Increasing consumption, a growing middle class, and a high smartphone penetration rate means that China’s e-commerce market is stronger than ever.

The number of upper middle class households in China (earning 12,000-22,000 Yuan per month) is expected to reach 100 million within the next 10 years, according to the Boston Consulting Group (BCG).

BCG’s Hiroaki Sugita said that China’s consumption levels will increase as well, due to the number of recent graduates working at IT companies, banks, and in other white-collar corporate positions. Sugita predicts that China’s urban areas will have a $2 trillion consumer market by 2020.

Smartphone-based e-commerce has become an indispensable tool for Chinese consumers. E-commerce is shutting down shopping centers in big cities, and brings in annual sales of $3.2 trillion Yuan. E-commerce spending increased by 32% last year in China, and is growing at a much faster rate than retail sales. China has overtaken the United States as the world’s largest e-commerce power.

GSMA has reported that China’s smart phone penetration rate is about 70%. This is 40% more than the rate in Japan. The smartphone is rapidly becoming China’s most important tool for shopping, taxis, social networking, and much more.

Source: inews.qq.com

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Keywords: BCG e-commerce China Hiroaki Sugita e-commerce