According to the data in Quarterly Monitoring Report on China's Online Retail Market in 2017Q2 recently issued by Analysys, in 2017Q2, the market scale of China’s online retail market reached RMB 1.59171 trillion, a year-on-year growth of 31.2%.
Also according to the data in Quarterly Monitoring Report on China's Online Retail Market in 2017Q2 recently issued by Analysys, in 2017Q2, the transaction scale of China’s online retail market B2C reached RMB 860.46 billion, a year-on-year growth of 32%.
The second quarter of the year is the prime time for online retail, with JD’s “6.18” becoming an annual national shopping festival comparative to the “11.11”, this year, the great mid-year promotion event attracted a great number of online retailers to take part in. Marketing events with various discounts and diversified interactions were offered, which remarkably heated the enthusiasm of shopping in the market.
As for the market shares, in 2017Q2, Tmall ranked top with a market share of 51.3, which is followed by JD (32.9%) and then Vipshop (3.2%). The gaps among the giants in the First Echelon were decreased to some extent.
As analyzed by Analysys, the 2017Q2 would be an extraordinary period for the development of China’s online retail industry. The mid-year great promotion of “6.18” came as schedule in a well prepared manner. The innovative marketing techniques of the e-commerce platforms, further enriched and upgraded categories, brands and commodity SKUs as well as the great enthusiasm of the consumers brought the retail market to a new climax of the year.
The revision and upgrading of Tmall mobile user side was finished in May, which contained more detailed commodity categories, more clearly identified customer services and ports. With contents as the main carrier, precise commodity recommended was realized based on the individualized demands of the customers. During the "6.18” event, Tmall joined hands with 180,000 renowned brands in profit-sharing promotion of over RMB 10 billion so as to enable consumers to buy the best commodities with the best prices. With strong platform cohesion and professional recommendation based on big data, Tmall could satisfy the upgraded consumption demands of the customers in a comprehensive manner and restructure the brand new experience in the new retail consumption scenes. Meanwhile, in assisting brand owners in realization of new retail transition, Tmall energized the brand owners by means of channel upgrading, shopping guide upgrading and marketing grading. Channel upgrading enabled brands to reach the targeted population more effectively and marketing upgrading was based on the precise marketing driven by big data to provide customized products for the consumers. Tmall was also in the process of shifting from the connector in the traditional retail ecology to the commercial infrastructure provider in the new retail ecology.
The total transaction volume of JD in the “6.18” event this year was RMB 119.9 billion, a new historical height. More than online retail, in the consumption scenes of new retail full channel, JD’s “New Channel” also launched “Offline 6.18” event. JD was gradually generalizing the quick online and offline integration of the retail industry and establishing the new platform for interaction and mutual benefits among consumers, small and medium sized stores and brand owners. More than delivering the commodities to the stores and consumers via JD's supplier chain system, JD’s “New Channel” attached more importance on the value coordination for partners within the same retail ecology, for example, opening data and dynamic marketing platforms for commodity suppliers, outputting brands, models and operation abilities for downstream retail terminals, etc. The approaching of retail reformation expedited the transition of JD’s role as service provider in the new grand retail ecology.
In the second quarter of the year, Vipshop took quality upgrading as the driving force of new growth. First, efforts were made to upgrade the brands to “Global Fine Selection, Special Offer of Quality Goods”. Second, strategic matrix by three business pillars of e-commerce, financing and logistics was established. During this period, Vipshop formally split its financial business and restructured its logistics business. Great importance was attached to labor, technology and fund resources for logistics, the commodity delivery link of vital importance for customer experience. In network construction, four front-end warehouses were newly increased in Nanning, Urumqi, Jinan and Harbin (making the total number of 11). In expansion of international logistics network, Vipshop had totally increased 19,000 m2 new warehousing space in Japan and South Korea to improve interconnection with international commodities and services. By the end of 2017Q2, the total warehousing area of Vipshop was up to 2.2 million square meters. As for the consummation level of the distribution system, the proportion of orders directly delivered by the terminal distributor of Vipshop for the last mile, which meant the direct control of the commodity delivery experience of end users. With such efforts the adhesion and loyalty of the customers were effectively enhanced and such efforts were widely recognized by the market.
As analyzed by Analysys, with the online retail entering the new round of competition, it is also a period for in-depth adjustments of competition and cooperation of the main bodies in the great retail ecology. For example, the competition for data between SF-Express and Cainiao raised the alertness of the retail industry and logistics industry on the competition of commercial resources of the values of the customer data, which also marked that the competition of retail ecology entered the new scenario driven by the big data technologies. Thus, the reformation of the retail industry had entered the deep-water zone, where overseas e-commerce was energized continuously focusing on overseas brand owners as well as warehousing and logistics layout, and offline flows were explored continuously based on emerging experience-based and community-based operation of fresh goods. It’s pleasant to see that the physical real industry is continuously sharing the technological benefits and the unattended convenience stores have been further developed. From foreground store arrangement to background financing, R&D and the emerging of solution providers on derived technologies, supply chains, etc., new scenes have occurred in retail market competition.
Online Retail: Referring to the retail commodity transaction activity via the Internet, to be specific, the transfer of the ownership of tangible or intangible commodities by information organization and relay.
Online B2C Retail: Referring to the commercial model that enterprises sold commodities to the consumers via the network. Conventional data statistics exclude the platforms established by the manufacturers themselves.
C2C: Referring to the commercial model that the enterprises provide online transaction platforms for the users to enable deals among the users.
The transaction volumes in the reported statistics are based on the orders placed by the users, including cancelled orders, supplier purchase order and invalid orders due to errors in inventory information.
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Industrial analysis provided by Analysys is made mainly based on macroeconomic industrial data, final quarterly user survey data, historical data of the companies, quarterly business monitoring information of companies, etc. by Analysys's industrial analysis models with reference to market research, industrial research and company research approaches. And such analysis mainly reflects the market status quo, trends, break points and rules as well as the development status quo of companies.
Analysys believes that the data drawn according to the abovementioned industrial research approaches is within the recognized acceptable error range within the industry and can accurately reflect the industrial trends and change rules.
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Analysys is a leading big data analysis company in the Chinese market. Since the establishment, Analysys has established the big data and analysis service ecological system cored by massive digital user assets and algorithm models.
Analysys has been dedicated in providing product services such as digital user portraits and competition analysis and assisting in product operation for enterprises; and assisting enterprises in increasing revenues, saving expenditures, increasing effectiveness and evading risks by operation and management on digital user assets of the enterprises. The products in Analysys Family include Analysys Qianfan, Analysys Fangzhou, Analysys Wanxiang and Analysys Boyue. By June 30, 2017, Analysys had covered 2.07 billion intelligent terminals and monitored over 2.05 million mobile APPs.