How Retailers Attract Customers In E-commerce In China?

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How Retailers Attract Customers to E-Commerce in China
Introduction
China has experienced exponential growth in its online retail industry in the past decade (Qi and Tapoi 104)0. Kahn (2) attributes such immense advancements to the fact that Chinese retailers have increased their investments in platforms such as escrow; one of the most secure online systems of making payments. Key players in China’s e-retail market include Taobao Marketplace, T-mall.com, 360buy, Amazon and Dangdang.com. Jie et al. (105) reveal that the success of these platforms is owed to the fact that the global online purchasing landscape experiences an annual growth rate ranging between 15% and 20%. However, the Chinese e-market boasts of its exponential growth rate of about 70% on a yearly basis (Du and Tang 1). On the other hand, Subramanian et al. (69) explain that the economy’s 150 million internet users devote a budget ranging between $200 and $250 for online trade annually. Jiang, Ju and Yang (302) demystify that in 2015 alone; China’s e-retail market was worth $305 billion.
The effectiveness of China’s e-retail is not only owed to the inherent capabilities of its stakeholders in availing consumers with products but also their optimal potencies in fostering satisfaction by delivering high-quality systems (Clemes, Gan and Zhang 365). According to Liu e al. (264), the quality and ease of the shopping procedures applied in e-retail platforms play a crucial role in influencing the client's decision to make purchases, directing customer loyalty and therefore, attracting referrals. While the e-retail segment of the Chinese economy has experienced optimal developments in the last ten years, the current study seeks to audit the efficacy of e-commerce in attracting customers by availing a better environment of fostering purchase, tough personalization choices and the effectiveness of the customer control mechanisms.
Research question and definition of terms
The study proceeds with the aim of finding answers to the following research questions:
1 How does the Chinese e-commerce retail industry attract its consumer segments?
2 What is the significance of service quality factors in fostering the development of the Chinese e-retail stores?
3 What is the importance of the logistical processes adopted by e-retailers in fostering the global competitiveness of the Chinese market?
In the ensuing sections of the study, the electronic retailing (henceforth e-retailing) will be used to generalize all forms of trade that are carried out through internet platforms. On the other hand, the terms consumers and customers will be adopted to imply all clients are making use of e-retail systems in trade.
Hypothesis
The study reveals that while the e-retail segment of the Chinese economy has experienced optimal developments in the last ten years, the current study seeks to audit the efficacy of e-commerce in attracting customers by availing a better environment of fostering purchase, tough personalization choices and the effectiveness of the customer control mechanisms.
Literature Review
The Chinese E-Retail Market
The efficacy of this study is based on a comp...