Over the last years, Chinese consumers have shown a great interest in local life services and products which are available through e-commerce.
The increasingly high demand of service-oriented e-commerce plays an important role in the Chinese economy.
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As reported by the Chinese Bureau of Statistics, in 2013, National GDP has increased up to CNY56.9 trillion and the value of the tertiary industry accounted for 46.1% overtaking the second industry. In 2013 the service industry has grown up to 13.1%.The faster growth of the service industry in China reveals that soon what is already the second economy in the world will soon have to officially be called a developed country.
What is the reason of this rapid rise in the tertiary industry?
The e-commerce development is the key. In 2013, the world’s e-commerce sales accounted for $889 billion and China became the biggest e-commerce market with $314 billion. In 2013 online spendings per buyer reached $1,040 and in 2018 it is expected to increase it up to $1,880.
In addition, around 26 percent of online purchases in China were bought through mobile devices in 2014.
Rise of the service industry is proportional to development of the e-commerce in China
Over the last years the service industry has risen in China due to the huge demand of service-oriented e-commerce. The popularity among Chinese demography of this kind of e-commerce services has rapidly increased during the past years, particularly those related with the local life’s e-commerce such as e-commerce of catering, entertainment, travelling and community services.
In 2013 the GMV of China local lifestyle industry accounted for 4.7 trillion Yuan, representing one sixth in service industry, as reported by iResearch. An increase up to 7.3 trillion CNY is expected for 2017 which means a growth of 11.7%.
This industry has developed for two main reasons.
- More demanding consumer’s needs
- A wide range of lifestyle services. Nowadays Chinese consumers have access to a vast number of lifestyle product types.
E-commerce has boosted the consumption of local life products and services. Thanks to online commerce, the marketers of this kind of products and services have the chance to expand their businesses across China and reach to a largest number of consumers.
Some of the most popular online local life services providers are MeiTuan, Dianping and 55tuan.
Dianping.com, is the largest website for location-based food and entertainment services in China and also collects feedbacks on restaurant services. Dianping has more than 60 million active users monthly and has received over 25 million individual reviews. The company includes more than 2,6 million restaurants and shops in its site.
Meituan and 55tuan are Chinese daily deals site. Through those platforms, consumers have the chance to purchase the latest deals and promotions of different services and products
At this moment, Chinese shoppers are more willing to buy online and the number of e-commerce users will continue increasing during the next years.
As we see, e-commerce market has become an essential part of the Chinese economy. Increasingly more consumers are choosing online platforms to buy all products and services that they need due to the facilities and vast variety of products and services that e-commerce offers.
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