In addition, according to the data in the Quarterly Monitoring Report on China’s B2C Online Retail Market in 2017Q3 released by Analysys, the transaction size of China’s B2C online retail market reached 985.44 billion in the 2017Q3, with a year-on-year growth of 39.1%.
As for the market shares, in the 2017Q3, with a market share of 59.0%, Tmall achieved a year-on-year growth of 47% as compared with the total turnover of last year, representing a growth of 7.4% over the second quarter. JD achieved a market share of 26.9%, with its total turnover jumping by 41% on a year-on-year basis and by 3.9% over that of the second quarter. Vip.com realized a year-on-year growth of 24.6% and a growth of 3.3% over that of the second quarter, ranking third with a share of 3.2% in the B2C online retail market. Suning.com and Gome.com.cn ranked fourth and fifth with a market share of 2.8% and 1.3%, respectively.
As analyzed by Analysys, 2017Q3 marked a regular slack season for e-commerce market and also a critical period in which vendorsadvanced their strategic deployments and prepared for year-end sales. Also, all e-commerce vendors were actively making deployments in retail resources, commodity operations, service upgrading and other aspects. Under new background of retail industry development, giant vendors presented comprehensive edges in terms of traffic match, intelligent store layout and product innovation of new retail flagship stores through ecological layout of data economy.
As the annual year-end carnival shopping feast “11.11” is approaching, Tmall.com, a key venue of grand promotion further gathers ecological forces. From the aspect of product innovation, “Tmall Global” Australia Station was formally established and its overseas strategies helped more foreign trade vendors expand market and realize convenient B2C sales other than exportation. Meanwhile, Tmall.com further made deployment of auto industry, and launched “Auto Supermarket” of Tmall.com. Brand vendors held depth talks of top management in collaboration with Huawei and Midea. Tissot and Alibaba Group executed the official timekeeping memorandum of cooperation for Tmall activity of “11.11”. From the aspect of logistics, Cainiao Network released its world’s leading flagship warehouse of super robots in Huiyang, Guangdong Province. Alibaba increased its holding of Cainiao’s shares and continued to invest RMB100 billion in the coming five years, which undoubtedly bolstered the service competitiveness of Tmall. Regarding financial services, Ant Financial will launch more than 50 types of insurance during the “11.11” activity this year. Besides, Alibaba also implemented its new retail strategies successively in the 2017Q3. “Taocafe” debuted at Taobao Creation Festival, unveiling the wave of domestic shopper-free convenience stores. Tmall Store, a core product oriented to B2C retail services for physical stores, also represents an important layout of Alibaba for new retail infrastructure service vendors. The first attentive service community has been put in service officially in Hangzhou.
After the “6.18” grand promotion, the user activation of JD.com restored to a relatively regular level, and its strategies were advanced continuously. In the 2017Q3, JD.com improved its ecological layout of logistics. Firstly, it executed five contracts on unmanned aerial vehicle project in Shaanxi Province, and developed the world’s first shipping logistics network covering terminal delivery and transportation along truck lines. Secondly, JD, in partnership of SAIC Maxus and Dongfeng Motor, planned to develop new energy driverless trucks for cargo transport between distribution center and distribution stations. In the retail layout, JDhome.com and JD Franchised Store are launched, and more than 300 3C retail experience stores will be established across the country before the end of the year. It is observed that JD.com is constantly enhancing its basic service capacity, and meanwhile keeping in step with retail development tendency to enter new retail competition.
Vip.com made more exploration on cross-boundary innovation in the 2017Q3. Firstly, it launched the first intelligent unmanned vehicle of express delivery. As planned, it will further increase investment in unmanned vehicle and improve the terminal delivery for “the last mile”; secondly, ZhejiangVipshop Payment Services Co., Ltd. was approved to makean extension, during which it will constantly provide more excellent payment experience and services for consumers, thus supporting the development of e-commerce platform and financial business of Vip.com. Besides, “Bushishang Future Hall”, the pop-up shop of Vip.com, simulated the offline shopping scenario after twenty years through technological means such as laser scanning, immerse experience, 3D mirror dressing, Siri shopping guide and unmanned payment, etc. Vip.com embarked on expanding hard skills that can strengthen infrastructure services other than its marketing edges. In the future development planning, Vip.com will also get on track of development driven by technological innovation.
Gome.com.cn kept up with its strength through its new retail “6+1” strategy based on the Group’s full channel resource superiority. In the 2017Q3, Gome.com.cn introduced and cooperated with ikongjian, a home decoration brand, to advance its layout of commodities of all categories. From the aspect of marketing, Gome.com.cn continues to exert its channel superiority. “Gome Hezi” - an upgraded mode of pop-up store combining user interaction and lifestyle debuted formally. Gome launched “Meidian” based on the embedded functions in Gome APP, which not only provided a channel of commodity sharing for Gome users but also bolstered the consumption scenarios of “shopping + social activities” that can satisfy demands of consumers. Along with its exploration on expansion of categories and innovation of marketing mode, Gome is enhancing the awareness of users to the brand Gome step by step, and developing into a full-channel retail platform of consumer goods for all beautiful life scenarios.
Through the study of Analysys, firstly, online retail vendors steps up consolidating their process, technology and equipment along with rapid development and commercialization of emerging technology. Also, it generally unveils that all links of retail business areto be upgraded toward unmanned operations.For example, the application of unmanned stores, warehouses, vehicles and airplanes in the fields of retail embraced an explosive growth in 2017. These innovative products and services are also intensively applied in operations of physical retail stores, production, warehousing & logistics of commodities, and after-sale delivery & logistics of commodities. For instance, the rise of unmanned convenience stores based on artificial intelligence, image identification, IoT and big data, as well as application of intelligent delivery devices, have demonstrated the reform and advancement of retail industry. Secondly, the online retail market not only gives rise to qualitative changes in client-oriented delivery logistics services for the last mile, but also facilitates more professional development of enterprise supply chain logistics services oriented to retailers and retail chain stores. Transport capability is allocated efficiently during regional intra-city logistics and truck transportation fields, and supply chain services is upgraded to supply chain product-based operations, all of which will help enhance the overall operation efficiency of retail supply chain.
Research Definition
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 transactions in this statistical report are summarized in accordance with the orders of the user, including the cancellation of orders, procurement of suppliers (including scalper orders) and invalid orders caused by inventory information error.
Besides, the data of 2017 Q2 was revised according to financial statements released by all enterprises.
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Research Instruction:
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.
Such research outcomes made based on professional research approaches aim to provide decision reference. For the actual data of a specific company, please refer to the financial reports released by that company.
Analysys Overview:
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.