19.1 billion power business miracle is just the beginning of expanding domestic demand

"11 11 Shopping Carnival" Alipay total sales reached 19.1 billion yuan, this is only the beginning of the development of domestic demand, if the establishment of the world's leading E-commerce platform, or will inspire a huge increase in domestic demand, triggering industrial change

November 11 24 o'clock, China's electric business giant Taobao's "11 11 shopping Carnival" Gorgeous curtain call. Alibaba Group November 12 early morning confirmed that the 11 11 shopping carnival Alipay Total sales reached 19.1 billion yuan, the same period last year, the sale of the shopping festival more than three times times, of which the days of the cat (Taobao's shopping mall) completed 13.2 billion yuan, Taobao completed 5.9 billion yuan. Data show, 11 11 shopping Carnival Day, the cat and Taobao attracted 213 million independent users to visit, the equivalent of 40% Chinese netizens participated in the carnival. At the end of the event, Alipay trades as many as 105.8 million pens.

According to Statistics of National Bureau of Statistics, the total retail consumption of consumer goods in China was 1.8934 trillion yuan this October. In this calculation, the total retail sales of 61.1 billion per day in October, which means that only Taobao 11 11 carnival, accounting for the national social consumption of total retail sales of the proportion reached 31.2%.

With the continuous development of information technology, the network and people's lives are more and more closely integrated. Online shopping has been from the former first-line city young people's fashionable behavior, into the geographical area of the new mode of consumption, the form of online shopping from the past monotonous network, business-to-business development for mobile phone clients, pay, etc. more innovative and convenient way. E-commerce is like a ship sailing, affecting millions of businesses, express logistics and electric business services, the nerves, has become China's domestic demand to promote employment, one of the core driving force.

The development of e-commerce has opened a new chapter of network marketing, compared with traditional marketing methods, E-commerce has incomparable advantages. For enterprises, E-commerce can bring huge business opportunities, such as cost savings, expand publicity, equal participation in the market competition. E-commerce has reduced the links between product sales and changed the structure of the market. E-commerce has greatly reduced the marketing costs of enterprises, improve the marketing efficiency of the enterprise, through the website propaganda, network transactions and other means of marketing, without the cost of store rent, the audience wide, high marketing efficiency, business opportunities. E-commerce not only active and extend the reality of the market, stimulate consumption, prosperity of the market economy, more society to provide a lot of employment opportunities, easing the employment pressure, by the Government's support. The market for small and medium-sized Enterprises has created a free and equal competition environment and a wider cooperation space.

For consumers, E-commerce transactions convenient, at home can buy inexpensive products. E-commerce provides consumers with a large amount of product information, which breaks the space-time limit and facilitates customer around. E-commerce can realize purchase, payment, distribution of the whole service. With the development of electronic commerce, it will play an increasingly important role in the national economy and People's life.

But the development of E-commerce in full swing also breeds a lot of hidden dangers: Logistics and security transactions. According to the National Post Office Data monitoring, November 11 after a few days, is so far the largest courier range of the pressure period, the highest daily processing volume exceeded 30 million pieces. This is the average daily processing volume of 18 million pieces of China express industry, the pressure is not small. In addition, credit card information security, data transmission security, personal privacy and other issues of e-commerce development are not small obstacles.

As a new trading model, e-commerce has not been regulated by laws and regulations, which makes online transactions irregular and affects the development of online transactions. How to set up tax collection standard, intervention mechanism, business administration record and so on link flow is ambiguous. The lack of professional personnel in E-commerce industry, the number of high level of practitioners, the quality of the electrical and commercial staff is a potential crisis of E-commerce.

But it has been proved that the consumption power of Chinese consumers is huge, the use of e-commerce, can stimulate a huge increase in domestic demand, triggering huge changes in the industry. According to a market research agency report, China's E-commerce retail size of 55.37 billion U.S. dollars in 2011, an increase of 103.7%, is expected to increase by 94.1% in 2012, the growth rate is far higher than the United States, ranked fourth in the global market.

The information revolution is reshaping the world's circulation industry. This background also provides China's circulation industry with a unique historical opportunity to develop. In the increasingly internationalized circulation industry today, if China can set up the world's leading E-commerce platform, to the greatest extent to stimulate domestic consumption, but also for Chinese consumer goods out of China, the formation of a brand of globalization to provide important support.

(the author is a financial researcher)

The words published in this column do not represent the views of the Economist