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Young shop owners struggle to win e-commerce race June 8, 2012 Filed under All it takes for a woman in her 20s to start a Web business is 50,000 yuan and five employees. That’s no exaggeration: a report released on May 30 found that 23 percent of e-commerce entrepreneurs are younger than 30, more than half operate with less than 50,000 yuan of start-up capital and 56 percent have fewer than six employees. Women account for 30 percent of the entrepreneurs. The report, prepared by the Beijing Youth Daily, Xiao Hong Mao and DATA100 Market Research, is the first that investigates the needs of more than 500 young e-commerce entrepreneurs. E-commerce remains robust in the current economy. As of December 2011, online retail sales totaled 800 billion yuan, up 56 percent over the previous year. More than 200 million Chinese shoppers bought online, a more than 28 percent increase over the previous year. A. T. Kearney, a global management consultancy, said it expected China’s e-commerce market to exceed 1.15 trillion yuan in 2014. Experts said that each yuan invested in e-commerce can stimulate 1,000 yuan of consumption. The e-commerce industry and its related industrial chain have created 3 million jobs. Li Feng said that changes in lifestyles and consumption have contributed to the prosperity of e-business. Much of the boost comes from younger people who spend more time online or hunt for products that are unavailable in smaller cities. But in spite of the strong data, e-commerce entrepreneurs face fierce competition as they share similar business models. More than 70 percent have started a business on Taobao during the last three years: 26 percent are selling apparel and accessories and 23 percent sell computers and consumer electronics. More than half of the young entrepreneurs see a yearly turnover of less than 100,000 yuan, and only 9 percent have annual sales exceeding 1 million yuan. Xu Zhiming, president and CEO of Kuaishubao.com, said funding is the main obstacle for Internet business. “Anyone can be a shop owner through an online shop. Anyone can afford advertising via search engines. Anyone can build a brand on a microblog,” he said. “The spot where young entrepreneurs get stuck is finding funding.” Fewer than 78 percent of the young entrepreneurs qualify for financing, according to the report. Logistics and the instability of third-party companies also concern young entrepreneurs. More than 93 percent use a third-party payment system such as AliPay or PayPal, and 88 percent depend on a third-party logistics company. Guests gather at the E-commerce expo to discuss a Municipal Youth League Commission proposal to encourage young people to start their own e-businesses. Photo provided by BYD All it takes for a woman in her 20s to start a Web business is 50,000 yuan and five employees. That’s no exaggeration: a report released on May 30 found that 23 percent of e-commerce entrepreneurs are younger than 30, more than half operate with less than 50,000 yuan of start-up capital and 56 percent have fewer than six employees. Women account for 30 percent of the entrepreneurs. The report, prepared by the Beijing Youth Daily, Xiao Hong Mao and DATA100 Market Research, is the first that investigates the needs of more than 500 young e-commerce entrepreneurs. E-commerce remains robust in the current economy. As of December 2011, online retail sales totaled 800 billion yuan, up 56 percent over the previous year. More than 200 million Chinese shoppers bought online, a more than 28 percent increase over the previous year. A. T. Kearney, a global management consultancy, said it expected China’s e-commerce market to exceed 1.15 trillion yuan in 2014. Experts said that each yuan invested in e-commerce can stimulate 1,000 yuan of consumption. The e-commerce industry and its related industrial chain have created 3 million jobs. I am an expert from hydraulic-piston-pump.com, while we provides the quality product, such as China Linde Pumps , China Piston Pump Parts, Rexroth Pumps,and more.
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