Summary
The number of online users in China will reach 275 million by 2012, which is 12% greater than the US projected number. Nonetheless, 74% of Chinese online users have a low income level of less than $290 per month and thus present a less active potential market than affluent online US buyers. Foreign retailers launching eCommerce sites in China should consider additional factors besides the sheer size of the population, and they must adjust their sales expectations to the demographics of the local market. In August 2008, JupiterResearch conducted a WebTrack that studied 15 Chinese Internet retailers and the top 50 US Internet retailers according to certain predetermined criteria. The results of this study show the major differences between the two eCommerce markets. For example, most Chinese eCommerce sites offer traditional payment methods such as cash on delivery versus credit products. Foreign retailers launching eCommerce sites in China should enter the market by using eCommerce practices that have proven successful in the US market and applying them judiciously to the Chinese market without losing sight of the local cultural and social traits.
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