A Key to the Market

"China’s E-tail Revolution" is the title of a recent McKinsey report indirectly suggesting that the development of the Chinese e-commerce industry is a key to penetrating the market, while traditional retail is lagging behind the evolution of consumer behaviour. To provide a more concrete picture of the retail revolution in progress, it should be noted that Chinese e-commerce has had an annual growth of 120% since 2003 compared to 17% for the United States over the same period. The industry is developing so fast, and with such impressive numbers, that analysts expect it to be the world’s biggest e-commerce market by 2020. Worth $190 billion in 2012, it will jump to a worth of $420 billion less than ten years from now. One of the clearest examples of this trend is the food & beverage sector, particularly the wine segment. According to press reports, last year a specialised e-commerce website called YesMyWine sold roughly 20,000 bottles (worth $65 million) daily, thanks to about 40% of Chinese buying wine on the Internet.