Research on E-Commerce Trends and Development to Enhance Online Customer Satisfaction in China

The emergence of the Internet in China as a general communication channel has opened the opportunity for E-Commerce to expand worldwide. In 1993, the concept of E-commerce was introduced by government. From 1995, e-business has been developed very rapidly in Mainland China and the first online transaction in China was done in 1996. In 1998, the E-commerce demonstration project between enterprises aiming to promote informatics of the national economy was initiated. The transfer of E-commerce from concept to practice started in 1999. The E-commerce models were expanded from B2C to C2C (auction online) and B2B (emerged at the end of 1999). The development of E-commerce showed a sound momentum in China. However, the fracture of the Internet bubble of 2000 seriously impacted the development of E-commerce. While with the rising of value-added service and the maturation of operating environment, E-commerce developed rapidly since 2002. China's international trade, fuelled by the activities of multinational enterprises in the country, has grown incessantly. Consequently, the need for effective technological innovation, including e-commerce solutions, has also grown. With China's entry into WTO, electronic commerce becomes an indispensable premise for China to build a modem, competitive, knowledge-driven economy, and integrate its national economy into an increasingly networked, knowledge-based global economy. From the percentage of netizen living in Mainland China, China's e-business starts to enter in to a new stage of development. According to the Survey Report on Internet Development in Mainland China released by CNNIC on July 2008, 63.29 million and 25.0% of global netizen in China favor online shopping. So, online shopping has risen to one of the top ten net applications. Even, with the improvement of the overall online shopping environment in China, the online shopping market especially for recent or future online customers need some improvement. According to CNNIC, the online shopping penetration rate of economically developed cities is even higher. In June 2007, the using rate of Shanghai netizen of online shopping reached 45.2%, and Shanghai became the city with the highest penetration rate of online shopping. The second city is Beijing, in which netizen using rate of online shopping is 38.9%. This research will focus on E-Business trends and development of Chinese electronics business to promote online customers satisfaction, also examines the current status of Internet, finds the factors that lead to the current situation in terms of government policy orientation, identifies the major barriers to E-commerce adoption in China, and proposes strategies toward greater success of E-commerce in China, especially for internet users. Nowadays, China starts to enter in to a new stage, otherwise it will be necessary to maintain, develop, and respond to the need of online customers, because there still some local constraint. We need to be aware that ecommerce is influenced by the environmental restraints, such as the government regulation, the payment system, and the logistics systems. Many organizations believe that e-business can provide opportunities to improve customer service operations by enabling them to get closer to the customer and enhance the organization-to-customer contact experience in the future.