Chinese e-commerce market to balloon to $3.3t by 2025: GlobalData
E-commerce CAGR will grow by 11.6% between 2021 and 2025.
The Chinese e-commerce market is expected to reach $3.3t (CN¥13.8t) by 2025 according to a report by the data and analytics firm, GlobalData.
The report said that the compound annual growth rate (CAGR) is expected to grow at the rate of 11.6% between 2021 and 2025 for the e-commerce market in China.
According to GlobalData’s E-Commerce Analytics, e-commerce sales in China grew at a CAGR of 17.7% between 2017 and 2021 to reach the value of US$2.1t (CNY13.8t) in 2021.
“Chinese e-commerce evolved rapidly during the last five years, supported by high Internet and smartphone penetration, increasing 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,” GlobalData said.
GlobalData attributed the growth of e-commerce activities in China to the pandemic as consumers wary of getting exposed to the virus are increasingly using online channels for their purchases, a trend that is expected to continue post-COVID-19.
Whilst sectors, such as travel and accommodation, and restaurants services were affected due to lockdown and travel restrictions, strong growth is seen for online purchases of physical goods.
Alternative payment solutions were the major beneficiary of rising e-commerce purchases. Alternative payment solutions including Alipay and WeChat Pay (including Tenpay) collectively account for 57.6% of total e-commerce value, according to GlobalData’s 2021 Financial Services Consumer Survey.