China Unaffected by Google - Ecommerce Sales Expected to Rise by 90%

BEVERLY HILLS, Calif., May 5 /PRNewswire/ -- March 2010 was a very interesting month for China.  The same week that Google.com was officially blocked by the Chinese republic, PayPal entered into an agreement with China UnionPay (CUP), China's bankcard association, to allow Chinese consumers to use PayPal to shop online.  PayPal also announced plans to expand its workforce in Asia to 2,000 by the end of the year 2010.

"Ecommerce sales have exploded over the past decade," said Todd Cowle, senior analyst with Shanghai-based China Market Research Group. "We expect to see 90% growth again this year because far-eastern labor, spare parts, and manufacturing continue to cost 1/10th of the western world price."  

China's online shopping and ecommerce sales increased from $21.4 billion to $36.6 billion USD during the previous fiscal year and according to the China's Internet Network Information Center (CINIC), the numbers are only expected to increase.  

The CINIC recently revealed the number of internet users in the world's most populous country jumped 28.9% in 2009 to 384 million, which is more than the entire population of the U.S. – China's dot cn domain registrations for the single month of March 2010 were 8,444,196.

According to Beryl Zyskind, an authority internet watchdog group reported in its recent 'internet trend' report the amazing growth of China's online activity.  China's larger ecommerce sites like Bigboxstore.com sell every day products and accessories like mobile phones, laptops, spy gadgets and beauty products for a fraction of the USA costs.

One reason behind the growth has been that retailers have found products not only cheaper, but of higher quality.  "Where can you buy a Wifi phone similar to the iPhone or Blackberry with TV and dual sim capabilities for $60?" asks Daniel Cohen, a trending expert from Israel who recently purchased 2 quality wifi phones from Chinasaledeal.com for a total of $120.

Much of China's ecommerce growth is being driven by a combination of both western and younger buyers. China Market Research Group stated that users in China between the ages of 13 and 28 spend 20 hours a week online on average, compared with 12 hours a week in the U.S.  The theory is that as more of the Chinese population and local districts are exposed to the internet, ecommerce sales are expected to continue to rise.

SOURCE Verified Ltd