Market Research Report : E-Commerce Market in China 2011

8/3/2019 Market Research Report : E-Commerce Market in China 2011

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‐

–November 2011



Executive Summary

Market E‐commerce market in China has been demonstrating rapid growth and development over the past few years

China’s e‐commerce will continue to exhibit speedy growth with annual sales volume growth of at least x % y‐o‐y

from 20‐‐ to 20‐‐

Drivers: Challenges:

Drivers &

‐ Increasing internet use

‐ Emerging middle class

‐ Rise in online shopping

‐ Extensive usage of plastic money

‐ Logistics challenges

‐

Huge

online

counterfeit

market‐ Psychological barrier and adaptive difficulty

‐ Security issues

‐ Enhanced e‐payment services

‐ Rise in mobile commerce

‐ Growing social network base

‐Rise

in

target

industries

‐ System lacks talent and information resources

‐ Entry barriers

Trends

Geograp ica sprea o on ine s opping

Group buying

Initiatives by players

Internal logistics networks

Favoura e demograp ics

Traditional stores opting for online stores

Availability of greater funding

Rising popularity of e‐books

Government

Initiatives

‐‐

Government Policies and Regulations (20‐‐)

12th Five Year Plan (20‐‐ ‐ 20‐‐)

International players like Company 1 and Company 2 are boosting their investment in China, indicating tougher

and more fierce com etition for the domestic la ers

2E‐COMMERCE MARKET IN CHINA 2011.PPT

Some of

the

major

domestic

players

in

the

market

are

Company

3,

Company

4,

Company

5,

Company

6,

Company

7,Company 8, Company 9, Company 10 and Company 11



•Introduction

•

•Market Segmentation

• eman an upp y erspect ve

•Drivers &

Challenges

•Government Initiatives

••Competition


• ey

a eaways



Operation Model of an E‐commerce System

f e d

a

c g

b


h



China’s e‐commerce sector is predicted to experience the

fastest growth rate in Asia

• China is the world’s x largest e‐commerce market

More than mn internet users includin z mn online sho ers

Market Size

and

GrowthE

‐commerce

Market

– Overview

3,000

USD bn

a7

along with p mn Chinese middle class population boosts

further

growth

in

the

sector

• In 20‐‐, more than q mn people were directly employed

‐

1,000

1,500

2,000

2,500 +30.9% a6

a5a4

a3a2a1

No. of people indirectly employed reached more than r mn

and is expected to grow to s mn by 20‐‐

E‐commerce

Paying

AccountsE

‐commerce

Registered

Accounts

0

500

20‐‐e20‐‐e20‐‐e20‐‐e20‐‐e20‐‐20‐‐

15,000

20,000

mn

+21% b4b3

b2 200

250

300

mn

+16% c4c3

c2c1

0

5,000

10,000

‐‐‐‐‐‐‐‐

b1

0

50

100

150

‐‐‐‐‐‐‐‐




Type 1 transactions dominate the e‐commerce market in

China

• Type 1 refers to an online market for online business

deals

Market Size

and

GrowthType

1 E‐commerce

3,000

USD bn

a7

In Q1 20 ‐‐ ,Type 1 revenue amounted to USD x mn, y ‐oy

growth of y%

•No. of

Type

1

companies

reached

z

in 20

‐‐, y

‐o

‐y

growth

of p% 1,000

1,500

2,000

2,500 +30.9% a6

a5a4

a3a2a1

n ‐‐, s sec or rece ve q mn n cap a rom r

investors, which includes s VCs and two IPOs that raised a

combined USD t mn and five mergers

Revenue Break

‐Up

(Q1

20

‐‐)Competitive

Landscape

(20

‐‐)

0

500

20‐‐e20‐‐e20‐‐e20‐‐e20‐‐e20‐‐20‐‐

b6%

Company 3

Company 2

Company 1 c4%c3%

Trade b lar e

Trade by small‐

and medium‐sized

enterprises

b4%b3%

b2%b1%

Others

Company 5

c2%

c

Airfares and hotels

enterprises

Online shopping

accounts




G segment boom in China is giving serious competition to

the traditional G outles

Segment 1 SalesSegment

1

• G sales in China amounted to ~USD x tn in 20‐‐, and

are expected to grow by ~y% in 20‐‐

200

USD bn

• Segment 1 represents the next major segment for

retail

growth

in

China

• China had z mn online stores as of Dec 20‐‐

•

100

150+25.4% a4

a3a2

a1

Share of

Goods

Sold

Online

(20

‐‐) Number

of

Segment

1 Users

Internet, Segment 1 sales is expected to surge in the

coming years 0

20‐‐e20‐‐e20‐‐e20‐‐

b1%b3%Others

Type 2

Type 1

150

200 +49%c3

mn %

1,0

c1

PenetrationOnline Retail Users

b2%

0

50

100

0,0

20‐‐

c40,5

20‐‐

c2




Drivers & Challenges – Summary

Drivers

Increasing internet use

Challenges

Logistics challenges

Emerging middle class

Rise in online shopping

Huge online counterfeit market

Psychological barrier and adaptive

difficulty

Extensive usage of plastic money

Enhanced e‐payment services

Security issues

System lacks

talent

and

information

resources

Rise in mobile commerce

Growing social

network

base

Entry barriers

Rise in target industries




Trends – Summary

Grou bu in

Geographical spread

of

online

shopping

Initiatives by players

`Trends

Internal logistics networks

Traditional stores opting for online stores

Favourable demographics

Availability of greater funding


Rising popularity

of

e‐books



Major Domestic Players in the Market (1/8)

Company Snapshot:

Company

1

Corporate Information Financial Performance

Profit LossRevenueu y

Founded 20‐‐

ProductsProduct 1, Product 2, Product 3, Product 4,

Product 5

Profit/Loss

300

400

‐

0

5

USD mn USD mna4

a3

Key People Person 1 ‐Executive Chairperson

0

100

‐15

‐10

20‐‐

20‐‐

20‐‐

a2

20‐‐

a1

• Company 1 has focused on selling product 1online and later expanded into select product 5 category, through its

website x.com

In addition, it operates the x.com marketplace program, which enables third‐party merchants to sell their products alongside products

source y t e company

• As of March 20‐‐, it has sold more than y product 1 along with other media products, the largest selection available

from any single retailer in China both online and offline

• It has z logistics centers strategically located throughout China


• In Q2

20

‐‐, company

started

the

operation

of

the

P

fulfillment

center

and

expanded

the

new

facility

in

Guangzhou

fulfillment center, resulting in total warehouse space to q square meters



Other Major Domestic Players in the Market (1/6)

• ‐

Company Snapshot:

Company

2

Corporate Information Business Highlights

It includes online marketplaces, retail and payment

platforms, shopping

search

engines

and

data

‐centric

cloud computing services

It’s subsidiaries include x.com, y Marketplace, z Mall, p ,

u y

Founded 19‐‐

ProductsProduct 1, Product 2, Product 3, Product 4,

Product 5, Product 6, Product 7q Cloud computing, r and s

• x.com operates as a subsidiary of the company 2

x.com operates as a business‐to‐business e‐commerce

company in the PRC and internationally

Key People Person 2 ‐chairman

– Company offers platforms for international,

domestic, and retail trade

In Sep 20‐‐, company plans to raise as much as USDe mn

from the listing of its website‐designing unit in the U.S

In Feb

20

‐‐,company

bought

f%

stake

in

Sinosoft

• In Oct 20

‐‐com an announced its latest lan to

Technology Plc, Chinese export‐services software maker,

with an investment of USD g mn as an effort to enhance

it’s customer service

invest USD h mn to its B2C subsidiary, z.com (z Mall),

in an effort to assist small and medium sized

enterprises




SAMPLE

Online Traffic Specifications (1/7)

Websites Online Traffic

Statistics

Traffic Rank (China) x1

*

Global Traffic Rank – p

x.com

Daily Visitors* x3

Time spent on site (minutes) x4

y.Com

Traffic Rank (China) y1

Daily Pageviews* y2

Global Traffic Rank – q

Daily Visitors* y3

Time spent on site (minutes) y4

Traffic Rank

China z1Global

Traffic

Rank

– r

z.com

Daily Pageviews* z2

Daily Visitors* z3

12

Time spent

on

site

(minutes) z4

E‐COMMERCE MARKET IN CHINA 2011.PPT



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Market Research Report : E-Commerce Market in China 2011

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