Journal of International Business Research and Marketing
Volume 8, Issue 2, August 2023, pages 24-48
A Comparative Analysis of E-commerce Consumer Purchasing Decisions: Taobao in Shanghai and Daraz in Dhaka
DOI: 10.18775/jibrm.1849-8558.2015.82.3003
URL: https://doi.org/10.18775/jibrm.1849-8558.2015.82.30031 MD Jahir Uddin Khan, 2 Shouming Chen, 3 Yan Shumin, 4 Md Abid Hasan
1 School of Economics and Management, TongjiUniversity, China
2 School of Economics and Management, TongjiUniversity, China
3 School of Economics and Management, TongjiUniversity, China
4 College of Business, Sichuan University, China
Abstract: There is a lot of potential for expansion for the e-commerce business, but only if we can figure out what makes people buy online. Findings from this study shed light on the e-commerce decision-making process and the ways in which cultural, social, individual, and environmental elements influence it, with a focus on the Chinese market. We surveyed a total of 150 people in Shanghai and 100 people in Dhaka, Bangladesh, using questionnaires. The findings highlight two obstacles that have a negative effect on the online retail industry and customer choice when purchasing goods online. The study compares Taobao and Daraz, focusing on their respective operational systems, market positioning, and distinctions. The study also looks ahead to potential trends and suggests ways businesses might change their business models and create consumer and retailer regulations. Businesses that are just starting out in the e-commerce space can greatly benefit from these insights. The results demonstrate the importance of understanding the elements that influence customer choices and online purchasing behavior.
Keywords: E-commerce, Online shopping, Decision making process, Taobao, Daraz. BD, Impact factors
1. Introduction
1.1 Research Background
Developed countries like the US have shown a lot of interest in electronic commerce (EC), which has recently become a big deal around the world. With an increase in internet penetration from 24.5% to 48.9% in 2013 and an all-time high of 302 million online shoppers, China’s e-commerce business has been steadily expanding. With 506 million people using mobile devices, a 14.7% increase from the end of 2016, there has also been a noticeable boost in the utilization of mobile phones for online shopping. With an ever-increasing number of Chinese consumers making purchases online, e-commerce platforms provide both possibilities and threats.
There is huge potential for growth in the banking and economic industries in the South Asian nation of Bangladesh, which is home to almost 167 million people. A new era in Bangladesh’s banking sector has begun with the launch of online payment systems by the central bank. This allows citizens to utilize credit cards denominated in local currency for online purchases. Companies in Bangladesh have been able to move their operations online thanks to e-commerce, giving them access to customers all over the world.
1.2 Objective and research question
The primary objective of this research is to identify and analyze the factors that influence consumers’ decision-making processes on various internet platforms, with the aim of revising and consolidating the findings and providing constructive recommendations for enhancing online shopping experiences.
This research aims to address the following research questions:
- What factors influence online consumers’ decision-making processes?
- What suggestions are there to enhance risk perception and privacy measures for the Taobao online store and Darazbd.com?
Furthermore, this study delves into the e-commerce platforms of two different countries, highlighting the distinctions between these two diverse platforms. Therefore, we focus this paper on the e-commerce operations of these two countries, discussing their business processes, challenges faced, customer interactions, and market positioning in the e-commerce sphere.
2. Literature Review
This literature review explores the factors that significantly influence consumers’ online shopping decisions. It aims to examine the diverse behaviors and purchasing attitudes of individuals in society. The review focuses on factors related to online purchasing behavior, exploring co-factors and discussing topics such as online shopping behavior, structure, attributes, and the overall process. It also discusses the impact of cultural, social, personal, and environmental influences on online consumer behavior. The chapter aims to provide a comprehensive understanding of online consumer purchasing behavior.
Figure 1: Online Consumer Purchasing Behavior Factors
2.1 Online Consumer Purchasing Behavior
2.1.1 Online Shopping Behavior
People satisfy their buying demands by making transactions within the online marketplace, a practice known as online consumption or internet shopping. This procedure involves online logistics management, product delivery to customers, and financial transactions. Online shopping primarily facilitates routine purchase operations via internet-connected devices. This distribution method is crucial, and the internet plays a critical role in enabling these transactions, as the online shopping business grew in 2008 and 2009. Therefore, this research also takes into account the factors that motivate and influence people, as well as how these factors are shaped by society, culture, and the environment (Jahir et al,2024).
2.1.2 The Structure and Characteristics of The Chinese and Bangladeshi Online Shopping Populations
Among Chinese internet shoppers in 2013, 56.4% were in the age bracket of 20–29, according to a survey onthe country’s e-commerce industry. A significant number of these buyers have bachelor’s degrees or other advanced degrees, while 23.7% to 25.7% have only completed secondary school. A similarly wide demographic makes up Bangladesh’s internet shoppers: 30% are in their twenties, and 17% are in their thirties and forties. With a monthly income of Tk 10,000 to 20,000 and 16.88% of online customers earning more than Tk 30,000, the bulk of Bangladeshi internet shoppers are students.
2.1.3 The Online Shopping Process
Consumers go through five distinct phases, according to Kotler and Armstrong (2011): being aware of a need, researching available options, deciding amongst those options, making a final purchase, and taking care of business afterwards. Advertisements, referrals, and word of mouth are just a few of the places where consumers get their information. Factors beyond their control, like website design and friend recommendations, significantly influence consumer demand. According to Zhang (2013), online platforms help with comparison by establishing trust and offering post-purchase assessments, which tackle information asymmetry. Customers engage in after-sale service when they receive their purchased goods, compare them to the seller’s description, and offer suggestions for improvement. This kind of comment helps build the credibility of the online shop and points prospective buyers in the right direction (Van et al., 2003).
2.2 Impact factors
2.2.1 Cultural Factors
The online purchasing process is significantly affected by various influencing factors, including cultural, social, personal, and environmental factors. These factors exert considerable influence on how individuals engage in online shopping through various internet platforms.
Individual, cultural, psychological, and societal factors are the four main types of variables found to impact online shoppers’ choices, according to Kotler (2011). Social factors, such as personal recommendations, have a substantial influence on consumers’ online purchasing decisions. Factors unique to each person, such as their age, level of comfort purchasing online, level of concern for personal privacy, and perception of risk, are also important. Online shoppers, in contrast to their in-store counterparts, exhibit a greater focus on information, exhibit distinct attitudes and mindsets, and experience the influence of both sellers and the online shopping environment. In contrast to physical store prices, customers’ perceptions of intangibles like product cost and shipping fees vary while shopping online.
Figure 2: Shows The Impact Factors for Online Shopping
2.2.2. Social factors
Many scholars, including Aaronson, Baran, Aronson, Park, and Kim, have written extensively on the topics of social influence and cultural norm compliance. The rational action hypothesis drives people to comply with social norms in order to fit in and gain acceptance. Park and Kim (2003) assert that social variables influence traditional consumer behavior. These elements include friends, family, schools, and the media. But when it comes to buying things online, questions about the impact of real-life social factors on customers’ decisions and behaviors emerge. People’s attitudes and how they perceive social components influence their intentions to shop online, according to recent research.
2.2.3.Personal factors
Personal factors are one of the most important factors which is influences peoples sopping decisions making process on online. Therefore, personal factors also have some others factors which is basically exist in personal factors like as age, online shopping experience, privacy typology and also Risk Perception.
Figure 3: Pyramid Shows the Personal Factors of Online Shopping
1.Age
Researchers in China discovered that the demographic most likely to shop online is young adults (those between the ages of 20 and 29) (CNNIC, 2004). This points to a negative relationship between age and online purchasing habits, since younger people are more likely to spend money online. Some scholars, like Cao et al. (2007), suggest a positive association or find the correlation trivial (Rohm et al., 2004), but the research leaders of this thesis maintain a negative association. According to Brown et al. (2003), there is a notable difference between the internet shopping behaviors of older adults and younger individuals. Teens and young adults spend more time learning about things and are better able to synthesize knowledge from a variety of sources. On the other hand, once older adults go past the browsing stage, they are less likely to actually buy anything (Sorce et al., 2005). As a result, many age groups display unique tendencies and preferences when it comes to purchasing online.
2.Online shopping experiences
Online shopping practices include customer engagement with websites, the interactive process, and the inclination to buy online (Chang, 2005). According to Johnson et al. (2004), customers’ capacity to gather information greatly improves their online purchasing experiences. Factors such as browsing time and the quantity of items viewed can reduce store visits (Garbarino et al., 2007). These behaviors shape customers’ perceptions towards various websites, thereby influencing their overall online purchasing experience.
3. Privacy typology
While modern computing and IT have aided in the expansion of the internet, they have also brought up a plethora of new privacy and security concerns (Miyazaki et al., 2000). Concerns about websites requesting personal information have made many people wary about using the internet. The decision-making process becomes more complicated when consumers prioritize safeguarding their privacy, as Rohm and Milne point out (Miyazaki et al., 2000). According to Bellman et al. (2004), citing IBM research, many customers are wary about the safety of their personal information when they shop online.
4. Risk perception
The internet’s unique combination of digitalization, virtuality, and immediacy, which differs from traditional purchasing methods, heightens the perceived dangers of online transactions (Miyazaki et al., 2001). Shim et al. (2001) discovered an inverse relationship between customers’ propensity to shop online and their perception of potential dangers during online purchases. Consumers are more wary and always look for solutions to lessen the impact of potential dangers when they perceive them (Shim et al., 2001).
5. Environmental factors
Environmental factors are one of the most imCportant factors which is influences peoples sopping decisions making process on online. Therefore, personal factors also have some others factors which is basically exist in personal factors like as price, web design, products feature and also post purchase service.
Figure 4: Represent The Environmental Factors of Online Shopping
1. Price
Reibstein et al. (2002) pointed out that price is a major aspect that affects online shoppers’ decisions. Many shoppers prefer shopping online due to the lower prices and greater selection of products compared to traditional brick-and-mortar retailers. Another perk of purchasing online is that you can easily compare costs from multiple vendors without ever leaving your house. According to empirical research, a large percentage of online shoppers put price first, and one of the main reasons people shop online is because it’s more affordable (Reibstein et al., 2002).
2. Web design
According to Liu (2000), in the world of online shopping, the layout and features of a website are the most important factors in determining how customers act. Douban (2014) asserts that positive customer experiences on high-quality websites can boost online store sales by reducing online shopping time and influencing purchasing decisions. Based on an analysis of 37 unique structures used by 137 online merchants, Spiller et al. (1997) determined that six factors products, services, promotions, payment methods, convenience, and search capabilities—consistently impact the online sales process. Customers, in layman’s terms, prefer businesses that excel in these critical areas.
3. Product features
The variety of products offered by different online retailers strongly influences customers’ propensity to shop online. When it came to classifying products, Nelson (1974) distinguished between “search goods” and “experience goods.” Books and software, which are search goods, are products that customers can simply evaluate and that have a low risk associated with them. Therefore, it is not too difficult for people to make purchases of these kinds of things when shopping online.
4.post-purchase service
Logistics, product appraisal after sale, and protection against unintentional loss are post-purchase features of online shopping that have a significant impact on a consumer’s decision-making (Kuo et al., 2009). According to Rao et al. (2011), the timeliness of product delivery can greatly impact the happiness of online buyers and their likelihood of making subsequent purchases. When consumers perceive a lack of quality after-sale support, they may choose not to shop online (Chen et al., 2003).
1.E-commerce in China and Bangladesh
2.E-commerce in China
China has significant potential in the e-commerce market, driven by its substantial GDP of $1305.9 million and rapid expansion. However, challenges in distribution and delivery persist due to China’s vast size and low population density, particularly in the less developed central and western regions. Online goods are delivered primarily to urban areas through postal parcel and home distribution services. Despite only starting to improve internet access in 1994, China has made remarkable strides in this area, largely due to strong government support.
In China, the B2C (business-to-consumer) e-commerce market is still in its early stages, with Chinese merchants adopting e-commerce but not yet making it their primary channel for expanding their businesses. A lack of trust is one of the factors inhibiting the progression of B2C commerce in China, as consumers often favor established companies or brands.
China stands as the world’s largest e-commerce market, with projected sales of approximately $630 billion in 2015, surpassing the United States market by nearly 80%. By the end of 2015, China boasted 710 million internet users, internet penetration reached 51.7%, and mobile internet users numbered 656 million, growing by 36.56 million.
1.C2C (Consumer-to-Consumer)
2.B2C (Business-to-Consumer)
Alibaba Group, a Chinese e-commerce giant, dominates the Chinese e-commerce market, with Taobao as the largest C2C marketplace and Tmall as the leading B2C marketplace. Together, they control 80% of the e-commerce retail market in China, with Tmall accounting for nearly 60% of the B2C segment. JD.com also holds a significant 25% market share in the Chinese e-commerce market
| This is a list of some e-commerce sites in China. | Types of Business |
| Taobao | C2C and B2C |
| JD.com | B2C |
| Vip.com | B2C |
| Suning.com | B2C |
| QQ.com | |
| Tmall |
Table 1: Represents Some E-commerce Sites in China
Taobao is the largest online marketplace in China, facilitating both C2C and B2C transactions. JD.com, also known as Jingdong Mall, is a major player in the B2C e-commerce sector. Vip.com is the leading online discount retailer for brands in China, with collaborations with global brands. Suning.com operates a chain of retail electronics stores in the B2C segment. QQ.com, developed by Tencent, offers news integration, community collaboration, entertainment content, and essential services to Chinese users. Tmall’s trading platform represents brands and retailers, offering unique stores and product lines.2. E-commerce in Bangladesh
Bangladesh, a South Asian country with a population of 164.7 million, has embraced global trade and e-commerce due to its high population. The banking industry has embraced online payment methods, with nearly forty banks implementing online banking systems. Retailers in Bangladesh must stay ahead, as the growth in internet accessibility leads to an increase in online sales. The Online Shopping Directory in Bangladesh provides a comprehensive resource for e-commerce websites and top-notch stores. Dhaka offers a wide array of fashion clothing, shoes, and jewelry stores, while Chittagong focuses on online retail shops for desktops, laptops, tablets, and notebooks. A significant number of Bangladeshis reside overseas, expressing interest in making online purchases for gift shopping, sending essentials to their home country, or acquiring products for personal use abroad.
1. Internet Users and Infrastructure Development in Bangladesh.
E-commerce in Bangladesh emerged in the late 1990s and early 2000s, despite a lack of infrastructure and internet services. In 2013, the government approved international credit cards for purchases and online services, facilitated by wireless internet capabilities, WiMAX, and 3G rollouts in major cities. This led to faster internet speeds and increased online business growth. In 2016, the e-commerce sector experienced 67% growth in the first three quarters, with a total contract value of 3.59 billion takas. The internet penetration rate in Bangladesh tripled from 13.2% in 2016 to 80.43 million in 2017, with a 48.4% penetration rate.
2.3 Current Business Situation in Bangladesh
According to the Bangladesh e-commerce association (e-CAB), the following three types of businesses are popular in Bangladesh.
- Business-to-consumer (B2C)
- Consumer-to-consumer (C2C)
- Business-to-business (B2B)
Bangladesh’s B2C e-commerce sector is rapidly expanding, with Dhaka, Chittagong, and Gazipur contributing to 80% of total purchasers. The capital city, Dhaka, attracts the majority of traffic at 35%, followed by Chittagong at 29% and Gazipur at 15%. Other cities, such as Sylhet and Narayanganj, show promising growth. Bangladesh boasts over 2500 e-commerce websites and 8000 Facebook pages, indicating a 70% growth in the sector to reach $110–115 million. However, it currently accounts for only 0.7% of the country’s total retail marketplace. Some e-commerce sites are expanding into rural areas, extending their growth beyond urban areas. The consumer-to-consumer (C2C) business model is expanding rapidly in Bangladesh, with many websites adopting this approach, inspired by eBay. The C2C sector has seen consolidation, with Telenor Group acquiring CellBazar and Ekhanei.com acquiring OLX. B2B platforms in Bangladesh typically focus on providing industrial and diverse supply chain solutions. This is a list of e-commerce site names in Bangladesh.
Table 2: Represents Some E-commerce Sites in Bangladesh.
| List of e-commerce sites | Type of Business |
| Rokomari | B2C |
| Ajker deal | B2C |
| Daraz | B2C |
| Chaldal | B2C |
| Othoba | B2C |
| Pikabo | B2C |
Several major players, including Rokomari.com, Ajker Deal, Darazbd, Chaldal, Othoba, and Pickaboo, dominate Bangladesh’s e-commerce sector. These platforms offer a wide range of products, from books to electronics, beauty and health products, and sports equipment. Darazbd, a major player, offers over nine product categories. Other notable players include Chaldal, which provides online groceries and food; Othoba, the largest retail platform in Bangladesh; and Pickaboo, a B2C online store. The tech-savvy younger generation’s increasing reliance on technology and preference for online purchases has led to the growth of Bangladeshi e-commerce.
3. Research Methodology
The purpose of this investigation in the thesis is to permit the perfection of factors that obtainable in earlier chapter will influence different consumer’s online purchasing actions by analysis of response and equitable application of literatures.
The research of thesis is pointing out of answer the questions below:
RQ1. What factors influence online consumers’ decision-making processes?
RQ2. What suggestions are there to enhance risk perception and privacy measures for the Taobao online store and Darazbd.com?
Research can be defined as a systematic and logical process aimed at understanding, clarifying, or enhancing facts, activities, concepts, or data by making assumptions based on analysis (Saunder et al., 2012). It entails applying systematic techniques such as organized and methodical data collection, examination, and interpretation to seek answers to research questions (Saunders et al., 2012).
The primary research approach begins with the selection of research methods, broadly classified into two categories: quantitative research methods and qualitative research methods.
Quantitative research methods primarily involve the study of overall statistical outcomes obtained and analyzed, characterized by features like investigation, diagnosis, and prediction. Some examples of such studies are Rabeeu et al. (2021, 2022, 2023) and Abdul Rahim et al. (2024). The goal of using this approach is not to arrive at precise conclusions, but rather to identify the issue’s location, understand the situation, draw observations, and emphasize the findings. This research approach typically presents the collected data in some form of record (Saunders et al., 2012).
Quantitative research is a methodology or approach grounded in the social domain, designed to examine phenomena or variables that possess properties and varying attributes. This approach collects data through structured interviews, questionnaires, or surveys (Saunders et al., 2012).
Moreover, researchers can employ three methodological approaches: exclusively using quantitative methods, exclusively using qualitative methods, or a combination of both (Saunders et al., 2012). In this study, the approach solely relies on qualitative methods, utilizing open-ended questions in the questionnaire to gather comprehensive data and insights directly from respondents. While quantitative research is a deductive approach that builds theories by gathering numerical data through straightforward questions, qualitative research is an inductive approach that constructs theories by collecting non-numerical data through multiple-choice questions (Saunders et al., 2012).
Although both research methods can help mitigate data errors and ensure the accuracy of statistics and conclusions, the constraints related to time and the number of participants make qualitative methods more effective for this study. As a result, the study employs the qualitative research method.
1.Questionnaire Design
Determining what drives people to shop online is the driving force behind this study. According to Baike (2013), there are four primary parts to the questionnaire: introduction, background, screening, and major body.
The first part of the questionnaire includes an introduction and some descriptive remarks to set expectations and motivate people to fill it out. In order to build rapport with the respondents and set the tone for the remainder of the questionnaire, this section is vital.
Respondents’ age, gender, country, degree of education, marital status, family status, and occupation are some of the demographic details gathered in the background section. The ability to divide Chinese and Bangladeshi internet users into distinct demographics depends on this data. Understanding the respondents’ demographics enhances the study’s ability to assess the impact of these characteristics on online purchase behavior.
The survey includes a screening element to ensure the inclusion of only eligible individuals. We pre-selected respondents based on their online purchase habits on Taobao and Daraz.bd, making this portion unnecessary for the study. We hand-picked respondents to ensure their knowledge of the topic and potential to contribute meaningfully to the study.
The meat and potatoes of the survey are the main body, which asks questions on the four categories put forth by Kotler et al. (2011): personal, social, cultural, and environmental. To find out how these factors affect people’s propensity to shop online, we’ve crafted a series of questions. Questions may probe into topics like how social networks affect buying habits, how cultural norms shape preferences, how important individual preferences are when choosing a product, and how environmental factors like accessibility and convenience play a role.
We painstakingly designed the questionnaire to probe the complex web of factors impacting online shopping behavior, with an emphasis on social, cultural, personal, and environmental aspects. Its intended purpose was to shed light on the myriad ways in which these elements interact to shape people’s online shopping habits.
2. Data collection and sampling
The selection method for this questionnaire primarily focused on the suitability of the test group rather than following standardized sampling techniques (Saunders et al., 2012). Given that this thesis research pertains to the e-commerce markets in China and Bangladesh, the respondents chosen for the study needed to be Chinese and Bangladeshi. Obtaining a sufficient number of email addresses for individuals with significant experience in online purchasing on Taobao in mainland China and Daraz.bd in Bangladesh proved to be challenging. Therefore, I reached out to my friends and schoolmates in China and Bangladesh to participate in the survey. The majority of participants in my survey belong to a similar age group, and most of them are either students or employed individuals, as far as I am aware. However, there are also some respondents from different age groups with various job positions.
To distribute the questionnaire, I shared the link on various Chinese and Bangladeshi social platforms, such as WeChat, email, and Facebook, as well as conducted face-to-face surveys. The communication group had 150 participants from Shanghai and 100 from Dhaka, totaling 250 respondents for the survey.
A lack of consistent sampling methods allowed us to choose respondents based on their suitability. The study’s target participants were Chinese and Bangladeshi consumers who had shopped online at Taobao and Daraz.bd, respectively. In order to recruit participants, we contacted Chinese and Bangladeshi college students and service members. We also used social media sites like Facebook and WeChat to spread the word about the survey and collect more responses.
We thoroughly analyzed the survey data using Excel and SPSS to gain insights into online purchase behavior. In the beginning, we made sure that our data was accurate and representative of the population by collecting responses through online surveys in addition to in-person interviews. We meticulously entered the data into Excel and SPSS to organize and prepare the responses for analysis. We produced basic statistical measures such as means, medians, and standard deviations to summarize the data and provide an overview of the respondents’ characteristics. To further understand cultural and geographical differences in online shopping habits, we compared the answers of individuals from Bangladesh and China. We then graphically represented the results using graphs to better comprehend and convey the subtleties of online purchase behavior between the two groups.
4. Data Analysis and Suggestions
4.1 Correctness of Impact Factors
The data analysis and suggestion chapter will examine the impact of manipulating factors on online consumption choices, analyzing responses from respondents in different online consumption divisions, and identifying issues that hinder consumers’ online shopping choices, aiming to provide useful recommendations for Taobao and Darazbd platforms.
- Description of Sample and Analysis of Feedback
- Description of sample
There are 250 samples of questionnaire established on the social community of Wechat and also face to face asking questionnaire. There are no disqualified response or unfinished response being received during the process of collecting information probably due to the simply design of questionnaire. Only 18 questions have been set and first few questions shows the basic information about the respondents in order to set up a comprehensive fundamental for the analysis of influencing factors.
Figure 5: Which Age Group Are You Belong to?
The bar chart shows that there are five distinct age groups among Chinese and Bangladeshi internet shoppers. Online shopping is more popular among Chinese consumers (42% vs. 10%) among those in the 20–25 age bracket in Bangladesh. Only half of Bangladeshi consumers in the 25–30 age bracket shop online, compared to 81% in China. In comparison, 36% of Chinese consumers and 20% of Bangladeshi consumers in the 30-35 age bracket buy online. While no one from China is shopping online, 15% of Bangladeshi customers are in the 35–40 age bracket. Among consumers in Bangladesh over the age of 40, 5% use the internet to shop, whereas only 1% of Chinese consumers do the same. The figure reveals that younger age groups in both nations are more likely to shop online, with China showing greater percentages across most age categories.
Figure 6: Gender?
The bar chart illustrates the gender breakdown of Chinese and Bangladeshi internet buyers. The gender breakdown of Bangladesh’s internet shoppers is as follows: 70% men, 30% women, and 0% others. Among Chinese internet consumers, 88% are men and 62% are women; neither sex is overrepresented. According to this data, men make up the majority of online shoppers in both China and Bangladesh, with the former having a higher proportion of male consumers. In addition, 62% of Chinese customers are female, which is far more than Bangladesh’s 30% female shopping population.
Figure 7: Nationality?
The bar chart shows the breakdown of online shoppers in Bangladesh and China by nationality. Eighty percent of Chinese internet buyers are Chinese; twenty percent are from the “Others” group; and Bangladeshis make up zero of those buyers. 95% of Bangladesh’s online buyers are native Bangladeshis, 5% are “others,” and 0% are from China. According to the data shown in the graph, local residents make up the vast majority of online shoppers in both nations, while only a small fraction of the population shops online from beyond their borders.
Figure 8: Education Level?
Using the following four categories—students, employees, retirees, and unemployed—the bar chart compares the work status of online consumers in China and Bangladesh. With almost 70% in Bangladesh and 88% in China, students make up the biggest segment of online customers in both nations. The second-largest category consists of employees, who make up about 62% of the population in China and 25% in Bangladesh. Retirees make up approximately 5% of Bangladesh’s population and 20% of China’s population. Approximately 0% of the population in Bangladesh and an equally small percentage in China fall into the jobless category. Students make up the largest share of online shoppers in both nations, according to this chart. Employees and retired people make up lower shares.
Figure 9: Marital status?
With three distinct categories—married, single, and other—the bar chart contrasts the marital status of Chinese and Bangladeshi online customers. Individuals make up the vast majority of internet shoppers in both China and Bangladesh, at 60%. In both nations, married people account for 30% of internet shoppers. Ten percent of Chinese and Bangladeshi online consumers fall into the “other” category, which can include people who have never been married or who have had other unidentified life events. According to this data, the most common demographic for internet shoppers is those who are single, followed by married people, and finally, a smaller percentage falls into the “other” category.
Figure 10: Family Status
The bar chart shows how people in China and Bangladesh shop online depending on whether or not they have kids. While 20% of internet customers in both nations do have children, 80% do not. It is clear from this graph that single-parent households make up the bulk of Bangladeshi and Chinese internet buyers.
Figure 11: Professional Status?
Online buyers in Bangladesh and China are compared in the bar chart based on their work status. There are no jobless people among Bangladesh’s 70% internet buyers; 25% are workers, 5% are retirees, and 0% are students. Among Chinese internet buyers, 63% are students, 31% are workers, 6% are retirees, and 0% are jobless. Students make up the biggest demographic of online consumers in both nations, according to these statistics. Employees come in second, with retired and jobless people making up a lower percentage.
Figure 12: Where do you live?
Using four distinct geographic categories—city center, suburb, rural area, and others—the bar chart examines the online shopping distribution in Bangladesh and China. There is zero representation from the “others” group among Bangladesh’s internet buyers; 80% hail from city centers, 15% from rural areas, and 5% from the suburbs. There are 84% city center dwellers, 12.7 percent rural residents, 2.7 percent suburbanites, and 0.7 percent “others” among China’s internet buyers. Based on these data, it seems that metropolitan centers are home to the bulk of online consumers in both nations, with rural areas following closely after. Suburbs and other locations make up very small percentages of online shoppers.
4.1 Correctness of Impact Factors
Figure 13: Do you have online shopping experience?
The bar chart compares data from Bangladesh and China using “yes” and “no” labels for an unnamed issue. Bangladesh is just over 100%, while China is over 100% in the “yes” category. In both nations, the “no” category does not have any visible bars, suggesting that the number of replies to this question is nil or very small. That means most people in both countries said “yes.” But without more background information, it’s difficult to tell what these numbers mean, particularly the astronomically high percentage for China. Due to the possibility of an error or a special calculating method, further data is required for a correct interpretation of these figures.
Figure 14: How much time do you spend to buy products by using internet per day?
The bar chart shows the differences in online purchasing time between Chinese and Bangladeshi consumers over four-time intervals: half an hour to one hour, two to three hours, three to four hours, and four to five hours. In comparison to 63% of Chinese buyers, 30% of Bangladeshi shoppers spend this amount of time buying online between half an hour and one hour. During the two-to-three-hour window, 60% of Bangladeshi consumers shop online, compared to 27% of Chinese consumers. Ten percent of Bangladeshi buyers, compared to nine percent of Chinese customers, do their online shopping between three and four hours apart. Importantly, neither nation has a representative for the four-to-five-hour window. A large fraction of Bangladeshi consumers spends two to three hours online, but a larger percentage of Chinese shoppers spend shorter durations (0.5-1 hour) online, as seen in the chart. Neither country’s consumers spend four to five hours perusing e-commerce sites, and the 3-to-4-hour interval is underrepresented in both nations.
Figure 15: Which kind of products you usually purchase online?
In this bar chart, we can see how Chinese and Bangladeshi shoppers fared when it came to five different product categories: others, digital products, cosmetics, shoes, and clothing. Only nine percent of Chinese customers shop in the “others” category, while no buyers from Bangladesh are visible. While 51% of Bangladeshi customers buy digital products online, only 41% of Chinese consumers do the same. While 53% of Bangladeshi customers buy cosmetics, only 37% of Chinese consumers do the same. Online shoe purchases account for 56% of all Chinese purchases, compared to 46% of Bangladeshi purchases. Compared to 50% of Bangladeshi consumers, 75% of Chinese consumers buy clothing online. Online shoe and clothing sales are led by Chinese customers, while digital product and cosmetic sales are led by Bangladeshi consumers, according to the graphic. The “others” group is noticeably devoid of Bangladeshi customers.
Figure 16: Which kind of shop do you prefer to buy your products?
High credit rating, positive remarks, and low pricing are the three main characteristics that impact online shopping decisions for consumers in Bangladesh and China, as shown in the bar chart. In Bangladesh, a strong credit rating is important to 43% of consumers, excellent comments to 33%, and affordable costs to 24%. In China, a strong credit rating is important to 59% of consumers, excellent feedback to 61%, and affordable costs to 26%. Another interesting finding is that low pricing is a bigger deal for Bangladeshi consumers (30%) than it is for Chinese consumers (26%). This suggests that although both China and Bangladesh place a premium on a high credit rating and positive reviews, consumers in China place a somewhat higher premium on these characteristics, whereas consumers in Bangladesh place a higher premium on low prices.
Figure 17: Which situation will let you cancel your purchasing decision even if you like the products pretty much?
In this bar chart, we can see how the unsavory aspects of internet purchasing in China and Bangladesh differ. In Bangladesh, salespeople’s rudeness puts off 63% of customers, negative reviews from others put off 43%, the inability to return items that don’t fit the bill puts off 20%, and the difficulty of making a payment puts off 74%. In China, 59% of buyers are turned off by rude vendors, 65% by negative reviews, 45% by the difficulty of returning items that don’t live up to expectations, and 17% by the difficulty of making a payment. This graphic shows that although both nations are worried about sellers’ actions and return policies, the complexity of payment processes has a much greater impact on Bangladeshi buyers than on Chinese consumers, who are more swayed by negative reviews.
Figure 18: What factors will stimulate you to purchase products that you don’t need?
Sales promotion, bidding, limited-time holiday discounts, inexpensive pricing, new product promotion, and other tactics are compared in the bar chart to their respective effectiveness in China and Bangladesh. Promotions of new products (37%) and sales promotions (33% of the total) are the next most effective tactics in Bangladesh, behind time-sensitive holiday discounts (68% of the total) and low pricing (58%). At 5%, bidding is the strategy with the lowest effectiveness. Sales promotions (59%) and new product promotions (54%), followed by time-limited holiday discounts (44%) and low prices (7%), are the most successful techniques in China. Additionally, with a success rate of just 1%, bidding is the most ineffective tactic in China. While consumers in both China and Bangladesh are responsive to sales and holiday discounts, the chart shows that Chinese customers are more open to promotions for new products and that Bangladeshis are more swayed by low pricing.
Figure 19: Which factors will discourse you to purchase online?
The bar chart contrasts the worries of Chinese and Bangladeshi internet customers in various categories. Among Bangladeshi consumers, 65% are anxious about the ease with which their personal information can be leaked, 69% are wary of purchasing counterfeit goods, 7% are worried about the speed of delivery, and 60% are unhappy with the quality of service they receive after the purchase. On top of that, not a single customer from Bangladesh claimed to be tech-illiterate. In China, 36% of buyers are anxious about their personal data being disclosed, 14% are afraid to purchase counterfeit goods, 63% are worried about sluggish shipping, 53% are computer illiterate, and 35% are unhappy with subpar customer support after the purchase. Notably, not a single Chinese customer has ever admitted to being unable to operate a cell phone. This chart shows that although both Bangladeshi and Chinese consumers are worried about having their personal information disclosed and purchasing counterfeit goods, the latter are more troubled by slow logistics and a general lack of computer literacy, while the former are more impacted by poor after-sale service.
Figure 20: Which factors will promote you to purchase online?
The bar chart analyzes many aspects affecting online purchasing preferences in Bangladesh and China. In Bangladesh, 79% of buyers are driven by low costs, 60% by ease of use, 47% by time savings and product variety, 13% by speedy shipping, 1% by detailed product descriptions, and 0% by the aesthetics of the website. In China, 45% of buyers are influenced by low costs, 64% by ease of use, 63% by time savings and product variety, 21% by speedy shipping, 5% by detailed product descriptions, and 3% by the aesthetics of the website. While both Bangladeshi and Chinese consumers enjoy the convenience and low prices of online shopping, the chart shows that Chinese consumers are more concerned with the range of products and the ease of use. Personalized product details and website aesthetics have little impact in any country, but speedy shipping service is highly valued by Chinese consumers.
Figure 21: How do you think about the other people’s comments?
The bar chart illustrates the impact of comments and shopping preferences on Chinese and Bangladeshi internet customers. Some 45% of Bangladeshi shoppers place a high value on customer reviews, 35% say they consider reviews while making a purchase, and 20% say they only patronize the best stores. In China, 34% of buyers place a high value on customer reviews, 51% say reviews influence their purchase decisions, and 15% say they only shop at good stores. Although comments have a substantial impact on purchasing decisions in both Bangladeshi and Chinese consumers, the figure shows that the former are more affected by comments made by others and the latter are more concerned with their own opinions. A few more people in Bangladesh than in China choose to buy at high-quality stores.
Figure 22: Which payment system do you like to use for online shopping?
Online payment options in Bangladesh and China are compared in the bar chart. These options include Alipay, WeChat, Bkash, Ucash, and bank card payments. While Alipay and WeChat do not have a substantial user base in Bangladesh, bank card payments are preferred by 60% of consumers, Bkash by 25%, and Ucash by 15%. Among Chinese consumers, 61% favor Alipay, 30% utilize WeChat, and 9% use bank cards; Bkash and Ucash do not have a big following. Based on this data, it’s clear that Bkash and bank cards are the two most popular payment methods in Bangladesh. On the other hand, Alipay and WeChat are far more popular than bank cards in China.
4.1.3 Comparison of Results from China and Bangladesh
Several insights are revealed by comparing the online shopping behaviors of Chinese and Bangladeshi consumers using various charts. In comparison to 50% of Bangladeshi shoppers, 81% of Chinese shoppers in the 25–30 age bracket chooses to do their shopping online. With 88% in China and 70% in Bangladesh, men make up the vast majority of shoppers in both nations. When it comes to nationality, the vast majority of Bangladeshi customers are also Bangladeshis, while 80% of Chinese shoppers are native Chinese. As far as education levels go, 65% of Chinese consumers hold master’s degrees or above, compared to 50% in Bangladesh. Sixty percent of internet buyers in both nations are not in committed relationships. According to family status, eighty percent of buyers in both nations are childless. With 70% in Bangladesh and 63% in China, students make up the biggest segment of online customers in both nations. Compared to 80% of Bangladeshis, 84% of Chinese internet buyers reside in urban areas. When it comes to the amount of time spent shopping online, 60% of Bangladeshi shoppers spend 2-3 hours, whereas 63% of Chinese shoppers spend 0.5-1 hour. Clothing (75%) and shoes (56%) are the most popular products among Chinese consumers, whilst digital products (51%) and cosmetics (53%), among Bangladeshi customers, are in the lead. Distinct demographics, levels of education, geographic regions, and product preferences all play a role in shaping online purchasing habits and preferences. There are clear differences in customer preferences and difficulties when looking at online purchasing trends in Bangladesh and China. When comparing the two countries’ online shopping habits, it’s interesting to note that 56% of Chinese consumers buy shoes and 75% buy garments, whereas only 50% of Bangladeshi consumers do the same. When comparing online purchases of digital products, 51% of Bangladeshi consumers and 41% of Chinese consumers are in agreement. Similarly, 53% of Bangladeshi consumers and 37% of Chinese consumers buy cosmetics online, respectively. In comparison to Bangladesh, where factors influencing online shopping include inexpensive pricing (26%), high credit rating (43%), and pleasant remarks (61%), the aforementioned factors have a greater impact on Chinese online shoppers (59% vs. 24%). The most common complaints from Bangladeshi customers concern payment procedures (74%), whereas the most common complaints from Chinese customers concern unfavorable reviews (65%) and product returns (45%). Also, different countries have different approaches to advertising. For example, whereas 68% of Bangladeshis prefer time-sensitive holiday discounts to 44% of Chinese, 59% of Chinese prefer sales promotions to 33% of Bangladeshis. Different countries’ priorities show in their concerns about internet shopping: 36% of Chinese customers are worried about counterfeit items while 65% of Bangladeshi consumers are worried about personal information leakage. While 53% of Chinese consumers are worried about computer illiteracy, 63% of Chinese consumers are worried about delivery speed, while only 7% of Bangladeshi consumers share these concerns. In Bangladesh, low prices are a major factor (79%) when making a purchase, whereas in China, ease of use (64%) and time savings (63%) are equally important. China has a far higher percentage of consumers who rely on customer reviews (51% vs. 35%) when making a purchase decision. In China, digital payment methods such as Alipay and WeChat account for 61% and 30% of the market, respectively, while in Bangladesh, bank cards account for 60% of the market.
| Category | Bangladesh | China |
| Age Bracket (25-30) Shopping Online | 50% | 81% |
| Gender Majority (Men) | 70% | 88% |
| Nationality (Native Shoppers) | Majority are Bangladeshis | 80% Native Chinese |
| Education Level (Master’s Degrees or Above) | 50% | 65% |
| Relationship Status (Not in Committed Relationships) | 60% | 60% |
| Family Status (Childless Buyers) | 80% | 80% |
| Occupation (Students) | 70% | 63% |
| Residency (Urban Areas) | 80% | 84% |
| Time Spent Shopping Online | 2-3 hours (60%) | 0.5-1 hour (63%) |
| Popular Products (Clothing) | 50% | 75% |
| Popular Products (Shoes) | 46% | 56% |
| Popular Products (Digital Products) | 51% | 41% |
| Popular Products (Cosmetics) | 53% | 37% |
| Factors Influencing Online Shopping (High Credit Rating) | 43% | 59% |
| Factors Influencing Online Shopping (Positive Remarks) | 33% | 61% |
| Factors Influencing Online Shopping (Low Pricing) | 24% | 26% |
| Unsavory Aspects (Difficulty in Making Payments) | 74% | 17% |
| Unsavory Aspects (Negative Reviews) | 43% | 65% |
| Unsavory Aspects (Difficulty in Returning Items) | 20% | 45% |
| Unsavory Aspects (Rude Salespeople) | 63% | 59% |
| Sales Promotion Tactics (Time-Sensitive Holiday Discounts) | 68% | 44% |
| Sales Promotion Tactics (Low Pricing) | 58% | 7% |
| Sales Promotion Tactics (New Product Promotions) | 37% | 54% |
| Sales Promotion Tactics (Sales Promotions) | 33% | 59% |
| Concerns (Personal Information Leakage) | 65% | 36% |
| Concerns (Purchasing Counterfeit Goods) | 69% | 14% |
| Concerns (Delivery Speed) | 7% | 63% |
| Concerns (Poor After-Sale Service) | 60% | 35% |
| Concerns (Computer Illiteracy) | – | 53% |
| Factors Affecting Online Purchasing (Low Costs) | 79% | 45% |
| Factors Affecting Online Purchasing (Ease of Use) | 60% | 64% |
| Factors Affecting Online Purchasing (Time Savings and Product Variety) | 47% | 63% |
| Factors Affecting Online Purchasing (Speedy Shipping) | 13% | 21% |
| Factors Affecting Online Purchasing (Detailed Product Descriptions) | 1% | 5% |
| Factors Affecting Online Purchasing (Website Aesthetics) | 0% | 3% |
| Impact of Comments (High Value on Customer Reviews) | 45% | 34% |
| Impact of Comments (Reviews Influencing Purchase Decisions) | 35% | 51% |
| Impact of Comments (Only Patronizing the Best Stores) | 20% | 15% |
| Online Payment Preferences (Bank Cards) | 60% | 9% |
| Online Payment Preferences (Bkash / Alipay) | 25% | 61% |
| Online Payment Preferences (Ucash / WeChat) | 15% | 30% |
Table 3: Comparison Result of China and Bangladesh
- Comparison between Chinese Taobao and Darazbd.com Bangladeshi an e-commerce
- Overview of Daraz Bangladesh:
Since its establishment in 2013, Rocket Internet’s Daraz Bangladesh has dominated the e-commerce business in Bangladesh. In order to compete with well-known brands in emerging markets, the company is increasing its online presence and offering a wide variety of items. Low internet literacy is a problem for Daraz, even if investors are flocking to Bangladesh because of the country’s expanding population. Expanding citizens’ access to the internet is one way the government is trying to prop up the online retail industry. Daraz, which follows a business-to-consumer model similar to Amazon, helps consumers and sellers’ complete transactions. Fast shipping is available on many things, including apparel and accessories, and the site accepts a number of handy payment methods, including major credit cards and cash on delivery. In order to keep up with customer demands, Daraz is always adding new products to its catalog and provides a seven-day return policy with some exceptions.
- Overview of Taobao China:
Among the many online services offered by the Chinese corporation Alibaba Group—which has been around since 1991—are business-to-business (B2B), consumer-to-consumer (C2C), peer-to-peer (P2P), electronic payment (EMP), shopping search engine (SSE), and data-driven computing (DDS) options. The company’s strong financial, logistical, and technical infrastructure guarantees a dependable flow of information. Its ecosystem encompasses many platforms for marketing and sales, including Taobao, Tmall, Aliexpress, Alibaba, and 1688. Cainiao Network provides logistics solutions, while Alibaba Cloud offers advanced data management. Taobao is the biggest online marketplace in China. Founded in 2003, Taobao provides a diverse range of products such as clothing, shoes, electronics, health and beauty aids, children’s items, and more.
- Positional, Users Penetration and Products Categories Difference between Two Countries:
Products Categories Difference Between Two Countries e-commerce websites Darazbd&Taobao
Table 4: Products Categorical difference between two Countries
| Bangladesh-Daraz | China-Taobao |
| Men’s Fashion | Apparel (Woman’s and Men’s Apparel) |
| Women’s Fashion | Shoes and Bags (Women’s shoes, Men’s shoes, Women’s Bags, Luggage) |
| Mobile and Tablets | Garments and Accessories |
| TV, Audio and Gaming | Sporting Goods |
| Appliances | Jewelry and Watches |
| Computing | Electronic Products |
| Beauty and Health | Home and Office Appliances |
| Home and living | Health and Beauty |
| Sports and Fitness | Children, Baby and Pregnancy |
| Food and Drinks | |
| Building Materials and home Decoration | |
| General Merchandise | |
| Automobile and Motorcycle | |
| Entertainment and Culture |
Table 4 shows that Taobao, a Chinese e-commerce platform, offers a wider range of product categories compared to Daraz Bangladesh. Taobao covers various categories such as building materials, home decoration, food and beverages, general merchandise, automobiles, entertainment, and cultural products. These categories are not available on Daraz Bangladesh’s platform, resulting in a broader selection for users.
Table 5: shows that number of internet users in Asia-pacific as of January 2019 by Country
| Country name | Position | Internet Users |
| China | First | 802million |
| India | Second | 560mllion |
| Indonesia | Third | 150million |
| Japan | Fourth | 118.9million |
| Bangladesh | Fifth | 91.82million |
| Philippines | Sixth | 76million |
| Vietnam | Seventh | 64million |
Source: Number of internet users in selected Asia-Pacific Countries 2019
There are a lot of people using the internet in the Asia-Pacific region. The most popular countries in this region are China (802 million), India (560 million), Indonesia (150 million), Japan (152 million), and Bangladesh (100 million). While competing with regional and global giants, China’s e-commerce business reigns supreme in the region. Despite ranking sixth, Bangladesh’s e-commerce sector is up against formidable competition from China. International behemoths like eBay and Amazon are facing stiff competition from upstart Chinese e-commerce platforms like JD.com and Taobao.
Figure 23: Internet Penetration Rate of Bangladesh and China Last Three years
Source: CNNIC (China Internet Network Information Center)
From 2016 to 2018, there was a notable disparity in the percentage of internet users between Bangladesh and China, as shown in the graph. In 2016, China’s penetration rate was 53.20%, while Bangladesh’s was 13.20%. In 2018, the rate in Bangladesh was 52.77%, and in China it was 59.60%, for a disparity of 7.17%. This disparity can be attributed to China’s larger geographical expanse and population of China are the reasons behind this disparity. On top of that, Chinese e-commerce platforms have dominated the Asian e-commerce space and are making waves internationally.
- Market Positioning of Daraz and Taobao
Companies use market positioning as a strategy to meet the needs of their stakeholders, including internet consumers, external consumers, franchise stores, outsourcing services, and contract manufacturing. The company’s commercial worth and transaction cost determine the process of market positioning, ensuring that the chosen methods meet the needs of stakeholders.
Table 6: Target Customer of Daradzb
| Consumer part | Another is from their own |
| Understand the problem that Daraz Bangladesh can solve | objective clients are male or female |
| Point the picture of entire consumer | They care about the consumer’s age |
| Who will gain from the value that Daraz Bangladesh offer to the customer | They care about consumers living places |
| Think about your market again and again. | They care about consumers profession |
| Look internally at the company’s ability to perform task | They care about their income |
| What else is available in the market to cover | They also care about different parts of consumers living matter |
Table 7: Comparative Analysis of Taobao and Daraz
| Users | Users Demand | |
|
Buyers
|
Consumers with clear buying aims and demands
|
1.Rapidly find out search process
2.Have high demand son the accuracy of key words 3.Can find out desired commodities in short time |
| Consumers with buying potential but not clear aims | 1. Find their attracted commodities in short time
2.The goods classification is clear 3.Have high requirements on operator interface 4.Share the comments of other shoppers |
|
| Sellers | Taobao shopkeepers | 1.Modest methods of registration, log in and shop management
2. Suitable goods distribution channels 3.The advertisement and promotion commodity |
2.The Market Positioning of Daraz
Daraz Bangladesh is a frontrunner in the e-commerce industry, renowned for its low prices, simple navigation, top-notch customer care, and authentic name-brand merchandise. Thanks to their strategic alliances, Daraz is able to provide discounts of up to 73%. Transparency, efficient information infrastructure, discount vouchers, and effective positioning are helping it quickly rise to prominence, despite its relative youth. Despite the company’s rising profile on a global scale, it remains focused on strengthening its customer base.
- Target Customer of Daraz
Younger people and those in Dhaka with middle- to upper-class incomes who are interested in fashion are Daraz’s target customers. They utilize social elements, such as special occasions, to offer exclusive specials and diversify their marketing depending on lifestyle and personality. Their goal is to increase the number of customers across Bangladesh.
- The Market Positioning of Taobao
Alibaba Group’s 2003 investment propelled Taobao to prominence in China’s e-commerce sector. With a 95.1% share of the C2C market and an 85.1% share of mobile shopping in 2014, it boasted 500 million registered users and 120 million daily active users. With its extensive trading ecosystem and more than one billion products, Taobao was able to generate 4,677,000 employment opportunities. Honesty, customer service, teamwork, drive, and integrity in the workplace are key values.
- Product Positioning of Taobao
Taobao caters to three primary user types: individuals seeking to establish a business or generate extra revenue,shoppers with specific product preferences, and shoppers with general purchasing wants but nospecific needs.
Table 8: Comparative Analysis of Taobao and Daraz
| Aspect | Taobao (China) | Daraz (Bangladesh) |
| Foundation Year | 2003 | 2013 |
| Parent Company | Alibaba Group | Rocket Internet |
| Market Position | Largest e-commerce platform in China | Leading e-commerce platform in Bangladesh |
| Product Range | Wide range including apparel, electronics, home goods, automobiles, etc. | Primarily fashion, electronics, home and living, beauty and health |
| Payment Methods | Alipay, WeChat Pay | Cash on delivery, bank card payments, mobile wallets (bKash) |
| Logistics | Extensive logistics network with advanced technology | Growing logistics network, mainly relies on third-party logistics |
| User Base | 500 million registered users, 120 million daily active users | Rapidly growing user base, mainly younger and middle to higher-income |
| Market Share | 95.1% in C2C market, 85.1% in mobile shopping | Leading position but faces competition from local and international platforms |
| Trust and Security | High trust in platform security and peer reviews | Trust is developing, concerns over product authenticity and privacy |
| Social Influence | Strong reliance on peer reviews and social proof | Peer reviews less influential, focus on product authenticity |
| Motivators for Shopping | Variety, convenience, lower prices, holiday discounts | Product authenticity, privacy, price, convenience |
| Technology Adaptation | Rapid adaptation to digital payments and new technologies | Slower adaptation, preference for established banking methods |
| Customer Demographics | Tech-savvy younger demographic with high internet penetration | Diverse demographic, significant concerns about online security |
4.1.4 Dissection of Variances and Their Consequences
Position in the market: With support from Alibaba Group since 2003, Taobao has grown into the largest online marketplace in China, serving a vast number of customers. The rapid rise of digital natives and internet users in Bangladesh has helped Rocket Internet’s 2013 launch Daraz become the country’s go-to platform for online commerce.
Among Taobao’s many offerings are a number of specialty products, such as automobiles and building materials. With a smaller assortment than Taobao, Daraz caters to the Bangladeshi market by specializing in trendy apparel, gadgets, and homewares.
Alipay and WeChat Pay are two of the most well-known and reliable digital payment systems in China. Consumers’ reluctance to use digital payment options, such as cash on delivery or traditional bank cards, reflects a lag in the acceptance of these alternatives among Daraz shoppers.
Logistics: Taobao has an extensive and advanced transportation network, which allows for rapid and dependable deliveries. As Daraz grows, it depends on third-party logistics providers, which can impact the punctuality and reliability of deliveries. Daraz needs to put money into its logistics infrastructure so it can match the expectations of its growing customer base.
Taobao’s target demographic is a generation of young people who are comfortable making digital purchases. Daraz’s larger user base consists of younger people, as well as those in the middle and upper classes. On the other hand, many in Bangladesh still have reservations about using the internet.
Thanks to its well-established security procedures and peer reviews, Taobao has earned the trust of a large number of customers. Consumers care more about product authenticity and privacy when shopping on Daraz. There has to be more openness about Daraz’s security procedures and efforts to create confidence.
Reasons People Shop on Taobao: Low prices, a wide selection, ease of use, and sales and promotions are the main draws for Chinese shoppers. Customers of Daraz value simplicity, affordability, privacy, and authenticity. These drivers are indicative of the various consumer interests and e-commerce stages in each market.
Taobao buyers quickly adopt digital payment systems and other innovations due to their receptivity to new technology and extensive internet access. It is recommended to introduce digital innovations gradually, with an emphasis on establishing trust, because Daraz users tend to be more apprehensive and prefer traditional banking processes.
4.1.5 Implication for E-commerce Markets
China:
Taobao is the undisputed leader in China’s e-commerce industry thanks to its vast selection of products, top-notch logistical network, and very high degree of customer confidence. Customers are even more satisfied as a result of the quick adoption of new technology and digital payment solutions. The result is an e-commerce scene that is both inventive and highly competitive.
Bangladesh:
In order to win over Bangladeshi consumers, Daraz must prioritize trust-building and product authenticity. Because the adoption of digital payments is slower than expected, there must be a sustained effort to increase digital literacy and trust in online transactions. Daraz might become a major participant in the Bangladeshi e-commerce sector as the business develops and internet penetration rises. The company could broaden its product selection and improve its logistics.
Conclusion
Examining consumer decision-making on two prominent e-commerce platforms—Taobao in China and Daraz in Bangladesh—this study draws attention to the commonalities and distinctions in consumer behavior, preferences, and market difficulties. High internet penetration, a well-developed transportation network, and the widespread adoption of digital payment platforms such as Alipay and WeChat are the main factors propelling China’s e-commerce business to new heights. When it comes to buying shoes and clothes online, Chinese shoppers place a premium on product reviews and quality. The variety and ease of internet shopping are the key draws for Chinese consumers. The e-commerce industry in Bangladesh, on the other hand, is relatively new but has enormous potential for expansion as the country’s internet penetration rates rise. In contrast to China’s massive embrace of digital payment methods, Bangladeshi customers place a premium on privacy and product authenticity out of fear of counterfeit goods. Two factors primarily drive online buying in Bangladesh: price and convenience.
Despite Taobao’s benefits in product diversity and smart technology, the platform could be even better if the company paid more attention to focused user engagement and fixed privacy issues. Daraz has established credibility and expanded its customer base in Bangladesh by ensuring product authenticity through rigorous quality control measures and solid partnerships with established brands. To make things better, Daraz can put money into better after-sale services and accept digital payments, which will increase consumer happiness and loyalty. While both Taobao and Daraz offer detailed product descriptions and review systems, Taobao has an advantage in logistics due to its extensive network, whereas Daraz has to find more dependable partners to increase its delivery capacity.
Daraz and Taobao serve different markets with different consumer behaviors and tastes, but they both have a lot of room to develop. They may improve the online purchasing experience, gain customers’ trust, and boost market growth by employing solutions that are unique to their difficulties. Future research should further investigate the impact of emerging trends and technology on customer behavior in online shopping.
- Discussion and Finding
The apparent invisibility and virtual nature of the internet influence consumers’ online shopping decisions through various cultural, social, personal, and environmental aspects. Chinese consumers value long-term connections with retailers more than their Bangladeshi counterparts, a reflection of cultural differences between China, the United States, Europe, and Bangladesh. Age, level of comfort with online purchasing, level of privacy concern, and level of risk knowledge are all personal elements. Previous online buying experiences positively impact customers’ acceptance, loyalty, trust, and inclination to buy, with younger consumers placing a greater emphasis on product information. Those who value their privacy are more likely to exercise caution when making purchases online.
Several environmental elements can influence consumer behavior. These include pricing, website design, product features, and evaluations
conducted after the purchase. Websites that are simple to use and have competitive prices encourage customers to shop online. Online shopping works better for products like apparel because of the reduced perceived risk. A well-packaged after-sale experience boosts both customer satisfaction and propensity to buy.
The essay makes passing reference to cultural differences, but it doesn’t go into depth on how these differences affect internet shopping patterns in China and Bangladesh. Understanding the data and providing a thorough analysis requires a greater emphasis on cultural backgrounds.
Table 9: Cultural Influence on Online Shopping Behaviors in China and Bangladesh
| Cultural Aspect | China | Bangladesh |
| Trust in Online Shopping | High trust in established platforms like Taobao. Prioritizes product reviews and ratings from other buyers. | Concerns about counterfeit products and privacy. Trust is still developing. |
| Payment Preferences | Prefers digital payment systems like Alipay and WeChat Pay. | Prefers traditional bank card systems over digital payments. |
| Motivators | Attracted by lower prices, variety, and convenience. Values holiday discounts. | Values product authenticity and privacy. Main drivers are price and convenience. |
| Social Influence | Strong reliance on peer reviews and social proof. | Less emphasis on peer reviews compared to China. |
| Shopping Frequency | High frequency due to convenience and trust in platform security. | Growing frequency as trust builds. Currently more cautious. |
| Technology Adaptation | Rapid adaptation to new technologies and digital payment methods. | Slower adaptation to digital payments; prefers established banking methods. |
| Consumer Demographics | Younger demographic with high internet penetration. | Diverse demographic, but with significant concerns about online security. |
Customers in China put a lot of faith in well-known e-commerce sites like Taobao, where they can read extensive reviews and ratings and even believe friends’ suggestions. People feel more at ease when they shop online because of this cultural norm. On the other hand, when it comes to privacy and counterfeit goods, Bangladeshi consumers prioritize the security and authenticity of products. While Chinese customers are more likely to use digital payment systems like Alipay and WeChat Pay, those in Bangladesh are more likely to use traditional bank cards, indicating a slower acceptance of digital payments.
Online holiday sales and promotions saw a surge in traffic from Chinese consumers, driven by lower costs, a wider range, and the ease of purchasing online. Honesty, discretion, convenience, and reasonable prices are of the utmost importance to Bangladeshi consumers. China places a premium on social evidence and peer reviews when making purchases, but Bangladesh places a higher premium on privacy and product validity.
Online shopping is incredibly popular among Chinese consumers due to their high level of trust in platform security and ease. Despite customers’ reluctance, more and more people in Bangladesh are putting their faith in online shopping. Chinese customers’ openness to innovation and the widespread availability of the internet contribute to their rapid adoption of new payment methods and technology. On the other hand, Bangladeshi consumers tend to favor traditional banking methods, indicating a preference for the status quo.
With their high internet usage and openness to new online buying methods, China’s younger population is driving the e-commerce business. Despite the country’s diverse population, internet safety is still a major problem in Bangladesh. However, as more and more people get used to buying online, the e-commerce industry is booming. Taobao and Daraz, two online marketplaces, may do a better job of satisfying their customers’ needs and fostering trust by learning about and accommodating different cultures.
- Suggestion for Taobao online store &Daraz.bd in terms of obstacle
Taobao and Daraz have a number of options at their disposal to improve their platforms and boost growth. To increase customer engagement and happiness, Taobao should prioritize interactive, tailored marketing that makes use of artificial intelligence and data analytics. To resolve privacy issues, we will enhance security by implementing advanced encryption and guaranteeing compliance on a worldwide scale. Customer confidence and audience reach can be enhanced by broadening product categories and improving return policies.
Daraz should prioritize establishing credibility and trust by working with respectable businesses, executing rigorous quality checks, and highlighting these initiatives in their advertising campaigns. Customers can be more satisfied and loyal if you focus on their needs after the transaction, advocate for digital payment methods, and respond quickly to their inquiries. Using data analytics to understand customer preferences allows for the development of targeted marketing tactics, especially for tech-savvy youngsters.
The online buying experience might be greatly enhanced if both platforms put an emphasis on advertising, customer contact, openness, and strong privacy and security procedures. Customers will be better able to make educated purchases if we improve product descriptions, expand our category offerings, and create store evaluation tools. You may make it more flexible and user-friendly by adding support for more payment methods.
Consumer trust can be further increased by instituting measures to ensure ethical conduct and product uniqueness, such as imposing seller limits, forming collaborations with prominent companies, and implementing stringent quality control procedures. The perceived danger of purchasing can be mitigated by extending return periods. Taobao and Daraz may enhance their customer service, gain confidence, and create a more delightful online buying experience by applying these tips. Research in the future should keep an eye on the ever-changing e-commerce scene in order to spot emerging trends and technologies that could impact customer behavior.
- Suggestion for Future Research and Limitation
What drives people to shop online is an important question that needs answering in future studies. Studying how people of different ages adjust to and increase their use of online shopping is an important element of understanding the effects of technology on culture. Having this information will be useful in creating advertising campaigns that target customers of all ages.
Also, it’s crucial to know how men and women differ when it comes to making purchases online. Investigating the impact of income and education level on attitudes towards online shopping can enhance our understanding of how education and financial status influence risk awareness and purchasing frequency. Online marketplaces will be able to use this data to make their advertisements more relevant and engaging.
Statistical tools like SPSS can achieve data consistency and identify important elements impacting online purchase patterns. Analyzing differences depending on age, gender, education, and income can enhance understanding of the factors influencing customer decisions.
Researchers need to be flexible in their approach to keep up with the ever-changing landscape of e-commerce, which includes shifting consumer habits and new technologies. In order to keep research current and meaningful, it is important to monitor these developments.
It’s also critical to deal with the study’s limitations. To get a more accurate picture, it would be helpful to increase the sample diversity by adding people from different nations and age groups. Incorporating non-shoppers and users of various e-commerce platforms, such as Daraz and Taobao, can yield a more comprehensive view of the e-commerce scene. Future studies should allocate additional time and resources to conduct more thorough investigations. Lastly, to better comprehend the global impact of cultural aspects on online shopping patterns, it is important to incorporate a larger range of cultural settings.
References
- Ahmed Rabeeu, Disney Leite Ramos, and Abdul Basit Abdul Rahim (2022), Measuring Seasonality in Maldivian Inbound Tourism. Journal of Smart Tourism, 2(3), 17-30.
- Ahmed Rabeeu, Disney Leite Ramos (2023), Seasonality patterns of the Chinese outbound travelers: Evidence from eight leading tourist destinations in Asia. Journal of Tourism, Culinary, and Entrepreneurship, 3(1), 1-31. CrossRef
- Ahmed Rabeeu, Chen Shouming, Md Abid Hasan, Disney Leite Ramos, Abdul Basit Abdul Rahim (2021). Assessing the recovery rate of inbound tourist arrivals amid COVID-19: Evidence from the Maldives. International Journal of Management Science and Business Administration, 7(6), 7-15. CrossRef
- Abdul Basit Abdul Rahim, Zhong Jing, Wang Li, Ahmed Rabeeu (2024). Assessing the impact of employee-centric digital transformation initiatives on job performance: the mediating role of digital empowerment. Strategic Management, 9(2). CrossRef
- (2013). Development of international e-commerce. Retrieved from [Online, referred to 02.04.2013]
- Chau, P. Y. K., et al. (2002). Cultural differences in the online behavior of consumers. Communications of the ACM, 45(10), 138-144. CrossRef
- China Internet Networks Information Center (CNNIC). (2014). China online shopping market research report in 2013. p7. Retrieved from [Online, referred to, 4.2014]
- Li, H., et al. (2008). Research on E-Commerce Credit System. (c). Diss.
- Lin, L., & Ding, H. (2010). Analysis of affecting factors on consumer purchase intention in the network environment. Journals of China business & trade, 2, 14-15.
- Liu, L. (2008, April). Virtual market research and consumer online purchasing process. Journal of business modernization, 535.
- Comparing Canadian and Chinese website visitors. (2011). Journal of Business Research, 64, 958-965. CrossRef
- Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior. Englewood Cliffs, NJ: Prentice Hall.
- Aronson, E., Wilson, A., & Akert, R. (1997). Social Psychology. New York: Addison Wesley Longmen, Inc.
- (2013). China Internet Watch. What you need to know about TaobaoAlipay Users. Retrieved from [Online, referred to 07.05.2013]
- Bellman, S., Johnson, E. J., Kobrin, S. J., & Lohse, G. L. (2004). International differences in information privacy concerns: A global survey of consumers. The Information Society, 20(5), 313-324. CrossRef
- Broad Vision. (2008). Online Retailers Focus on What Works When Shoppers Get Cautious. Solution Paper, 5.
- Brown, M., Pope, N., & Voges, K. (2003). Buying or browsing? An exploration of shopping orientations and online purchase intention. European Journal of Marketing, 37(11/12), 1666-1684. CrossRef
- China Business Times. (2000). E-commerce to reduce market entry barriers. Retrieved from [Online, referred to 13.12.2013]
- (2014). Influencing factors for enterprise to build a qualified website. Retrieved from
- Häubl, G., & Trifts, V. (2002). Consumer decision making in online shopping environments: The effects of interactive decision aids. Marketing Science, 19(1), 4-21.CrossRef
- Wolfinbarger, M., & Gilly, M. C. (2001). Shopping online for freedom, control, and fun. California Management Review, 43(2), 34-5. CrossRef
- Xiao-li, Z.H.A.N.G. (2013). Opening Taobao shop for Students in Higher in Vocational E-commerce Major. Value Engineering, 12, 125.
- He Shengmin. (2004). The process of institutionalization of Internet Consumption. Journal of academic exchanges, 10, 41-47.
- Ethan Leiber and Chad Syverson. (2011). Online vs. Offline Competition – Prepared for the Oxford Handbook of the Digital Economy, 2-8. CrossRef
- Fagerstrøm, A., & Ghinea, G. (2011). On the motivating impact of price and online recommendations at the point of online purchase. International Journal of Information Management, 31(2), 103-110. CrossRef
- Fong, J., & Burton, S. (2006). Online word of mouth: A comparison of American and Chinese discussion boards. Asia Pacific Journal of Marketing and Logistics, 18(2), 146-156. CrossRef
- (2009). China online shopping industry development in 2008-2009. Retrieved from [Online, referred to 24, 02, 2009].
- Kuo, Y. F., Wu, C. M., & Deng, W. J. (2009). The relationship among service quality, perceived value, customer satisfaction and post-purchase intention in mobile value-added services. Computers in Human Behavior, 25(4), 887-896. CrossRef
- Miyazaki, A. D., & Farnandez, A. (2002). Internet privacy and security: An examination of online retailer disclosures. Journal of Public Policy and Marketing, 19(1), 54-61. CrossRef
- Miyazaki, A. D., & Farnandez, A. (2001). Consumer perception of privacy and security risks for online shopping. Journal of Consumer Affairs, 35(1), 27-44. CrossRef
- Liu, C., & Arnett, K. P. (2000). Exploring the factors associated with Web site success in the context of electronic commerce. Information & Management, 38(1), 23-33. CrossRef
