Chinese consumers continue to drive online sales ahead of their global counterparts, while Singles’ Day has been identified as the most popular online festival, recent KPMG analysis finds.
KPMG analysis of 10,000 global consumers*, evenly split between China, India, UK and the US, found that Chinese consumers are more receptive to buying products online compared to their peers.
Ninety percent of Chinese respondents indicated they are comfortable with buying products online, higher than the 84-89 percent recorded for respondents from the other countries. In addition, 64 percent of Chinese respondents indicated that they have complete trust in online platforms, far higher than the 25 percent average recorded for respondents in India, US and UK.
Jessie Qian, Partner and Head of Consumer and Retail (China), KPMG China, says: “An increasing number of e-commerce platforms and retailers in China are actively adopting omnichannel models with the use of new technologies, such as big data, artificial intelligence and augmented reality, in order to enhance the customer experience. More consumers globally are expected to engage with online shopping festivals, while China Singles’ Day is set to see new records in 2017.”
A recent survey jointly conducted by KPMG China and GS1 Hong Kong found that Singles’ Day is the e-commerce event most likely to spark a purchase - 70 percent of mainland China and 37 percent of Hong Kong respondents indicated they will purchase goods/ services during the festival.
Meanwhile, mobile payments continue to be a key driver of e-commerce in China. KPMG analysis found that 41 percent of Chinese respondents make 6-20 mobile payments per month, compared to only 20-26 percent of respondents in other countries. Additionally, only 4 percent of respondents in China have never used mobile payments before, in significant contrast to respondents in the US and UK (more than 25 percent).
Anson Bailey, Partner and Head of Consumer and Retail, ASPAC, KPMG China, says: “The pace of change in China is incredibly quick – it’s relentless. China alone is home to almost half a billion millennials, a characteristically tech-savvy generation. We have in excess of 750 million internet users, slightly more than the total population of Europe. And what’s more, 96 percent of those users access the internet on a mobile device. When you combine that sort of scale with the level of technological innovation flowing around the world, the disruptive forces which follow are unlike anywhere else.”
“China is a window into the future. The change and disruption being witnessed in the region isn’t caused by technology, it’s merely accelerated by it,” adds Bailey. “The real disruptor in China and the real disruptor for businesses in any other market is the customer. And if the Chinese customers are ahead of the curve, then they’re providing a glimpse into a future for the rest of the world.”
*Note: The data is a preview to an upcoming report, titled Me, My Life, My Wallet out next week
KPMG China operates in 16 cities across China, with around 10,000 partners and staff in Beijing, Beijing Zhongguancun, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Hangzhou, Nanjing, Qingdao, Shanghai, Shenyang, Shenzhen, Tianjin, Xiamen, Hong Kong SAR and Macau SAR. With a single management structure across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 152 countries and regions, and have 189,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG China was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong office can trace its origins to 1945. This early commitment to the China market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in the Chinese member firm’s appointment by some of China’s most prestigious companies.