2004-09-21

Online-Shopping kommt nicht richtig voran in China: only 10 percent of China's estimated 90 million-plus Web surfers buy things on the Internet, compared with 38 percent in the United States, according to industry executives. "Chinese do want to buy things online, but many are afraid to take the first step," said Toto Sun, general manager of China's second-largest online auction site Taobao, a unit of unlisted company Alibaba.com. "They have many worries. Is it safe to wire money? Will the product I buy be defective, or worse, fake?" he said. Such problems are deterring Baidu.com, China's largest search engine, from broadening its focus, at least until the kinks are ironed out, said Chief Financial Officer Shawn Wang. ... The lack of credible payment systems is a major reason behind the low level of online sales in China, said Shao Yibo, chief executive of eBay's China venture, eBay EachNet, whose second-quarter transactions amounted to $63 million. eBay's PayPal online payment unit has hired consultants in Beijing to advise it on how to enter China's murky payment market, currently dominated by state banks and mobile operators. Online shopping in China also faces the speed bump of a sometimes unreliable and highly regulated distribution system dominated by state-owned China Post. ... But China Post will soon face stiff competition from the likes of DHL, owned by Germany's Deutsche Post, United Parcel Service and FedEx as China opens up its courier sector.

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