本文是工商管理专业的Essay范例,题目是“Economic Impact of Online Shopping on Stores | China's Retail Industry(网上购物对商店的经济影响影响中国零售业)”,中国在过去30年里创造了经济发展的奇迹。作为世界上最大的消费市场,它在电子商务市场上占据了领先地位。Kantar retail的数据显示,2014年,中国零售总额增长的33.5%来自在线销售,总额为4580亿美元。它是世界第一,比第二的美国(2970亿美元)高出1610亿美元。根据中国国家统计局的数据,2017年前两个月,中国网络零售额达到1243.9亿美元,约占总零售额8403亿美元的14% (CIW, 2017)。
Introduction介绍
China has created miracle in economic development over the past three decade. As the biggest consuming market in the world, it has acquired the leading position in the e-commerce market. In 2014, 33.5% of total retail growth in China was contributed from online sales with the amount of US$458 billion according to Kantar Retail. It was addressed No.1 in the world and higher than the second USA (US$297 billion) by US$161 billion. In the first two months of 2017, China’s online sales dramatically reached US$124.39 billion according to National Bureau of Statistics of China, which approximately accounted for 14% of total retail sales US$840.3 billion (CIW, 2017).
In general, e-commerce is used to be defined with 3 fundamental models, B2B (business-to-business), B2C (business-to-consumer), C2C (consumer-to-consumer), they will be realized from online shopping. China’s e-commerce market emerged in 1990s and experienced rapid growth after 2008. Alibaba can be taken as the leading representative enterprise. It founds Taobao in 2003, the biggest online shopping platform, and separated Tmall to strengthen B2C in 2012 (E-Commerce in China, 2016). In terms of B2C model, Jingdong, Suning, Dangdang were successively emerging and extremely boosted online shopping development. They currently have dominated almost 80% market share of China online shopping platform.
一般来说,电子商务被定义为3个基本模型,B2B(企业对企业),B2C(企业对消费者),C2C(消费者对消费者),它们将通过网上购物来实现。中国电子商务市场兴起于上世纪90年代,2008年后经历了快速增长。阿里巴巴可以作为领先的代表企业。它于2003年成立了最大的在线购物平台淘宝,并于2012年拆分天猫,强化B2C(电子商务在中国,2016)。B2C模式方面,京东、苏宁、当当相继出现,极大地推动了网购的发展。他们目前占据了中国网购平台近80%的市场份额。
In general, e-commerce is used to be defined with 3 fundamental models, B2B (business-to-business), B2C (business-to-consumer), C2C (consumer-to-consumer), they will be realized from online shopping. China’s e-commerce market emerged in 1990s and experienced rapid growth after 2008. Alibaba can be taken as the leading representative enterprise. It founds Taobao in 2003, the biggest online shopping platform, and separated Tmall to strengthen B2C in 2012 (E-Commerce in China, 2016). In terms of B2C model, Jingdong, Suning, Dangdang were successively emerging and extremely boosted online shopping development. They currently have dominated almost 80% market share of China online shopping platform.
一般来说,电子商务被定义为3个基本模型,B2B(企业对企业),B2C(企业对消费者),C2C(消费者对消费者),它们将通过网上购物来实现。中国电子商务市场兴起于上世纪90年代,2008年后经历了快速增长。阿里巴巴可以作为领先的代表企业。它于2003年成立了最大的在线购物平台淘宝,并于2012年拆分天猫,强化B2C(电子商务在中国,2016)。B2C模式方面,京东、苏宁、当当相继出现,极大地推动了网购的发展。他们目前占据了中国网购平台近80%的市场份额。
Factors boosting online shopping in China推动中国网购的因素
Some key factors play the crucial roles in booming online shopping market in China. First of all, it is contributed from the development of internet and mobile network, as well as smart phone penetration. Chinese consumer can visit online shopping website whenever or wherever they are. “In the first half of 2014, on average, 26% of China’s online purchases were made via its 780 million active mobile devices”. (Morgan Stanley, 2015) In addition, urbanization is expanding at an unprecedented scale along with economic growth in China. The majority of consumers are dwelling in cities. Fast-paced life style gradually influences their shopping behavior. They incline to convenient shopping even with delivery service to home rather than traditional store visit in the crowd. On the other side, traditional business model constraint physical store spreading as consumer’s expectation especially in rural or remote areas. Consequently, a certain percentage of e-shopper or e-retailer from such areas can be benefited from B2C or C2C platform.
一些关键因素发挥了关键作用蓬勃发展的网上购物市场在中国。首先是互联网和移动网络的发展,以及智能手机的普及。中国消费者可以随时随地访问在线购物网站。“2014年上半年,中国平均26%的网上购物是通过其7.8亿活跃移动设备完成的。”(Morgan Stanley, 2015)此外,随着中国经济的增长,城市化正在以前所未有的规模扩张。大多数消费者居住在城市。快节奏的生活方式逐渐影响他们的购物行为。他们倾向于方便的购物,甚至有送货上门的服务,而不是传统的在人群中去商店。另一方面,传统的商业模式限制了实体店作为消费者期望的传播,特别是在农村或偏远地区。因此,这些地区一定比例的电商或电商可以受益于B2C或C2C平台。
Features of online shopping in China中国网上购物的特点
Compared with traditional physical store, the online shopping is advantaged of convenience, lower price, and more choices for consumer. Chinese online shopping also has some unique features. Firstly, the online retailers are entirely online-only retailers rather than multi-channel retailers with both online and offline presence, such as Alibaba, its business model initiated from C2C with well-known platform Taobao and then strengthened B2C with separated brand Tmall. Secondly, Chinese online shoppers are mostly price sensitive users. To some degree, price difference with physical store is still the key driver for their purchasing motivation. The representative example is from Double 11 shopping day launched by Alibaba. “Retailers on Alibaba’s platforms had recorded $17.8 billion worth of gross merchandise volume in 2016 “(Ming, C.2016). Furthermore, Chinese online shopping is entering into a stage implemented with mobile especially smart-phone and promoted by diverse social medias, which is due to faster and cheaper 4G network penetration. According to Morgan Stanley report, “In the first half of 2014, on average, 26% of China’s online purchases were made via its 780 million active mobile devices.”
与传统实体店相比,网上购物具有方便、价格低廉、消费者有更多选择的优点。中国的网上购物也有一些独特的特点。首先,线上零售商是完全的线上零售商,而不是线上线下兼营的多渠道零售商,如阿里巴巴,其商业模式从C2C起步,以知名平台淘宝为平台,然后以独立品牌天猫强化B2C。其次,中国的网购者大多是价格敏感的用户。在某种程度上,与实体店的价格差异仍然是他们购买动机的关键驱动因素。最具代表性的例子就是阿里巴巴推出的双十一购物节。“2016年,阿里巴巴平台上的零售商录得178亿美元的商品交易总额”(Ming, C.2016)。此外,由于4G网络的普及速度更快、价格更低,中国的网上购物正进入一个以移动设备,尤其是智能手机为载体,通过各种社交媒体进行推广的阶段。根据摩根士丹利(Morgan Stanley)的报告,“2014年上半年,中国平均26%的网上购物是通过其7.8亿部活跃移动设备完成的。”
Economic impacts on physical store对实体店的经济影响
The online shopping has definitely become unique booster for economic growth in China. Meanwhile, the hot debate of its disadvantages to traditional retail industry is significantly increasing. As pointed out by research firm Euromonito International, the worldwide store-based retailers faced in 2015 the challenge of the increasing competition from online retailing and the decrease in consumer confidence. Consequently, a large number of physical stores in various channels closed. “According to the China National Business Information Centre, in the first nine months of the year, the top 50 domestic retailers saw sales fall 1.9 per cent, representing a slowdown in growth of 2.6 per cent compared to the same period of 2015.”(Zheng, S. 2016)
网上购物无疑已成为中国经济增长的独特助推器。与此同时,关于其对传统零售业不利的争论也日益激烈。欧睿国际研究公司指出,2015年,全球门店零售商面临着来自网络零售日益激烈的竞争和消费者信心下降的挑战。因此,大量的实体店在各个渠道关闭。中国国家商务信息中心(China National Business Information Centre)的数据显示,今年前9个月,国内最大的50家零售商的销售额下降1.9%,同比增长2.6%。”
The main causes for physical store collapsing can be theoretically illustrated in terms of microeconomics model. According to supply-and-demand model, no matter the quantity of a good that consumers demand, or the quantity of a good that firms supply, essentially depend on price as well as other factors such as income and cost of inputs. Consumers usually demand less of a good with higher price and more when the price is low. Oppositely, firms supply more of a good with higher price and less when the price is low. Compared with traditional retail stores, online shopping in China can precisely provide consumers more goods with lower price, which is due to following reasons.
实体店崩溃的主要原因可以从理论上用微观经济学模型来说明。根据供求模型,无论消费者需求的商品数量,还是企业供应的商品数量,本质上取决于价格以及其他因素,如收入和投入成本。消费者通常对价格高的商品需求少,而价格低时需求多。相反,企业在价格较高时供应更多,而在价格较低时供应更少。与传统零售商店相比,中国的网上购物恰恰可以以更低的价格为消费者提供更多的商品。这是由于以下原因。
Firstly, it is caused by lower operational cost from online retailer, such as no rent for physical store, which is mainly composed of Internet maintenance, inventory, logistic, labor. Compared with online retailers, the store rent has been an inevitable obstacle to reducing the cost of input for the traditional retailers, especially during the period of soaring house price in China. In addition, the increasing Chinese labor wages give rise to higher fixed operation cost. As a result, it is almost impossible for the physical store to drop the commodity price to be same with online shop. Otherwise, the physical store won’t survive once the profit will be eventually damaged. Furthermore, more competitors and more options online can cause more price competition even the elimination of price monopoly, which finally contribute to price advantages.
首先是由于网络零售商的运营成本较低,比如实体店不需要租金,而实体店主要由网络维护、库存、物流、劳动力等组成。与网络零售商相比,店面租金已经成为传统零售商降低投入成本的一个不可避免的障碍,尤其是在中国房价飙升的时期。此外,中国劳动力工资的增加也导致了固定运营成本的上升。因此,实体店几乎不可能将商品价格降至与网店相同的水平。否则,一旦利润最终受损,实体店将无法生存。此外,更多的竞争者和更多的选择可以导致更多的价格竞争,甚至消除价格垄断,这最终有助于价格优势。
Secondly, the weak increase of Chinese economy since 2013 had negative effects both on the GDP and export growth. “The slowdown trends can be identified within the wholesale market, manufacturing industries and commodities markets.” (KYKLO, 2016). The economic slowdown results in decrease in consuming confidence. Shoppers are increasing their favor on online commodities with lower prices than ever.
其次,2013年以来中国经济增长疲软,对GDP和出口增长都产生了负面影响。“批发市场、制造业和大宗商品市场都出现了放缓趋势。”(KYKLO, 2016)。经济停滞导致消费信心下降。购物者越来越喜欢价格比以往更低的网上商品。
Chinese Producer Price Index (PPI) below in blue shows
In conclusion, the factors of e-commerce revolution, together with rising operation cost from rental and labor, economic slowdown, are leading to physical stores closure.
Outlook
“The e-commerce revolution has also become a dynamic engine of China’s long-awaited shift from a heavy-industry, export-oriented, semi-command economy into a consumer- and service-driven market, where private companies large and small have direct access to domestic consumers” (Morgan Stanley, 2015). Any technical changes will usually lead to mutual influence on existing practices all along. Whether or not the challenge, advantage outweighing disadvantage and vice versa, will depend on changing idea and strategy. Therefore, the attitude taken towards booming e-commerce development is very crucial for the traditional industry. To some degree, the online shopping will destroy the physical store expansion. On the other hand, it is also providing the new business model O2O (online-to-offline) to utilize. The further exploration on maximizing advantages of physical store and optimizing O2O platform are better solution for traditional retailer to get rid of dilemma. After all, there are aspects of shopping experience beyond simply obtaining goods. “A notable finding of the research was that wealthy Chinese consumers have a much lower inclination to online shopping”(Lynch, D. 2014). Such as physically touching merchandise, gorgeous and bright in-store décor, relaxing atmosphere and entertainment, emotional bond between buyer and seller, customized service for wealthy consumers. All of these are irreplaceable advantages of physical store.
“电子商务革命也已经成为中国期待已久的从重工业、出口导向型、半指导性经济向消费和服务驱动型市场转变的动力引擎,在这个市场上,大大小小的私营企业都可以直接接触到国内消费者”(Morgan Stanley, 2015)。任何技术变化通常都会对现有的实践产生相互影响。挑战,优势是否大于劣势,反之亦然,将取决于改变想法和策略。因此,如何看待电子商务的蓬勃发展对于传统行业来说至关重要。在某种程度上,网上购物将破坏实体店的扩张。另一方面,它也提供了新的商业模式O2O(线上到线下)来利用。进一步探索实体店优势最大化,优化O2O平台,是传统零售商摆脱困境的较好解决方案。毕竟,购物体验不仅仅是获得商品。“研究的一个值得注意的发现是,富有的中国消费者在网上购物的倾向要低得多”(Lynch, D. 2014)。如实物接触商品,华丽明亮的店内décor,轻松的氛围和娱乐,买家和卖家之间的情感联系,富裕消费者的定制服务。这些都是实体店不可替代的优势。
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