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Surfing for treasure

By Rong Jiaojiao (China Features)
Updated: 2010-01-06 08:06
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Surfing for treasure

There are at least 159 million online shoppers at e-commerce hub Taobao, which is revolutionizing consumerism. 

Shi Fang spends more than 4,000 yuan ($588) a month shopping, but she rarely goes to the mall.

"Why go to a mall if you have Taobao? I'm a Taobaoer," says Shi, 28, a freelance writer in Beijing.

China's largest online shopping site has become an indispensable part of Shi's life. She spends half of her monthly salary on Taobao goods, logging onto the website every day simply to "stay updated".

A growing number of Internet users like Shi have discovered online shopping. The China Internet Network Information Center (CNNIC) announced in December that more than 87 million Chinese made purchases on the Internet in the first half of 2009, which means one out of four Chinese netizens have online shopping experience.

Most online shoppers are students or white-collar workers, aged 18 to 30, with a monthly income of 1,000 yuan to 3,000 yuan. More women shop online than men. Clothing and home-use products are the most popular goods bought online.

It is estimated the total annual sales from online shopping were more than 250 billion yuan in 2009. About 80 percent of online sales were through Taobao.com, China's fast-growing e-commerce hub established in 2003, or 200 billion yuan.

The company predicts sales of up to 400 billion yuan this year.

Taobao, meaning "treasure hunt", is owned by Alibaba Group, parent of Alibaba.com, a global e-commerce site for small- and medium-sized businesses, connecting buyers with sellers.

Shi is one of the 159 million registered users at Taobao, where she can find almost anything she needs, from underwear to furniture, from candy to DVD players.

The biggest attraction for her is the relatively low prices for online goods, compared with those in brick-and-mortar stores. Her favorite facial cream costs 1,680 yuan ($247) for a 30ml bottle in the local shop, but a 10ml sample of the same brand costs just 68 yuan online.

"I bought three samples for 204 yuan plus a delivery fee of 12 yuan. I saved 1,464 yuan for the same product, same quantity and quality," Shi says.

The Taobao instant messenger, a communication channel for buyers and sellers, also facilitates online shopping and ensures the overall experience for both parties. Shi regards it as a platform to foster trust and maintain contact.

"You can check the information easily. It is sweet that the owner will remember you once you have regular chats with him or her through the messenger. You may receive some personalized service such as getting more samples or discounts," she says.

Yang Fei is also a Taobaoer, but the website is so popular at her workplace that it has been blocked.

"Now I can get a quick look on the website during the one-hour lunch break and quickly make my order," says 27-year-old Yang.

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While some may question the security of online purchases, Yang gives Alipay, the thumbs-up. The Taobao payment method, launched by Alibaba Group in 2004, is run in partnership with the country's leading banks. She has bought more than 200 items online since she registered in 2007.

"It's very safe and convenient. Unless you confirm the arrival and are satisfied with the product the shop owner will not get the money. You can also get a refund if you want to return the purchase," she says.

"Online shopping provides a convenient and accessible platform for customers who want to shop for variety," says professor Lu Benfu, an expert on Internet economy at the School of Management, the Chinese Academy of Sciences. "It is especially viable given the current economic downtown."

China's growing Internet economy has demonstrated "not only sufficient confidence to withstand the financial crisis, but also promises substantial profits," Lu adds.

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