China’s economic strength continues to increase gradually reflected in the promotion of national income. Higher national income into consumption, the economic growth will eventually lead to the growth of domestic demand engine". Of course, the conversion of national income into real consumption is a complex problem, including some systemic factors (such as medical and pension insurance, housing, etc.). At the same time, while improving the income environment, through the innovation of e-commerce based retail model, we can improve the consumption environment and promote the development of the domestic market.

Chinese retail intensive development history is short, the lack of large chain retailers to play the role of integration in many categories and regional markets, restrict the flow of goods across the region, increasing the channel cost. Such as clothing stores, toys, Home Furnishing soft outfit category, has not developed large chain of international common; in the small and medium-sized city, especially inland, due to the limited size of the market, the traditional chain business development model by economic constraints, is still dominated by the purchase of the limited capacity of the local small and medium-sized retailers. The result is a relatively simple commodity varieties, high commodity prices. Many Chinese consumers have been surprised to find abroad, the lower the price of foreign clothing, resulting in a large number of shopping abroad. In addition to tax factors, the retail price difference between Chinese and foreign goods is largely caused by the structural defects of the existing retail market.

see these problems and the resulting opportunities, many large international chains, such as UNIQLO, actively began to expand China gap. But as a whole, China is in urgent need of a more systematic driving force to accelerate the improvement of the retail environment.

The development of

e-commerce has provided the opportunity for the leaping development of China’s retail infrastructure. In developed countries, large chain stores in the development of online shopping, tend to be concerned about the impact of the existing business, and a higher degree of integration of suppliers also reduced the advantages of e-commerce as a low-cost integration platform. China retail industry in some of the "poor and blank", they provide convenience for the electronic commerce as the elements of the new retail development mode.

we expect that in the world’s major retail markets, e-commerce will account for the largest proportion of retail sales in china. The electronic commerce will leap development of traditional retail stores, for small and medium-sized city and small China category of consumer demand growth brought about system, in support of logistics and service platform construction facilities, accelerate the transformation of the consumption income increase. Its positive effects are reflected in several aspects:

first, consumers will be small and medium cities through the shopping on the electronic high-speed rail, and large and medium cities consumers are exposed to the same rich commodity. The McKinsey study shows that small and medium-sized city users in the electronic commerce enthusiasm is higher than that of first-tier cities, which reflects the existing retail channels in small and medium-sized city, the lack of network consumers for the city shows the life in the big city, they hope to catch up with the trend in commodity choice.