E-Commerce Sites Have Chinese Consumers Tossing The Catalog
China’s 21st century shoppers are trading in their catalogs for Web sites as new and specialized e-commerce companies come of age and raise venture capital to meet the demands of the country’s growing consumer class.
In the first half of 2010, six venture-backed e-commerce companies in China raised at least $180 million to reach out to buyers increasingly comfortable with shopping online, according to reporting in VentureWire and local Chinese media outlets.
It’s a sign that investors have recovered from any concerns associated with the global financial crisis’ impact on China’s domestic merchants. In 2009, during the throes of the economic downturn, Chinese venture capitalists invested at least $57.3 million in eight reported deals, according to data from the industry tracker Zero2IPO.
Recipients of the new money range from specialized sites selling shoes, handbags, lingerie or non-perishable teas, wines, and spices to wholesalers and retailers of multiple products and online clothing stores, investors said.