Online sales in China are expected to exceed expectations as they reached $ 1.3 trillion in 2018. Last year, online sales exceeded estimates by $ 44.4 billion, largely driven by sales. Taibao and Tmall leaders from Alibaba's leader. These two companies will still have a total of 58.2% this year, but Alibaba's share is shrinking as the market diversifies with the emergence of retailers and the recent success of newcomer Pinduoduo.
China E-Commerce Overview
From 2015 to 2018, Alibaba's share of e-commerce sales in China increased from 77.6% to 53.5%. Alibaba's online sales are now slower than the overall growth rate of 34.3%, while Alibaba's sales are expected to increase by only 22.8%. Consumption in the upper middle class continues to grow so rapidly (over 17% per year) and will represent, by 2020, $ 1.5 trillion in urban China. This compares to a growth rate of 5% among emerging consumers of the middle and middle class.
Households will remain a market as they will enter the lower echelons of the middle class over the next five years. These segments will still represent about half of urban households. The middle classes and the emerging middle classes will remain the largest consumers in many categories, especially fast-moving consumer goods such as personal care products and detergents.