Fast Growing Digital Economy: Retail digitization and the challenges it brings
Updated 13:50, 07-Apr-2019
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The country's digital economy promises consumers a wider array and higher quality of products. With the nation's digital economy expected to grow 15 percent this year, customers' shopping experiences may also continue to change. CGTN reporter Liu Yang shows us what's in store.
It promises fresh, high quality products from both domestic and overseas markets, under a very strict quality control system based on big data and technology.
This fresh salmon going from Norway to China only took 72 hours to arrive.
And it could be on your dinner table the next minute, if you time things right.
CUSTOMER "Much of the seafood I ordered online was frozen, but these look fresh, it is easy to cook when I get back home."
Cross border e-commerce makes products flow with guaranteed quality and timing.The store was defined as a "Pathfinder of Alibaba's New Retail" through technology and data in a bid to merge online and offline retail. Reserach has found that as China's middle-class population continues to rise, so does the number of those using cross-border e-commerce. The post-1990 and post-95 generations who grew up with the internet have gradually become the main consumers.
HU HAIHE, DEPUTY GENERAL MANAGER BEIJING HEMA NETWORK TECHNOLOGY CO., LTD "Freshshippo, or 'Hemaxiansheng' is a digital enterprise, from procurement to distribution to sales to returns, we are operating based on digitization. In the future, based on the same business model, we need to bring more regional characteristics to it."
By 2017, Chinese shopping site Tmall had ten times as many international consumers as it did three years prior, and the numbers are still growing. According to the World Economic Forum, China now accounts for 42 percent of all global e-commerce, boasting one-third of the world's most successful tech startups, and conducting 11 times more mobile payments than the United States per year.
OUYANG CHENG, DIRECTOR ALI CROSS-BORDER E-COMMERCE RESEARCH CENTER "The future of international trade is digital trade. Through digital management, we realize the logistics, brands and marketing of digital operations to reduce costs and improve efficiency."
Experts say digital trade and cross-border business offers even more opportunities for foreign brands and small and medium sized enterprises. But some say it's actually the credit information and trading records on-line that bring business opportunities to SMEs.
LIU YANG BEIJING "In 2018, China became the world's second largest digital economy behind the U.S. Experts say by 2025, with the continuous expansion of the digital economy, national digital literacy will have reached the average level of developed countries. And the digital economy is reshaping China's employment landscape and creating new business models such as a sharing economy and mobile payment."
Experts say over 90 percent of enterprises are earning more profit after utilizing digital technology.Yet, large variations remain at different sectors' digitization levels in China.Therefore, protecting property rights and ensuring efficient markets remain high priorities for the future. Liu Yang, CGTN, Beijing.