E-Commerce is Booming in China’s Big and Small Cities

on June 16 2014 | in Digital Retail Trends | by | with No Comments


The top three cities for e-commerce in China are Shenzhen, Guangzhou, and Hangzhou, according to a recent report from AliResearch, a research institution connected to Chinese Internet giant Alibaba Group Holding Ltd.

Dubbed the Alibaba E-Commerce Development Index, the study examined 294 cities in China. Over half of the cities on the top one hundred list came from six provinces, with six each in the Shandong and Taiwan provinces, nine from Fujian province in East China, 10 from Guangdong in South China, and another 11 each from the Zhejiang and Jiangsu provinces.

Cities in coastal and eastern China are leading the e-commerce boom, largely because of their greater populations and greater ratios of online shoppers and retailers. However, inland and third- and fourth-tier Chinese cities are experiencing considerable growth in terms of online shopping.

Xie Zhoupei, a research at AliResearch, says that a “lack of business infrastructure,” such as outlets for shopping, is driving e-commerce growth in these places, as consumers come to rely more heavily on their mobile phones to purchase products.

The study was based on internal data from Alibaba-owned e-commerce platforms like Tmall and Taobao, and examined each city’s density of online retailers and shoppers, rather than looking at the overall e-commerce transactions, which can be influence by population size.

“Our index report focuses on evaluating the actual development of e-commerce in these cities regardless the population,” Sheng Zhenzhong, one of the primary authors of the report, tells China Daily.

The top ten e-commerce cities in the country are as follows:

1. Shenzhen
2. Guangzhou
3. Hangzhou
4. Beijing
5. Shanghai
6. Jinhua
7. Zhuhai
8. Xiamen
9. Suzhou
10. Nanjing


image credit: mike lau

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