According to the data from the China's B2C Online Retail Market Quarterly Monitoring Report in 2019Q3 released by Analysys, in 2019Q3, the transaction size of China's B2C online retail market was RMB 1.55595 trillion, with a year-on-year growth of 21.1%.
In terms of market share, in the Q3 of 2019, the total turnover of Tmall increased by 28.5% compared with that in the same period last year, occupying 63.1% of the market share, ranking first. JD.com's total turnover increased by 20.8% compared with that in the same period last year, with a market share of 25.7%, ranking second. Suning.com ranked third with a market share of 5.4%. VIP.com and gome ranked fourth and fifth with market shares of 2.8% and 0.5%, respectively.
Although the 618 mid-year shopping promotion had ended, the promotion activities of the major e-commerce platforms have not stopped because of this. For example, the e-commerce of Taobao series launched the "88 Member Festival" and "99 Cost-effective Festival" in August and September respectively. But it is more worth noting that, behind these promotion festivals, e-commerce companies of Taobao series have brewed a series of new actions and new playing methods, and made corresponding preparations for future competition with that. In July and August, Tmall and Taobao had launched "Tmall New Product Launcher" and "Taobao God-Man" plans respectively, which are exactly the embodiment of this play. Through strengthening the personal IP, both of take influence of celebrities as the focus, strengthen the symbiotic relationship between content ecology and users, and then enlarge the value of commercial realization. Another "new" of e-commerce of the Taobao series is reflected in the brand. We can learn from the information disclosed by Alibaba in mid-September that: in the past six months, more than 1,500 overseas brands had entered the Chinese market for the first time through Tmall. If a new brand wants to be recognized in the market, it first needs to quickly, effectively and accurately dovetail its target users. If the traditional channels and traditional methods are chosen, the efficiency is low and the cost is high, which is far from being able to adapt to the current era. The e-commerce platforms represented by Tmall have used their advantages in big data and AI technology to establish an efficient digital promotion channel for new brands and lay a foundation for their gradual expansion of sales scale.
The large-scale promotions of jd.com during the 618 festival every year will widely attract users' attention. However, after this year's 618 festival, although there were also a series of activities such as "815 Home Appliances Anniversary", "818 Mobile Phone Festival", "and Home Decoration Festival", the entire platform, large-scale, and long-term promotions no longer appeared, and its promotion entered a relatively quiet period. The absence of promotions does not mean that jd.com has no operation that is worth noticing. For example, in mid-August, in the document submitted by jd.com to the U.S. Securities and Exchange Commission, it disclosed that it had increased a new round of holding of vip.com. With a relatively limited increase in the stock price of vip.com for a long time, the increased holding of jd.com to vip.com reflects more strategic investment than financial investment. VIP.com's strategies and experience in apparel management is very attractive for jd.com, which has a very strong demand to expand its categories and expand its gross profit, and are an important reference for it to further tap its own potential. In addition to the emphasis on online operations, jd.com also laid out its offline business types. Also in August, jd.com had also completed its strategic investment in LATTLIV. As a chain company operating household supplies and daily necessities, most of LATTLIV's stores are located in third-tier and fourth-tier cities. JD.com's investment in LATTLIV not only showed jd.com's emphasis on offline household supplies, but also reflects jd.com's efforts in building the lower-tier market.
Unlike other mainstream e-commerce platforms, Suning.com had launched a grand "818 Shopping Festival" in August after the 618 mid-year shopping promotion. During the shopping festival, Suning.com carried online and offline joint activities, and carried out the promotion of all categories of products such as home appliances, digital products, and fast-moving consumer goods, and some categories of products also achieved high growth rates. In addition to the big promotion, Suning.com's offline operation attracted even more attention. First of all, as expected, after completing the acquisition of Carrefour China, Suning.com's electrical appliance stores gradually entered Carrefour. On the basis of consolidating the advantages of Suning.com's offline home appliance market, it has further enriched the scenarios for its multi-type, multi-contact traffic entry. Secondly, Suning Neighbor Shop had completed the acquisition of over 60 OK convenience stores in Guangzhou. In areas where the supply chain construction is relatively complete and it is relatively competitive, Suning has chosen to build its own Suning Neighbor Shops from scratch; while in areas where the supply chain construction is relatively weak and the competition pressure is high, Suning has repeatedly chosen direct acquisitions, so did the acquisition of OK convenience stores in Guangzhou. Guangdong is the birthplace of China's modern convenience store types, with a relatively sufficient market competition environment and a high density of stores. It is a relatively mature market. Suning's acquisition of existing stores in this region not only can achieve a rapid market penetration, but also can avoid the oversaturated market due to its implementation of self-built layouts under the condition of high store density, thus leading to vicious competition.