internet shopping

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Facing the rising e-commerce wave, traditional retailers insist they have the advantage. Zhou
Jing, head of a department store in Shenzhen, says they are confident in their business.

"When it comes to general merchandise, we have the advantage. Apart from the fact that we
have rich categories of items for sale, consumers are able to experience the items they are
buying; they can touch the items and try them when shopping here."

Large one-stop shopping centers have been hit by the fast growing e-commerce.

Statistics show that the sales volume for 100 major traditional retailers nationwide in 2011 saw
an increase of about 18 percent over the previous year, but in the first half of 2012, the increase
was at about 11 percent. The numbers indicate that the increasing rate in traditional retail is
slowing but still growing.

Comparatively small stores are really feeling the sting. Cheng Yongjiang, department manager
for Yintai department store, has this to say:

"Online shopping is enlarging the market share. It's not just about e-commerce taking more
market shares from traditional retailers, like small shops, supermarkets and street shops; it's
also about e-commerce expanding the market."

With fierce competition between e-commerce and traditional retailers, China's consumer
market has been expanding.

According to Mckinsey & Company, an international consulting firm, China's individual
consumption will continue its rapid growth, with an increase of 9 percent year-on-year for 2012
to 2030.
Facing the growing market, both e-commerce and traditional retailers have been making
adjustments to adapt to the market. While these online shopping platforms fight their
competitors, traditional retailers are making efforts to start their own online business.

Wan Donghui is deputy secretary of China Electronic Commerce Association.
"More and more traditional retailers have started to make effort in "Offline to Online", which
means the traditional stores and shops strive to create their own online platforms. This is the
trend we have seen."

Expert Yi Shaohua from the Chinese Academy of Social Sciences says that, although online
shopping is going to play bigger role in the retail industry, it's impossible to replace traditional
retailers completely.

For CRI, I am Zhang Wan.