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SUNDAY, SEPTEMBER 1, 2013 technology Chinese shoppers ready to become world leaders online Chinese retailers realign strategies to compete with online rivals SHANGHAI: China’s e-commerce market is to be on the web, whether you like it or not,” said for half of all Chinese retail spending in 10 years, expected to leapfrog that of the United States Serge Hoffmann, a partner at Bain and co-author from 6 percent now. this year to become the world’s largest by total of the report. “Whether you’re an online player or “Proliferation of smart devices mean every- customer spending, management consultancy an offline player, you need to have a meaningful, body is connected at all times, that’s one of the firm Bain & Company says, and could account for credible presence on the web.” While still a small key drivers for this,” said Studholme-Wilson. half of all Chinese retail spending within a portion of total revenues, the growth of online “Another problem you’ve got in China is that decade. The change in shopping habits comes as sales is far outpacing offline sales growth. retail is so damn expensive. Land costs and almost half of the country’s 1.3 billion population Haier Electronics Group, which operates an labour costs are all really hurting margins. now have direct access to the Internet, and of online stall on Alibaba’s business-to-consumer Whereas it’s actually very easy to set up a shop that number nearly 80 percent own smart site Tmall.com, saw its e-commerce revenue on Tmall and your costs are massively reduced,” phones or tablets. jump almost 500 percent to 633 million yuan, or he said. China’s e-commerce market has grown at an 2 percent of its total revenue, in the first half of average rate of 71 percent from 2009 to 2012, 2013, from 106 million yuan in the same period Infrastructure obstacles versus 13 percent in America, and its total size is last year. Its total revenue grew 10.2 percent. Logistics, however, pose a major obstacle to e- expected to reach 3.3 trillion yuan ($539.07 bil- Suning Commerce Group saw its e-commerce commerce development, and Alibaba is now lion) by 2015, Bain & Company said in a report business rise to 10.6 billion yun in the first half of working with Chinese logistics firms to improve released yesterday. Total spending by Chinese 2013, an increase of 101 percent on the same nationwide infrastructure and delivery networks, consumers on online shopping reached $212.4 period last year. said Shih. Gome Electrical Appliances, whose billion in 2012, compared to $228.7 billion in the Soon retail companies may have to take a leap online revenue now accounts for 5-6 percent of US, the report said. Chinese companies with of faith, shutting their bricks and mortar outlets its total earnings of 27 billion yuan, is changing retail outlets have had to realign their sales to reduce overhead costs and hope that cus- its retail strategy to accommodate the new wave strategies to compete with online rivals who tomers will turn to their online stores, said of online customers. The firm closed a total of 35 threaten to undercut them in an increasingly Nicholas Studholme-Wilson, a senior analyst at stores in the first half of this year, said Helen competitive market long dominated by e-com- Sun Hung Kai Financial in Hong Kong. Alibaba, Song, a spokeswoman for Gome. Now the com- merce company Alibaba Group, and others like whose Taobao customer-to-customer website is pany plans to continue moving away from its 360Buy Jingdong. the world’s 10th most visited according to web physical business to better supply China’s rapidly “It’s a massive change. It just means you need monitor Alexa, predicts e-commerce will account changing consumer habits. —Reuters Microsoft joins Google in US spying suit SAN FRANCISCO: Microsoft on Friday said that a battle to shed light on secret US government requests for TOKYO: A Google Japan employee displays the new “Nexus 7” tablet produced Internet user data would play out in court after failed by Taiwan’s computer maker Asus in Tokyo on August 26, 2013. The Nexus 7 peace talks. Microsoft and Google filed suits in federal will go on sale in Japan today. —AFP court in June, arguing a right to make public more infor- mation about user data requests made under the aus- pices of the Foreign Intelligence Surveillance Act. The Google Android executive technology titans agreed six times to extend the dead- line for the government to respond to the lawsuits, allowing time for negotiations that “ended in failure,” poached by China’s Xiaomi Microsoft general counsel Brad Smith said in a blog post. “To followers of technology issues, there are many NEW YORK CITY: China’s Xiaomi has response to an AFP inquriy. “We’ll miss him days when Microsoft and Google stand apart,” Smith poached a key Google executive involved in at Google and we’re excited that he is stay- said. “But today our two companies stand together... We the tech giant’s Android phones, in a move ing within the Android ecosystem.” Google believe we have a clear right under the US Constitution seen as a coup for the rapidly growing gives Android mobile operating system to share more information with the public.” Silicon Valley Chinese smartphone maker. Hugo Barra, software away free to gadget makers and Internet titans want to be able to provide users with bet- who was Google’s vice president in charge banks on making money from its search, ter insight into what information the government gets its of Android product management, said in a email, maps and other online services tai- hands on. blog post late Wednesday that he is joining lored to work well on the resulting devices. The issue caught fire after Edward Snowden, a former Xiaomi to help them expand their business International Data Corporation reported IT contractor at the National Security Agency (NSA), outside China, where they already have early this month that smartphones pow- revealed that US authorities were tapping into Internet some market share, but are well behind ered by Android software increased their user data, sometimes using national security letters that Samsung and Apple. global market share as iPhones lost ground bar companies from telling anyone about the requests. “After nearly 5 1/2 years at Google and in the absence of new models being US officials on Thursday said they would begin publish- almost 3 years as a member of the Android unleashed by Apple. Android’s share of the ing annual tallies of national security requests for team-the most amazing group of people smartphone market grew to 79.3 percent in Internet user data, but that step is not enough, according I’ve ever worked with in my life-I have the second quarter while that of iPhone to Smith. decided to start a new career chapter,” Barra slipped to 13.2 percent from 16.6 percent in “For example, we believe it is vital to publish informa- wrote. “In a few weeks, I’ll be joining the the same three-month period last year, tion that clearly shows the number of national security Xiaomi team in China to help them expand according to IDC figures. This image obtained from NASA August 27, 2013 shows from more than 40 their incredible product portfolio and busi- While analysts believe Apple is well posi- countries and 30 US states, people around the world as they shared more than demands for user content, such as the text of an email,” Smith said. He argued that, along with providing num- ness globally - as Vice President, Xiaomi tioned to recapture market share with the 1,400 images of themselves as part of the Wave at Saturn event organized by bers of requests, disclosures should provide context Global.” “I’m really looking forward to this release later this year of new iPhone mod- NASA’s Cassini mission. That event on July 19, 2013, marked the day the regarding what is being sought. “We believe it’s possible new challenge, and am particularly excited els, there is pressure for a low-price version Cassini spacecraft turned back toward Earth to take our picture as part of a to publish these figures in a manner that avoids putting about the opportunity to continue to help of the smartphone tailored for the China larger mosaic of the Saturn system. The images came via Twitter, Facebook, security at risk,” Smith said. drive the Android ecosystem.” Android is market. Barra’s move is a win for Xiaomi Flickr, Instagram, Google+ and email. The mission has assembled this collage “With the failure of our recent negotiations, we will the Google-developed smartphone operat- while likely to have little to no effect on from the shared images, using an image of Earth as the base image. —AFP move forward with litigation in the hope that the courts ing system that is battling with systems Google or the California company’s Android will uphold our right to speak more freely.” There has from Apple and Microsoft for dominance in team, according to S&P Capital IQ analyst been a wave of legal action since revelations in the the smartphone market. It is already offered John Kessler. media about the PRISM program, believed to collect vast on Samsung and other phones. But Xiaomi “Xiaomi is a really exciting and interest- Nintendo cuts amounts of phone and Internet data as part of efforts to staked out in just two years a 2.5 percent ing story when it comes to spartphones in protect national security.