E-commerce experiences boom during Chinese New Year

Chinese New Year

Online purchases in China have soared during the Lunar New Year holiday. Yet while buying only takes a click, delivering to your door still requires a human touch.

CCTV’s Lin Nan filed this report from Shanghai.

E-commerce experiences boom during Chinese New Year

E-commerce experiences boom during Chinese New Year

Online purchases in China have soared during the Lunar New Year holiday. Yet while buying only takes a click, delivering to your door still requires a human touch. CCTV's Lin Nan filed this report from Shanghai.

Delivery man Liu Jia and his colleagues start their days when most of people are still asleep. Working at a distribution point of a shopping website in Shanghai, they promise to deliver products within three hours of an order being placed.

“I buy most of my grocery online, especially the heavy items. It’s convenient and cheap compared to the supermarket in my neighborhood,” customer Chen Hong said.

Such orders have skyrocketed for the New Year, forcing Liu Jia to work around the clock.

“The orders are usually rice, laundry detergent, tissue paper and snacks, mostly food and articles for everyday use,” Jia said.

According to an industry report, China’s B2C online sales are growing at an annual rate of 25 percent. Competition between online giants like Taobao and Jingdong is now fiercer than ever.

“The essence of online shopping is that customers can buy products easily. So the competition is about: firstly, the range of products; secondly, the depth under each category of products; third, the price and user experience,” Pan Baio, Vice President of yhd.com said.

E-commerce is one of China’s fastest growing sectors. It’s changed people’s buying habits, and even their living habits. And it’s had a huge impact on the retail industry.”

Major sites are investing heavily to build payment systems and logistics networks. On average, a retailer can deliver merchandise to the majority of cities within three days, and to towns and more remote areas in the country within a week.

“Competition will produce a number of good companies, making better products and services that customers need,” Liu Yinbin, Associate Professor for the Department of Inofrmation Management at Shanghai University. “In the field of E-commerce, we are leading the world in terms of products, services and industry development.

Experts have also said customers are increasingly making their online purchases from mobile devices, opening up vast new opportunities and competition for retailers.