AN E-TAIL REVOLUTION?
According to the McKinsey Global Institute, China has become the world’s second largest e-tail market, with estimated revenues for 2012 as high as a whopping $210bn and a compound annual growth rate of 120% since 2003. China’s retail sector is also among the “most wired” anywhere, says McKinsey – as e-tailing commanded about 5%-6% of total retail sales in 2012, compared with 5% in the US. Interestingly, very little Chinese e-tailing takes place directly between consumers and retailers. Instead, most occurs on digital marketplaces. McKinsey believes that Chinese e-tailing may catalyse a “leapfrog” move by the broader retail sector, putting it on a fast track to a more digital future.