Online sales grow in China

Every year since 2002 online business in China has been growing by over 110 percent. Each fifth user of Internet has made at least one purchase and paid for any services through online systems. Major e-services keep on improving the market and making it more attractive for the customers. For this purpose online providers are enhancing the reliability, security and conveniece of their services. E-payment transactions in China are expected to raise over $27.85 billion in 2008.

"The online payment market in China has been growing rapidly over the past 3 years and the high-speed growth is expected to continue in the foreseeable future. However, the market entry barrier is getting high, and local competition remains intense. The majority of the market will continue to be shared among the top players, while the rest would have to fight for profits and market share through differentiation and niche markets" says the report made on the survey of e-commerce in China.

The popularity of e-services here is attributed to Internet users growth. It results in online market boom that attracts local and international players. A price war directed for the domination is taking place. The key success factor in this competition will imply services variety and quality as well as meeting customer's demands.

Analysts expect e-payments to proceed benefiting from C2C markets and their expansion in B2C sales.