China Continues To Embrace Online Shopping

In the second volume of a report on shoppers in China, Kantar Worldpanel and Bain & Company highlight continued rapid growth in online sales and expansion in the number of categories bought online. Online sales of FMCG products grew 36.5 percent last year, with volume up 69 percent. A decline in the average selling price came from the broadening of product options beyond the expensive original categories, baby care and beauty. It also found that physical stores are trying to complement online shopping, with the growing popularity of convenience stores driven by urbanization, for small baskets and top-up shopping. The authors believe that online and offline channels need to adapt to the changing reality to stay competitive. The growth in online shopping was demonstrated by the 11/11 Singles’ Day promotions. This year, Alibaba drew sales of $17.8 billion in the day, and the report suggested reasons for this sales splurge: existing shoppers choosing to spend more on the day; shoppers deferring purchases in the lead up to the day; and new shoppers attracted by the promotions.