The Characteristics of the Chinese Digital Market

Abstract

China is the country with the highest number of Internet users and also the largest e-commerce market in the world. The relevance of the Chinese digital sector is given by the opportunities but also the challenges for foreign firms that want to approach this market. As Western platforms are blocked, the Chinese Internet sector is dominated by local firms (for example, Tencent and Alibaba), which are characterized by different consumer interactions and features. Moreover, a main role is played by the national culture, which influences firms' online communications strategy and consumer behavior. Chinese users strongly rely on e-WOM information and share their experiences on social media platforms. Culture also has an impact on the Chinese distribution system as while the Internet has helped to overcome some shortcomings of the Chinese distribution system particularly in rural areas, guanxi still facilitate the availability of products.