China Online Shopping Industry Report, 2010

Benefitting from the rapid development of the Internet, online shopping has become more and more popular among consumers, with the share in China’s total retail sales of social consumer goods increasing from 0.24% in 2005 to 3% in H1 2010, and the trading volume growing at a CAGR of 97% during 2005-2010.

As of June 2010, China had 420 million netizens, and Internet penetration rate had climbed to 31.8% as well. Now, China’s Internet is developing upward and full of potential. Thus, the increasing improvement in Internet penetration rate has provided a good user basis for the online shopping industry.

As far as Internet application is concerned, the application of business transaction is still at a lower level. By June 2010, the penetration rate of online shopping was only 33.8%. However, the number of business transaction users witnessed the fastest growth rate, reaching 31.4%. As the personal disposable income successively increases, and online shopping customer group increasingly becomes mature, online shopping trading volume will see a robust upward trend in the good macroeconomic environment.

The online shopping can be categorized into B2C (Business to Consumer) and C2C (Consumer to Consumer) by service mode. In China, C2C takes an overwhelming lead in the online shopping market. Online shopping experienced a robust growth in 2009, and C2C contributed to 89% of the total trading volume. Among C2C shopping platforms, Taobao holds the largest share, which achieved 83.5% in H1 2010.

With China’s e-commerce development, B2C, with smaller trading volume at present, will develop rapidly relying on legitimate product supply channels and comprehensive after-sales services, while C2C growth will drop year by year.

Currently, China’s B2C websites are experiencing growing competition, and striving for more market shares through promotion, category expansion and service improvement. Besides 360buy, Joyo Amazon and Dangdang, C2C companies such as Taobao and Baidu Youa are shifting to the B2C field.

In the meantime, many independent-sales B2C shopping websites are vigorously expanding their commodity varieties. For example, Redbaby has expanded from a store purely selling maternity and baby products to a general merchandise shopping mall selling cosmetics, household and health supplies; 360buy, originally a 3C digital products seller, also begun to sell daily necessities and household supplies in early 2009. Therefore, commodity diversification is likely to be a way out for B2C websites in the future.

In addition, the rapid growth in China’s cell phone users has turned e-commerce companies’ attention to the mobile e-commerce market. Now, some shopping websites have already begun their strategic deployment in fields such as mobile payment, mobile IM and mobile store, and taken the lead in migrating from the Internet to mobile Internet platforms.

Search engines like Google and Baidu have started to present shopping search services in line with the increasingly popular online shopping. Youdao, NetEase's search engine, is able to provide consumers with the search for the commodities of over 200 B2C shopping malls.

Traditional giants have also sped up the B2C deployment through their own advantages. Taking advantage of their manufacturing strength, Foxconn and COFCO invested in Efeihu.com and Womai.com respectively; State Post and Suning Appliance, making full use of their channel or logistics advantages, respectively invested in Ule.tom.com and Suning.cn.

In 2010, the rise of group purchase websites has brought a new way of online shopping for Chinese netizens. Mostly providing service-type products, such websites have become popular among consumers, and experienced explosive growth in H1 2010.


Report Highlights

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1. Online Shopping
1.1 Definition
1.2 Classification
1.3 Market Scale
1.4 Statistical Category

2. Development Environment of China’s Online Shopping Industry
2.1 Economic Operation, H1 2010
2.2 Development of Online Shopping Supported by A Huge Netizen Population
2.3 Online Shopping in Rapid Growth
2.4 Policies and Regulations

3. Development Status Quo of China’s Online Shopping Industry, 2009-2010
3.1 Market Development Size
3.1.1 User Scale
3.1.2 Transaction Volume
3.2 Online Shopping Market Pattern
3.3 China’s Online Shopping Market Distribution
3.3.1 by Region
3.3.2 by Age
3.3.3 by Gender
3.3.4 by Income
3.4 Problems in China’s Online Shopping Market
3.4.1 Consumer Rights
3.4.2 Trading Trust
3.4.3 Payment & Settlement
3.4.4 Merchant’s Credit
3.4.5 Legislation

4. C2C Shopping Websites
4.1 Taobao
4.1.1 Profile
4.1.2 Taobao Mall
4.1.3 Operation
4.1.4 Advantages & Disadvantages
4.1.5 Strategy
4.2 EachNet
4.2.1 Profile
4.3 Paipai
4.3.1 Profile
4.3.2 Operation
4.3.3 Advantages & Disadvantages
4.4 Baidu Youa
4.4.1 Profile
4.4.2 Advantages & Disadvantages

5. Book and Software B2C Websites
5.1 Dangdang
5.1.1 Profile
5.1.2 Operation
5.1.3 Competitiveness
5.2 Joyo Amazon
5.2.1 Profile
5.2.2 Operation
5.2.3 Development Strategy
5.3 99read
5.3.1 Profile
5.3.2 Operation
5.3.3 Development Strategy
5.3.4 Competitiveness

6. Clothes B2C Websites
6.1 Market Overview
6.2 VANCL
6.2.1 Profile
6.2.2 Logistics
6.2.3 Operation
6.2.4 Development Strategy
6.3 m18
6.3.1 Profile
6.3.2 Operation
6.3.3 Development Strategy
6.4 Menglu
6.4.1 Profile
6.5 Masa Maso
6.5.1 Profile
6.5.2 Operation
6.5.3 Competitiveness
6.6 Shishangqiyi
6.6.1 Profile
6.6.2 Competitiveness
6.7 Moonbasa
6.7.1 Profile
6.7.2 Operation

7. Digital Appliance B2C Websites
7.1 Market Overview
7.2 360buy
7.2.1 Profile
7.2.2 Operation
7.2.3 Competitiveness
7.2.4 Development Strategy
7.3 Newegg
7.3.1 Profile
7.3.2 Competitiveness
7.3.3 Development Strategy
7.4 51mdq
7.4.1 Profile
7.4.2 Operation
7.4.3 Development Strategy
7.5 Icson
7.5.1 Profile
7.5.2 Operation
7.5.3 Latest Trend
7.6 139shop
7.6.1 Profile
7.6.2 Operation
7.7 Efeihu
7.7.1 Profile
7.7.2 Competitiveness
7.8 Lusen
7.8.1 Profile
7.8.2 Operation
7.9 Suning.cn
7.9.1 Profile
7.9.2 Competitiveness

8. Other B2C Shopping Websites
8.1 Redbaby
8.1.1 Profile
8.1.2 Operation
8.1.3 Competitiveness
8.2 Zbird
8.2.1 Profile
8.2.2 Operation
8.2.3 Competitiveness
8.3 Womai.com
8.3.1 Profile
8.3.2 Development Strategy
8.4 Ule.tom
8.4.1 Profile
8.4.2 Competitiveness
8.5 Leyou
8.6 VIPstore
8.7 Mbaobao
8.7.1 Profile
8.7.2 Operation
8.8 Yesmynet
8.9 Letao
8.10 Okaybuy
8.11 Piao

9. Group Purchase Websites
9.1 Rapid Expansion
9.2 Model
9.3 Financing
9.4 Problems

10. Development & Investment of China’s Online Shopping Industry, 2009-2012
10.1 B2C will Surpass C2C to Lead the Online Shopping Market
10.2 Large Online Shopping Malls are Becoming more Comprehensive
10.3 Wireless E-commerce will be a New Growth Point
10.4 Search Engine will Play an Important Role in Online Shopping
10.5 B2C Companies are Expanding Logistics Channels
10.6 Group Purchase has Become a Hot Topic of Online Shopping
10.7 Traditional Companies Successively Set Foot in Online Shopping
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C2C Industry Chain
B2C Industry Chain
Online Shopping Market Scale by Index
Statistical Category of Online Shopping Market Scale
Total Social Consumer Goods Retail Sales & Ratio of Online Shopping, 2005-H1 2010
Netizen Population & Internet Penetration Rate in Mainland China, Dec, 2005-Jun, 2010
Internet Penetration Rates in Some Countries, 2010
Internet Application Utilization Rate, Dec, 2009-Jun, 2010
Users & Growth Rate of China’s Online Shopping Market, 2003-H1 2010
Transaction Volume of China’s Online Shopping Market, 2007-H1 2010
China’s Online Shopping Trading Volume, 2009
Market Share of Platform Shopping Websites, H1 2010
Market Shares of China’s Independent-sale B2C Shopping Websites, H1 2010
Total Netizen Population and Online Shopping Netizen Population in Beijing, Guangzhou & Shanghai, 2009
Online Shopping Penetration Rates in Some Cities, 2009
Users of Some B2C Shopping Websites by Age, 2009
Users of Some B2C Shopping Websites by Gender, 2009
Users of Some B2C Shopping Websites by Monthly Salary, 2009
Survey of Netizen’s Trust in Online Shopping Transaction
Registered Users of Taobao, 2006-Q2 2010
Taobao’s Share in C2C Online Transaction Volume, 2003-Q2 2010
Taobao Sales & Growth Rate, 2005-2009
Taobao Commodity Rank by Sales, H1 2009
EachNet’s Share in C2C Online Transaction Volume, 2003-Q2 2010
Comparison of Eachnet, Taobao and Paipai in Overseas Purchasing
Paipai’s Share in C2C Online Transaction Volume, 2007-Q2 2010
Venture Capital Obtained by Dangdang
Shopping Websites that Users Had Purchased Goods in Recent One Year, 2009
Joyo Amazon’s Share in B2C Online Transaction Volume, 2006-Q2 2010
Trading Share of China's Independent-sale B2C Clothes Online Shopping Market, 2009
China’s Top Ten Men’s Clothes B2C Websites
Venture Capital Obtained by VANCL
VANCL Sales, 2007-2009
VANCL Operating Income by Region
Menglu Brands by Product
Venture Capital Obtained by Moonbasa
Moonbasa Sales, 2008-2010
Venture Capital Obtained by 360buy
360buy’s Share in B2C Online Transaction Volume, 2007-H1 2010
360buy Sales & Growth Rate, 2004-2010
360buy Logistics Center Distribution all over China
51mdq Sales, 2007-2010
Strategic Partners of 139shop
139shop Cell Phone Sales Center Distribution in China
139shop Sales & Growth Rate, 2006-2009
Lusen Sales & Growth Rate, 2006-2010
Venture Capital Obtained by Redbaby
Redbaby Sales & Growth Rate, 2005-2009
Venture Capital Obtained by Zbird
Zbird Sales & Growth Rate, 2006-2009
Venture Capital Obtained by Leyou
Mbaobao Sales & Growth Rate, 2007-2010
Venture Capital Obtained by Yesmynet
Venture Capital Obtained by Letao
Operation Mode Comparison between Okaybuy and Letao
Venture Capital Obtained by Okaybuy
Venture Capital Obtained by Piao
Financing of Some Group Purchase Websites, Jul, 2009-Jul, 2010
Sales, Gross Margin and Profitability of Twelve B2C Companies
Total Warehouse Area and Logistics Center Distribution of Top Nine B2C Companies
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