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5 Sites Chinese Consumers Spend the Most Time On

digital internet China

One of the findings from the newly released BCG report on Chinese consumers is that they visit very few websites despite spending a lot of time online.

The Chinese online landscape has become increasingly crowded and knowing where these consumers are spending their time is important.

BCG found that most of the respondents spend 50 to 80 percent of their time online making repeat visits to a few websites that are their personal favorites. According to BCG research, ”more than 40 percent of their collective online activities were spent on the following top five sites: Youku, a local video-streaming website; Sina.com, a news portal; QQ, an instant messaging service; Taobao, an e-commerce site; and Baidu, a search engine.”

Here are some details on these top five sites:

Site Type Online Activity
Sina News portal website 40 million IP visitors daily
QQ News portal website 51 million IP visitor daily
Baidu Search Engine over 80 million IP visitors daily
Taobao and Tmall Online mall and C2C ecommerce over 67 million IP visitors daily (combined); over 1 trillion RMB sales in 2012
Youku and Tudou (companies merged) video sharing and viewing including TV shows youku: over 10 million IP visitors daily tudou:over 1.26 million IP visitors daily
source: danwei

Why E-Commerce Is Growing Faster in China Than Anywhere Else in the World 夏威夷房地产 – 美国夏威夷豪宅

china ecommerce digital

Retailers in China are racing to expand in an e-commerce sector that is growing faster than anywhere else in the world, including the United States.

What’s driving this speedy development? In the late 1980s, China began its transition to a market economy, giving its state-run retailers little time to acquire marketing skills before the Internet began to dominate consumer consciousness a decade later.

“In the U.S., where retailing has long been an established industry for more than 100 years, e-commerce is the icing on the cake. But in China, where retailing as a market is still relatively new, online retailing is the cake,” Export Now CEO Frank Lavin explained in an interview with Internet Retailer. Lavin’s company assists foreign companies in selling their products online in China.

Various analysts have described the competition in the now booming market as “ferociously competitive,” “cutthroat,” and “a street fight,” as e-retailers increasingly resort to price cuts to nab sales, even at the cost of losing profits. And according to Teresa Lam, an e-commerce analyst and vice president at Fung Business Intelligence Centre, it is only expected to intensify.

“Most Chinese online retailers seek to grasp market share by adopting a low-price strategy despite low or even negative profit margins, and this has led to unhealthy market competition,” Lam said. “We expect price wars to continue to break out and amplify in 2014.”

To keep up with the race, companies are making fast delivery a priority, building fulfillment centers so that shoppers can acquire their purchases sooner. They are also offering a wider selection of products, with many “inviting other merchants to sell on their sites so that they can better compete with the giant Taobao and Tmall marketplaces.” Businesses are also rethinking web design, adding attractive new features to their websites and finding new ways to grab consumer attention. A focused marketing plan has also proven profitable for companies like VIP Holdings Ltd., the No. 8 e-retailer on Internet Retailer’s China 500 list.

The Guangzhou-based VIP is a publicly traded online apparel retailer whose success rests on “offering consumers name-brand clothing, focusing on profitability and building a bigger e-commerce base,” according to Donghao Yang, the company’s chief financial officer. VIP has managed its marketing costs more efficiently by using social media to attract new consumers, and has also focused on negotiating more reasonable deals with suppliers.

Although expansion is important, a large part of the company’s success can be attributed to catering to a niche market. Fifty-five percent of VIP’s core demographic — women aged 20 to 40 — live outside of tier-one cities like Beijing, Guangzhou, and Shanghai, in areas where access to the latest fashions is often limited. While other online retailers target urbanites, VIP has made a considerable profit in offering exclusive items to shoppers in smaller cities and rural areas, increasing its brand offerings from 410 in 2010 to over 3,000 in 2013. To increase shipping speed and efficiency for its customers, VIP also plans to spend $200 million over the next three years to build new distribution centers. The company’s order volume continues to grow, having increased by over 10 million orders shipped per quarter since 2010.

All of these measures have proven more than successful for VIP, which reported its first-ever profits last year. The company reported a net income of $12 million on revenue of $383.7 million for the third quarter ended September 30, 2013, compared with a $1.45 million net loss on sales of $155.94 million a year earlier.

“We have increased our profitability,” Donghao says. “We are better at controlling costs and achieving operating efficiency.”

China has the youngest billionaires

China may not have the most billionaires, but it does have the youngest.

According to a report from Wealth-X and UBS, China’s 157 billionaires have an average age of 53 years old. That’s nine years younger than the global average.

China has the second-highest number of billionaires in the world after the U.S., which has 515. And China has added 10 new billionaires over the past year.

Still, China’s billionaires have come under fire recently for their wealth and power. The government recently charged one of its top billionaires, venture capitalist and human rights supporter Wang Gongquan, with “assembling a crowd to disrupt order.”

Chinese-American entrepreneur and blogger Charles Xue was arrested in August, and last year Xu Ming, once the country’s eighth richest man, was arrested and charged with fraud.

 

One study found that 17 percent of the billionaires on the Hurun Rich List—China’s version of the Forbes list—wind up in court or prison.

By CNBC’s Robert Frank. Follow him on Twitter@robtfrank

 

 

Beijing set to host global tourism center

The delights and flavors of the world’s leading cities are coming to Beijing with the opening of a center dedicated to replicating what tourists will see.

A trial run for the experience center will start on Thursday as one of the major events during the Fragrant Hill Summit for world tourism cities from Sept 11 to 14.

The interactive center, located in the city’s Shijingshan district, will showcase the scenery and attractions of more than 60 global cities through the use of digital displays and three-dimensional technology, according to the World Tourism Cities Federation, the center’s operator.

After the trial run, the center will open to the public during the National Day holiday in October, said Yan Han, deputy head of the federation, at a news conference on Thursday.

Yan said the second phase for the experience center will house the foundation’s headquarters and will also serve as a theme park dedicated to tourism.

The federation is a nonprofit and international nongovernmental organization founded in Beijing in 2012. It has 68 members from various global cities and 39 institutions from around the world. Representatives from more than 100 members of the federation have confirmed their participation in the event, including mayors from about 30 cities.

In May this year, the federation’s status as an international organization was recognized by the United Nations.

The tourism experience will allow Beijing residents to see their tour destinations before they make their travel plans, said Yu Debin, deputy director of the Beijing Commission of Tourism Development.

It will also help Beijing learn from the experience of member cities, Yu said.

In 2012, visitor arrivals in Beijing exceeded 231 million, bringing revenue of 330 billion yuan ($53.9 billion). The added value contributed by the tourism industry accounted for 8 percent of the gross domestic product in Beijing in 2012, according to official statistics.

During this year’s Fragrant Hill Summit, the second World Tourism Cities Expo will be held, and forums for media, aviation operators, tourism services and relevant enterprises will also be held during the summit, authorities said.

 

China becomes largest source of overseas students

BEIJING — From 1978 to the end of 2012, more than 2.6 million Chinese studied outside the country, making China the world’s top source of overseas students, official figures released on Friday showed.

In 2012, 399,600 Chinese went to study abroad, funded by the government or their employers, or at their own expense, according to the Chinese Service Center for Scholarly Exchange under the Ministry of Education.

China ranked first in the world in terms of the number of overseas students.

Currently, around 74 percent of Chinese overseas students are studying in the United States, Australia, Japan, Britain and Canada, showed the data.

The center added that the number of younger students studying abroad is rising year by year.

Since the introduction of China’s reform and opening-up policy in 1978, around 1.1 million Chinese overseas students have chosen to return to their home country after finishing their studies, accounting for 72.38 percent of the total.

In 2012, 272,900 Chinese returned, an increase of 46.57 percent from 2011, according to the figures.

Taobao fund platform may debut before October

Investment companies will likely begin selling financial products through popular e-commerce platform Taobao.com before October, according to China Securities Journal on Monday.

Taobao had initially planned on launching the fund platform in August, but negotiations between the e-commerce platform and investment companies have taken longer than expected, reported CSJ. One of the major problems is finalizing a pricing system.

Many fund companies have been looking to develop more sales channels beyond banks. Some have been selling investment services packages and software on Taobao.com for more than eight months.