PESTEL 185 million made at least one online

PESTEL analysis is a marketing tool used by
organizations for analysis before launching of any new product or strategy to
increase the revenue of any existing product. The approach adopted in PESTEL
analysis is study of various aspects such as political, social, economical and
technological governing the product. The results are used in doing SWOT
analysis to ascertain the strength and weakness of the strategies to be adopted
by the management for successful marketing of the product. The method adopted
by Alibaba.com to study the political thinking in the country and related legal
framework governing e-commerce business, which was at a nascent stage, however
was adopting fast changes to suit this new business avenue. The company
observed that with the rapid economic growth, there were growing people having
Internet access who used the Internet to do online shopping. Many people were speeding
their monthly income on Tabaco, the largest B2C e-commerce website. In 2010,
China’s online shopping industry had a turnover of $80 billion, and grew 87%
year-on-year. China’s 420 million Internet users were spending around a billion
hours each day online and 185 million made at least one online purchase. The
study revealed that According the volume was expected to increase fourfold by
2015. And E-commerce has already been changing the way Chinese consumers were
thinking about shopping online. There was an element of more social than a hard
sell. Accordingly, the company focused more on highlighting the social
importance of the business.