The United States is losing to China in the war for ecommerce supremacy
“China is poised to surpass the United States to become the world’s largest e-commerce market this year,” China Daily reports, citing projections from consultancy Bain & Co.
With forecast 32 percent average annual growth, online shopping expenditures in China are set to reach 3.3 trillion yuan ($539 billion) by 2015, the consultancy said in a report.
“While beating the U.S. is a major milestone for e-commerce in China, there is no longer a meaningful distinction between retailers’ brick-and-mortar, Web and mobile strategies,” writs Serge Hoffmann, a partner in Bain’s retail practice in China.
But, according to several ecommerce industry experts, online shopping may be hampered by lingering security concerns in China.
From mobile malware to online cybersecurity dangers, Chinese ecommerce isn’t widely considered to be as “secure” as the ecommerce platforms in the United States.
Unlike the U.S., where trusted credit card payment processing providers like North American Bancard frequently make headlines in response to their efforts to illustrate how safe ecommerce can be with the right solutions and safeguards in place, companies in China haven’t been as proactive.
“The Ministry of Commerce recently announced it would introduce more specifications to better guide the development of e-commerce in the country,” China Daily reported in late 2012. “And the public and private sectors are exploring ways to further build trust, integrity and security in the burgeoning industry.”
Auspiciously, however, the China eCommerce Protection Task Force is finally taking shape. “Industry stakeholders, including banks, payment service providers, payment systems and brand owners will share information on emerging threats in intellectual property infringements and payment fraud,” says China Daily. “They will coordinate efforts between the owners of brands, whose products are being counterfeited, and the payments industry to mitigate illegal activities.”