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Analysys: China’s Online Retail B2C Market Reached RMB708.56 Billion in Size in 2016 Q3, and Industry Players Sought Integration to Bolster Strengths
In 2016 Q3, China’s online retail market reached RMB1,297.85 billion in size, a rise of 37.3% year on year, shows the Quarterly Monitoring Report on China’s Online Retail Market 2016 Q3 published by Analysys.
  • 15 Feb, 2017
  • E-commerce
  • 401
In 2016 Q3, China’s online retail market reached RMB1,297.85 billion in size, a rise of 37.3% year on year, shows the Quarterly Monitoring Report on China’s Online Retail Market 2016 Q3 published by Analysys.
In 2016 Q3, China’s online retail B2C market reached RMB708.56 billion in size, a jump of 40.7% year on year, shows the Quarterly Monitoring Report on China’s Online Retail B2C Market 2016 Q3 published by Analysys.
In Q3, the online retail volume maintained relatively stable growth rate, mainly because e-commerce platforms launched frequent special brand promotions, which catalyzed the conversion of consumer demands and mitigated the impact from the low season to some extent.
As to market share, Tmall.com ranked the first with 55.9%, JD.com and VIP.com ranked the second and third with 26.6% and 3.5% respectively, and the competitive landscape basically remained stable in the online retail market.
In the opinion of Analysis, in the first three quarters of 2016, the online retail B2C market maintained steady growth and remained stable in competitive landscape. However, new technologies, new markets, new demands and many other factors accumulated the energy that would propel the e-commerce industry to change, and foretell that multiple participation, fusion & mutual supplement and flexible response will emerge as possible trend of the industry.
1.The industry has stepped into the new retail stage featuring integration
Suning.com and Alibaba China have recently launched “Maoning E-commerce” with the joint investment of RMB1 billion in order to attempt new mode and drive the change of the industry. Vip.com released the “VIP Style” channel, which directly cooperated with international brands, stylish brands and independent designers for online sales and realized synchronous release of new products together with offline stores of these brands.
The appearance of “new retail”, “removal of e-commerce” and other concepts reflects giants have started taking actions to build respective retail ecosystem. They no longer target the sales link of the industrial chain but focus the strategic objective on striving to maximize overall benefits rather than simply pursuing large transaction sizes. In particular, joint participation of Internet retail, physical retail and upstream brand holders (manufactures) promotes optimal utilization of various resources in the retail ecosystem and further balance of interest sharing.
2.New demands and new technologies promote the upgrade of the online retail mode
In September, JD.com announced the “Jing Zhi” strategy, whereby JD.com will enter into strategic partnership with high-end apparel brands to deliver tailor-made services to users.
E-commerce platforms have fused with upstream manufacturers in greater depth and exerted their advantages in big data technology and information distribution to help upstream manufacturers contact terminal demands more precisely and efficiently, reduce the asymmetric information that exists between the development and design of nonstandard products with final market demands, propel extensive realization of C2B, C2F and C2M modes and supplement traditional standardized commodity retail modes.
 
Definitions
Online retail: It refers to commodity retail between both parties with the Internet as the media, namely, organize and transmit information through the Internet to realize the transfer of the title of intangible commodities and intangible commodities.
B2C online retail: It is the business model that enterprises market products to consumers through the Internet.Normal data statistics does not cover platforms built by producers on their own.
C2C: It means the business model that an enterprise provides the online trading platform to conclude commodity trading between users.
The trading volume mentioned in the report is based on the statistics of orders placed by users, and includes cancelled orders, procurement by suppliers (orders from scalpers) and ineffective orders caused by stock information errors.
 
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