The Study Of Current Situation Of China’s E-tailing And Its Impact On China’s Economy

The rapid development of E-tailing has a great impact on China’s economy.China’s E-tailing has its own unique development path on a huge overall scale and its proportion of the total consumer goods also has increased dramatically. From the view of market concentration, the platform model accounts for up to 91.5%.For goods category, clothing, education and entertainment goods and services, household equipment and maintenance are top 3 of the total consumption accounting for more than 70% of online spending.The booming of China’s E-tailing has a great impact on China’s economy. Firstly, online shopping is not just a subsidiary choice of offline shopping, it also stimulated new extra spending.The stimulating effect is more obvious in less developed regions: though the gap between the third-tier、fourth-tier cities and first-second tier cities in disposable income is wide, but their online spending is similar which shows great potential for future development. It can be found that the E-tailing has lowered overall retailing price by analyzing Hotelling linear city model.The higher integrity level of online retailers, the higher level of service, the smaller the price gap.The price gap will become wider while the electronic business market getting mature.The most important driving force of China’s future growth of E-tailing is the improvement of Internet penetration.The expansion of Internet users means the growth of online shoppers which will bring more Internet consumption. Mobile e-commerce with a 400% annual growth rate and Chinese online shoppers’ optimistic attitude towards online shopping through mobile terminal shows significant trends to future growth of mobile terminal. Alibaba’s layout of rural Taobao, Jingdong channel expansion into rural areas indicates the great potential of rural market. A hot debate on online -to-offline mode in recent years have a maturing market conditions. The rapid development of China’s E-tailing also faces some challenges. Firstly, faced with the uneven quality of online goods, consumers’ continuous complaints online retailers should overcome these problems to improve product quality, service quality and consumers’loyalty through competitive differentiation. Secondly the profit margins of the whole E-tailing industry is small and high-skilled labor shortages is also a big problem.Finally, the article makes proposals for stakeholders:The government should focus on promoting the popularity of the Internet, improving infrastructure and making appropriate incentive polices; Online retailers should identify their value through differentiation strategies to avoid blind price war. Service provider should acquire market leadership before the market getting mature. Platform providers should keep up with the latest technology trends while reserve professionals in the field of e-commerce.