Chinese e-commerce holds growth promise

Chay F. Hofileña

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Chinese e-commerce holds growth promise
The Internet and e-commerce have been instrumental in achieving the 8.2% GDP growth rate registered by Zhejiang in 2013

HANGZHOU, China – Hong Kong, Beijing and Shanghai are perhaps the more popular destinations for many tourists eager to visit China.

These are, after all, the cosmopolitan, bustling and modern cities of the second largest country in the world and the largest in Asia in terms of land area.

But not many may have heard of Zhejiang Province, a picturesque coastal area in China’s southeast with a population of about 54.7 million scattered in 11 municipalities. Having the highest population density in China, it is also foreign trade-oriented, generating as much as $330 billion worth of trade in 2013, according to Ge Huijun, member of the standing committee of CPC Zhejiang provincial committee and head of the publicity department.

BUSINESS. E-commerce transactions are complemented by face-to-face sales. Photo by Chay Hofileña/Rappler

About 6 million of residents are businessmen, while two million are doing business all over the world. More than one-third are Net users, a clear boost for those in the online media, finance, tourism and game industries.

E-commerce

The Internet and e-commerce have been instrumental in achieving the 8.2% GDP growth rate (equivalent to $621 billion) registered by Zhejiang in 2013.

Trade volume from e-commerce, according to Ge, reached 1.6 trillion RMB ($260.5 billion) in 2013 – the highest in the country – with Alibaba, an e-commerce company, as the best performing in the industry.

ALIBABA. People walk to the headquarters of the Alibaba Group in Hangzhou, Zhejiang province, China, May 7, 2014. Long Wei/EPA

An online retail giant often compared to Amazon.com, Alibaba will soon be listed on the New York Stock Exchange and is expected to price its initial public offering at about $60 minimum per share. If things go as planned, Alibaba will be “one of the most valuable tech companies in the world” after it goes public, the Wall Street Journal has reported.

Ge said its total trade volume exceeded 931 billion RMB ($151.6 billion) in 2013.

In Zhejiang, easily over 900,000 are users of mobile messaging platform WeChat and micro-blogging platform Weibo, which is similar to Twitter. With Alibaba based in Zhejiang, the integration of trade and new media in a still growing Chinese e-commerce market is expected to rake in more revenues.

Retail in Hangzhou

Sale transactions do not happen only online, however. Qinghe Lane or Hefang Street is a busy shopping spot lined by shops offering a wide variety of goods that include silk, tea, dolls, leather belts from Mexico, bags, shoes, clothing, and Chinese delicacies for the curious and the brave of heart.  

Spanning 13 hectares and running about 460 meters, Zhejiang is a popular stop for tourists, both domestic and foreign.

CLOTHES. Silk cheongsams are available too in Qinghe Lane. Photo by Chay Hofileña/Rappler

It has grown from a minor province to a major economic power, Ge said. In 2013, Zhejiang recorded a GDP equivalent to 3.75 billion RMB (US$611 million) and has been attracting a lot of visitors from Asian countries. It ranked 4th in terms of GDP and 5th in terms of local fiscal revenue in mainland China.

ASEAN ties

In 2013, the balance of trade with the 10-member Association of Southeast Asian Nations stood at $38.13 billion.

At a recent dinner she hosted for visiting ASEAN online journalists and news website managers, Wu Jing, vice chair of the CPPCC Zhejiang Province, led a toast to a happy life and long-lasting friendship.

She urged her ASEAN guests to “do as the Romans do” and drink Zhejiang’s popular rice wine “bottoms up.” All of those who could drink gladly obliged. – Rappler.com

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author

Chay F. Hofileña

Chay Hofileña is editor of Rappler's investigative and in-depth section, Newsbreak. Among Rappler’s senior founders and editors, she is also in charge of training. She obtained her graduate degree from Columbia University’s School of Journalism in New York.