Essay on The Chinese Online Retail Market

1315 Words Nov 28th, 2016 6 Pages
2.2 The Chinese online retail market

The Chinese market is highly heterogeneous, with great variations in wealth between the coastal cities, and China inland. Growth in the latter is far lower than the former, and even in the richest areas of China, there are massive differences in relative wealth and income. Thus, the market for high value-added products is still restricted to a small segment of the country. 2 Furthermore, Dickson, etal. (2004), argue that the increase in the income in China, and accordingly in the ability of the population of the market to buy new high value branded goods, is not generalized among the whole country and imported clothing is available to specific niches of the population. This makes the Chinese market, not a “golden goose”, but an attractive opportunity for foreign brands, to build from strong established brand, but particularly attractive to specific segments of the population who see the products as a statement of status. 3 From the negative side, their research finds that the traditions in China and the strength of local players in the apparel industry make that the opportunities shown by the imported clothing are rapidly protected and disputed by the local counterparts. 2
Nonetheless, the e-commerce in the Apparel and footwear market is growing rapidly in China, mainly helped with higher usage of internet and consumption patterns shifting from brick and mortar outlets towards online platforms. Regarding internet usage, internet users…

Related Documents