Has the Development of E-commerce in China During Covid-19 Contributed to the Discussion of Environmental Sustainability?

Every economic shock leaves a legacy. The coronavirus pandemic will be no different. From the Great Depression that occurred in 1929, to the financial crisis in 2008, the world has endured several seismic shifts in supply and demand. Though it is the way we fight through it, adapt, and change which gives insight to the future of economics and how it affects our environment.

The uncertainty of the pandemic has catalysed a huge shift from physical to online payment, which has surged throughout the recent months. So far, to stop the spread of Coronavirus, businesses have either made the decision to shut stores en-masse or have been instructed to by their governments. Yet, the question remains: how has this affected consumer confidence, and how will consumption adapt to the new economic landscape that emerges in the post-Coronavirus world? Put simply, organisations are adapting to this current climate, with their attention shifting to the digital world to appeal to more consumers.  

This huge shopping revolution is happening around the world. E-commerce in China is growing twice the speed of that in the United States. The underlying surge in demand for consumer goods has undeniably changed the environment. China’s total e-commerce market is expected to increase by 50% to £6.5 trillion by 2025. With China’s sustained upwards trajectory in economic output, its e-commerce market and express delivery sectors are projected to accumulate masses of waste, suggested by environmental organisation Greenpeace, quadrupling by 2025. 

The Coronavirus is facilitating this rapid market growth. It is almost like an episode of Black Mirror; scary, yet oddly intriguing. As seen in 2003 throughout the SARS epidemic, companies in China such as Alibaba and Tencent emerged as two colossal giants of retail that have capitalised on this opportunity. The increasingly stricter social distancing measures being enforced has precipitated a demand for e-commerce in the market. Companies such as Alibaba have managed to cater to the rules and regulations that the governments around the world have implemented to restrict in person interaction through implementing e-commerce. With an average of more than 60% of shopping done online, the environmental waste created has contributed to the discussion of sustainability.

For their part, Chinese tech giants have also been driven to incorporate environmental sustainability into their projects. Alibaba, the biggest E-commerce company in the world, measured by sales volume, launched Idle Fish in 2018 to address the issue. The platform has encouraged electric vehicles for delivery and promoted digital invoices to tackle the environmental waste that its consequence produces. Additionally, it has recycled over 8,500 tonnes of clothing while using gamification to run a rewards programme to promote recycling to its 200 million users.

The scale of this economic damage, brought about by the Coronavirus, brings to the fore the fragility of global commerce. But it is not something the world has not seen before. There is, however, a silver lining in every economic shock, and China continues to grow its e-commerce market throughout this tumultuous time. Fortunately, this has increased interest in environmental consciousness amongst millenials and Gen Z consumers. A study by SynTao, a Chinese marketing firm has found that 80% of Chinese consumers incorporate the ethos of sustainability in their daily lives, while over 50% of those surveyed felt that sustainability is, and, should be ‘an embodiment of their personal life philosophy.’ Perhaps this will spark a change for consumers worldwide, encouraging environmental consciousness.

By Leo Chan