China online shopping boosted in 2007
According to the 2007-2008 iResearch China Online Shopping Report, the turnover of online shopping in China reached 56.1 billion RMB (around £3.8 billion pounds) in 2007, which increased by 117.4% compared with 2006! It mainly benefited from the sharp rise of Taobao’s turnover (similar to eBay, which dominates the Chinese C2C eCommerce market). iResearch predicted that the Chinese online shopping market would maintain an increase rate of around 95% this year, mostly because of the 2008 Olympics.
There are several favourable factors for the development of the Chinese online shopping market. The improvement of the network infrastructures in Chinese rural areas, the rapid sales growth of digital products, and a better payment environment. Of course, there are unfavourable factors that include the very strict rules regarding copyright and eCommerce tax, and also the limited potential growth by core customers would obstruct the development of the Chinese online shopping to some degree.