China Digital

E-commerce is booming in China

China is the fastest growing e-commerce market in the world. The e-tailing industry there has posted an average annual growth of over 20% for the last decade, and online sales in China are expected to top $1 trillion by 2019.

revenue chart
SOURCE: McKinsey Global Institute, China e-tail revolution: Online shopping as a catalyst for growth (March 2013); KPMG, E-commerce in China: Driving a new consumer culture (January 2014); literature survey (2016)

E-commerce in China is dominated by marketplaces

Tencent logos

In North America and Europe, standalone e-stores (e.g., still make up a significant portion of e-commerce sales. But in China, nearly 90% of online transactions take place on marketplaces such as Tmall and JingDong. We understand how these platforms operate and how consumers interact on them, enabling our clients to out-perform the tens of thousands of brands they compete with.

Foreign brands have a strong appeal to Chinese consumers

Starbucks China grew from 250 stores in 2009 to around 2,500 in 2016, and plans to have 5,000 stores by 2021. Buick sold nearly 1.2 million cars in China in 2016, representing 75% of its global sales Around 50% of China’s cosmetic sales come from international brands.

Starbucks in China

Social Media Drives Commerce

Chinese consumers enjoy engaging with and learning from both new and established brands. Platforms such as WeChat, which has over 800 million active users, and Sina Weibo, which has over 400 million active users, are but two of the major channels used for social outreach and engagement. Over 90% of Weibo and WeChat users access the platforms on mobile. We help brands leverage China's social channels to drive awareness, sales and loyalty.

WeChat and Weibo