Due to the growth in the use of modern technologies in recent years Chinese e-commerce is rapidly growing
China’s e-commerce market, which is the largest, is estimated to grow 17.2% in 2021 as consumers move more and more from offline to online, according to GlobalData.
Against this backdrop, the value of e-commerce is expected to grow at a CAGR of 11.6% between 2021 and 2025, reaching 21.4 trillion yuan ($3.3 trillion) in 2025.
Chinese e-commerce has grown rapidly over the past 5 years thanks to the widespread adoption of the Internet and smartphones, growing consumer confidence in online shopping, the emergence of e-commerce platforms, and the availability of various alternative payment solutions such as Alipay and WeChat Pay.
According to GlobalData’s E-Commerce Analytics, e-commerce sales in China grew by an average of 17.7% between 2017 and 2021 and reached 13.8 trillion yuan ($2.1 trillion) in 2021.
While the COVID-19 crisis has resulted in a drop in overall consumer spending, it has driven an increase in e-commerce purchases.
While sectors such as travel and lodging, as well as restaurants, have been hit by blockages and travel restrictions, there has been a significant increase in online purchases of physical goods.
Alternative payment solutions have been a major beneficiary of the growth in e-commerce purchases. According to the 2021 GlobalData Financial Services Consumer Survey, alternative payment solutions including Alipay and WeChat Pay (including Tenpay) collectively account for 57.6% of total e-commerce costs.
While Alipay is the main payment tool across all e-commerce platforms owned by the Alibaba group, WeChat Pay, offered by the messaging app WeChat, uses its huge 1.2 billion social media user bases to promote online payments. As Chinese consumers continue to use e-commerce, these payment solutions will benefit greatly.
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