The growth of online transaction volumes at Shaoxing County Online Light Textiles City in Zhejiang Province are soaring, with this Internet marketplace comparable in business size to that of a physical market.

In December last year, Shaoxing county started processing non-store online shop business licences on a trial basis. Up to now, 9,093 operating enterprises have set up online sites, of which, over 1,800 are displaying their products and conducting transactions through online markets such as Alibaba.

Globaltexnet, registered in Keqiao in Shaoxing county, had a membership of almost 700,000 as at the end of last June. According to General Manager Ding Jianjun, the page view, registered membership and shop leasing rate for Globaltexnet have all increased more than 200% over the same period last year.

Ding pointed out: "the monthly click rate of an online shop can reach as high as over 10,000, offering a lot more business leads than that of a physical store. To be sure, this has great attraction for enterprises."

Shi Haoran, General Manager of Shaoxing County Light Textiles City, reckoned that in order to gain a foothold in the trade, one must "walk on both legs", in other words, in both the physical market and the online market. He said: "as Asia's number one fabrics market, the Light Textiles City must have a robust online platform. However, with the traditional physical market still bustling, Shaoxing's textiles industry has been slow in embracing the Internet."

A manager for the Light Textiles City management committee also said that the growing trend of e-commerce bodes well for the light textile online market. Through the right guidance and support, it won't be long before the volume of online sales exceeds that of the physical market.

Plastics website a success

The success of Zhejiang Plastics City in nearby Yuyao can perhaps serve as an example for Shaoxing Online Light Textiles City.

The Plastics City is the first such online B2B market in China and was launched in 2004. In the four years or more since its opening, the online market has registered a cumulative transaction value of Rmb150 billion, of which Rmb38 billion was recorded in 2008.

Over 4,000 plastics enterprises have engaged in production, operation and processing across the country. Cost savings on purchasing and logistics for plastics enterprises in these years are reckoned at Rmb300 million, benefiting the entire sector.

Zhejiang Plastics City isn't resting on its laurels despite the exponential growth of online markets.

According to Zhu Jinxiang, President of the plastics website, it's absolutely necessary and feasible for the traditional market to transform and upgrade.

After three years of research and development, a new online transaction model called "China plastic spot" was launched on 23 April this year. This is made up of six modules (transaction, payment, logistics, supervision, goodwill and information) and five technical standards (data structure, payment, logistics and fulfilment, capital supervision and goodwill rating).

Website offers one-stop services

Zhejiang, as China's major trading province, has really shown its capabilities in online trade development. The province's total online transactions rocketed from Rmb16.7 billion in 2004 to Rmb131.8 billion in 2007, with growth rates almost doubling every year.

Cities like Hangzhou are beginning to turn their eyes to the online market. For example, the first online market in Xiaoshan district, Hangzhou Xiaoshan Down City, officially opened for business in May 2009. This is so far the only online market in the district granted permission by the Hangzhou city industry and commerce administration bureau to set up.

The new site provides a different and potentially highly lucrative platform for the down industry in Xiaoshan. Enterprises can post their company profiles and promote their products online, while consumers can buy different types of down products online - from raw materials to finished products - on a wholesale or retail basis, with payment online.

from Eileen Zhu, Hangzhou Office