B2B e-commerce in China
As a result of the fast-developing digitalization of all aspects of modern life, an increasing number of businesses in China have moved online. Owing to its massive manufacturing industry and government support, China is placed at the forefront in terms of B2B (business-to-business) e-commerce adoption, followed by Japan and South Korea. In 2019, B2B e-commerce contributed two-thirds of the total e-commerce transaction value in China. For nearly a decade, China's B2B market was ruled by the e-commerce conglomerate Alibaba. Founded in 1999, the five billion U.S. dollar company is currently the largest public company in China.
B2C and C2C e-commerce in China
China's online retail sales expanded rapidly over the past decade and retained a year-on-year growth of 27.3 percent, above the average growth rate worldwide. In 2019, the country’s share of online retail sales reached a new high, with more than 20 percent of the total retail made online.
Thanks to a rapid adoption of the internet across China, the penetration rate of online shopping reached almost 80 percent. Along with the ever-increasing use and distribution of mobile devices, this also means that shopping on smartphones or tablets has become a new norm for Chinese internet users.
Apart from technology upgrades, the rise of small-town and rural residents' purchasing power has also reshuffled the online retail landscape in China. Pinduoduo, a 2015-founded online group discounter, surpassed JD.com and became the second-largest online retail platform in China.