The e-commerce market in China continues to grow and reached a penetration rate of over 10%. E-commerce in China is the new trend of trade and the place to be for all companies wishing to enter the Chinese market.
1.8 trillion yuan online sales in China
Online shopping in China reached 1.8 trillion yuan in 2014, an increase of 48.7%. Conforming to Chinese Government’s information, online sales represents 10.7% of total consumers’ goods details sales in 2014. Online sales have reached a penetration rate of 10% in 2014.
With the rapid development of m-commerce and mobile online shopping applications, China is expected to become the first largest e-commerce market in the world. In 2013, Chinese consumers had spent US $ 882 750 000 in purchases with their smartphone. Remember that China is an ultra-connected country with more than 600 million Internet users, including 500 active online shoppers. More than 300 million Chinese consumers do online shopping at least 1 time per month. In line with the estimates, online sales are expected to represent 539 billion dollars in 2015.
45.8% of the e-commerce market take by the B2C
In 2014, B2C reached 1.288 billion yuan or 45.8% of the e-commerce market. The share of this market increased by 5.4% in 1 year. B2C market has increased by 68.7% in 2014 largely higher than the C2C ones with only 35.2%. In the 2015 year the B2C market share will exceed the C2C. Also with Chinese consumers increasingly demanding on the quality of their products, this market will be more developed. B2C has become an essential as the basis for the future e-commerce growth.
The major e-commerce players
With 60% of market share, the Tmall platform from the Alibaba Group takes 1er position in the ranking. It is followed distantly by JD.com with 18.6%. Others as Vip, Yihaodian, Gome or Suning have only a few share, although some showed good growth thanks to their marketing strategy.
Alibaba and JD in 2014 diversified their business. We know that Alibaba has launched film production. Meanwhile, other players have redoubled their efforts to enter into the market. They develop their products, optimize their website and build their brand image to attract more Chinese consumers. Competition in the e-commerce market in China promises to be fierce and ferocious.
E-commerce is clearly the new trend of trade in China. It was able to build his own reputation and popularity. Now, there is no single area in China that does not use e-commerce. With a population logged on average 26.1 hours per week, the online becomes the privileged place for the businesses and professionals who wish to capture and attract Chinese consumers. However, due to high competition, they must continually make efforts and develop their digital marketing strategy to hope stand out.