To evaluate the impact of online shopping on the traditional retail industry in China, there are pros and cons
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cw2presentationJiaqiGuo.pptx
AES CW2 Assessment Presentation
Student Name：Jiaqi Guo
Student Number:
In recent years, the number of people shopping online has increased rapidly in China, Evaluate the influence on China’s Traditional Retail Industry from
E-commerce.
OUTLINE
The development status of China’s traditional retail industry
1
The development status of
e-commerce in China , the concept of
b2c c2c
2
The challenges and opportunities of
e-commerce to traditional retail industry in china
3
Conclusion
4
The development status of China's traditional retail industry
After the reform and opening up, China's retail industry has developed rapidly.According to P1, the retail market has quickly grown, with total retail sales of consumer goods reaching 18,391.86 billion RMB in 2011 from 214 billion RMB in 1980.(Zhuang 2013)
P1. GDP, Retail Sales, Income, and Engel's Coefficient of Urban Versus Rural Households (Zhuang 2013)
The development status of
e-commerce in China , the concept of
B2B B2C
In recent years, China's e-commerce has developed rapidly. According to the study, the average growth rate of online shopping in China has been 96% since 2010. In the first half of 2016, the total retail sales amounted to 2 trillion yuan, while Tmall's "double eleven" business volume was 120 billion 700 million yuan
B2C and B2B are two forms of E-commerce. B2C represents a business-to-consumer process in which a product is sold directly to consumers. B2B represents business-to-business and is the process of selling products or services to other businesses
The challenges and opportunities of
e-commerce to traditional retail industry in china
CHALLENGES:
1. Middle and high end passenger source loss.
A large number of young people with stronger consumption power are lost, which intensifies the passive development of traditional retail industry.
2. Price disadvantage.
E-commerce has saved a lot of costs, such as store rent, staff salaries, decoration costs and so on, and those costs are rising
The challenges and opportunities of
e-commerce to traditional retail industry in china
CHALLENGES:
3. Lack of customer source.
The consumer group of traditional retail trade is mainly nearby residents.
4.Lack of types of goods.
Due to the space and cost factors, the traditional retail industry can not compare with e-commerce in the richness of goods.
The challenges and opportunities of
e-commerce to traditional retail industry in china
Opportunities:
1. Experience feeling
To improve the customer's experience of the goods, which is not provided by e-commerce
2. Improve service
Costumers spend money on the goods or services that make them feel the most efficient and comfortable
The challenges and opportunities of
e-commerce to traditional retail industry in china
Opportunities:
3. o2o
More and more retail enterprises are opening their own online stores, where customers can choose and buy goods online and experience them in offline stores, which will bring a stronger sense of consumption experience than e-commerce.
Reference
Iankova, S., Davies, I., Archer-Brown, C., Marder, B. and Yau, A., 2019. A comparison of social media marketing between B2B, B2C and mixed business models. Industrial Marketing Management, 81, pp.169-179.
Anwar, S.T., 2017. Alibaba: Entrepreneurial growth and global expansion in B2B/B2C markets. Journal of International Entrepreneurship, 15(4), pp.366-389.
Liang, Y., 2018. The Current Situation Analysis and Development Strategy of Traditional Retail Industry under Electronic Commerce.
Zhuang, G., 2013. Structural change in China's retail industry in the first decade of the new century. Journal of marketing channels, 20(3-4), pp.288-324.
Li, S. and Liu, S., 2017, November. Research on the Development Strategy of O2O e-Commerce in Traditional Retail Enterprises. In International Symposium on Intelligence Computation and Applications (pp. 521-530). Springer, Singapore.
