Experience from e-commerce in the United States and Europe show that the domestic e-commerce represents the majority of all transactions in a developing stage.
E-commerce in China is expected to follow this pattern and the cross-border e-commerce is expected to increase over the long term from the current 0.07 percent to about 7 percent of the total market.
Before the market can become better, a number of barriers among consumers and e-retailers must be overcome, mainly in marketing and payment solutions announces the company Paynova.
The company Paynova sees great potential in the rapid growth in Chinese e-commerce and we are very impressed by the experience and knowledge in marketing and technology that the Chinese company LeiXun offers.
-We've found a solid partner who can provide us with the necessary authorizations and permits for the promotion and exchange of local currency. Not only in regards to today's market, but also for the development of attractive e-commerce services in the future.
This lays the foundation for both immediate substantial cash flows for Paynova as well as a very profitable growth for the new company, and hence higher values for the two companies' shareholder bases, says Björn Wahlgren, chairman of Paynova and was appointed chairman of the joint venture.
The rate of increase of cross-border e-commerce amounted to about five hundred percent during 2007 and 2008. China's domestic e-commerce amounted to about 275 billion RMB (approximately 280 billion SEK) in 2008, representing an increase of 180 percent over the previous year. According to research firm Ireseach, China's domestic e-commerce will exceed 1000 billion RMB by 2011.
The new company's services are offered directly to e-retailers and e-commerce providers in the West with a payment service which today can reach 640 million Chinese cardholders, through 1 800 million debit cards issued by China UnionPay.
The service also includes marketing support and help to manage e-retailers in the West to Chinese consumers. Marketing Service and a range of additional services facilitate many problems such as currencies, payment requirements, import and export permits, delivery and returns, translation, customer support and price and product adaptation.
It is intended that the joint venture company will become a leading provider of payment and marketing services for e-commerce in the B2C area to China and back in selected market segments.
The new company combines the best of both worlds. E-retailers in the West are offered great knowledge in Chinese e-commerce, consumer needs and a domestic payment service. The Chinese e-merchants are offered knowledge in foreign e-commerce and support for the creation of new markets, said Karl Alberts, president of the new company.
Cecilia Helland