An Analysis of China's E-commerce Industry Introduction Just over 10 years ago, China's path to e-commerce leadership would have been difficult to predict, although the technology sector The boom in the United States and other markets has seen the development of e-commerce as an important B2C and C2C channel. In 2000, China had not yet developed any e-commerce applications and had only 2.1 million total Internet users. Payment systems and physical delivery mechanisms to facilitate the development of e-commerce transactions were well developed in other markets, but in China they were simply lacking. Fast-forward to the end of 2013: with Chinese Internet users rapidly approaching 600 million, China is on a roll. pace to overtake the United States and become the largest e-commerce market in the world. China's e-commerce industry Online retail in China, nicknamed "e-tailing", has doubled every year since 2003. By 2020, the size of China's online retail market is expected to reach 650 billion dollars, exceeding the combined value of online markets in China. USA, UK, Japan, Germany and France. With more than 590 million Internet users, China boasts the world's largest online population - more than the United States and Japan combined - and continues to grow at a rate of nearly 10% annually. The online retail boom is a key element of the government's push to revive and balance China's economy to position consumption to make a much more significant contribution to GDP growth. China's new leadership, especially Premier Li Keqiang, is actively encouraging the expansion of so-called "digital consumption" - xinxi xiaofei 信息消费. In the first six months of 2013, e-commerce revenues in China reached nearly RMB 5 trillion, an increase of 45% year-on-year. Mobile payments... middle of paper... don't dominate the entire market. The Chinese market is so large that not even an e-commerce giant like Alibaba is able to conquer the entire market. Here are some other players in the market: Conclusion E-commerce in China is complex, unlike any other country, and in a constant state of flux. The enormous size of the industry and the huge number of Chinese consumers – which is still growing steadily as you read this report – make it extremely difficult to navigate this complex industry and even more difficult to find a winning strategy. However, with careful research and keen business acumen, it will be possible to take advantage of the unique dynamics of this industry and make investments that will yield a good return in the long run. I hope this report has helped provide you with some key insights into the industry and improve your investment process.