Skip to main content

The Characteristics of the Chinese Digital Market

  • Chapter
  • First Online:

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.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   44.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   59.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   59.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    New products included a less sweet biscuit version and fruity flavors such as green tea, a popular flavor in China and East Asian countries. Regarding formats, Oreo wafers and sticks were launched in addition to the classic black-and-white-layered round biscuit. Moreover, the size of the packet was reduced allowing for lower prices.

  2. 2.

    Statista. (2019, September 23). Car parc in China from 2007 to 2018 (in millions). Retrieved October 29, 2019, from https://www.statista.com/statistics/285306/number-of-car-owners-in-china/.

  3. 3.

    Statista. (2019, September 23). Number of cars per 100 households in China in 2017, by region. Retrieved October 29, 2019, from https://www.statista.com/statistics/233678/number-of-cars-per-100-households-in-china-by-income/.

  4. 4.

    Statista. (2019, September 23). Number of vehicles per household in the United States from 2001 to 2017. Retrieved October 29, 2019, from https://www.statista.com/statistics/551403/number-of-vehicles-per-household-in-the-united-states/.

References

  • Baack, D. W., & Singh, N. (2007). Culture and web communications. Journal of Business Research, 60(3), 181–188.

    Article  Google Scholar 

  • Baalbaki, I. B., & Malhotra, N. K. (1995). Standardization versus customization in international marketing: An investigation using bridging conjoint analysis. Journal of the Academy of Marketing Science, 23(3), 182–194.

    Article  Google Scholar 

  • Besbes, A., Legohérel, P., Kucukusta, D., & Law, R. (2016). A cross-cultural validation of the tourism web acceptance model (T-WAM) in different cultural contexts. Journal of International Consumer Marketing, 28(3), 211–226.

    Google Scholar 

  • Capece, G., & Di Pillo, F. (2019). Chinese website design: Communication as a mirror of culture. Journal of Marketing Communications, 1–23.

    Google Scholar 

  • Christodoulides, G., Michaelidou, N., & Argyriou, E. (2012). Cross-national differences in e-WOM influence. European Journal of Marketing, 46(11/12), 1689–1707.

    Google Scholar 

  • Chung, H. F. (2003). International standardization strategies: The experiences of Australian and New Zealand firms operating in the greater China markets. Journal of International Marketing, 11(3), 48–82.

    Article  Google Scholar 

  • CNNIC. (2019, August). Statistical report on Internet development in China. Retrieved October 23, 2019, from https://cnnic.com.cn/IDR/ReportDownloads/201911/P020191112539794960687.pdf.

  • Haley, G. T. (2002). E-commerce in China: Changing business as we know it. Industrial Marketing Management, 31(2), 119–124.

    Article  Google Scholar 

  • Hall, E. T. (1989). Beyond culture. New York, NY: Anchor.

    Google Scholar 

  • Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Beverly Hills, CA: Sage.

    Google Scholar 

  • Hung, K., Tse, C. H., & Cheng, S. Y. Y. (2012). Advertising research in the post-WTO decade in China. Journal of Advertising, 41(3), 121–146.

    Google Scholar 

  • Jain, S. C. (1989). Standardization of international marketing strategy: Some research hypotheses. Journal of Marketing, 53(1), 70–79.

    Article  Google Scholar 

  • Levitt, T. (1983, May/June). The globalization of markets. Harvard Business Review, 61, 92–102.

    Google Scholar 

  • Luna, D., Peracchio, L. A., & de Juan, M. D. (2002). Cross-cultural and cognitive aspects of web site navigation. Journal of the Academy of Marketing Science, 30(4), 397–410.

    Article  Google Scholar 

  • McCartney, G., & Pinto, J. F. (2014). Influencing Chinese travel decisions: The impact of celebrity endorsement advertising on the Chinese traveler to Macao. Journal of Vacation Marketing, 20(3), 253–266.

    Article  Google Scholar 

  • Men, L. R., & Tsai, W. H. S. (2012). How companies cultivate relationships with publics on social network sites: Evidence from China and the United States. Public Relations Review, 38(5), 723–730.

    Article  Google Scholar 

  • National Bureau of Statistics of China. (2019, January 21). National economic performance maintained within an appropriate range in 2018 with main development goals achieved. Retrieved October 20, 2019, from http://www.stats.gov.cn/english/PressRelease/201901/t20190121_1645832.html.

  • Ozsomer, A., Bodur, M., & Tamer Cavusgil, S. (1991). Marketing standardisation by multinationals in an emerging market. European Journal of Marketing, 25(12), 50–64.

    Article  Google Scholar 

  • Quelch, J. A., & Hoff, E. J. (1986). Customizing global strategies. Harvard Business Review, 64(June/July), 59–68.

    Google Scholar 

  • Reddy, S., & Sproule, K. (2013, June 3). Kraft changed its biscuits for China. FT. Retrieved October 23, 2019, from https://www.ft.com/content/6bcc1c00-c886-11e2-8cb7-00144feab7de.

  • Samiee, S. (1998). The Internet and international marketing: Is there a fit? Journal of Interactive Marketing, 12(4), 5–21.

    Article  Google Scholar 

  • Schwartz, S. H. (1994). Beyond individualism/collectivism: New cultural dimensions of values. In U. Kim, H. C. Triandis, Ç. Kâğitçibaşi, S. C. Choi, & G. Yoon (Eds.), Individualism and collectivism: Theory, method, and applications (pp. 85–119). Thousand Oaks, CA: Sage.

    Google Scholar 

  • Schwartz, S. H. (1999). A theory of cultural values and some implications for work. Applied Psychology, 48(1), 23–47.

    Article  Google Scholar 

  • Simmonds, K. (1985). Global strategy: Achieving the geocentric ideal. International Marketing Review, 2(1), 8–17.

    Article  Google Scholar 

  • Statista. (2020). eCommerce. Retrieved February 28, 2020, from https://www.statista.com/outlook/243/100/ecommerce/china#market-revenue.

  • Steenkamp, J. B. (2014). How global brands create firm value: The 4V model. International Marketing Review, 31(1), 5–29.

    Article  Google Scholar 

  • Towers, N., & Xu, K. (2016). The influence of guanxi on physical distribution service quality availability in e-commerce sourcing fashion garments from China. Journal of Retailing and Consumer Services, 28(January), 126–136.

    Article  Google Scholar 

  • Wong, X., Yen, D. C., & Fang, X. (2004). E-commerce development in China and its implication for business. Asia Pacific Journal of Marketing and Logistics, 16(3), 68–83.

    Article  Google Scholar 

  • Yang, Q., & Liu, Y. (2014). What’s on the other side of the great firewall? Chinese Web users’ motivations for bypassing the Internet censorship. Computers in Human Behavior, 37, 249–257.

    Article  Google Scholar 

  • Yu, J. (2006). Marketing to Chinese consumers on the Internet. Marketing Intelligence & Planning, 24(4), 380–392.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Lala Hu .

Rights and permissions

Reprints and permissions

Copyright information

© 2020 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Hu, L. (2020). The Characteristics of the Chinese Digital Market. In: International Digital Marketing in China. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-030-38160-8_2

Download citation

Publish with us

Policies and ethics