Source：South China Morning Post 2014-12-14
Authored by：Edward Tse and Matthias Hendrichs
Edward Tse and Matthias Hendrichs say the changing shape of the fast-growing Chinese digital economy is rewriting business rules and regulations not just in China but worldwide
Singles Day (or Double 11 Day) was created in the 1990s in China to celebrate being single. A few years ago, Alibaba turned it into an online shopping event with heavily discounted goods. This year, total purchases on Alibaba’s connected platforms, such as Taobao and Tmall, came to 57.1 billion yuan (HK$72 billion), a 58 per cent increase from 2013 and estimated to be about three times as high as US online sales over the Thanksgiving weekend.
These online sales are further proof of China’s fast-developing digital economy. There are now some 640 million Chinese netizens, including 530 million mobile internet users. A whole new class of internet companies has emerged. Four of the world’s 10 largest internet companies have their headquarters in China. These are not copycats of Western business models. Instead, they have created their own business models in the Chinese context and are innovative in their own ways.
There are several noteworthy trends of China’s digital economy. Continue reading