The seven countries included in the report by United Nations Conference on Trade and Development (UNCTD) are Australia, Canada, China, South Korea, Singapore, UK, and the U.S. China and the U.S. lead the global retail market with total sales of $5,681 billion and $5,638 billion respectively in 2020.

China also has the largest online retail sales of US$1,414.3 billion in 2020, followed by the U.S. with $791.7 billion.

Also read: Top e-commerce mobile shopping platforms in China 2021

China’s online sales accounted for 24.9% of the total retail market. South Korea’s online share is the highest of 25.9%.

UNCTD’s report also identified the top 13 B2C e-commerce companies by GMV, led by Alibaba, Amazon, JD, Pinduoduo, Shopify, eBay, and Meituan.

Among the top 13 companies, the ones with the highest growth in 2020 are Shopify, Walmart, and Pinduoduo.

CIW members can download the report here (CIW Standard annual billing and all CIW Premium subscribers).

Social e-commerce Pinduoduo’s road to brand upgrade

In China, the online retail B2C e-commerce grew by 28.4% to a US$226.38bn market in Q4 2018. Tmall took the lead, followed by JD, Suning, Vipshop, and Gome.

China’s online retail B2C e-commerce market reached 1,526.76 billion yuan (US$226.38bn) in Q4 2018, an increase of 28.4% year-on-year.

Revenue from Alibaba’s core commerce grew by 40% year-over-year to 102,843 million yuan (US$14,958 million) as of Q4 2018. Its annual active consumers on the China retail marketplaces reached 636 million.

Related: China e-commerce market overview

Tmall took a market share of 61.5%, with a GMV increase of 29.5% year-on-year. JD ranked in the second place with a share of 24.2%, whose GMV grew by 21.1% year-on-year. Suning, Vipshop, and Gome listed third, fourth, and fifth with a share of 6.7%, 3.7%, and 0.7%, respectively.

71 brands exceeded 100 million yuan (US$14.37 million) in GMV in the pre-sale period of Double 11. Among that, 15 brands came from Tmall apparel, i.e. Nike, Adidas, Puma, Lining, Converse, Anta, Fila, Skechers, New Balance, Underarmour, Uniqlo, Eifini, Only, Vero Moda, and Bosideng. The same figure was only 40 in last year’s Double 11. You can find out the top statistics of Double 11 2018 here.

In 2018, the online retail sales of goods and services totaled 9,006.5 billion yuan (US$1,328.59 billion), up by 23.9% year-on-year. China’s retail market is estimated to hit US$6.77 trillion by 2019 with e-commerce representing 14.46% of this market.

Individual agents (Daigou), who frequently promote products on WeChat Moment or sell products in live streaming and short videos, are facing a new e-commerce policy on the first day of 2019. Under this new regulation, they need to make market entity registration and perform the obligation of tax payment.

In order to meet the ever-changing consumer preferences, companies should adjust their products and marketing based on people’s shopping motives, methods, time and results. Read more on Chinese digital consumer trends here.

China’s US$16bn cross-border e-commerce market overview in Q4 2018

The transactions of the online retail market in China totaled US$593.18 bn in H1 2018, representing 22.7% of total retail sales. Meanwhile, the mobile shopping market in China saw US$397.83 trillion transactions. Tmall, Jingdong, and Pinduoduo led the B2C online retail market.

Total transactions of the online retail market in China was 4,081 billion yuan (US$593.18 bn), an increase of 30.1% year-on-year, accounting for 22.7% of the total retail sales of consumer goods.

There are 568.92 million online shoppers in China in H1 2018. The transactions of mobile shopping grew by 22% to 2,737 billion yuan (US$397.83 bn), which was 2,245 billion yuan in H1 2017.

Online retail sales in the rural area totaled 632.28 billion yuan (US$90.91 bn) in H1 2018, a 44% increase year-on-year compared with 440.2 billion yuan in H1 2017.

The gross merchandise volume of the online retail B2C market expected to be 5283.23 billion yuan (US$767.92 bn) by the end of 2018.

Tmall continues to lead the market with a share of 55%, a 5% increase year-on-year. Jingdong (JD.com) took the second position with a share of 25.2%, increased by 0.8% year-on-year. Pindduoduo and Suning took the next two positions with a share of 5.7% and 4.5%, respectively.

Continue to read articles on cross-border e-commerce, B2B, and mobile e-commerce.

Related CIW Dossier: Retail E-Commerce (updated on 2 Oct 2018)

Within the online retail B2C market, maternal and child sector saw a high growth of 54.3% in GMV to 63.48 billion yuan in Q1 2018.

Tmall led this market with a lion’s share of 49.2%, followed by JD.com (19.2%) and Redbaby (8.0%).

Get an overview of China B2C online retail market for Q1 2018 here.

China online retail market totaled 1,974.59 billion yuan (US$311.69 billion) with an increase of 41% YoY in Q4 2017 according to data from Analysis. China’s B2C online retail market reached 1,189.35 billion yuan (US$187.74 billion) with an increase of 43.2%.

Total transactions on Tmall grew by 45% in Q4 2017, accounting for 60.9% of the total B2C market in China. JD grew by 35% to 25.6% market share, followed by Suning and Vipshop.

China’s FMCG spending grew by 4.3% in 2017

China’s B2C apparel market reached 307.74 billion yuan (US$46.37 bn) in Q2 2017 with an increase of 47.3%.

Tmall has 80.7% market share in China’s B2C online clothing market in Q2 2017, followed by JD (8.7%) and Vipshop.

The online retail market in China reached 1.59 trillion yuan (US$244.6 billion) in the second quarter of 2017 (up 31.2% over Q2 2016), with B2C sales accounting for 860.5 billion yuan (US$132.4 billion), an increase of 32% over the second quarter of 2016. Read more »

Also read: China cross-border e-commerce market 2017

The online retail market in China reached 1.59 trillion yuan (US$244.6 billion) in the second quarter of 2017 (up 31.2% over Q2 2016), with B2C sales accounting for 860.5 billion yuan (US$132.4 billion), an increase of 32% over the second quarter of 2016.

The second quarter is the traditional peak of the online sales season in China, with JD.com’s 6.18 (June 18th, a major promotional activity for online sales) having caught on and developed into a summertime companion to 11.11 (the winter sales peak, comparable to the US’s Cyber Monday).

This year, retailers unveiled major promotional initiatives including advertising, discounts, and interactive and live activities. At the end of Q2, data showed that Tmall had captured 51.3% of the online B2C retail market, with JD.com as its primary competitor with 32.9%.

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Tmall was able to leverage big data to better meet consumer demand and envisage different demand scenarios, improve its shopping guides, and broaden its distribution channels. JD.com reached a total turnover of 119.9 billion yuan (US$184.5 billion) during its 6.18 promotion, breaking its prior record; it also introduced a series of offline promotional activities called “6.18 Offline”.

Vipshop harnessed a drive for quality among consumers as a new growth engine, with the slogan “Global selection, genuine articles”, while splitting off its finance business and restructuring its logistics business.

A new round of competition in online retail is in the offing, even as major players continue to experiment with foreign brand offerings, improving logistics, and expanding into cross-border e-commerce.

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.

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.

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

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.

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

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.

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

Total transaction value of China online shopping market reached 1.15 trillion yuan (US$166.85 billion) in Q3 2016, up 23.6% YoY or 2.6% QoQ, according to data from iResearch.

B2C (600 billion yuan) accounted for 55.1% of China online shopping market in Q3 2016, led by Tmall (56.2%), Jingdong (25.1%), Suning (4.4%), and VIPshop (3.2%).

The total transactions of China mobile shopping market reached 820.15 billion yuan (US$), an increase of 56.1% YoY. Mobile accounted for 71.6% of China’s online shopping market, led by Tmall/Taobao with 82.7% market share.

China’s online shopping market transactions totaled RMB 1,117.8 billion (USD 167.51 billion) in the second quarter of 2016 with a growth rate of 27.6% YoY or 14.9% QoQ according to iResearch.

Online shopping represented 14.3% of China’s total consumer retail sales in Q2 2016. And, B2C accounted for 54.5% of total online shopping transactions, led by Tmall (54.5%) and JD (26.3%).

From January to June, the total retail sales of consumer goods reached 15,613.8 billion yuan, up by 10.3 percent year-on-year. according to National Bureau of Statistics of China. The online retail sales of goods and services was 2,236.7 billion yuan, increased by 28.2% year-on-year.

Mobile online shopping market reached RMB 783.44 billion (USD 117.4 bn) in Q2 2016 in China, an increase of 75.9% YoY, accounting for 70.1% of total online shopping transactions.

Alibaba continued to dominate China’s mobile shopping market in Q2 2016 with over 80% market share.

As 40% china online consumers buy foreign goods, cross-border e-commerce in China will hit $85.76 billion this year according to the analysis of eMarketer.

E-marketer estimated that China’s each online shoppers will spend an average of $473.26 on foreign goods. By 2020, the cross-border consumers will account for 50.7% of total digital consumers, up from 20% in 2014.

The growth of living standard and global digital sales platforms greatly boomed China’s cross-border e-commerce market. Alibaba’s Tmall Global, JD Worldwide, and other B2C global platforms provide convenient accesses for both sellers and buyers to trade. China’s consumers prefer foreign goods such as milk powder, diapers and pet food, which make international brands break the market quicker and easier.

On April 8 2016, China implemented cross-border electronic commerce retail sales (enterprise to consumers, B2C) import tax policy and adjustment of personal postal articles tax policy. Cross-border e-commerce retail goods are no longer charged by personal postal articles tax but imposed tariffs on goods, import value-added tax and consumption tax.

Some product such as jewelry and infant formula has slightly increased due to the new tax policy. But, the marketer analyst Shelleen Shum noted, “the demand for foreign goods via the cross-border e-commerce channel is still expected to remain strong due to better prices compared to offline retailers, perceived quality and better variety.” She added that since the merchants selling on these B2C platforms have to be authorized, they are considered more trustworthy.

B2C platform sales are expected to take up a growing share of cross-border e-commerce market in 2016. The cross-border consumer will be a quarter of the total population by 2020 according to estimation of eMarketer.

Thanks to the combination of overseas travel, increased internet usage, exposure to foreign brands and convenience of online retail, as well as the surging demand of foreign products, China is projected to become the largest cross-border e-commerce market by 2020.

Also read: Chinese online shoppers insights 2016

On March 24 2016, China Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued the “notice on cross-border e-commerce retail import tax policies”.

From April 8 2016, China will implement cross-border electronic commerce retail sales (enterprise to consumers, B2C) import tax policy and adjustment of personal postal articles tax policy.

Cross-border e-commerce retail goods will no longer be charged by personal postal articles tax but imposed tariffs on goods and import value-added tax and consumption tax. For goods that do not belong to cross-border retail personal products or do not have electronic information of the cross-border transactions will be taxed according to the existing provisions.

The good news for cross-border online shoppers is, products on cross-border e-commerce platforms can get instant customs clearance.

Currently reasonable quantity of imported goods for personal use are charged a personal postal articles tax, which is a combined taxation of customs tariff, import VAT, and consumption tax and is still lower than regularly imported goods. And, it can be exempted from tax if the tax payment is no more than 50 yuan.

In accordance with the new cross-border e-commerce retail import tax policy, cross-border e-commerce retail imports of goods in a single transaction has a limit of 2,000 yuan and an annual limit of 20,000 yuan for personal transactions. Within the limited value of imports of cross-border e-commerce retail import goods, tariff rate is temporarily set to 0%; import VAT and consumption tax have temporarily taxable amount of 70% levy. The 50 yuan tax payment exemption will no longer apply.

According to the news released by the Ministry of Finance, in order to optimize the tariff structure, make it convenient for travelers and consumer declaring tax, and improve the efficiency of customs clearance, China will adjust the personal postal articles tax policy (four tax categories of 10%, 20%, 30% and 50%) to three categories of 15%, 30% and 60%.

Category 1 goods (15%) are items of major MFN with zero tariff; category 3 (60%) are for high-end and luxury goods; the rest fall into category 2.

Also read: China Cross-border Online Shopper Insights 2015