According to the data from the Quarterly Monitoring Report of China's Online Retail B2C Marketof Q3 2018 released by Analysys, the transaction size of China's online retail B2C market reached RMB 1,284.37 billion Yuan in the third quarter of 2018, up 30.3% on a year-on-year basis.
In terms of market share, in the third quarter of 2008, the total transaction volume of Tmall.com increased by 31.4% on a year-on-year basis, accounting for 59.5% of the total market shares, ranking the first. jd.com saw a 24.9% increase in the transaction volume compared to the same period last year, accounting for 25.8% of the total market shares, ranking the second. Suning.com ranked the third, with its market share continuing to grow to 6.4% of the total market shares in the third quarter 2018. vip.com and gome.com.cn ranked the fourth and fifth with 3.2% and 1.2% of the total market shares, respectively.
After the second quarter and before the year-end promotion in the fourth quarter each year, all major E-commerce platforms are in a relatively calm period, and preparing for their year-end promotion activities in terms of goods, personnel, storage and other resources. Although the promotion competition of various platforms is not the main task of the third quarter, it is their continuous common pursuit to enhance user stickiness, improve user satisfaction, and meet the diversified needs and potential needs of users.
Although the paid membership system has achieved good performance in both offline business and E-commerce platforms in the United States, and been introduced into China by Chinese E-commerce platforms for several years, it has never gotten very impressive results. However, the launch of "88VIP" of alibaba may change this situation. In early August, by "88 Membership Festival ", 88VIP Card was officially launched, which covers an exclusive 0.5% additional discount applicable to selected brands under Tmall platform, Tmall Supermarket, Tmall Global Direct Retail, membership coupons, purchasing right for membership exclusive commodity, annual membership for Youku, Ele.me, and Xiami Music, as well as monthly coupons for taopiaopiao (a film & ticket information APP). In addition to its scope of interests beyond all previous e-commerce platforms, 88VIP membership of alibaba is also included in a multi-scene ecosystem involving online and offline "eating, drinking, playing and entertainment". Besides, this is only the first step for alibaba, and multiple platforms such as new offline retail formats, koubei.com, damai.cn, fliggy.com, aligames.com and cainiao.com, as well as multiple discount forms of more brands in Tmall.com, may all be gradually included in the relevant rights and interests of 88VIP members in the future. In the mobile Internet era with the APP quantity continuously expanding and patterns ceaselessly innovating, a membership system integrating various aspects of life and entertainment, can largely frame users’ daily consumption behavior, improve the activity and viscosity of other businesses under the ecological system starting from an APP and a scene, and eventually build a way of life for members of "thinking of Alibaba upon consumption".
jd.com, which is known for its sales of physical commodities and self-built logistics, also began to diversify its service consumption. In September, jd.com launched its "jd express" business to undertake personal delivery services. Reversely promoting the E-business development relying on the advantage of logistics, jd.com has relatively stable B-end business. But it is because the B-end business is strongly dependent on the E-business platform, the development speed of the E-business platform also limits the speed of its development to a certain extent, therefore the further development of the jd logistics is inseparable from the development of personal business. Based on a better reputation, the personal express business of jd.com has the basis of rapid development, but it also needs to balance the relationship between B-end business and C-end business, and establish its process system and software & hardware system which can promote mutually. Also in September, "jd direct rent" business for renting houses was officially launched, officially announcing that jd.com has stepped into the house rental market which offers a large market space. jd.com's consistent image of "selling authentic goods", "high quality" and "valuing credibility" is indeed a strong endorsement for the current chaotic house rental business. But at the same time, due to the large business span and low level of industry norms, jd.com is necessary to be careful in selecting partners and business development process to avoid the occurrence of events affecting brand image.
Although the third quarter is not the traditional peak season and most E-commerce platforms do not spend a lot of energy and resources in promotion activities, suning.com broke through the routine and formed a model of multi-channel linked promotion both online and offline in August, which has generated considerable influence among users. During the "818 Fan Festival" of this year, suning.com’s quantity of all orders rose 155% year-on-year and active users rose 97% year-on-year; 1,356 suning stores (including 350 Dia Daily stores) achieved the sales growth of 662% on August 18, 2018; the quantity of promoted customers’ orders increased by 423% on a month-on-month base compared to that of July; the quantity of group buying orders broke through 10 million within 3 days; the quantity of buyers increased by 4,700% on a year-on-year basis. In addition to such outstanding achievements, suning.com also broke the fixed scenarios under the traditional shopping mode, creatively launched a new species, "Fan City" with interconnecting scenarios, so as to implement the wise retail, a forward-looking concept, for the consumption experience of customers, and successfully attract consumers' attention. On July 27 to July 29, 2018, a total of 60,000 conducted on-spot experience and at the same time 150 million people carried out online visits, who were mainly young people after the 1990s who represent the new force of future consumption. Such experiential consumption, with a sense of future technology, deep participation and multi-channel integration, is quite appealing to the younger generation, and can exert an invisible influence on their future consumption concept. It is a beneficial attempt of suning.com to the future business model.
Constantly updating its products and operations in the face of diversified demands of users, vip.com launched the Vip Warehouse in August after Vip Man. As a professional purchasing and wholesale platform based on the S2B2C model, Vip Warehouse is the product of vip.com's further exploration in the field of social e-commerce. As an intermediate platform, Vip Warehouse connects brands and suppliers with high-quality goods on one side and professional purchasing agents and small & medium wholesalers on the other side, thus clearing out the barriers between the two sides in terms of business flow, information flow and other aspects. In addition to providing brand parties and suppliers with programs for further removing inventory, it also provides an online supply channel with low thresholds and high security for B-end small sellers. As for vip.com's own business channel, the launch of B-end business can make the inventory of cooperative brands sold in the second round after the first round of direct sales to users, which will undoubtedly greatly improve the efficiency of inventory removal. At the same time, after the introduction of the social e-commerce model like Vip Warehouse, the new and old channels do not conflict with each other or affect each other, the brand images are not damaged, so that it plays a good role in promoting deeper and closer cooperation with the brand sides and can also be a beneficial supplement to C-end business.