CIW China Online Shopping Insights 2014

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China Online shopping Insights

2014China Internet Watch.com

CIW


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CIW

China Internet WatchSource: CNNIC, Dec 2014

87.0%

69.7%

45.3%

18.8% 16.2% 14.2% 12.9% 12.6% 11.7%

Taobao Tmall JD Vipshop Dangdang Suning Yihaodian Amazon Jumei

China Online Shopping Websites by Penetration RateIn 2014


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301.89

361.42

144.40

236.09

48.9%

55.7%

28.9%

42.4%

2013 2014

China Online Shopping Users in 2014

Number of online shopping users (million) Number of mobile shopping users (million)

Ratio of online shopping users Ratio of mobile shopping users


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China Internet Watch

East, 31.5%

South, 18.5%Northeast, 16.7%

North, 16.6%

Southwest,

10.1%

Northwest, 6.7%

China Online Shopping Users by Location in 2014

Source: CNNIC, Dec 2014


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12.2%

12.9%

15.4%

16.3%

16.6%

18.0%

22.4%

22.7%

25.7%

30.6%

32.7%

34.9%

43.3%

45.1%

75.6%

7.3%

16.8%

15.3%

12.7%

18.7%

14.5%

25.4%

26.6%

24.1%

25.9%

24.9%

33.1%

37.5%

34.4%

75.3%

Jewelry & accessory

Cinema & show tickets

Food & restaurant

Mothercare products

Air tickets & hotel booking

Recreation & sports goods

Food & healthcare products

Household appliance

Book, audio & video products

Cosmestics

Bags

Virtual cards

Computer & digital products

General merchandise

Clothes

China Online Shopping Goods by Category in 2014

2014 2013


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China Internet WatchSource: Deloitte, Oct 2015

25.9%30.4% 34.0%

40.0%47.8%

74.1%69.6% 66.0%

60.0%52.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1

Chinese Online Shopping Market by Device Type in 2014

Mobile PC


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509.10

782.60

1,311.00

1,863.60

2,789.80

96.90%

53.70%

67.50%

40.50% 49.70%

2010 2011 2012 2013 2014

China Online Retail Market in 2014

Transaction value (billion RMB) % of growth


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0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2010 2011 2012 2013 2014 2015e 2016e

Chinese Chain Retailers Online Shopping Market by Transaction Values in 2014

Chain retailers transaction values (billion yuan) % of penetration rate


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3.20

5.60

8.70

17.50 17.30

20.00

29.00

36.00

58.00

48.00

2010 2011 2012 2013 2014

Usage Frequency of China Online Shopping Users in 2014

Total transaction volume (billion) Annual per capita volume


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China Internet WatchSource: Bain, Oct 2015

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Skin-care products Milk Infant formula

Chinese Online Shopping Market by Market Share in 2014

Taobao Tmall Jingdong Jumei Yihaodian Other


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0.00

1.00

2.00

3.00

4.00

5.00

6.00

2011 2012 2013 2014 2015e

Chinese Cross-border E-commerce Market by Transaction Values (Trillion RMB) in 2014


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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015e

Chinese Cross-border E-commerce Market by Business Pattern in 2014

Import Export


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2.2% 2.8% 4.1% 4.6% 6.5% 8.7%

97.8% 97.2% 95.9% 95.4% 93.5% 91.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014 2015e

Chinese Cross-border E-commerce Market by Platform in 2014

B2C B2B


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Tmall, 61.4%

Jingdong, 18.6%

Suning, 3.2%

Vipshop, 2.9%

Gome, 1.7%

Yihaodian, 1.4%

Dangdang, 1.3%

Amazon China, 1.3%Jumei, 0.7%

Other, 7.6%

Transaction Values of Chinese B2C Online Shopping Market by Market Share in 2014

Source: Deloitte, Oct 2015


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87.4% 86.5%84.5%

86.0%84.5%

3.3% 4.5%

4.6%

4.5%5.2%

4.6% 4.8%

5.7%5.3%

5.7%

4.7% 4.2% 5.2% 4.2% 4.6%

75%

80%

85%

90%

95%

100%

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1

Chinese Mobile Shopping Market by Market Share in 2014

Other Vipshop, Suning, Gome, Yihaodian, Jumei, Dangdang and Amazon Jingdong Alibaba


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496.0%

295.0%

240.0%

84.3%

42.1%

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

2011 2012 2013 2014 2015e 2016e

Chinese Mobile Shopping Market in 2014

Transaction values (billion yuan) % of growth rate


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71.1%

62.3%

58.1%57.3%

44.8%

38.4%

29.4%26.9% 26.8%

6.8%

Product

reputation

Business

fame

Product

price

Delivery

speed

Public

praise

Level of

promotions

Delivery

cost

Logistics

company

fame

Website

experience

Other

Top Concerns of China Online Shopping Users in 2014


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62.0%

56.0%54.0%

49.0%

43.0%

35.0% 34.0%32.0%

Low price Various

categories

Save time Home delivery

service

Current trend Personal habit Convenient High

experience

Reasons For Chinese Consumers to Spend More Online in 2015

Source: McKinsey, Nov 2015


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Price, 11.6%

Quality, 37.4%Both, 51.0%

“What are you looking for when buying products online?”



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82.9%

65.3%

53.8%52.6% 49.7%

14.4%

9.0%

0.6%

Third party

payment

Online banking

payment

Quick payment Mobile

payment

Pay on delivery Remit by the

post/bank

Gift/shopping

card

Other

Online Payment Method of China Internet Users In 2014


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12.5%

26.8%

24.1%

12.7%

9.0%9.7%

4.3%

0.9%

< 1% 1% - 5% 6% - 10% 11% - 20% 21% - 30% 31% - 50% 51% - 80% 81% - 100%

China Online Shopping Expense of Total Daily Expenditure In 2014


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Yes, 29.4%

No, 70.6%

“Have you ever returned goods without a reason in seven days after receiving?”



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51% - 81%, 5.8%

< 20%, 6.1%

20% - 50%, 6.5%

81% - 99%, 6.6%

100%, 75.0%

Ratio of Successful Refund in 7 Days in 2014



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Never, 58.1%

< 5%, 11.9%

Each time, 11.9%

20% - 50%, 6.8%

5% - 20%, 6.2%

> 50%, 5.0%

“Would you ask for invoices when purchasing online?”



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74.7%

22.2%

16.8%14.5%

2.5%

Repair, rerturn &

exchange

Reimbursement Company to pay

taxes

Purchasing agent Other

Major Usage of Online Shopping Invoices In 2014


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Yes, 57.6%

No, 42.4%

“Have you seen ads based on your online browsing history while buying online?”



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Unacceptable,

21.9%

Acceptable , 34.9%

Neutral, 43.1%

Other, 0.2%

“How do you think of the ads based on your online browsing history?”



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Generic online shoppers,

87.1%

Very frequent online

shoppers, 12.9%

China Online Shopping Users by Usage Frequency in 2014



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2.8%

9.7%

42.2%

30.3%

5.9% 5.3%3.8%

53.2%

28.2%

17.4%

1.2%

< 10 11 - 20 21 - 50 51 - 100 101 - 150 151 - 199 > 200

China Online Shopping Users by Usage Frequency in Half of 2014

Very frequent online shoppers Generic online shoppers


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0.3%

5.6%

45.9%

25.9%

22.2%

2.7%

15.4%

22.2%

47.1%

12.4%

0.2%

< 100 101 - 500 501 - 1000 1001 - 5000 5001 - 10000 10001 - 19999 > 20000

China Online Shopping Users by Total Spend in Half of 2014

Very frequent online shoppers Generic online shoppers


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3.5%

10.5%

24.4%23.0%

34.3%

4.2%

1.3%

6.0%

18.6%

26.4%

38.7%

9.1%

Primary or below Junior High Senior

High/Technical/Skill

Juonir College College Doctor

China Online Shopping Users by Education Background in Half of 2014

Generic online shoppers Very frequent online shoppers


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70.6%

55.2%

39.7%

36.5%32.1%

13.8%

8.6% 7.6% 7.0%5.4%

8.9%

WeChat Qzone Sina Baidu

Post Bar

Tencent

Weibo

Renren Douban Tianya Zhihu Kaixin Other

China Online Shopping Users in Social Media In 2014


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Unacceptable, 53.4%

Acceptable, 46.6%

“How do you think of the product promotions on social websites?”



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No, 72.2%

Yes, 27.8%

“Have you ever forwarded message or consumer experience of those websites?”



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1216

7719

6.00

48.00

Social media shopping Total online shopping

China Social Media Shopping Users in 2014

Average transaction value (RMB) Annual per capita volume in 2014


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No, 95.2%

Yes, 4.8%

“Have you ever purchased overseas goods online?”



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5.2%

8.2%

8.2%

9.0%

9.7%

11.9%

17.2%

20.1%

23.1%

35.8%

45.5%

Other

Jewelry & accessory

General merchandise

Luxury goods

Gifts

Book, audio & video products

Healthcare products

Cinema & show tickets

Mothercare products

Cosmestics

Clothes

China Overseas Online Shopping Goods by Category in 2014


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58.2%

34.3%

30.6%

17.9%

11.2% 10.4% 9.7% 9.0% 8.2%

3.7%

12.7%

Major Online Overseas Shopping Countries in 2014


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59.7%56.7%

26.9%

16.4% 15.7%

3.0%

Overseas

shopping website

Domestic

overseas

shopping website

WeChat friend Rebate website or

paypal

Domestic

overseas

shopping forum

Other

Major Online Overseas Shopping Channels in 2014


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66.4%

60.4%

50.0%46.3%

34.3%

4.5%

High quality Too many fake

goods in China

Lower price Not available in

China

More categories Other

Major Reasons for Online Shopping Overseas in 2014


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1.2%

1.8%

2.2%

4.5%

4.5%

4.5%

5.2%

32.1%

55.5%

Expiry date

Miscommunication

Unauthorized charges of credit card

Quality problem

Damage or loss during delivery

Unable to return

Hard to examine good

Long delivery time

None

Problems During Online Shopping Overseas in 2014


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CIW China Online Shopping Insights 2014

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