#county level

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[ihuxiu]

Things You Would Never Know About Taobao and Rural E-commerce in China

The trophy goes to Estee Lauder

In 2012, the per-capita average spending on online shopping in county-level regions reached near 6000 yuan, compared with only 4700 yuan in first- and second-tier cities. People living in county-level regions, on average, bought 388 items of 54 times in a year, much more than 349 items of 39 times of the first- and second-tier city residents. They appeared to be a lot more crazy about major international brands, with women paying 765 yuan per person a year for products of Estee Lauder. Residents in first- and second-tier cities would spend only 652 yuan on them.

Are urban dwellers more brand-obsessed? Not quite so. In addition to Estee Lauder, there were 32 more brands out of 44 brands picked out of T-mall on which the county dwellers spent more a year than then urban dwellers did. Offline major brands were popular in counties. The business volumes of these brands were higher in county-level regions than in first and second-tier cities.

The fashion on the town: brand consumption

The increase in income encourages county residents to consume brands. The urge deepens as the expansion of access to offline real shopping malls has been slow. But why these brands? That is because these brands advertise heavily on television. Wall advertising is said to have the best ROI in counties. Television advertising shall then be the dominator indoors.

Did urban dwellers like reading better than county dwellers? No. Although urban dwellers did spend more money than county dwellers, they were defeated by them in terms of frequency. County dwellers preferred books on enterprising or chicken soup; they anticipate to change their lives.

Were male urban dwellers more likely to adopt mobile internet? No. Men in counties seemed more fond of mobile Taobao than men in cities. Among the male users of Taobao in county-level regions last year, 31% of them shopped via cell-phone apps. The figure of cities was merely 28%.

Did urban dwellers buy less home-made digital devices? No. The amount of home-made digital devices (which, in some sense, can be viewed as Shan-zhai goods) bought by users in first- and second-tier cities was more than that in county-level regions by 1.76 item on average.

Did online shopping thrive better in the relatively more developed regions? No. Although the East China won over the West China in terms of payment amount, the West China, which is relatively less developed, is no worse than the East in terms of the craze in online shopping.

They are going downtown

Some residents in county or township regions spent away almost one third of their annual income on Taobao. In China’s economy, the rural areas have always kept the Engel’s coefficient of cities low with agricultural products of extremely low prices, supporting the high-consuming industrialization of cities and the advancement of the manufacturing with cheap raw materials and cheap labors.

In the era of internet, the rural areas are preparing to support the consumption-dependent economy once again with its vast market via e-commerce.