China’s high-speed increase of e-commerce industry in the past decade seems to drawing to a close in recent years. According to report released by China e-Business Research Center, Chinese e-commerce volume sales increased by 43.9% YOY from 754.2 billion yuan (around US$123 billion) in H1 2013 to 1.08 trillion yuan in H1 2014. The whole-year sale is expected to reach 2.78 trillion yuan.
As competitions in Chinese e-commerce battlefield become fiercer, domestic e-commerce retailers are trying hard to snap up more market shares by exploring business opportunities in lower-tier cities, launching large-scale shopping activities, cooperating with offline stores, etc.
Among all these measures, m-commerce is considered as a major momentum to invigorate the whole e-commerce sector, given the popularity of smart mobile devices and better Internet network connections in China.
According to the report, China’s sales volume of m-commerce industry surged by 378% YOY from 53.2 billion yuan in H1 2013 to 254.2 billion yuan in the first half of this year. The annual turnover for 2014 is expected to hit 632.4 billion yuan.
China’s M-commerce Market Size (2009-2014)
In terms of major players in Chinese e-commerce industry, Tmall and JD still took the top two positions with 57.4% and 21.1% of market shares, respectively. JD is catching up rapidly after integrating Tencent’s e-commerce arms of QQ Wanggou, Paipai.com and Yixun.com. The two oligarchies are followed by Xiaomi, Gome, VIP.com, Suning.com, Amazon China, Dangdang, Tencent’s e-commerce sites, Jumei and others.
Market Share of Chinese E-commerce Companies (2014 H1)
The 2014 H1 revenues for some of these companies are JD 107.1 billion yuan, VIP.com 9.41 billion yuan, Suning.com 8.28 billion yuan (exclude open platform and virtual products), Dangdang 6.15 billion yuan, Tencent e-commerce sites 3.84 billion yuan, and Jumei’s sales 3.44 billion yuan.
China’s e-commerce users climbed 26.4% YOY from 277 million to 350 million in the first half of this year. The whole-year figure is expected to reach 390 million by the end of this year, according to the report.
As of the end of June this year, China’s e-commerce business represents 8.7% of the country’s total consumption amount, rising 27.9% YOY from 6.8% in H1 2013 and reaching over 10% by the end of this year.
Data and graphs source: www.100EC.cn