Unprecedented Growth of Online Shopping among Chinese Consumers Consumption Demand of Chinese Online Shoppers Analysis of Demographics and Purchasing Behaviour of Online Shoppers Characteristics and Purchasing Behaviour Analysis of Mobile Online Shoppers Purchasing Behaviour of Chinese online shoppers on eCommerce websites 31.8% Unable to go online via PC In 2012, Chinese online shoppers’ per capita consumption reached RMB5,203 with YOY growth of 25% # shop online at least once a week Only 29% shop online at least once a week With their spending power increase gradually, they prefer goods which enhance their quality of life such as clothing, personal care products, skincare products /cosmetics, health care products and electrical appliances. The personal income of IOS and Android users are relatively high, mainly work in office with various break time in between. Before and after work, lunch time as well as night time are relatively the peak hours for browsing online. In 2012, the proportion of online shoppers using only one shopping website accounted for 51.1%. It has dropped significantly by 10% as compared with 2011 and by 21.6% # with 2010. It is inevitable that the costs for independent merchants to acquire new users increase significantly due to intense competition and increment of advertising rates. The cost of acquiring a new user rose from around RMB20 in 2009 to over RMB100 in 2012. † Top 3 # Commodities Mostly Purchased by Internet Users 33.1% of online shoppers are between age 25 to 30; In China, online shoppers lean towards the middle-age group of 31 above # . Purchasing Time of Mobile Shoppers & The increased number of eCommerce websites has led internet users to be less loyal to a specific website. Cost for Independent merchants to acquire new users increase year by year The major reason is mainly due to incomplete product range, leading to user loss of 47.1% # . Around 10% Churn Rate of Top eCommerce Websites Online shoppers’ personal monthly income continued to grow # Purchasing Behaviour of Men vs Women ∞ Top 3 ^ Commodities with Largest Transaction Proportion In China, nearly 50% of online shoppers purchase at least 1 time in a week, surpassing the average level of the world # 81% 31.6 % 29.6 % Clothing, footwear & accessories Clothing, footwear, luggage & outdoor products Mobile phone prepaid package Books & audio-visual publications Clothing Entertainment / Education Home products Daily necessities 3C products 35% 20% 15% Users’ Age GLOBAL 50% 44% Under RMB1,000 6.8% Over RMB10,000 29.7% RMB3,001-5,000 12.6% RMB1,001-2,000 26.2% During work/ school 47.3% 11.7% 11.4% 30.9% 21.2% 7.6% 12.6% RMB5,001-8,000 6.2% Under RMB500 7% RMB501-1,000 12.9% Above RMB8,000 19.2% RMB2,001-3,000 33.1% 25-30 years old 53.3% At Home 2012 2009 RMB100 RMB20 47.1% Unable to locate goods they want 24.2% Poor quality of goods 17.8% Expensive pricing of goods 8.3% Deceive consumers 4.5% Dissatisfactory after-sales service 4.5% Poor delivery service 2.5% Unable to open the website 13.9% During public transport 10.6% Queuing up/ Waiting 1% Others 30.3% 18-24 years old 1% Under 18 years old 7.1% 36-40 years old 18.4% 31-35 years old 10.2% Over 40 years old 12.1% RMB5,001-10,000 37.1% RMB1,001-5,000 CHINA Clothing, footwear, luggage & outdoor products Cosmetics & personal care Mobile phone prepaid package When do the Mobile Shoppers Purchase? # 51.1% 2012 61.1% 2011 72.7% 2010 Low Peak Hrs Morning Afternoon/Evening High Peak Hrs Personal Monthly Income Reasons for Users to Stop Using Specific Website Conclusion