Chinese e-commerce is recovering from pandemic impact

COVID-19 is making Chinese consumers embrace e-commerce

Chinese e-commerce

Chinese e-commerce is recovering from pandemic impact. Source: pixabay.com

GlobalData reports that the Chinese e-commerce market is facing growth since the consumers are shifting away from in-store to online spending. This way, they are trying to avoid exposure to disease vectors.

The analysis reveals that the e-commerce market in China is set to increase at a compound annual growth rate (CAGR) of 17.1% by 2023, reaching $2.9 trillion.

The lockdown in the country led to the overall decline in consumer spending. This is, however, partially offset by a rise in online spending, as wary consumers stay at home and use online channels to purchase goods (concentrating on groceries, medical supplies, and other essentials, as well as entertainment). Online payment solutions to the likes of Alipay and WeChat Pay could potentially benefit from the current situation
Nikhil Reddy, Banking and Payments Analyst at GlobalData

According to the data, e-commerce companies are getting benefited by this trend. For example, online shopping giant JD.com observed an increase in its fresh food sales by over 200%, during the 10-day period ended in February 2020, compared with the same period in 2019.

We’ve reported that almost 75% of the Chinese intend to increase their savings in the future as the coronavirus pandemic changed Chinese their investment preferences.

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