KevinWeiWangAlanLauFangGongMcKinseyDigitalApril2016KevinWeiWangAlanLauFangGongMcKinseyiConsumerChina2016surveyHowsavvy,socialshoppersaretransforminge-commerceApril2016KevinWeiWangAlanLauFangGongHowsavvy,socialshoppersaretransforminge-commerceMcKinseyiConsumerChina2016survey1McKinseyiConsumerChina2016surveyINTRODUCTIONWiththemostInternetusersofanycountry,Chinaistheworld’slargestandfastest-growinge-commercemarket.Capitalizingonopportunities,however,isbecomingharderforconsumer-facingcompaniesase-commercepenetrationratesplateauinhigh-tiercitiesandasdigitalattackers,especiallyintheonline-to-offlinespace,cutintoincumbents’margins.AccordingtoMcKinsey’slatestsurveyofChina’sInternetusers,promisingsourcesofe-commercegrowthareemerging.Theresearchpointstoareaswithmajorgrowthpotential:theuptakeofonlineshoppingamongconsumersinlow-tiercities,e-commercepenetrationbeyondfirst-moverproductcategoriessuchasapparel,purchasesinitiatedfromsocialmediaplatforms,andtheuseofcross-bordershoppingtosupplementdomesticchannels.Ourresearchalsorevealedpositivetrendsinmultichannelservices,knowninChinaasonline-to-offline(O2O)services.SomeobservershavespeculatedthatO2Oserviceshaveusedinvestmentcapitaltocuttheirpricesandtherebywincustomers.Whilethisistrueforsomecategories,oursurveysuggestscustomersappreciatetheconvenienceandqualityofO2Oservices—particularlytravel,dining,andtransportation,onwhichtheyincreasetheirtotalspendingaftertheystarttouseO2Ooptions.Thisyear’ssurvey,conductedonlineduringJanuary2016,engagedmorethan3,100peopleacrossawiderangeofincomelevelsandhouseholdlocations.Theirresponsesconfirmedourviewthatthee-commerceandO2O-servicesmarketsstillholdenormouspotential.Inthisreport,wedescribechangesinChinesee-commerceandconsiderthegrowthprospectsassociatedwithtrendsinlow-tiercities,socialmedia,andcross-bordershopping.WethenturntothedynamicsoftheO2Osectorandtakeacloserlookatopportunitiesintravel,dining,andmobilityservices.2McKinseyiConsumerChina2016surveyTHEEVOLVINGPROFILEOFE-COMMERCEINCHINA...
