Recent data shows that while eCommerce sales in China are no longer growing at a breakneck pace, the market will still continue to grow at a slow, but steady pace.
According to eMarketer, a recent forecast by iResearch Consulting Group has found that the average annual eCommerce spending in China continues to rise, with projections showing that the average digital buyer will spend RMB12,198 ($1,836) online in 2017, an increase of 7 percent over 2016.
But there is data showing that eCommerce sales will slow down in the coming years, with the average annual growth rate per digital buyer dipping below 5 percent starting next year. And forecast data from Fung Global Retail and Technology shows that the share of sales captured by retail and consumer-to-consumer (C2C) eCommerce in China will soon start to plateau.
While it is expected to reach 21 percent this year, that share will increase by only 4 percentage points over the following three years, hitting 25 percent in 2020.
The challenge for eCommerce companies in China will be trying to figure out if this slower spending growth is temporary or a more permanent shift, as the consumer market in China reaches maturity.