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Factors Affecting the E-tailing Industry in China Essay Example

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Factors Affecting the E-tailing Industry in China

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Factors Affecting the E-tailing Industry in China. This research tells that the growth of the trade and commerce in the China is its primary reason for economic success. The country has become one of the most attractive marketplaces to invest as with increasing GDP, peoples’ purchasing power is also strengthening. Moreover, technological improvements have also caused a change in the consumers’ behaviors. The e-tailing industry of the online shopping industry is an emerging trend in the Chinese retailing sectors. In order to analyze the factors affecting the Chinese e-tailing market, Pestle analysis is a useful tool as it analyses six major factors of macroeconomics. The model for Pestle analysis has been given in the paper. Political factors are is a critical criterion that has influenced the prevailing competition in online shopping market of China.

Being a domestic company, Taobao received a significant indirect support from the Chinese government. In order to control the entire business environment, Chinese government controlled the entire financial sector. On the other, the economic enhancing economic condition of China is primary factors for eBay’s market expansion. Prior to the emergence of Taobao, eBay was enjoying a high growth in its online shopping business due to increasing purchasing power of Chinese consumer. On the other hand, the Chinese people were also enjoying the new experience of convenient online shopping. Since 2002 to 2005, the online shopping became very popular among Chinese consumers. In spite Chinese government’s strict regulation on online shopping market, it lacked improved legal framework for the prevention of online fraud. This had caused to develop a feeling of afraid among consumers regarding online shopping. During the first half of 2000, Chinese online shopping market was not very matured in terms of technology common ring to other developed nation. However, the number of internet users in China was very high and rising that has led to growth of online shopping industry and it has graphically presented. Factors Affecting the E-tailing Industry in China.

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Doole, and Lowe, (2008). International marketing strategy: analysis, development and implementation. 5th ed. Cengage Learning EMEA.

Ireland R.D , Hoskisson R.E and Hitt M.A, (2008). Understanding Business Strategy: Concepts and Cases. Cengage Learning.

Stanford Graduate School of Business. (2010). TAOBAO VS. EBAY CHINA. [Pdf]. Available at: http://gsbapps.stanford.edu/cases/documents/IB88.pdf. [Accessed on May 13, 2011].

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