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China’s unique retail history has given rise to one of the most advanced digital marketplaces in the world.
With its sophisticated shoppers, massive volume of transactions, rapid rate of innovation, and integration of social media, multimedia, and other channels, China’s online environment offers a glimpse into the future.
When Amazon and e-tailing disrupted US shopping in the 1990s, retailers and consumers alike had to rethink their deeply ingrained habits.
By contrast, physical retail in China was less developed.
The digital revolution coincided with the growth of disposable income and consumption.
According to industry estimates, online purchases made with mobile phones will account for 74% of total e-commerce in China by 2020, compared with just 46% in the US.
The pace of e-commerce doesn’t seem to be slowing: the industry is expected to grow by 20% annually in China over the next five years—twice as fast as in the US and the UK.
Today, Chinese consumers buy everything from organic foods to luxury cars online.