for Malaysia exporters

Market alert

Opportunities for Malaysia Exporters through

China's E-commerce Market

1.Background

According to McKinsey Global Institute, China’s e-tailing industry has posted 120% compound annual growth since 2003. The rapid development of e-commerce vastly improves the efficiency of shopping and the availability of products without the need to build out extensive networks of traditional physical stores, which will bring out great opportunities for Malaysia exporters.

2.Key driver: Expanded Broadband and 3G Penetration

E-commerce produced more than $190 billion in 2012 sales, according to a report by the China Internet Network Information Center (CNNIC), an increase of 66.5 percent over 2011′s total. With expanded broadband and 3G penetration, It is projected that online sales could reach $650 billion by 2020. .

In 2011, China has the world’s largest online population, with only 30% broadband penetration but 129million residential broadband accounts, exceeding even the 81 million accounts in the United States.

With a wider coverage of 3G support, mobile users are playing an increasingly important role in online shopping. According to report from TechCrunch, more and more online shoppers tend to browsed items on their smartphones rather than home PCs.

3.Potential Sectors for Malaysia Exporters to Tap into China’s Online Market

Children and Baby Care Market

China have experienced both baby and economic booms in the past decades, which bring out great demand for children and baby care products. According to Euromonitor International, retail sales of China’s children care products are anticipated to reach 8.7 billion yuan by 2013, from 5.3 billion yuan in 2010 and the sales of China’s baby care will increase from 3.5 billion yuan in 2010 to 5.8 billion yuan by 2013.

Online market for children and baby care market has enormous potential. Today, the internet is a valuable resource for mothers. More and more parents