Change in the market

It will, however, lead to a shuffling in the market, said CERC analyst Fang. And CERC's report said that will mean an improvement over time, because it will eliminate small agents who cannot guarantee product quality or provide service after the sale.

Some foreign brand owners are moving to e-commerce on the Chinese mainland to cut the cost of distribution, said Wang Rulin, the standing deputy director of the Committee of Experts on Mobile Commerce at China E-Commerce Association.

These international brands are looking to cooperate with Chinese websites so they can hand over the sales process to websites that can directly sell products to consumers without the involvement of dealers. Nokia and Motorola are already working with EC3S, an e-commerce provider that runs a commercial website for mobile phones.

"That will save a considerable expense on rent and management of a storefront and can provide for home-delivery service," Wang said.

As the websites gain support from the foreign brand owners, the quality and maintenance of products sold by these agent websites can be guaranteed, Wang said.

An office worker who also owns an online shop sells cosmetics purchased from overseas. Her side business makes a stable profit, which covers her monthly mortgage. (File photo, 2009) Provided to China Daily