The broad retail industry is by far the largest market in the world, serving billions of individuals each year. Look a little closer and the industry is split into a multitude of different sectors.
However, with the emergence of the digital age, e-commerce retailers have begun to disrupt the retail marketspace en masse. In fact, the rise of e-commerce has created a comfortable and convenient option for consumers to purchase products, as they can simply browse an e-commerce platform and purchase a product while still in the comfort of their homes.
Now, during the time of a pandemic and social isolation measures, the growth of online stores has increased even more so than was intendent to reduce the number of quarantined caused an increase in demand for essential supplies such as food, medicine, hand sanitizer, tissue, and disinfectants. TD Holdings, Inc. (NASDAQ: GLG), JD.com, Inc. (NASDAQ: JD), Baozun Inc. (NASDAQ: BZUN), Pinduoduo Inc. (NASDAQ: PDD), Etsy, Inc. (NASDAQ: ETSY).
By region, the Asian-Pacific region is expected to reign supreme as China's online retail market industry is projected to continue its expansion.
According to data provided by Forrester, China's online retail market is expected to hit USD 1.8 Trillion in 2022, The Drum reports. China’s e-commerce market will reach $1.1tn this year, making it the world’s first trillion-dollar e-commerce market.
The E-commerce in China: Trends and Outlook for The Largest eCommerce Market in The World report, revealed the Chinese online retail market will be more than double the size of the US market, which will reach $713bn in 2022 and 10 times larger than Japan at $159bn.
However, there is still plenty of room for growth with just 38% of China’s total population shopping online. China’s online retail sales are expected to increase steadily at an 8.5% compound annual growth rate through to 2022.
Explaining the intricacies of the market, Forrester states that "internet giants Alibaba and JD.com continue to dominate the local market, together accounting for more than 85% of China's e-commerce market. However new companies, such Pinduoduo and Xiaohongshu are catching up as users embrace new social commerce platforms... More than three-quarters (76%) of all e-commerce in China occurs via mobile devices and mobile payments remain the most popular choice for online purchases with 80% of metro Chinese shoppers using Alipay and 66% using Tencent's WeChat Pay to pay for a product or service in the last three months."