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January 18, 2010

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For shopaholics nothing beats Taobao

SHI Fang spends more than 4,000 yuan (US$588) a month shopping, but she rarely goes to shopping malls.

"Who needs a shopping mall if you have Taobao? I am a Taobaoer," says Shi, 28, a freelance writer in Beijing.

Taobao, China's largest online shopping site, has become an indispensable part of Shi Fang's life. She spends half of her monthly salary to Taobao, logging onto the Website every day, even when she doesn't need anything, simply to "stay updated on the latest item."

A growing number of Chinese Internet users like Shi have discovered the joys of 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 last year, 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 (US$146) 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 that the annual consumption from online shopping will reach more than 250 billion yuan this year, and 80 percent of this is carried out through Taobao.com, China's fast-growing e-commerce hub established in 2003. Taobao, meaning "hunting for treasure" in Chinese, is owned by Alibaba Group, which is also parent of Alibaba. com, a global e-commerce site for small and medium businesses connecting buyers with sellers.

Shi Fang is only one of the 159 million registered users at Taobao. She can find almost everything she needs from Taobao, from underwear to furniture, from candy to DVD player.

The biggest attraction for Shi Fang is the relatively low price for online goods, compared with those in brick-and-mortar stores.

Her favorite face cream costs 1,680 yuan for a 30ml bottle in the local shop, but a 10ml sample of the same brand only costs 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. Shi Fang says it's 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 chat with him or her through the messenger. You may receive some personalized service such as getting more samples or certain discounts," said Shi.

Also a faithful Taobaoer, Yang Fei is not as lucky as Shi Fang in terms of shopping online around the clock. Her company has blocked Taobao during working hours. "Now I can only have a glimpse on the Website during the one-hour lunch break and quickly place my order," said Yang Fei, 27.

While some may question the security of online purchases, Yang Fei gave a thumb-up for Alipay, the Taobao payment method launched by Alibaba Group in 2004 in partnership with leading banks in China. It enabled her to buy more than 200 items online since she registered in 2007.

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

Thanks to online shoppers like Shi Fang and Yang Fei, Taobao was expected to achieve 200 billion yuan in transaction volume in 2009.

The growing purchasing power of China's online shoppers has been noted by traditional brands from home and abroad. China's biggest Xinhua Book Store has an outlet on Taobao; Japan's casual wear seller UNIQLO also opened a shop last April; China Eastern, an airline company that operates from Shanghai, will soon set up an online ticket store on Taobao.com.

(The author is a Xinhua writer.)



 

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