E-shopping fuels domestic consumption

By the end of 2011, an average of 81.9 out of 100 households owned personal computers, which is three times more than the number in 2002. Online shopping via cellphones has also become popular with an increasing number of people who have access to portable devices and the wide coverage of wireless networks.

According to statistics from Taobao.com, China's leading online retailer, by March 21, the number of users who logged on to the website via a wireless network amounted to 100 million. The figure is expected to reach 200 million by the end of this year. The popularity of wireless access and its convenience are gradually affecting people's shopping behavior.

In recent years, the government has been improving the social welfare system and putting forward policies that stimulate domestic consumption, especially after the US sub-prime mortgage crisis, to expand domestic demand. According to the National Bureau of Statistics, the contribution of consumption to economic growth was 51.6 percent last year, up 14.8 percentage points compared with 2010.

Considering the increasing weight of consumption in the GDP, online shopping has great room for future growth. However, as an emerging business model, it still faces some challenges. For example, security issues over online transactions are a big concern for potential customers and can greatly affect their decision to go ahead with a purchase. Many online shopping websites now provide different kinds of transaction protection and credit systems to guarantee consumers' rights, said Liang of the NBS.

Another major element that affects online shopping is the quality of goods and services. Online shoppers can't see or examine the products directly. They can only judge by the promotion of the shop owners and the comments of previous buyers, which sometimes can be misleading or even downright deceiving. The problem of after-sale services then ensues, added Liang.

It is very difficult for online customers to obtain evidence to protect their interests, he said.

A healthy environment for online shopping is crucial to its sustainable growth and the expansion of domestic consumption. The government should improve rules and regulations concerning online shopping and e-commerce, ensuring fair trade and safe payment, Liang said.

Ye Yiwen contributed to this story.

China's online retailers

Online retailers declare cut-throat price war
Online sellers cash in on Olympic champions' names
Online retailers in spat with peers
Online retailers cash in on Euro 2012
Baby boom a boon for online retailers

China's e-commerce sector

E-commerce rakes in 5.9t yuan
E-commerce trademark cases rising
E-commerce to make even bigger gains
Debate: e-commerce
E-commerce is going mobile
E-commerce to quadruple by 2015, official says