China Investment Roadmap-the e-Commerce Industry

At a time when China’s slowing economy and flagging stock markets are grabbing headlines,

the country’s e-commerce industry has continued to go from strength to strength. In 2014,

China’s online retail volume increased by 21.3 percent year on year to reach US$1.98

trillion, making it the world’s largest e-retailing market – a position it has since strongly

built upon. With rising disposable income levels and an expanding internet penetration

rate, the Middle Kingdom is perfectly positioned to be the world’s premier online market

for the foreseeable future.

However, despite the vast amount of opportunities that exist and an ostensibly liberalized

entry process for foreign firms, e-commerce is by no means a simple market to access in

China. A complex regulatory framework and a nuanced consumer base combine to make

choosing the right market entry model vital for foreign SMEs.

In this edition of China Briefing magazine, we present a roadmap for investing in China’s

e-commerce industry. We provide a consumer analysis of the Chinese market, take a look

at the main industry players, and examine the various investment models that are available

to foreign companies. Finally, we discuss one of the most crucial due diligence issues that

underpins e-commerce in China: ensuring brand protection.

E-commerce in China is developing rapidly. As the Chinese government continues to

introduce sweeping new reforms, possessing a thorough understanding of the industry

is absolutely necessary.

This Month’s Cover Art

Xu Shi (

徐适

)

Oil on canvas, 130x130 CM

Wan Fung Art Gallery

wanfung@12

.cn

+86 0760 8333 861

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to implement suggestions made within

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Introduction