Hello,welcome to Analysys
You are here:Home > Analysys Views>
E-commerce Digitalization Analysis - Analysys: The transaction size of China’s online retail B2C market reached RMB1,526.76 billion in the fourth quarter of 2018. To build the future, each manufacturer does utmost to show
According to the data in the Quarterly Monitoring Report on China’s B2C Online Retail Market in 2018Q4 released by Analysys, in 2018Q4, the transaction scale of China’s online retail market B2C reached 1,526.76 billion, with a year-on-year growth of 28.4%.
  • 14 Feb, 2019
  • Finance
  • 3738
According to the data in the Quarterly Monitoring Report on China’s B2C Online Retail Market in 2018Q4 released by Analysys, in 2018Q4, the transaction scale of China’s online retail market B2C reached 1,526.76 billion, with a year-on-year growth of 28.4%.

With respect to market share, in the fourth quarter of 2018, Tmall.com’s total sales increased by 29.5% over the same period of last year, accounting for 61.5% of the market share, ranking first. The total turnover of jd.com increased by 21.1% year on year. Its market share was 24.2%, ranking second. suning.com ranked third with its market share in the fourth quarter increased to 6.7%. The market share of vip.com and gome.com was 3.7% and 0.7%, respectively, ranking fourth and fifth.

After online shopping has widely penetrated into daily life of the Chinese people, different groups have a wide variety of ideas to embrace the Double 11 Promotions around the end of each year. Some of them are enthusiastic to take part in the promotions, and some of them stay aloof. But almost everyone will be more or less affected by the ever-larger omnimedia exposure during the Double 11 Promotions. Tmall.com is the pathfinder of Double 11 Promotions, and its actions are always the focus of people in this online shopping event. Similarly, Tmall.com and its enthusiastic consumers also manifested the unlimited possibility of online shopping in China again through a series connection of data: the turnover on the day of Double 11 broke a record, to RMB213.5 billion, a year-on-year growth of 26.9%; the order volume of logistics exceeded 1 billion. It seemed quite uneasy to achieve such a series of results because they were achieved on the basis of a high starting point from 2017 and under the background of growth of total retail sales of social consumables and significant slowdown of online retail turnover. In addition to its striking data during Double 11 Promotions, Tmall.com actually accumulated strengths in the aspects to be concerned less at ordinary times. The recent data of new products concluded: the quantity of new products on Tmall has reached 50 million in 2018, growing by over 1000% and 300% respectively over that of 2016 and 2017. Moreover, the new products have successfully attracted consumers to follow and use them by right of their large quantity and various options. Over 75 million users have become important users of new products. Post-90s and post-00s bring new ideas and thinking after they join in the main forces of online shopping, which will surely create many novel and personalized demands. The consuming capacity with huge potential is actually hidden behind these new demands that the existing commodities are unable to satisfy. The one who identifies such demands has a chance to take a favorable position in the future competition. No doubt, Tmall.com has struck first to gain the initiative in this regard.

As another pillar force of B2C platforms, jd.com certainly will not be absent from Double 11 Promotions. Unlike Tmall.com, jd.com launches its global shopping festival from 0:00am November 1 to 24:00pm November 24, and starts warm-up period from October 20. Meanwhile, Tmall.com arranges different promotional themes for each day during that period. The original centralized shopping demands are arranged at different stages by staggering the peak; however, it is evident that users have not reduced their consumer participation due to the scattered time nodes of promotions. Besides, the data published by jd.com showed that it delivered over 90% of the integrated service orders for logistics, warehouse and distribution on the promotional day and next day by virtue of its advantages over logistics and warehouse systems. Also, jd.com made another highlight in the fourth quarter: jd.com re-adjusted its organizational structure, established Retail Division Group of 3C Electronics & Consumer Goods, Fashion Home Care Platform Division Group and Life Service Division Group, and set up such departments as Platform Operation Business Department, Grouped Shopping Business Department, New Channel Business Department, Second-Hand Business Department, 7FRESH, etc. Comparison between old and new structures revealed that the business will be valued increasingly and new sales models will become the key targets of development. 

suning.com pays equal attention to online and offline channels. In the activity of “Suning Carnival” during the Double 11 Promotions, suning.com attached more importance to the cooperative effect between online and offline channels, which helped increase all-channel orders by 132% during promotions. However, suning.com created a series of extraordinary records through new modes and new channels just at the time when people still focused on online platforms: Suning Xiaodian provided services for 5 million users and suning.com achieved the visits of 50 million people. As a matter of fact, suning.com maintained its efforts and achievements offline for both Double 11 Promotions and the whole year 2018. Take Suning Xiaodian as an example. suning.com published a group of data at the press conference of the 2019 New Year’s Goods Festival: Suning Xiaodian has achieved more than 4,000 new stores in 20,000 communities, 15,000 social groups and 60 million users in 70 cities; meanwhile, Suning Xiaodian will continue to make high-speed layout in such points as high colleges, subway stations, enterprise park zones, offices, etc. in 2019. suning.com is acting as a brave vanguard of retail reformers in the vigorous practice of smart retail mode in the form close to traditional convenience stores. However, when offline stores under the new management mode and supply chain reach a certain number, suning.com’s cross-boundary network effect between suppliers and users will surely inject greater development drive into itself.

vip.com which has reputed for fashion initiated the “Big Brand Day/Week” from October 25, and the grand promotions started with different theme day activities and special activities for each day. Besides, with a different promotional mode for Double 11 from other e-commerce operators, vip.com cancelled conventional promotional means such as money-off, red packets, add-on, etc., and adopted the “non-formula” mode of direct price reduction. Such means have also received affirmative reaction of users: During November 1-11, vip.com registered the turnover of RMB10.2 billion, representing a year-on-year growth of 27%; just on the very day of Double 11, the orders exceeded 8 million. Moreover, vip.com extended its success of Double 11 promotions to December 8th Special Offers for celebration of its 10th anniversary after its inception. Its orders exceeded 1.50 million only within one hour on that day. In the course of its sustainable development for over past decade, vip.com has always remained true to its mission of seeking innovation and change continuously while providing novel and quality services for its users: vip.com released its special offer system which upgraded from special offer strategy and featured all channels, all-matrix and systematization in October. vip.com has always been characterized by special offers, which is also its quite distinctive identification from other mainstream e-commerce operators. Moreover, it is observed that the mode of special offers gets popular in China only by depending on the persistence and promotion of vip.com. In the upgraded new system of special offers, vip.com pays special attention to developing potential on both supply and demand, so as to achieve the added value from business to customer through new thinking and new mode.  vip.com successively launched its new products and new entrances such as Yunpincang, Weixiangke, Weipincang, etc., which exactly embody its efforts of upgrading.
Reading List


2000-2016 Copyright ©Analysys Ltd.

Service :(+1) 3124666911/(+8610) 64666565/(+86) 13810406718    E-mail:service@analysys.com.cn