China Internet Watch

China online retail market overview Q1 2017

CIW Team — Tue, 06 Jun 2017 03:00:54 +0000

China’s online retail market totaled US$198.12 billion in the first quarter of 2017 with an increase of 27.6% YoY according to data from Analysis; B2C segment accounts for over 53%, led by Tmall (55.8%). Mobile continued its strong growth of 38.8% in China’s online shopping market, dominated by Tmall and Taobao (80.5%).

The total retail sales of consumer goods in China reached 8,582.3 billion yuan (US$1,245.89 bn) in Q1 2017 according to National Bureau of Statistics. Online retail market totaled 1,349.31 billion yuan (US$198.12 billion) with an increase of 27.6% YoY.

B2C Online Retail Market in Q1 2017

China’s online retail B2C market total transactions reached 720.94 billion yuan (US$105.86 bn) with an increase of 31.5% in Q1 2017, accounting for 53.4% of China’s online retail market.

Tmall remains its dominant position in China’s online retail B2C market with 55.8% market share in Q1 2017 by total transactions, followed by JD (26.7%) and Vipshop (3.4%).

Mobile Shopping Market in Q1 2017

The total transactions of China mobile shopping market reached 1,037.62 billion yuan (US$152.36 billion) with an increase of 38.8% YoY. The growth of mobile shopping in China is slowing down but the quarterly growth YoY is still over 30%.

Mobile accounts for 76.9% of total online shopping transactions in Q1 2017.

Tmall (including Taobao transactions) captured 80.5% of China’s mobile shopping market in Q1 2017, followed by JD (13.5%) and Vipshop (2%). Mobile GMV transacted on Alibaba China retail marketplaces was 2,981 billion yuan (US$433 billion), or 79% of total in Alibaba’s fiscal year 2017, an increase of 49% year-over-year.

In the first four months of 2017, the online retail sales of goods and services in China totaled 1,918.0 billion yuan (US$279.26 bn), an increase of 32.0% YoY.

China cross-border e-commerce insights 2016/2017

CIW Team — Thu, 16 Feb 2017 03:00:53 +0000

The total transactions of China cross-border e-commerce market reached 6.3 trillion yuan (US$920 billion) in 2016, including retail and B2B according to a Chinese research company iiMedia. And, it’s expected to reach 8.8 trillion yuan (US$1.28 trillion) in 2018.

The total number of cross-border shoppers in China exceeded 410 million in 2016 and is expected to reach 740 million in 2018. The growth was 78.3% in 2016 and will slow down to 27.6% in 2018.

The total transactions of China cross-border e-commerce market reached 6.3 trillion yuan (US$920 billion) in 2016 from 5.1 trillion yuan in 2015, including retail and B2B. It’s estimated to reach 7.5 trillion yuan in 2017 and 8.8 trillion yuan in 2018.

In China cross-border retail e-commerce import market, Kaola.com (Netease) led in 2016 with 21.6% market share by total sales value, followed by Tmall (18.5%), Vipshop (16.3%), JD Worldwide (15.2%), Jumei (12.4%), and Xiaohongshu (6.5%).

73.6% cross-border online shoppers in China are female; 30.9% have monthly income of between 5,001 and 8,000 yuan; 84% are between 19 and 40 years-old; 45.2% live in the east (Jiangsu, Zhejiang, Shanghai, etc). Tier-1 and tier-2 cities accounted for 77.4% all cross-border online shoppers in 2016.

46.2% chose mobile as primary devices for cross-border online shopping. 48.2% installed 2 to 3 cross-border online shopping apps.

Near one third (31.4%) of users open cross-border shopping apps 2-3 times per week; 58.5% spend 11 to 30 minutes every time.

27.3% users on average shop cross-border products once a month; 58.5% at least once a month.

42% spend between 301 and 500 yuan per order.

The top product category for cross-border online shopping is skincare and makeup (43.2%), followed by baby products (41.5%) and apparel & shoes (36.1%). Only 20.4% bought cross-border health care products online; but, 37.2% expressed intention to buy in this product category in the future.

Top e-commerce platforms in 2016

CIW Team — Thu, 22 Dec 2016 02:00:13 +0000

The top e-commerce platforms in China are JD, Tmall, and YHD in 2016 according to Kantar Retail.

Top 10 e-commerce platforms in 2016 based on comments from more than 200 participants from FMCG manufacturers are:

JD
Tmall
YHD
vip.com
Amazon
Suning
Jumei
Xiaohongshu
sfbest.com
Feiniu

The top roles of of e-commerce according to Kantar survey:

Additional sales channel
Brand building
Stronger communication with consumer/shoppers
Penetrating lower-tier cities or markets
Additional profit
An efficient way to enter new brands / new products into the China market

China’s Top 4 B2C Websites Performance in Q2 2015

CIW Team — Wed, 09 Sep 2015 05:00:21 +0000

China’s top 4 B2C websites, JD, Jumei, Dangdang and Vipshop announced financial reports in Q2 2015, JD further inproved its business scale while suffering from greater losses. Jingdong lost over 1.8 billion yuan in the past year.

JD in Q2 2015 gained a revenue of 45.9 billion yuan (about US$7.4 billion), an increase of 61% year-over-year, mainly due to the increase of active users and orders; Vipshop totaled a net revenue of 9 billion (US$1.5 billion), 77.6% increase compared with 5.1 billion in the previous year; Jumei got a revenue of 1.963 billion yuan (US$308.1 million), 100% growth compared with US$154.4 million the same period last year; and Dangdang got a revenue of 2.312 billion yuan (US$373 million), a YoY increase of 29.8%, which was the slowest among the four companies.

The gross profit of JD was 5.9 billion yuan (US$9.268 billion), with a rate of 12.9%, increasing 0.7 percent point compared with the previous quarter and 1.9 percent points compared with the same period last year; Vipshop gained a gross profit of 2.3 billion yuan (US$363 million), with a rate of 25% and 78.6% increase compared with the same period last year (US$204 million); Dangdang gained a gross profit of 340 million yuan (US$53.41 million), with a rate of 14.8%, lower than 18% in Q2 2014 and 15.2% in Q1 2015; and Jumei gained a gross profit of US$92.3 million, 29.1% rise compared with US$71.5 million a year earlier. The gross margin rate of Jumei was higher than the other three, but it has been long rumored that the high margin rate was affected by fake goods.

JD got a net loss of 510.4 million yuan (US$82.3 million), compared with 582.5 million yuan (US$91.5 million); the net profit of Vipshop was 399.3 million yuan (US$62.72 million), an increase of 147.2% compared with 161.5 million yuan of the same period last year (US$25.37 million); Dangdang lost 21.2 million yuan (US$3.4 million) in Q2; and Jumei gained a net profit of US$17.1 million, an YoY increase of 11%.

The net profit margin of JD was -1.1%, Dangdang -0.9%, Vipshop 4.4% and Jumei 5.5%.

Also read: China Mobile Shopping Market Value Exceeds RMB36 Bln in Q1 2015