E-commerce has been increasingly regarded as a potentially huge and profitable market. Since 2010, China has boasted the most internet users in the world—exceeding 500 million last year, according to the latest statistics from CNNIC/International Telecommunications Union/OECD/national statistics. Moreover, the growth of Chinese online buyers is even stronger, and the number increased from 74 million in 2008 to 194 million in 2011. The 162% gain during this period even outpaced Internet users’ growth, according to “Progress and Prospects of Retailing in China,” a new report by Euromonitor.
As more consumers moved online in search of convenience and lower prices, internet retail sales doubled last year. That gain far outpaced other retail channels, according to Euromonitor. The latest statics from iResearch also confirms that the total transaction value of China’s online retailing market rose 75.3% year-over-year to exceed $68 million in 2010, and accounting for nearly 3% of the country’s total retail sales.
In response to changes in customers’ purchasing behavior and significant advancements in the online retail market, an increasing number of cosmetics brands have been making use of this platform to reach more consumers. Apparel, consumer appliances and consumer electronics were ranked as the top three categories in terms of value growth, while cosmetics and personal care products became the fourth most popular categories consumers purchased online in 2010, according to Euromonitor. With the retail sales of beauty and personal care product exceeding $17 billion in 2011, the online turnover of cosmetic products shot up more than 66% to $5.7 billion, according to iResearch.
Ally Dai is Deputy Editor-in-Chief of Ringier Trade Media Ltd, responsible for trade publications including Happi China. She has more than 10 years of experience in the cosmetic and food industries. Happi China is a leading media for the China household & personal care industry. Published by Ringier Trade Media in strategic editorial partnership with Happi, it helps local manufacturers update their knowledge on formulating, testing and packaging, as well as providing market insight.