China Mobile Retail Pestel

PESTEL analysis: Mobile retail

Political

China’s Thirteenth Five-Year Plan has been approved by the Central Committee of the Chinese Communist Party and will be finalized and fully released in March 2016. One of the major focus of this sets of plan is to promote innovation which included the “Internet plus” program. Internet Plus seeks to integrate big data, the Internet of Things, and mobile internet with manufacturing, and to promote e-commerce. Under this plan, the Internet is to be used to promote innovation and boost the primary, secondary, and tertiary sectors. Much of the growth in China’s Internet industry has been organic, coming from the private sector. Integrating the Internet into regular business processes requires somewhat better coordination, which is what this policy seeks to accomplish.

Economic

Figure1. GNI per capita (Current US$)

Figure2. GDP per capita (Current US$)

Figure3. GDP growth (annual %)

Above is the growth trend of the GDP per capita, GNI per capita and GDP annual growth of China since 2006, the country has sustained a continual rapid growth in term of GDP and GNI per person, indicating that each people is creating more and more values to the society resulting in the increase of the individual consumers’ purchasing power. However, it must be noted that the overall GDP growth rate are on a decline.

Social

Figure4. Internet users in China

Figure5. Percentage of each equipment used to access internet

With the rapid economic growth, there are growing people having Internet access and use the Internet to do shopping. The number of internet users in China rose to 668 million by June 2015. Another interesting statistic is the percentage of the smartphone owners whom use it to access internet grows by 3 percent from 2014 to 2015 to 88.9% contrast to PC or Laptop that only 68% and 43% uses them to access internet.

Figure6. Retail ecommerce sales in China

Figure7. Retail Mobile commerce sales in China...