Hello,welcome to Analysys
You are here:Home > Analysys Views>
China Online Retail B2C Created 336.38 Billion Yuan in Q3, 2014
Analysys recommends that companies strengthen their foundational services risking expansion into new markets. Furthermore, Analysys predicts that smart phones and other mobile devices will be the next important area of competition.
  • 12 Oct, 2015
  • E-commerce
  • 2075

According to The Seasonal Survey of the China Online Retail Market in Q3, 2014, released by Analysys International, the online retail market in China has created 691.81 billion Yuan, with a sequential growth rate being 6.24 percent.

According to statistics from another article, The Seasonal Survey of China Online Retail B2C Market in Q3, 2014released by Analysys International, the online retail B2C market in China has hit336.38 billion Yuan, with a sequential growth rateof5 percent.

The online retail B2C market is relatively stable. The market share of T-mall has reached 52 percent, giving them a leading position. T-mall is followed by Jingdong whose market share is 18.1 percent. With advantages in the field of vertical segments, Dangdang, Suning, vip.cpm, yhd.com and other manufacturers continue to maintain their market position; jiuxian.com, secoo.com, womai.com, sfbest.com and other manufacturers have become influential as a result of the rapid growth of the market.

Although Q3 is not the traditional heavy sales season, competition among vendors is still fierce. Analysys highlighted the following new features of the B2C market in Q3, 2014:

First, competition in the field of apparel has gradually strengthened. In Q3, T-mall focused on high-quality clothing and luxury apparel and cooperated with many well-known, international brands; Jingdong continued its Spring and Summer Fashion Show released earlier this year and started its Autumn and Winter Fashion Show with the theme, "Shang Jingdong"; Dangdang held "Autumn and Winter New Products Presentation 2014" in the fall to put their hat in the apparel market; VANCL released a new shirt and introduced a variety of other high-quality clothing. The high margins and high frequency of purchasing in the apparel market precipitates high levels of competition. With increasing per capita income levels, consumers’ demand for high-quality and fashionable clothing is increasing, which also contributes to innovation in apparel market.

Second, the cultivation of the B2C market has caused competitive barriers to form and encouraged expansion. E-commerce companies continually innovate in their preponderant areas; the "Favorite Festival" of vip.com, Dangdang's "Book 4.0" and Jingdong’s "no-reason returns in 30 days" are measures for manufacturers to reinforce their advantages and build barriers to competitors. In the competitive e-commerce market, in addition to expanding new class and opening up new markets, strengthening foundational areas is critical for the development of e-commerce. At present, except T-mall, Jingdong and other giants that have the capital and traffic support of whole category expansion, vendors should start from consolidated existing markets and expand their market selectively.

Third, smart phones have become an important channel for e-commerce suppliers. Currently, major e-commerce suppliers are showing explosive growth in traffic from mobile terminals and orders from most mobile terminal manufacturers have exceeded 20 percent. The orders of some manufacturers like vip.com have reached 50 percent because of the differences in business models. Analysys maintains that due to the convenience and high utilization of consumers’ small fragments of time, smart phones will be the inevitable trend of the future development of e-commerce. Currently in the field of mobile online shopping, the new model is still emerging, and it may have disruptive impact on the existing market structure in the future.

Research Definitions

Online Retail is retail sales conducted entirely on the internet. Information organization and transmission on the Internet allow the transfer of ownership of tangible and intangible goods.

B2C online retail is a business model in which companies sell products to customers over the internet. General statistics do not consist of manufacturer self-built platform.

C2C is a business model in which a market is created for users to perform transactions with other users.

Reading List


2000-2016 Copyright ©Analysys Ltd.

Service :(+1) 3124666911/(+8610) 64666565/(+86) 13810406718    E-mail:service@analysys.com.cn