E-commerce Market in China 2011 - Sample
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E commerce Market ChinaE‐commerce Market – China
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 & Challenges
‐ 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 issuesChallenges ‐ Enhanced e‐payment services
‐ Rise in mobile commerce
‐ Growing social network base
‐ Rise in target industries
h l d f l h
‐ System lacks talent and information resources
‐ Entry barriers
bl h
Government Policies and Regulations (20 )
Trends
Geographical spread of online shopping Group buying Initiatives by players Internal logistics networks
Favourable demographics Traditional stores opting for online stores Availability of greater funding Rising popularity of e‐books
Competition
Government Initiatives
Government Policies and Regulations (20‐‐)
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 competition for the domestic players
2E‐COMMERCE MARKET IN CHINA 2011.PPT
Competition and more fierce competition for the domestic players
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 OverviewMarket Overview
•Market Segmentation
D d d S l P i•Demand and Supply Perspective
•Drivers & Challenges
•Government Initiatives
•TrendsTrends
•Competition
K T k
3E‐COMMERCE MARKET IN CHINA 2011.PPT
•Key Takeaways
Operation Model of an E‐commerce System
f e d
a
cg
b
4E‐COMMERCE MARKET IN CHINA 2011.PPT
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 y mn internet users, including z mn online shoppers
Market Size and GrowthE‐commerce Market – Overview
3,000
USD bn
a7y , g pp
along with p mn Chinese middle class population boosts
further growth in the sector
• In 20‐‐, more than q mn people were directly employed
by the Chinese e‐commerce companies1,000
1,500
2,000
2,500 +30.9% a6
a5a4
a3a2a1by the Chinese e commerce companies
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% c4
c3
c2c1
0
5,000
10,000
20‐‐e20‐‐e20‐‐e20‐‐
b1
0
50
100
150
20‐‐e20‐‐e20‐‐e20‐‐
5E‐COMMERCE MARKET IN CHINA 2011.PPT
20 e20 e20 e20 20 e20 e20 e20
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% I 20 thi t i d USD i it l f
1,000
1,500
2,000
2,500 +30.9% a6
a5a4
a3a2a1
In 20‐‐, this sector received USD q mn in capital from 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%
b5%Company 4
Company 3
Company 2
Company 1 c4%c3%
c1%Trade by large
Trade by small‐and medium‐sized enterprises
b5%b4%
b3%b2% b1%
Others
Company 5
Company 4
c2%
c1%
Airfares and hotels
Trade by large enterprises
Online shopping accounts
6E‐COMMERCE MARKET IN CHINA 2011.PPT
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‐‐
•With increasing prosperity and easily access to the 50
100
150+25.4% a4
a3a2
a1
Share of Goods Sold Online (20‐‐) Number of Segment 1 Users
With increasing prosperity and easily access to the Internet, Segment 1 sales is expected to surge in the coming years 0
50
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
0,020‐‐
c40,5
20‐‐
c2
c1
7E‐COMMERCE MARKET IN CHINA 2011.PPT
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
resources
Entry barriers
g
Rise in target industries
8E‐COMMERCE MARKET IN CHINA 2011.PPT
Trends – Summary
Group buying
Geographical spread of online shopping
Initiatives by players
p y g
`Trends
Internal logistics networks
Traditional stores opting for online stores
Favourable demographics
Availability of greater funding
9E‐COMMERCE MARKET IN CHINA 2011.PPT
Rising popularity of e‐books
Major Domestic Players in the Market (1/8)
Headquarters Cit 1
Company Snapshot: Company 1Corporate Information Financial Performance
Revenue Profit/LossRevenueHeadquarters City 1
Founded 20‐‐
ProductsProduct 1, Product 2, Product 3, Product 4, Product 5
Profit/Loss
Revenue
200
300
400
‐5
0
5
Profit/LossUSD mn
RevenueUSD mn
a4
a3
Key People Person 1 ‐Executive Chairperson
Business Highlights
0
100
200
‐15
‐10
‐5
20‐‐20‐‐20‐‐
a2
20‐‐
a1
Business Highlights
• 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
d b hsourced by the 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
10E‐COMMERCE MARKET IN CHINA 2011.PPT
• 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 2 is a family of Internet‐based businesses
Company Snapshot: Company 2Corporate Information Business Highlights
Headquarters Cit 2 • Company 2 is a family of Internet based businesses 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 ,
Headquarters City 2
Founded 19‐‐
ProductsProduct 1, Product 2, Product 3, Product 4, Product 5, Product 6, Product 7
q 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‐‐, company announced its latest plan toTechnology Plc, Chinese export‐services software maker, with an investment of USD g mn as an effort to enhance it’s customer service
In Oct 20 , company announced its latest plan to invest USD h mn to its B2C subsidiary, z.com (z Mall), in an effort to assist small and medium sized enterprises
11E‐COMMERCE MARKET IN CHINA 2011.PPT
SAMPLE Online Traffic Specifications (1/7)
Websites Online Traffic Statistics
Traffic Rank (China) x1
Daily Pageviews* x2
Global Traffic Rank – p
x.comDaily Pageviews* x2
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
Thank you for the attentionE‐commerce Market ‐ China report is a part of Netscribes’ Information Technology Industry Series. For more detailed information or customized research requirements please contact:
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Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,
13E‐COMMERCE MARKET IN CHINA 2011.PPT
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