Greater eChina Insights: Online users in Greater China
30 Oct 2000|Added Value
Internet technology is rapidly penetrating Greater China, including Mainland China, Hong Kong and Taiwan. With the acceptance of China into the WTO, enormous opportunities for global trade are opening up for companies eager to expand into this region. One of the most interesting changes occurring in China is the emergence of a consumer class. As with all countries, understanding consumers increasingly includes understanding their online behavior.
In 2000, Cheskin collaborated with Chinadotcom Corp to conduct a groundbreaking study intended to understand the potential inroads and barriers to online commerce in Greater China.
Highlights of the study include:
- Despite barriers, there is significant but targeted potential for e-commerce growth throughout Greater China.
- Geographic location is the main differentiator of online behavior. Mainland China residents differ significantly from those in Hong Kong and Taiwan.
- Intent to purchase in the future is high. The Internet is regarded as a means to augment what is lacking in people’s offline environment.
- Overall, Internet trust is relatively low in Greater China, though Mainland China users are least concerned with trust and privacy issues. They are more willing to trade personal information for better service or price.
- Limited technology penetration in Mainland China is not a deterrent to online usage. A third of the respondents regularly access the Internet from Internet cafés.
- Viral marketing has high potential in Mainland China as people are likely to recommend a favored site to friends and family.
- Lack of a convenient payment method and fulfillment issues remain a significant barrier to e-commerce. Users in Greater China use COD as a payment method much more than North American users do.