China set to be first country where e-commerce sales outstrip bricks-and-mortar retail in 2021

Some 52.1 per cent of China’s overall retail sales are expected to come from e-commerce transactions this year, according to research firm eMarketer

The pandemic boosted online sales that were already growing at a steady clip thanks to the rapid digitalisation of traditional trade-in China, experts say

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Research firm eMarketer expects 52.1 per cent of China’s total retail sales to come from e-commerce transactions in 2021. Photo: Xinhua

Published: 6:15am, 19 Feb 2021Updated: 5:21pm, 19 Feb 2021

The Chinese retail market is poised to become the first in the world to be dominated by e-commerce transactions as Lunar New Year retail sales beat expectations amid a pandemic-driven economic slowdown.

Research firm eMarketer expects 52.1 per cent of China’s total retail sales to come from e-commerce transactions in 2021, increasing from 44.8 per cent last year.

“That means that for the first time anywhere, a majority of retail sales for an entire country will transact online,” said the firm in a report.

No other country comes close to China in terms of e-commerce sales. South Korea is expected to see 28.9 per cent of its retail market based online this year, while the United States will hit 15 per cent, the report said.

The Chinese retail market has also defied odds over the Spring Festival with spending on retail and dining rising 28.7 per cent to 821 billion yuan (US$127 billion) compared to the same period last year, although it remained below the $1 trillion yuan figure booked in 2019, according to the latest data from China’s Ministry of Commerce.

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