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Motivation for the Study
Identifying the global opportunity and need for online retail business, the research paper has been developed to respond to the particular study of e-retailing. Continuous changes in the behavior of the customer’s in the massive Chinese market, it is essential to make note of how technology and the internet have influenced consumers and retailers interaction. Transforming online retail market in China has indeed encouraged the retail businesses to come and set up e-commerce business to exploit the massive target demographics profile utilizing online retailing. As knowledgeable social customers have spent significant time on internet searching for different types of products according to their requirements, e-retaining can be considered as the order of the time for retailers to get a firm grip on the entire market (Sorescu, Frambach, Singh, Rangaswamy & Bridges, 2011). The rapid growing e-retailing market of China has given considerable opportunities to the retail businesses operate both in China and outside Chinese market. Realizing the existing online shopping trend of global consumers, Chinese consumers are not far behind in this case. The great potential of e-retailing business has evidently identified the Chinese market movers; most of the retail business corporations have put their emphasis on online retail business expansion in Chinese retail market ensuring a positive response from the target demographics.
Research questions
The primary purpose of the research is to understand the trend in the online retailing in China. Along with that, the research aims to find out the prospects for online retailing in China. It is important to prepare the research questions that will help to find out the problem faced by online retailing in China. The questions that will be used to conduct the research are presented herein below:
What is the current status of the online retailing business in China?
How do the Chinese customers purchase from the e-commerce websites?
What are the main factors that manipulate the shopping behavior of the Chinese customers?
What are the factors that influence the buying behavior of the online customers?
How will the development in technology influence the e-commerce business in China?
What are prospects of online retailing business in China?
How will the e-commerce business change in the coming future?
How will the e-commerce business affect the economy of China?
The research has noted a rapid growth in the Chinese economy that resulted in the growth of the online retail market. Internet-based retail market does not have any border that helps the domestic companies to expand its business in the global platform. The research will study the effects of the online retailing on the Chinese economy and see how the Chinese economy and other influencing factors will impact the growth of online business in China.
Strategic issues
Meanwhile, though online retail business has made growth in China in recent years rapidly, it would be recommended to identify the strategic challenges attached to the e-retailing business. Considering the massive target demographics profile, Omni-channel dilemma can be a significant problem for the e-commerce business faced by most of the retailer. In order to describe the particular challenge, massive customers’ data and the high level of customer’s expectations have made it important to control data management as one the major priority (Martinsons, 2006). Understanding the key items searched by most of the consumers, it would be essential to supply data and information. Apart from that, technology and innovation must be utilized to provide the best online market experience for the customers. In addition to that, sale security and online payment transaction must be done in a systematic procedure to avoid any misconception with the clients in the e-commerce business (Berger & Meyer, 2000). Another strategic issue in this regard is evolving consumer’s profile. Identifying different products and their prices at the same time, customers are becoming so much knowledgeable that before. Hence, the retail marketers must provide particular reasons so that buyers have aggressively selected their products. Eventually, customer acquisition can be another challenge for the e-retailing businesses as there are so many other competitors available in the online platform. Therefore, according to the consumers’ spending and quality essence, the retailer must give something additional to their products to drive the customers to their e-commerce stores.
Intended scope for research results
It can be seen that the buying behavior of the Chinese consumers has changed with the development of the internet. People have become a regular user of the internet. Along with that, it can be seen that the life schedule of the Chinese population has become too busy. These factors have supported the growth of online retailing in the country. It can be seen from the statistical reports that that online retail market provides a high share of the GDP in China. The report will study several factors that influence the business of online retailers. It will present the challenges of online retailing in China. The Paper will help to identify different strategies that are needed to be implemented to meet the future changes in the consumer behavior and seek success with the online retailing business (Martinsons, 2006). Hence, the paper has been developed to study the prospects of the online retailing in China and identify the ways that will help the present online businesses to survive and improve their position in the market.
References
Berger, K., & Meyer, J. (2000). Successful E‐Commerce: Achieving Synergy. Handbook Of Business Strategy, 1(1), 45-49. http://dx.doi.org/10.1108/eb060203
Martinsons, M. (2006). Strategic management lessons from e‐commerce. Handbook Of Business Strategy, 7(1), 337-340. http://dx.doi.org/10.1108/10775730610619034
Sorescu, A., Frambach, R., Singh, J., Rangaswamy, A., & Bridges, C. (2011). Innovations in Retail Business Models. Journal Of Retailing, 87, S3-S16. http://dx.doi.org/10.1016/j.jretai.2011.04.005
