McKinsey: Electric trader drives retail revolution China online shopping market will be the world's first

Not long ago, McKinsey, the world's leading management consultancy, released a study called the China Online retailing revolution: Online shopping to boost economic growth. Through communication with a number of industry experts and business leaders, McKinsey has a deep insight into the system pattern of China's online retailing ecosystem. McKinsey believes that China is now a revolution in the retail network, online shopping has greatly stimulated the growth of Chinese consumption, as a new engine to boost economic development. (2003-2011 Annual composite growth rate of the world's major internet retail market) The report shows that in 2012 China's electronic retail sales reached $1900.21 trillion trillion, very close to the world's largest electronic retailing market in the United States, and in the total number of social retail sales, China also slightly more than the United States. It is no doubt that China's becoming the world's largest market is only a matter of time. There have been many views that online retailing is just an alternative to offline shopping, but the McKinsey study found that alternative consumption accounted for only about half of all consumption in the network, and that about half of the consumption was "new consumption", which was significant for the Chinese economy, which needed to boost domestic demand. All along, the United States has assumed the role of the forerunner of the electric business industry. In the light of the development path of the US market, the future business model will become the mainstream model of the electric industry. "This is why in recent years Taobao to vigorously upgrade, the main battlefield shifted to the sky cat, but also why the east-self-business-oriented jingdong can be a continuous annual growth rate of more than 200% of the important reason-this is the industry's laws and trends." Industry experts commented. One noteworthy phenomenon is that "online consumption of four-line cities is almost equivalent to online consumption in two or three-line cities". McKinsey explained the reason, "in many small and medium-sized cities, physical retail stores are not developed enough to accumulate a large number of unmet purchase demand for goods, so the role of online retailing in the promotion of consumer growth in these places is particularly obvious." "To this a lot of analysis that the huge demand of small and medium-sized cities, similar to Jingdong in the regional market coverage more complete, more perfect logistics of the electric Business enterprise, is a great positive." It also means that the market will have huge growth in the future for a long time to come. Chen Yougang, director of the McKinsey Global Research Institute, said, "online retailing may have a far-reaching impact on China's overall retail industry, and as the electronic retailing industry matures, it will improve the efficiency of the entire retail industry." "There is no doubt that in the face of the internet retail tide, Chinese brands and retailers, to re-examine the channels, especially to increase the understanding of online channels and layout, to be more responsive to the trend of the Internet ideas and spirit." "We also know that this is a trend, but currently do not have the ability to operate online, looking for the operation of the company, but also lack of understanding of the company's main business." "Many businesses, especially small and medium sized businesses, face similar expansion and integration issues." To this, the expert's suggestion is, even if has the temporary difficulty, the merchant also must meet the difficulty, if only to regard the network as "the sewer", is not a MingWisdom. Instead of waiting for the revolution, it is better to initiate a revolution. "The experts say," and now, including many electric companies such as Jingdong have open platform services, occasion these advantages platform and resources, will be able to provide businesses with more efficient marketing and sales services. "The rapid development of internet retailing has brought many new challenges to the local government." This includes the acceleration of 3G and other network infrastructure, as well as warehousing, roads, logistics and other urban infrastructure construction. Only in this way can fully meet the network shopping-driven internet economy to come. In fact, in the benign commercial competition, some of the electricity dealers have "assumed" a part of the infrastructure construction tasks. Taking Jingdong as an example, Jing Dong built a logistics system consisting of 6 major logistics centers, 27 city storage centers, nearly 1000 distribution stations, and 300 self mention points. Not only that, in 2013, Beijing will continue to invest heavily in warehousing and logistics construction, the focus is "Asia," the project has been in Shanghai, Guangzhou, Shenyang and other areas began to start, one of the Shanghai Asia will be put into use at the end of the year. After the completion of the "Asia One" project, the Order processing capacity of Beijing East Day will be increased dozens of times times. "By then, Jingdong's huge advantage in terms of infrastructure and volume will be an important competitive barrier." "There are comments so expressed. In the face of the future, McKinsey predicts that by 2020 China's online retail market will grow to 4200.65 trillion U.S. dollars, equivalent to the current United States, Japan, Britain, Germany, France and other five network retail market combined, in total social consumption accounted for about 10% to 16%, and create 4%-7% of personal new consumption. McKinsey argues that the overall development of China's economy, as well as the rise and escalation of personal consumption, will be an important force for China to move steadily forward towards the world's largest online retail market. The internet, especially in the field of electronic commerce, is very suitable for leaping development, so it tends to appear "after the first to" phenomenon. Now the late-developing advantage of China's market, coupled with China's labor cost advantages in the production sector, as well as in the consumption of purchasing power advantages, the three strong combination, has begun to China in the field of E-commerce leading the world's development, to do the most comprehensive energy preparation. Since the 19th century industrial Revolution, China has been in a state of catch-up, and in the field of E-commerce, China is now poised to stand on top of the world again.