Online sites expand in China’s rural areas
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Plagued by poor transport and less purchasing power, rural buyers remained mostly untouched by the wave of online shopping that swept across China in recent years. However, the situation is changing as the burgeoning market in villages has shown great potential and intrigued the country’s major e-commerce businesses.
China’s leading e-commerce giants have stepped up expansion of online retail business in rural areas in hopes of tapping the new territory to offset a saturated urban market.
JD.com Inc, a Nasdaq-listed firm, announced they would set up a county-level operating centre in Guangdong Province. The move followed the e-commerce giant’s decision to open a physical shop in a small county in north China’s Hebei Province in November to help farmers purchase home appliances via its online shopping store.
Questions & Answers
Q.Why are major e-commerce businesses now expanding into China's rural areas?
Why are major e-commerce businesses now expanding into China's rural areas?
Leading e-commerce giants are stepping up expansion in rural areas to tap into this new territory. They hope this will help them offset the saturation seen in the urban market, which has been their primary focus until now.
Q.What challenges have online shopping businesses faced in China's rural areas previously?
What challenges have online shopping businesses faced in China's rural areas previously?
Rural buyers were mostly untouched by the online shopping wave due to significant challenges. These included poor transport infrastructure and the relatively lower purchasing power of residents in these areas.
Q.What specific actions has JD.com Inc taken to expand into rural China?
What specific actions has JD.com Inc taken to expand into rural China?
JD.com Inc, a Nasdaq-listed firm, announced plans to establish a county-level operating centre in Guangdong Province. This follows their earlier decision to open a physical shop in a small Hebei county to assist farmers with online purchases.
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