(Photo : Taobao is a Chinese language web site for online shopping, similar to eBay and Amazon, operated by Alibaba Group)

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More and more Chinese consumers are now turning to the Internet to buy goods and avail of services, a recent survey conducted by iResearch, an Internet research company in China, showed. iResearch said total receipts from online shopping in the country reached $70.8 billion in the second quarter of this year.

The recent online shopping figure represents an increase of 24.2% from the first quarter and 45.3% from last year's figure, fueled partly by the price wars initiated by China's e-commerce companies. 

Online Price War

The price war, which resulted to more online discounts and perks in the second quarter, has enticed more customers to buy online instead of going to brick-and-mortar stores, it said.

According to the National Bureau of Statistics, online shopping now accounts for 7.3% of the total consumer retail in the country during the reported period. The NBS said China's total consumer goods sales reached $985 billion in the second quarter.

But the iResearch report noticed that consumers online behavior is getting more rational and sensitivity to price war could decline soon, encouraging e-commerce companies to look for other means to entice customers in order to survive the cutthroat competition. 

Supply Chain 

Analysts believed online shopping will further grow in China as more e-commerce shops are put up every month and existing online stores are continuously improving their sales platform and logistic services.

Same day delivery and proper handling of goods will further boost the online retail industry in China, said one analyst, because consumers will no longer have to go to crowded malls to buy items.

Mobile Shopping

The fast adoption of smartphones in China has also contributed to the growth of Internet shopping in the country. iResearch said China mobile shopping has been developing at a rapid speed since the first quarter of 2011. 

Based on the data released by the China Internet Watch, Taobao continues to lead the e-commerce industry with a market share of 75.1%, followed by 360Buy and Tencent.