Statista: China - the largest e-commerce market in the world

China is by far the largest e-commerce market in the world, as Statista Market Insights figures show.

According to the cited source, e-commerce sales in China will reach $1.24 trillion in 2024. Although the market is currently in decline, Statista analysts expect it to regain lost momentum with a 62% increase to over 2 trillion dollars in 2029.

The revenue thus generated in China accounts for the largest share of the Asian e-commerce market. However, other major markets on the continent and in the developing world in general are also growing rapidly.

According to Statista, in Europe and the US, e-commerce is expected to grow by 51-59% by 2029, with the US profile market being the second largest after China.

• China's cross-border e-commerce platforms are gaining popularity

A growing number of overseas consumers are shopping on China's cross-border e-commerce platforms, People's Daily reports.

The cited source shows that Chinese e-commerce platforms account for half of the top ten most downloaded shopping apps globally in 2023, with Shein remaining at the top of the ranking. Next is Temu, which was launched by Chinese e-commerce giant Pinduoduo Inc. Temu has been well received by US consumers, becoming the most downloaded app in the US market on both iOS and Google Play for a long time, according to a Temu executive. In 2023, the United States was the major market for Temu with the fastest growth and highest revenue generation. Temu exports more than 400,000 packages daily, delivering an average of about 600 tons per day, more than half of which is destined for the US, according to the source.

Also, AliExpress, the retail platform of Chinese e-commerce giant Alibaba, gained the most new users among South Korean apps in 2023, according to South Korean media.

More than 100,000 companies are engaged in cross-border e-commerce in China. Behind the rapid growth of cross-border e-commerce platforms is the expansion of the country's manufacturing capabilities, with an increasing number of Chinese factories able to produce competitive products in terms of both quality and price.

In 2023, Shanghai airports saw a more than ten-fold increase from 2022 in export declarations from three e-commerce platforms in China, according to Shanghai Pudong International Airport.

"The main reason why these Chinese cross-border e-commerce platforms are so popular with global consumers is that the products on them have a clear price advantage over those on e-commerce giants such as Amazon, with consumers demanding quality but at prices affordable amid global inflation," says Li Mingtao, head of research at the China International Electronic Commerce Center.

Li Mingtao says these platforms offer a price advantage by connecting consumers directly with manufacturers, which cuts out middlemen, but also by adopting shipping methods that have advantages and flexibility in terms of taxes, storage costs and delivery. "These platforms continue to expand their market share by providing subsidies and incentives to users, which is to their benefit," concludes Li Mingtao.

The growth of Chinese cross-border e-commerce platforms abroad has facilitated the "globalization" efforts of Chinese SMEs.