Ecommerce has been one of the few shining lights for the Chinese economy today. The economy has kicked off 2016 with an increasing growth due to online shopping. This pace of growth has been phenomenal since most of the shopping on internet is being done through mobile.
The increasing rate of the savvy shoppers through mobile is transforming the retail landscape in China. In USA only 30 percent of the shopping on the internet is done through mobile devices but this number is a lot more in China. Alibaba has allowed the shoppers to take more and more control of their shopping experience.
Tmall and Taobao:
Alibaba’s prominent retail marketplaces Tmall and Taobao, have been performing really well. During the October-to-December quarter of 2015, these two marketplaces gained RMB 787 billion in GMV.
In 2016 so far, 75% of the spending has taken place through mobile shopping which is the figure that has been exposed by the latest earnings report.
The reason for their increasing growth is they have prioritized merchant quality and customer satisfaction in order to fight against counterfeits.
Alibaba and JD, which are China’s two biggest e-retailers, are battling for a bigger market. JD is ahead on it path, it buys products from manufacturers as well as distributors. It then keeps the inventory in its own warehouses which is similar to Amazon’s. It then manages quick delivery of the products to the customers in some of the country’s biggest cities.