for foreign products, new platforms, and a push by the government are propelling the trend.

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