China’s online retail market will hit $1 trillion this year, a year ahead of predictions, as growth in mobile shopping and consumer spending in fashion and grocery categories continue to surge.
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According to Forrester, China’s retail sales will reach $1.1 trillion in 2018, with online shopper numbers continuing to grow by 4.6% annually, to reach 631 million by 2022, up from the current 502 million.
The milestone would be ahead of a previous forecast by Forrester, which projected the Chinese online retail market would reach the trillion-dollar milestone only in 2019.
The Forrester report, which looks at the Asia-Pacific region as a whole, found that China remains the largest APAC market, accounting for close to 83% of all the region’s retail sales.
Forrester noted that Japan is the second largest nation in value terms with $97 billion, followed by South Korea with $69 billion and Australia with $31 billion. India came in fifth with $27 billion and continues to be the region’s fastest growing market, and is expected to overtake Australia in 2019, said report authors.
In addition, 25 percent of all retail sales in the APAC region will take place online by 2022, a move led both by China and South Korea, where more than 31 percent of retail sales in these two markets would be transacted online.
As for mobile, online retail via portable devices continues to surge across the region. M-commerce is expected to grow 17.64% annually to reach $1.7tn in 2022, up from $735bn in 2017.
Mobile sales will account for 80% of online retail sales in 2022, said Forrester.