China Internet Watch https://www.chinainternetwatch.com China Internet Stats, Trends, Insights Wed, 02 Sep 2020 06:40:42 +0000 en-US hourly 1 https://www.chinainternetwatch.com/wp-content/uploads/cropped-ciw-logo-2019-v1b-80x80.png China Internet Watch https://www.chinainternetwatch.com 32 32 China online shopping market overview Q1 2020 https://www.chinainternetwatch.com/30650/online-shopping-q1-2020/ Tue, 02 Jun 2020 01:30:30 +0000 https://www.chinainternetwatch.com/?p=30650

The transactions of China's online shopping market is expected to reach 2.1 trillion yuan in Q1 2020, down 33.3% quarter on quarter or decrease of 1.2% year on year.

In Q4 2019, the transactions of China's online shopping market reached 3.2 trillion yuan, an increase of 38.5% QoQ or 26.9% YoY. The growth was higher than the growth rate of total retail sales of consumer goods in China.

The Double 11 Shopping Festival, the rise of live streaming e-commerce, and the further penetration into the lower-tier cities market have significantly boosted the trading in Q4 2019.

During the epidemic period, the overall e-commerce transaction, especially the online transaction of physical goods, showed strong resistance compared to offline consumption.

At the same time, it also accelerates the penetration of fresh grocery e-commerce and live streaming e-commerce in the consumer end.

B2C online shopping market in China is estimated to expand further to 56.6% in Q1 2020. The boundary...

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China online shopping market forecast 2017-2019 https://www.chinainternetwatch.com/20111/online-shopping-market-trend-2016-2019/ https://www.chinainternetwatch.com/20111/online-shopping-market-trend-2016-2019/#comments Wed, 29 Mar 2017 02:30:16 +0000 http://www.chinainternetwatch.com/?p=20111 building-shopping

The total transactions of China’s online shopping market totaled 4.7 trillion yuan (US$680 bn) in 2016 with an increase of 23.9%; and, it’s estimated to reach 7.3 trillion yuan (US$1.06 trillion)  in 2019. Tmall dominates China’s B2C online shopping market with over 56% market share.

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B2C online shopping market will grow to over 60% in 2019 from 55.3% in 2016 while C2C continues to shrink.

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Mobile shopping begins to dominate China’s online shopping market and will grow to 5.6 trillion yuan; 76.9% of total online shopping transactions in 2019.

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Tmall continued to lead China’s B2C online shopping market with 56.6% market share, followed by Jingdong (24.7%) and Suning (4.3%).

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Mobile MAUs on Alibaba’s China retail marketplaces reached 493 million in December 2016 while annual active buyers on its China retail marketplaces reached 443 million, an increase of 4 million. It has 82.6% market share in China’s mobile shopping market according to iResearch.

Jingdong annual active customer accounts increased by 46% to 226.6 million in 2016 from 155.0 million in 2015. Net revenues for 2016 were RMB260.2 billion (US$37.5 billion), an increase of 44% from 2015.

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Also read: China’s cross-border online shoppers to exceed 200 million by 2020

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China Apparel Online Shopping Market Overview in H1 2015 https://www.chinainternetwatch.com/15327/apparel-online-shopping-h1-2015/ https://www.chinainternetwatch.com/15327/apparel-online-shopping-h1-2015/#comments Thu, 26 Nov 2015 05:00:48 +0000 http://www.chinainternetwatch.com/?p=15327 clothing products online shopping in h1 2015

Transactions of China’s apparel online shopping market reached 413.05 billion yuan (US$65.08 billion) in H1 2015, including women and men’s clothes and excluding bags, shoes and children’s clothes.

China Apparel Products Online Shopping Market by Channel in H1 2015

Apparel faced the most frequent transactions on the B2C and C2C platforms in China. C2C sales accounted for 67.7%; Taobao is one of the typical C2C platforms.

China Apparel Products Online Shopping Market by Market Share in H1 2015

Tmall had the largest market share on apparel online shopping market, accounting for 76.2%. As a platform gathering millions of merchants and brands, Tmall provides users variety of options.

Online shopping platforms usually offered affordable products on both B2C and C2C. Consumers could buy products across the world without limitation of time and distance. However, existing problems disturbed the further expansion of online shopping:

  • some merchants were lack of credibility and integrity
  • some products when received look different from online photos
  • after-sale services were not good enough
  • potential privacy and security problems

Also read: China Mobile Shopping Turnover Surpassed PC in Q2 2015

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China Mothercare Online Shopping Market in H1 2015 https://www.chinainternetwatch.com/15322/china-mothercare-online-shopping-h1-2015/ https://www.chinainternetwatch.com/15322/china-mothercare-online-shopping-h1-2015/#respond Wed, 11 Nov 2015 00:00:41 +0000 http://www.chinainternetwatch.com/?p=15322 mom&baby  products online shopping in h1 2015

Transaction value of China’s mothercare products on the online shopping platforms reached 190.24 billion yuan (US$29.67 billion) in the first half of 2015, including products such as infant formula, supplementary foods, diapers, baby supplies, baby clothing, toys, pregnant women supplies and so on.

Apart from deals on the official websites, all the transactions of mothercare products were completed on B2C and C2C platforms. C2C (consumer to consumer) platforms accounted for 69.7% of sales pursuant to overseas purchasing of various categories of mothercare products; Taobao and Baidu led the C2C market in China.

China Mothercare Products Online Shopping Market by Channel in H1 2015

Tmall and Suning are the top two B2C platform for mothercare products, accounting for 60.9% and 14% respectively.

China B2C Mothercare Products Online Shopping Market by Market Share in H1 2015

In China, over 16 million infants were born every year and the number of infants aged 0 to 3 years was more than 70 million. Large demand for mothercare products drvies China to be the second largest country of mothercare products market, only next to the United States.

The post-80s, who were familiar with online shopping and became accustomed to purchase related products online, promoted the maturity and development of the industry. Male shoppers of infant formula reached over 55.8% in 2014 and the ration was to keep increasing this year.

Also read: China E-commerce Market to Reach US$3.8 Trillion in 2018

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China Personal Care Online Shopping Market in H1 2015 https://www.chinainternetwatch.com/15338/personal-care-online-shopping-h1-2015/ https://www.chinainternetwatch.com/15338/personal-care-online-shopping-h1-2015/#comments Mon, 09 Nov 2015 00:00:32 +0000 http://www.chinainternetwatch.com/?p=15338 personal care products online shopping in h1 2015

China’s personal care online shopping market included goods as oral hygiene products, hair care products, body care products, facial cleaning products, cosmetics, perfumes, etc. Transaction values of China’s personal care online shopping market was 206.88 billion yuan (US$32.60 billion) in H1 2015.

China Personal Care Products Online Shopping Market by Channel in H1 2015

C2C sales accounted for 75.3% which still pioneered e-commerce models. Various subdivisions of personal care products and advantage in price gradually attracted more offline personal care consumers shopping online.

China Personal Care Products Online Shopping Market by Market Share in H1 2015

Tmall and Jingdong respectively accounted for 48.4% and 21.8% of B2C personal care online shopping market. As the largest domestic B2C platform, Tmall could attract more consumers with overwhelming advantages; Jingdong, the fourth largest internet company in China which was only next to Alibaba, Tencent and Baidu, gained returns after category expansion strategy and large advertising placement.

With the rapid development of China’s economy and rising living standards, China has become one of the world’s largest personal care market. Relying on the huge internet population and improving consciousness of health, personal care online shopping market would have better development opportunities.

Also read: China’s Mobile Market Analysis in Q2 2015

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China Mobile Shopping Turnover Surpassed PC in Q2 2015 https://www.chinainternetwatch.com/14826/mobile-shopping-turnover-surpassed-pc-first-time-q2-2015/ https://www.chinainternetwatch.com/14826/mobile-shopping-turnover-surpassed-pc-first-time-q2-2015/#comments Wed, 07 Oct 2015 08:00:25 +0000 http://www.chinainternetwatch.com/?p=14826 mobile shopping

In Q2 2015, China’s online shopping market reached 872.54 billion yuan (US$136.77 billion), with a high level increase of 39.6%, which accounted for 12.3% of total retail value compared with 10% in 2014.

China Online Shopping Market by Transaction Value in 2015

The transaction value of mobile shopping market exceeded 443.45 billion yuan (US$69.51 billion), an increase of 133.5% far higher than the overall growth of the online shopping market, which has become the main driving force for the rapid development of online shopping market in China.


China Mobile Shopping Market by Transaction Value  in 2015

The transaction value of B2C market reached 442.13 billion yuan (US$69.31 billion) in Q2 2015, accounting for 50.7% of the overall online shopping value, 6.2 percentage points higher compared with Q2 2014. B2C market has been growing rapidly, this quarter China’s B2C online shopping market grew by 59.1%, much higher than C2C (24%). B2C has exceeded C2C to become the mainstream of China’s online shopping market.

China Online Shopping Market by Business Structure in 2015

From the use of different internet access devices, mobile shopping transaction value surpassed the PC-end turnover for the first time accounting for 50.8% of China’s online shopping market, an increase of 20 percentage points compared with the same period last year. In the future, mobile-end shopping would become major driving force of online shopping in China.

China Online Shopping Market by Types of Internet Devices in 2015

Tmall accounted for 55.6% of the total B2C online shopping market; Jingdong 25.2%, and the others totalled about 20% in Q2 2015.

China Online Shopping Market by B2C Website In 2014

Alibaba’s mobile apps, such as Taobao and Tmall, made up 83.7% of China’s mobile shopping market share; Jingdong increased to 6.1%; and Vipshop ranked third with share of 2.5%.

China Mobile Shopping Market by B2C Website In 2014

Also read: China’s Mobile Market Analysis in Q2 2015

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China Online Shopping Accounted for over 10% of Total Retail in Q1 2015 https://www.chinainternetwatch.com/13444/online-shopping-q1-2015/ https://www.chinainternetwatch.com/13444/online-shopping-q1-2015/#comments Wed, 17 Jun 2015 05:00:22 +0000 http://www.chinainternetwatch.com/?p=13444 online-shopping-q1-2015-1

In Q1 2015, China online shopping transaction value exceeded RMB757.41 billion (USD$123.51 million) with an increase of 45.2% from the same period of last year. According to the data of National Bureau of Statistics in Q1 2015, online shopping transaction value accounted for 10.7% of total retail consumer goods.

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Influenced by the Chinese New Year period, online shopping market had slowed its growth while it was still being developed.

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Total transaction value of China B2C e-commerce market was RMB373.71 billion (USD$60.94 billion), representing 49.3% in online shopping market in Q1 2015. In addition, it increased by 6 percentage from the same period of last year which indicates B2C will surpass C2C becoming the main stream of China online shopping market.

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In China B2C e-commerce market, Tmall represented 58.6% while Jingdong’s market share was over 20% in Q1 2015. In terms of B2C platforms with owned goods category, Jingdong accounted for 56.3%, followed by Vipshop and Suning.

Also read: Global E-commerce Sites That Provide Direct Shipping to China

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China Online Shopping Market Over 10% of Total Retail in 2014 https://www.chinainternetwatch.com/12685/online-shopping-market-2014/ https://www.chinainternetwatch.com/12685/online-shopping-market-2014/#comments Wed, 18 Mar 2015 06:00:35 +0000 http://www.chinainternetwatch.com/?p=12685 online-shopping-2014

In 2014, total transaction value of China online shopping market exceeded RMB2.8 trillion (US$453.61 billion) with an increase of 48.7% according to latest data of iResearch. China’s National Bureau of Statistics’ official data shows online shopping value accounted for 10.7% of total retail value in China.

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iResearch estimated that in 2018, total transaction value would be RMB7.3 trillion (US$1.18 trillion) in China online shopping market.

Related: Apparel: Most Popular Category Among China Online Shoppers

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According to iResearch’s data, in 2014, total transaction value of China online shopping B2C market exceeded RMB1.2282 trillion (US$198.97 billion), representing 45.8% of overall online shopping market. The value increased by 5.4% from 40.4% in 2013. Besides, the growth of B2C market was much faster than C2C market in 2014. In 2015, market share of B2C is expected to surpass C2C.

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In China online shopping B2C market in 2014, Tmall accounted for over 60% market share, followed by Jingdong (18.6%). Other B2C websites, like VIP.com, YHD.com and Gome.com, grew faster than the overall B2C market.

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In terms of online shopping B2C websites selling owned inventories in China in 2014, Jingdong ranked top with a market share of 49%, followed by Suning.com and VIP.com.

Jingdong GMV for the fourth quarter of 2014 was RMB85.8 billion (US$13.8 billion), up 119% from the fourth quarter of 2013. GMV for the full year of 2014 was RMB260.2 billion (US$41.9 billion), up 107% from the full year of 2013.

GMV transacted on Alibaba China retail marketplaces in Q4, 2014 was RMB787 billion (US$127 billion), an increase of 49% compared to the same quarter of 2013, and compared to RMB556 billion in the quarter ended September 30, 2014, representing a net addition of RMB231 billion GMV in three months.

China online shoppers from tier-3 and tier-4 cities have higher income and more online shopping need nowadays. China e-commerce companies even entered rural areas to establish service stations. Growth in online shopping in counties and villages in China has outpaced those in cities, becoming a new engine that is further driving China’s domestic consumption, according to research from Alibaba Group.

There are more and more categories of products in online shopping market. Besides, home-decorating and medical e-commerce companies are developing rapidly online.

China government implemented a series of policies to open cross-border e-commerce pilot areas like Shanghai, Ningbo and Zhenghzou. There were over 2,000 cross-border e-commerce enterprises in China on record according to China General Administration of Customs.

Also read: Alibaba Has over 86% Share of China Mobile Shopping Market in 2014

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Strong Growth in China Online Shopping Market in Q3 2014 https://www.chinainternetwatch.com/11183/strong-growth-online-shopping-market-q3-2014/ https://www.chinainternetwatch.com/11183/strong-growth-online-shopping-market-q3-2014/#comments Wed, 10 Dec 2014 12:30:13 +0000 http://www.chinainternetwatch.com/?p=11183 online-shopping-q3-2014

In Q3 2014, total transaction value of China online shopping market was RMB691.41 billion (US$112.69 billion) with an increase of 49.8% year on year. Total retail value exceeded RMB6.5 trillion (US$1.05 trillion) and China online shopping accounted for 10.6% of total consumer retail market according to data from National Bureau of Statistics of China.

china-online-shopping-market-q3-2014

China e-commerce companies are now not only optimizing logistics and after-sale services, but also actively making efforts in tier-3 & tier-4 cities even in rural China. Besides, international strategy and mobile shopping become new strength in online shopping market in China.

The online transactions generated by counties and villages in north China, central China and south China, have shown stronger growth momentum, accounting for 30% of the overall online transactions made by counties and villages in 2013 in China.

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Total transaction value of China B2C market was RMB305.38 billion (US$49.77 billion), representing 44.2% in online shopping market in Q3 2014. China B2C market value in Q3 2014 increased by 38.8% from the same period of prior year and increased by 70.4% year on year, much more rapid than growth rate of C2C market.

Total transaction value of China mother care market exceeded RMB23.48 billion and China 3C home appliance B2C market was RMB107.88 billion; China clothing B2C market was RMB91.62 billion ($14.91 billion) with an increase of 54.2% from the same period of prior year according to data from EnfoDesk. All these added powerful strength for rapid growth of China online shopping market in Q3 2014.

China C2C market is featured with various categories and large number of products which can meet online shoppers’ personalized needs. E-commerce also pay attention to C2C market. Paipai.com, part of Jingdong, is launching micro-shop platform for both business and individual sellers targeting C2C mobile shopping market. China B2C and C2C markets will both develop steadily.

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In China B2C market, Tmall represented 57.6% market share by transaction value in Q3 2014, ranking top, followed by Jingdong(19.3%) and Suning(4%). In terms of online shopping websites with self-operated products, Jingdong accounted for 51.9% market share, followed by Suning and Vipshop in Q3 2014. Find out more on B2C performance in Q3 2014 here.

With Alibaba and Jingdong’s IPO, their standings have been confirmed in China online shopping market. Other e-commerce companies are positively making great efforts.

Related to Q3 2014 Performance in online shopping: Jingdong, Alibaba, Dangdang, Vipshop, GOME.

Also read: Chinese Consumers STRONG Intention for Online Purchase with Higher Buying Rates Than Browsing

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Jingdong Paipai’s Micro-shop Platform Aiming China C2C Market https://www.chinainternetwatch.com/9810/jingdong-paipais-microshop/ https://www.chinainternetwatch.com/9810/jingdong-paipais-microshop/#comments Tue, 14 Oct 2014 08:00:36 +0000 http://www.chinainternetwatch.com/?p=9810 paipai-wechat-shop

Paipai.com, part of Jingdong, is launching micro-shop platform for both business and individual sellers targeting C2C mobile shopping market.

Wechat added a new feature this May for its official account platform to enable verified Wechat Official service accounts, who have integrated Wechat payment, to set up mobile store easily. During the same period, JD.com also integrated its online shopping platform on Wechat. Both don’t seem to catch the individual sellers market; that’s where Paipai’s micro-shop comes in play.

Paipai has been internal testing micro-shop with 5,000 merchants for about one month. According to Ebrun News, 40% of Paipai Micro-shop orders come from Wechat, 20% from mobile QQ, and 40% from other channels including Qzone, Weibo, and forums.

Paipai plans to launch mobile app in late October to enable individuals merchants to set up mobile online stores on smartphones directly.

The cost per user acquisition is much lower on mobile. Paipai knows that; and it enjoyed it. According to Paipai, the CPA of its micro-shop is just between 1 and 2 yuan while it costs no less than 10 yuan on other C2C platforms. The cost per order of Paipai micro-shop is between 7 and 8 yuan comparing with over 30 yuan on other C2C platforms.

The combined MAUs of Weixin (Wechat’s Chinese version) and WeChat were 438 million by end June 2014 according to Tencent’s financial results for Q2 2014. It’s very common to see people utilizing Wechat as a sales tool using his or her own personal Wechat account and selling various products. Though there are a few apps available for individual sellers, Paipai micro-shop will most likely be the most competitive product in the market considering the strategic partnership between Jingdong and Tencent.

Also check out the 7 charts on China mobile shopping apps market.

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China Online Cosmetics Market Overview https://www.chinainternetwatch.com/8459/online-cosmetics-april-2014/ https://www.chinainternetwatch.com/8459/online-cosmetics-april-2014/#comments Mon, 01 Sep 2014 05:00:33 +0000 http://www.chinainternetwatch.com/?p=8459 20140831-china-cosmetic-market1

China retail market of cosmetics product was RMB333.86 billion (USD54.32 billion) in 2013 and it is estimated to reach over RMB700 billion (USD113.9 billion) in 2017 according to iResearch.

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Chinese cosmetics retail value was RMB333.86 billion (USD54.32 billion) in 2013 and it is estimated to reach over RMB700 billion (USD113.9 billion) in 2017 with annual growth rate of 20.8%. iResearch believes that the reasons for stable growth are well-developing online shopping market and established flagship stores for cosmetics brands online, which have strengthened consumers’ trust to online shopping in cosmetics products.

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Total value of cosmetics online was RMB8.35 billion (USD1.35 billion) in April 2014, with C2C platforms accounting for 63.0% (USD856.1 million), and B2C platform accounting for 37.0% (USD502.9 million).

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On B2C platform, Tmall, Jumei and JD.com are top three ones in online cosmetics market with value USD218.1 million, 91.2 million, 42.3 million respectively, which accounted for 83.3% of the total value in April 2014 in China.

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Counting the volume or value of China online cosmetics sales, skin care is the major category in online cosmetics market, accounting for almost two-thirds, followed by make-up products with more than 20%.

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Mask and face cream with per customer transaction USD13.6 and 21.7 respectively, are the best sellers among skin care cosmetics on B2C platform in April 2014. iResearch analyzed that since face is the most important part of the body skin, people use facial mask and cream more frequently; and the price of facial mask and cream online has little difference with price on traditional market, so consumers can make use of online market’s advantage.

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Cosmetics products with RMB50-100 range was the best seller, accounting for 33.7% of the sales volume  of the cosmetics online in April 2014. Overall online sales value of cosmetics were driven by the middle and high-price cosmetics.

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E-commerce sites, search engines and online community were the top three sources of cosmetics websites traffic. For vertical B2C and B2C with label brands, site navigation and web searching have the most powerful impact according to iResearch.

China’s top 20 cosmetics brands by total pageviews are:

  1. Carslan
  2. L’oreal
  3. Pechoin
  4. Meifubao
  5. Inoherb
  6. Maybelline
  7. OLAY
  8. Kans
  9. PROYA
  10. UN
  11. Wetherm
  12. Chcedo
  13. EST
  14. BE
  15. Yunifang
  16. Hanhoo
  17. Laneige
  18. Perfect
  19. Nivea
  20. Lancome

The top 20 accounted 21.3% of the total pageviews in China cosmetics market.

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China Online Shopping Total Transactions Reached $101B in Q2 2014, Exceeding 10% of Total Retail https://www.chinainternetwatch.com/8015/online-shopping-2017e/ https://www.chinainternetwatch.com/8015/online-shopping-2017e/#comments Mon, 28 Jul 2014 08:20:45 +0000 http://www.chinainternetwatch.com/?p=8015 2014q1-china-online-shopping

Total transactions of China’s online shopping market, a combination of B2C and C2C markets, reached RMB6,28.76 billion (US$101.58 billion), 10.1% of total retail transactions in China, according to iResearch data.

2010-2017e-china-online-shopping

China online shopping total transaction last year was 1.89 trillion yuan, an increase of almost 60%. It’s expected to increase by over 45% to RMB 2.76 trillion this year according to iResearch estimation.

China B2C Market v.s. C2C Market

2010-2017e-china-online-shopping-b2c-c2c

Transactions generated from Chinese B2C platforms reached 40.4% of China’s total online shopping transactions and is expected to continue to grow while C2C market gets smaller.

Also read: 16 Charts to Demystify China’s B2C Market

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Top 4 Trending in Chinese E-Commerce Market https://www.chinainternetwatch.com/7331/top-4-trending-chinese-ecommerce-market/ https://www.chinainternetwatch.com/7331/top-4-trending-chinese-ecommerce-market/#comments Tue, 06 May 2014 01:00:58 +0000 http://www.chinainternetwatch.com/?p=7331 Devices Used by Chinese Online Shoppers

The Chinese e-commerce market have seen a sharp rise in both B2C and C2C channels in the recent years. Rapid development in online shopping platforms, social media, online payment and mobile devices is not only driving the market to a boom, but also revolutionizing consumer experience and business marketing methods. Here are the four major new trends to be observed in the industry.

NO. 1: Mobile Devices – Shopping On The Go

As mobile devices such as smartphones and tablets penetrate further into the market, Chinese online shoppers are increasingly making their purchases on the move. A survey published jointly by KPMG and Mogujie shows that although desktops and laptops remain the most used devices for online shopping, smartphones and tablets are swiftly taking over.

Number of 3G4G users in China

The large 3G/4G network user base will give mobile shopping even greater potential. The number of Chinese 3G/4G users rose from 223 million to 325 million in merely six months in the first half of 2013. And the Chinese government has a even greater vision for the future: the goal is to see the number of mobile network users increase to 1.2 billion by 2020.

NO. 2: Mobile Payment – A Revolution in Payment Methods

Another prominent trend in Chinese e-commerce market is that online shoppers in China are rapidly taking up mobile payment. The survey shows that as much as 55% of online shoppers in China has used mobile payment for their online purchases, whereas in the U.S. the figure is only 19%. This transition is largely facilitated by the recent developments in domestic third-party payment service market, which is currently dominated by four key players – Alipay, Tenpay, Union Pay and 99bill. Together, these four channels provide 85.5% of payment services in China.

Internet Users Who Have Made at Least One Mobile Payment

NO. 3: Readjustments in Product Positioning Strategies in Line with Consumer Needs

As the e-commerce industry grows, the motives and concerns for Chinese consumers’ online shopping behavior become all the more clear. The KPMG research shows that the most important factor that influences consumers’ decision to make a purchase online is still the price – as much as 74% of respondents name low price as their major consideration when shopping online. “Online purchasing in China is still mostly promotional and discount driven. This means we are at the infancy stage… imagine the potential of full-price e-commerce.” explained Thibault Villet, CEO & co-founder of Glamour Sales. Other conveniences driving shoppers to go online include less time consumption, specific origin of products, the possibility to compare goods and a larger variety to choose from.

Motives and Concerns for Online Shopping

In the mean time, some major drawbacks of online shopping remain striking. 78% of respondents of KPMG survey report concerns over the authenticity of products sold online. Also, most consumers wish to try the product before purchase, an expectation still largely unmet by online businesses. Apart from that, size, discrepancy between online display and actual product and after-sales services also remain as major concerns for online shoppers.

Consumers’ needs are certainly catalyzing continuous readjustments in product positioning strategies on the retailers’ part. The most popular products sold online should also serve as an important indicator of  the e-commerce market. The survey indicates that cosmetics, shoes and apparels for female are the top categories shopped online nowadays. These particular categories of product sought after by online shoppers indicate an enormous potential for luxury brands as Chinese consumers gain more purchase power and become less price-sensitive.

Top Categories of Products Shopped Online

NO. 4: Social Media as a Powerful Marketing Tool

The most immediate change in the e-commerce industry which no online business can overlook is perhaps the burgeoning marketing power of social media.  Research shows as much as 25% of traffic in e-commerce websites is brought in by social media, among which half can be attributed to the voices of popular online opinion leaders. With a range of  successful local social media and a growing user base, Chinese shoppers are increasingly resorting to user reviews online as references when they make a purchase. This channel has even overtaken the traditional WOM (word-of-mouth) communication by 1%, a testimony of its fledging power.

Top Information Channels for Online Shopping

As said before, the e-commerce market has a tendency of slanting towards certain categories of products that can be readily transformed into large luxury market. For this reason, retailers are propelled to give more attention to luxury product marketing on social media. Indeed, the top social media platforms are already playing an important marketing role in the Chinese luxury market.

Top 10 Social Media for Luxury Product Marketing

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China Online Shopping Transaction Overview https://www.chinainternetwatch.com/5977/china-online-shopping-transaction-situation/ https://www.chinainternetwatch.com/5977/china-online-shopping-transaction-situation/#comments Wed, 05 Feb 2014 02:22:48 +0000 http://www.chinainternetwatch.com/?p=5977 2010-2017 China Online Shopping Transaction

In 2013,China online transaction value reached 1850 billion Yuan with a gradually stable growth .

 

Market Size: In 2013,China online transaction value reached 1850 billion Yuan with a 42.0% year-on-year growth.

According to the 2013 China Online Shopping Market Data from IResearch, China online transaction value of 2013 reached 1850 billion Yuan with a 42.0% year-on-year growth which was slower than in 2012. Based on the forecast data of total social retail sales in 2013 from Ministry of Commerce, The online transaction accounted for a 7.8% share of total social retail sales of consumer goods, rising 1.6% than last year.

With the growing habit of online shopping, the gradually established rules and regulations and the improving online shopping environment, China online shopping market was going to enter its maturity. In the near future, the online market will be growing steadily. At the same time, the traditional enterprises will stride forward into the e-commerce market at a massive scale. The potentialities of the western provinces and tier provincial cities in eastern part of China will also be exploited. And the mobile internet will enormously enlarge the convenience of online shopping. The situation mentioned above helped the fast growth of online market. According to the estimate, China E-commerce value will reach 4000 billion Yuan in 2016-2017.

 

2010-2017 China Online Shopping Transaction

Market Structure: The percentage of B2C was growing and reached 35.1% of the online shopping in 2013.

The B2C transaction value reached 650 billion Yuan with a 35.1% percentage of the online market, rising 5.5% from the 35.1% in 2012. Last year B2C market developed at a soaring speed with a 68.4% growth which was higher than the 30.9% growth of C2C market. B2C market will continue to be the main impetus of online shopping market. As estimated, B2C market will surpass C2C market and reach 52.4% in 2017.

According to I Research analysis, the reasons of B2C to be the main impetus of online shopping market:

(1)       From marketing part, C2C market grows steadily with limited room, whereas in B2C market, many entrepreneurs have the access of B2C market and with plenty of opportunities.(2) From the enterprises part, except from the traditional B2C E-commerce websites, the traditional enterprises will attach the importance to the B2C market enter it. (3) From the consumers part, with the gradual development and maturity of online shopping, the consuming attitudes was changing and the demands for quality was enhancing. Compared with C2C, B2C market had more advantage on the reputation and quality guarantee.

Future Trend: B2C,O2O Platform and cross-border e-commerce will be the developing trend.

As the online shopping industry grew rapidly, B2C platform will become the mainstream. According to the online shopping structure, the proportion of B2C was becoming larger and larger and to be the main impetus of online shopping market. About the core competence of enterprises, most enterprises in the market were increasing the intensity of open platform development. Since online shopping reached 7.8% of total social retail sales in 2013, traditional enterprises realized the urgent need to do the e-commerce. And they will join the open B2C platform if they cannot build the platform themselves.

The O2O market had great potential. Having the character of connecting the online and offline, O2O can solve the problem of e-commerce trend for the traditional enterprises and will become an important part of internet market. Currently the traditional enterprises endeavored to combine the online and offline business. Among them, the local service industry had an early start with a mature development. In the future the local service will move toward mobile end with a vertical development. The retail market gradually sought the optimization and integration of online and offline resource. In the future, O2O mode will spread to more business.

Cross-border E-commerce industry improved and will develop in a fast speed. Cross-border e-commerce had become a hot point of e-commerce economy growth. Through years of development, China had a whole industrial chain including marketing, payment, mailing and financial service. The industry structure became stable. In the background of a big trend of global e-commerce development and Chinese e-commerce globalization, with the help of policy support from government and strong push from enterprises, Cross-border E-commerce will welcome a high-speed developing period in the following several years.

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Registered Taobao Stores in China’s Rural Areas Up 76.3% https://www.chinainternetwatch.com/5796/taobao-villages-2013/ https://www.chinainternetwatch.com/5796/taobao-villages-2013/#comments Mon, 06 Jan 2014 04:46:12 +0000 http://www.chinainternetwatch.com/?p=5796 taobao logo

Taobao and AliResearch released Taobao Village Report 2.0 on December 27, 2013. By the end of November 30 2013, Taobao (including Tmall ) registered online stores located in China rural areas increased 24.9%, and the number in villages and towns rose 76.3% compared to the end of 2012.

Top mobile shopping platforms in China: Taobao, Pinduoduo, JD

The report pointed out that Taobao villages gradually became a new force of the rural economy, in 2013, the number of Taobao villages increased to 20 which brought about 60,000 job vacancies directly and many job opportunities in the logistics and packaging industries indirectly. Taobao village is a unique economic phenomenon in the world.

The definition of Taobao village includes that online stores have to account for above 10% of local families and online transaction surpassed 10 million yuan (USD 1.64 million). These retailers in rural areas based on the Taobao C2C platform, achieved economies of scale and synergy effects.

By December 2013, the discovered 20 Taobao villages located in Hebei, Shandong, Jiangsu, Zhejiang, Jiangxi, Fujiang and Guangdong province. A village in Yiwu city with 2,000 online stores hit 2 billion yuan (USD 328 million) sales in 2013. Many Taobao villages had evolved from grass roots stage 1.0 to stage 2.0, began building their own brands.

According to CNNIC, by June 2013, the number of Chinese netizens reached 591 million, increased 26.56 million compared to the end of 2012. 54.5% of new netizens were from rural areas, and Chinese rural netizens grew to 165 million which accounted for 27.9% of total.

AliResearch estimated that Taobao village would continue growing in the next few years and affect rural economy greatly and deep.

Alibaba takes on Pinduoduo with Taobao Special Offer

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1688.com Suppliers Integrated in Taobao Search https://www.chinainternetwatch.com/3945/1688-taobao/ https://www.chinainternetwatch.com/3945/1688-taobao/#respond Mon, 30 Sep 2013 04:40:41 +0000 http://www.chinainternetwatch.com/?p=3945 1688-taobao

Alibaba has connected its B2B platform 1688.com with its C2C platform Taobao. Last September, Alibaba integrated 1688 accounts with Taobao ones. Now, Alibaba integrated 1688 suppliers and wholesalers information in Taobao search results.

For example, if you search “steel” in Taobao, you can get 4 products displayed in the search results, with company name, location and price.

taobao search steel

If you click on the search result, you will get to a new page linking to 1688.

taobao search steel

If you search for a company name in Taobao, the company in 1688 will also appear in the results.

taobao search company

Click on the result, you will be linking to the company page in 1688.

taobao search company

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China E-Commerce Market Exceeded USD 713 Billion in H1 2013 https://www.chinainternetwatch.com/3764/china-ecommerce-highlights-2013/ https://www.chinainternetwatch.com/3764/china-ecommerce-highlights-2013/#respond Wed, 11 Sep 2013 06:55:34 +0000 http://www.chinainternetwatch.com/?p=3764 e-business

By the end of June 30 2013, China e-commerce transaction reached 4.4 trillion yuan (USD 713.27 billion), which grew 24.3% compared to last year. B2B transaction totalled 3.4 trillion yuan(USD 551.17 billion), with a 15.3% YoY increase.

B2B revenue in the first half of 2013 reached 9.38 billion yuan(USD 1.52 billion), with a 25.9% YoY increase. Alibaba ranked the first with 43% share. In B2C market, Tmall led the market with 50.4%, followed by Jingdong with 20.7%. Suning ranked the third with 5.7%. In C2C market, Taobao dominated with 95.1%.

By June, the number of e-business in Guangdong, Zhejiang provinces and Beijing were the top three. About 2.2 million people worked in e-commerce enterprises. B2B enterprises reached 11,4000, with a 4% YoY increase. The number of personal online stores was 12.46 million, with a YoY decrease of 27.8%. Group buy websites dropped 51.8% to 1,548.

E-commerce users reached 277 million, with a YoY increase of 29.4%. The number of e-commerce complaints was 41,360, less than last year.

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10 Charts to Tell You About China Online Shopping Market in Q2 2013 https://www.chinainternetwatch.com/2890/china-online-shopping-q2-2013/ https://www.chinainternetwatch.com/2890/china-online-shopping-q2-2013/#comments Mon, 19 Aug 2013 02:55:59 +0000 http://www.chinainternetwatch.com/?p=2890 the main internet segments market on pc and mobile devices year-on-year growth in q2 2013

iResearch recently released its China Internet Data Report in Q2 2013, giving us a glimpse of China internet performance in Q2.

Online Markets and Online Advertising

As you can tell from the chart above, Mobile won over PC devices on internet segment markets growth, such as shopping, searching, marketing(searching excluded) and game. Online shopping and searching on mobile devices both had a YoY growth as high as 181%, out performed PC devices which only had 39% and 28.6% YoY growth.

top 10 china online advertisement enterprises revenue in q2 2013

Chinese online advertising had a relatively stable market structure, Baidu and Taobao were the two giant in online ads market. Baidu’s revenue from advertising in Q2 reached 7.56 billion yuan(1.23 billion USD), followed by Taobao with 5.61 billion yuan(909 million USD).

Qihoo’s 360, Taobao and Sohu had pretty high QoQ growth rate.

E-Commerce

online shopping market scale in q2 2013

Online shopping was the driving power of E-Commerce, had the highest YoY growth rate of 45.3%. B2B was still the biggest part in E-Commerce, with 2 trillion yuan(324 billion USD) revenue in Q2 which was 80% of total E-Commerce revenue.

b2c growth rate increased twice faster than c2c in 2013

B2C grew twice faster than C2C in Q2 2013. B2C had a 77.4% of QoQ growth rate, while C2C QoQ growth rate was only 31.8%.

pc vs mobile shopping in q2 2013

Mobile shopping had a strong growth trend in Q2, with 8.6% QoQ growth while shopping on PC dropped 91.4% compared to Q1, 2013.

china b2c online shopping market share by revenue in q2 2013

Chinese online shopping markets were led by Tmall with 50.8% market share and Jingdong with 17.1% share, the competition in the second-tier B2C enterprises were tense.

Online Video Market

china online video enterprises revenue break down

Online video providers’ revenue mainly came from advertising,with 75.28% share, during which video ads was the biggest. Besides, copyright licensing distribution occupied 8.61% share, and video value added service occupied 4.3%.

Third Party Payment Market

china third party payment market share in q2 2013

Alipay occupied 49% of China third party payment market, followed by Tenpay with 20% and Unionpay with 10%?

china mobile payment app from dec 2012-may 2013

Alipay was the top app in China mobile third party payment with 66 million monthly users and 20.4% MoM increase rate. However, Bestpay, Lakala,cmpay and yeahka competed with each other fiercely in Q2 2013.

Mobile Internet Market

china mobile segment markets from q1 2011-q2 2013

Mobile shopping surpassed mobile value added service in Q2, becoming the biggest mobile segment market with 38.5% share.

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China Online B2C Market Surpassed 30% of Total Online Shopping https://www.chinainternetwatch.com/2663/china-online-b2c-market-surpassed-30-of-total-online-shopping/ https://www.chinainternetwatch.com/2663/china-online-b2c-market-surpassed-30-of-total-online-shopping/#comments Wed, 14 Aug 2013 08:35:43 +0000 http://www.chinainternetwatch.com/?p=2663 chinese online shopping scale from 2011q1-2013q1

According to iResearch,Chinese online transaction market scale reached 352.1 billion yuan (USD 57.52 billion), with a year-on-year increase of 36.6%. B2C has surpassed 30%, increasing 10% compared to last year.

Tmall is leading B2C market, with 51.3% online market share in Q2, while Jingdong tops independent sales B2C market with 43.4% share.

chinese online shopping structure from 2011q1-2013q1

Chinese B2C (including those launched by C2C) market scale in Q1 2013 reached 120 billion. B2C online market scale’s year-on-year increase was 96.5%, much higher than that of C2C.

chinese b2c market share in q1 2013

Top five B2C enterprises are: Tmall, Jingdong, QQ Buy, Suning and dangdang. And top 10 platforms had 91.1% of the market, which is 3% more than last year.

chinese independent sales b2c market share in q1 2013

In independent sales B2C market, Jingdong is the top with 43.4% share and its year-on-year increase is 100.8% in Q1.

chinese digital camera online e-business platform(c2c included) market share in 2013  chinese digital camera b2c market share in 2013

In digital camera B2C market share, Jingdong had nearly 50% in Q1 according to iEcTracker, a third-party data monitoring owned by iResearch. Jingdong and Taobao together dominate 80% of online digital camera retail market.

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Social Media Downstream Traffic in April: Weibo v.s. Facebook v.s. Twitter https://www.chinainternetwatch.com/1464/social-media-downstream-traffic-in-april-weibo-v-s-facebook-v-s-twitter/ https://www.chinainternetwatch.com/1464/social-media-downstream-traffic-in-april-weibo-v-s-facebook-v-s-twitter/#comments Wed, 30 May 2012 06:47:47 +0000 http://www.chinainternetwatch.com/?p=1464 Downstream Traffic Comparison: Weibo v.s. Twitter v.s. Facebook

According to Hitwise data, Weibo is playing a more important role to e-commerce websites in China, compared to Facebook and Twitter.

A total of 6.5% Sina Weibo users visit e-commerce websites after visiting Weibo including daily deal sites, C2C websites (like Taobao) and B2C Websites (like 360buy.com).

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