China is the world’s largest E-Commerce market, it grew by 70 percent between 2007 and 2013. In 2014, the market size rose by 31 percent. Indeed, in 2014, more than 600 million of netizens were recorded, which is twice United States population.

According to the China Research Center, E-Commerce market in China reached a total market value of more than 13 Trillion RMB in 2014 wich worth 2 Trillion USD. The sector employs directly 2.5 million of people and 18 million indirectly throughout China.

A competitive market

The (huge) leaders of the market are impersonated by the Ali Baba Group. Ali Baba’s Taobao (Ebay alternative) and Tmall (Amazon like) control 80 percent of the Chinese E-commerce market. They both occupy different market segments, more C2C oriented for Taobao while Tmall is more of a B2C market place. The ambitious Jack Ma, Ali Baba’s president is planning surpass the giant Walmart by 2016.

Even if Alibaba holds tremendous market shares, there is enough space for other competitors. Chinese E-Commerce market is absolutely not saturated, the Challenger Jingdong, holds 15 percent of the market shares.

The constant growth of this market is also due to the ever changing market that always renew. Here are some of the actual trends in China’s E-Commerce.

The new tendencies

Mobile Shopping

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81 per cent of Chinese people have internet access via their mobile phone and the number of connection is growing every year, with a Year on Year growth of 165 per cent. Moreover this evolution in the consumer behaviours’ are widely supported by the apparition of mobile payment devices, like AliPay by Ali Baba or the Payment function integrated in WeChat.

 There is a real opportunity to take on this tendency, because, for example, during November 11, a huge promotional day in China, Ali Baba sold a 9 billion Dollars value of goods and 43 percent of these purchases were made with a mobile phone.

 

The Online ecosystem is changing

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C2C market places have been dominating Chinese e-commerce sales. Indeed C2C sales represent 80% of transactions while B2C only represents 20%. This tend to change as shoppers, more experienced are having some higher expectations and are looking forward to higher quality products. By the way, sellers are also gaining more experience and notoriety and they now feel skilled enough to settle a B2C shop.

 

Social Medias are driving sales in Fashion 

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Social networks are the most used Medias in China, Marketing and eReputation of a brand depend of their use. Chinese customers post feedbacks, reviews, advices on the product they bought and tested. 54% of Chinese people said they would buy a brand’s product if they saw a friend or relative ‘like’ or ‘follow’ the brand on social networks. They influence customer behaviours the same way as Opinion leaders (KOLs) ( see the consumer online behaviour for fashion in the infography above to have a global idea of what brands should follow in their digital marketing strategy

The new trends emerging tend to boost even more the online shopping market. The market is expected to double its value by 2018, with a predicted amount of 4 Trillion Dollars.

To know more about our news see Ecommerce in China