Will drive demand for domains in China — Digital consumers
Kassey Lee examines the growth of internet users and consumers in China.
Many firms buy a domain to operate a digital store to sell products or services to consumers. These stores need consumers. The more consumers you have and the more affluent they are, the more demand for domains you can expect in the long run. Therefore, it’s worthwhile to look at the digital consumers in China to see how the market will grow.
Below is a chart of the growth of internet users in China over the last 20 years. You can see a very healthy pattern.
Source: Data compiled from CNNIC notes
In 2020, China’s internet users grew by 9.4% to 989 million. This represents a penetration rate of only 70%. This means they will continue to grow ahead of they are close to the 1.41 billion population in China.
Still, the number alone is not sufficient. You also want to see that the internet users buy products or services. In 2020, 79% or 782 million of the users bought goods or services from the internet. In other words, there are 782 million digital consumers in China.
To better understand the magnitude, compare the number against Japan. The number of China’s digital consumers is more than 6 times the entire population of Japan. This is massive!
In conclusion, the long-term prospect of demand for domains is excellent since China has a very sizable pool of digital consumers who are affluent and want to buy products or services in the digital economy.
