Online shopping in China is widely expected to grow. It’s less clear how much longtime players such as Alibaba and JD.com will benefit. “You have relatively strong insurgent players coming in,” James Yang, Hong Kong-based partner at Bain and Company told me last week. “This is going to be not just a two-player game, but a three, four, five-player game,” he said. E-commerce’s share of China’s retail sales climbed to 37.5% in 2023, up from 27.9% in 2019, according to Bain. The data showed that in Asia, the country ranks first by far in e-commerce penetration. In the U.S., official data show e-commerce penetration remains slightly below a pandemic-era high of 16.4% of retail sales. In a bid to boost confidence in Alibaba, the e-commerce giant’s co-founder Joe Tsai told CNBC’s Emily Tan earlier this year that online shopping is set to reach 40% of retail sales in China in the next five years — an opportunity he said the company is poised to capture after its restructuring last year. Yang agreed with Tsai’s forecast on rising e-commerce penetration. “There’s many folks that I’ve spoken to in the industry, at some point the guess is 50-50, because at the end of the day there is a role for physical stores,” he said. “Who is going to enjoy that growth?” Yang said. “The growth formula and the inc …
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[mwai_chat context=”Let’s have a discussion about this article:nnOnline shopping in China is widely expected to grow. It’s less clear how much longtime players such as Alibaba and JD.com will benefit. “You have relatively strong insurgent players coming in,” James Yang, Hong Kong-based partner at Bain and Company told me last week. “This is going to be not just a two-player game, but a three, four, five-player game,” he said. E-commerce’s share of China’s retail sales climbed to 37.5% in 2023, up from 27.9% in 2019, according to Bain. The data showed that in Asia, the country ranks first by far in e-commerce penetration. In the U.S., official data show e-commerce penetration remains slightly below a pandemic-era high of 16.4% of retail sales. In a bid to boost confidence in Alibaba, the e-commerce giant’s co-founder Joe Tsai told CNBC’s Emily Tan earlier this year that online shopping is set to reach 40% of retail sales in China in the next five years — an opportunity he said the company is poised to capture after its restructuring last year. Yang agreed with Tsai’s forecast on rising e-commerce penetration. “There’s many folks that I’ve spoken to in the industry, at some point the guess is 50-50, because at the end of the day there is a role for physical stores,” he said. “Who is going to enjoy that growth?” Yang said. “The growth formula and the inc …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
