The e-commerce industry is still relatively young, and on the corporate battlefield to two, three big players, many smaller companies will succumb, predicts retail analyst Ben Cavender in the China Daily. What does it need for companies to survive in China?
The China Daily:
“China’s e-commerce market is evolving very quickly and it is difficult for an internet platform to keep up without strong China-centric funding and resources,” said Ben Cavender, principal of China Market Research Group.
“There are tremendous opportunities for e-commerce to grow further but right now it is still atan early stage. In three to five years, two to three dominant players will emerge from the competition,” said Cavender.
Cavender believes that more players will exit the highly competitive e-commerce scene in China unless they can effectively differentiate themselves from competitors.
“While e-commerce is growing quickly, it is a very competitive market with a lot of online stores fighting for customers. Because they have to offer both a high level of service and competitive prices in order to attract customers, margins are very thin,” said Cavender.
“Companies need to be responsive to consumer needs, both in terms of brands and products offered, and in terms of service quality. If a site has the same products as everyone else and cannot deliver faster or offer something different, consumers will just choose the cheaper,more established option.”
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