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online sales and in-store sales in China

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online sales and in-store sales in China
The relationship between online sales and in-store sales in China

STUDENT NAME: Jack (Qiwei Zhang)

COURSE NAME: Pre-MBA

SUPERVISOR: Glenn.Francis

DATE OF SUBMISSION: 09/10/ 2013

1.Introduction
As the China’s economy developing very fast, the demand market is growing dramaticly. The growth rate of sales online and in-store will grow at the same time. While the sales online tends to be more powerful at this stage, it will take enough market shares then be stable. The in-store sales still will not deminished because it holds many advantages that online shopping is hard to achieve. The relationship between online sales and in-store sales in China tends to be positive.

2.Background
China’ GDP went through an average increase by 9.6% per year from 1979 to 2012. Chinese government’s current priority is to drive up domestic demands. Stimulus measures have been carried on to re-establish the economy.(reference14) Moreover, China has the world’s largest online population. The size of web surfers reached 338 million by June 30, 2009. The rapid economic development raises the level of dispensable income. This has led to an increasing share of expenditures on information and communication products and services relative to the spending on daily necessities. This change in spending patterns has enhanced the adoption of Internet. Increasing level of competitions between telecom carriers make Internet connection more affordable. Moreover, The governmental policies have contributed to the rising Internet penetration rate. The Chinese government promotes Internet development mainly through the Eleventh Five-Year Plan and the 2006-2020 National Informatization Development Strategy(reference13). These policies include investment in infrastructures for more prevalent Internet connections. The project of rural informationalization was launched to establish phones and Internet access in every village by 2015. With the aims

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