China’s e-commerce market, the world’s largest, is expected to see strong growth of 10.4% in 2022 as consumers increasingly shift from offline to online.
The market is expected to grow 10.4% in 2022 to reach 14.5 trillion yuan ($2.3 trillion), forecast GlobalData, a leading data and analytics company.
According to GlobalData’s E-Commerce Analytics, e-commerce sales in China grew at a compound annual growth rate of 13.3% between 2018 and 2021 to reach 13.1 trillion yuan (2 billion euros) in 2021. .
China accounted for over 37% of the global e-commerce market, by payment value in 2021. The country was followed by the United States with 1.5 trillion dollars (1.4 billion euros), while the United Kingdom was far behind with 292.1 billion dollars in 2021 (286.5 Billions of Euro’s). The e-commerce landscape is unlikely to change in 2022, with China expected to retain its top spot in the global market.
Ravi Sharma, Banking and Payments Lead Analyst at GlobalData, explained that ” Ihe Chinese e-commerce market has evolved rapidly over the past five yearssupported by growing internet and smartphone penetration, growing consumer confidence in online shopping, the emergence of e-commerce platforms, and the availability of popular alternative payment solutions such as Alipay and WeChat Pay” .
According to the analysis, “COVID-19 pandemic has further accelerated e-commerce business in Chinaas wary consumers are increasingly using the online channel for their purchases to avoid exposure to disease vectors, a trend that continues beyond the pandemic.”
The growth of the e-commerce market is also supported by improved e-commerce business in rural areas. According to China’s Ministry of Commerce, online retail sales in rural village communities grew 35.3% year-on-year in the first quarter of 2021.
Online shopping events such as Singles Day (or Double 11) also contribute significantly to overall online sales. Chinese e-commerce giants, including Alibaba and JD.com, collectively recorded a massive sale of $139 billion (€136 billion) during the Singles’ Day event in 2021, registering a jump of 8 % and 28%, respectively, compared to the previous year.
Ravi Sharma indicated that ” China’s e-commerce market will continue to grow, supported by increasing consumer preference for online shoppingimproving the payment infrastructure and the proliferation of payment tools. The e-commerce market is expected to grow at a robust CAGR of 8.7% between 2022 and 2026 to reach 20.2 trillion yuan ($3.2 trillion) in 2026″.