eCommerce Market in China2007-2010 by InfinitiResearch

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With the initiation of eCommerce in China, retail store owners have great many options to sell their products which are provided by manufacturers, distributors, and the suppliers through international trade. It offers the consumers a number of choices to select from wide range of eCommerce product. The cost of production has reduced greatly and income generated has increased in international trade. Even opting for import business on a large scale is very easy now, and all due to eCommerce practices in China.

However, the B2C eCommerce market in China is still in its infancy. Merchants in China are adopting eCommerce, but have not yet applied eCommerce as their principal channel to grow their business and therefore pave the way for eCommerce as a whole. Also, lack of trust is one of the factors inhibiting the B2C commerce growth in China. Consumers usually limit themselves to only large companies or brands. Due to these factors, B2C market accounts for less than 1 percent of the total eCommerce market in China.

The report forecasts the market size of eCommerce market in China over the period 2007-2010. Further, report identifies key market trends, growth drivers and growth restraints. In addition, the report list key regulations affecting the eCommerce market in China.

More Info
									eCommerce Market in China
     Technology Report – 2008
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                                            Table of Contents
1. Market Si ze & Forecast ........................................................................................ 3
2. Market Trends ...................................................................................................... 6
3. Growth Dri vers ..................................................................................................... 7
4. Grow th Restraints ................................................................................................ 9
5. Benefits of eCommerce in China ...................................................................... 11
6. Regulati on s ....................................................................................................... 12
7. Key Players ........................................................................................................ 13
Other Rep orts in thi s Seri es .................................................................................... 15


                                            List of Exhibits

E xhibit 1.1: Chin a’s B2B Market Size and Forecast 2007 - 2010 (In $ billion) .............. 4
E xhibit 1.2: Chin a’s B2C Market Size and Forecast 2007 - 2010 (In $ billion) .............. 5
E xhibit 2.1: M arket Share of Chi na Online B2B operat ors by Revenue ................... 13
E xhibit 2.2: M arket Share of Chi na Online B2C operators by Revenue .................. 14




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1. Market Size & Forecast
eCommerce, e-commerce, or Electronic Commerce is the conduct of financial
transactions by electronic means. With the huge success of commerce on the
Internet, eCommerce usually refers to shopping at online stores on the World Wide Web,
also known as eCommerce Web sites. eCommerce can be Business to Business (B to B)
or Business to Consumer (B to C).


      Business to Business (B to B): Companies doing business with each other such as
       manufacturers selling to distributors and wholesalers selling to retailers.
      Business to Consumer (B to C): Businesses selling to the general public typically
       through catalogs utilizing shopping cart software.


E-COMMERCE DEVELOPMENT IN CHINA
On March 6, 1998, the Beijing Century Intercom Technology Company sold its first item
over the Internet; since then the development of eCommerce has showed a sound
momentum in China. With regard to fundamental conditions, the development environment
of China's eCommerce is turning better in spite of some restrictive factors. In February
2008, China's online population became the largest in the world after it reached 221
million surpassing the United States. The Internet population is expected to reach 263
million by year end, up 25% from December 2007 and all this is going to further increase
the trade through eCommerce in China.




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1.1 B2B eCommerce Market Size and Forecast
According to TechNavio, the B2B eCommerce market in China is forecast to reach $395.3
billion by 2010 from $103.2 billion in 2007, growing at a CAGR of 56.5 percent over the
forecast period (exhibit 1.1).

Exhibit 1.1: China’s B2B Market Size and Forecast 2007-2010 (In $ billion)


       450.0
                                                                               395.3
       400.0
       350.0
       300.0                                                252.7
       250.0
       200.0                             161.5
       150.0         103.2
       100.0
        50.0
         0.0
                      2007               2008               2009                2010

                                                                        Source: TechNavio Analysis

B2B eCommerce accounts for more than 99% of the total eCommerce market in China.
Domestic competitions are mainly among Alibaba.com, Global Sources and Made-in-
China.com. By right of its early entry, Alibaba.com dominates the field with a market share
of 53.5 percent leaving the other two competitors behind with 9.9 percent and 7.2 percent
respectively.




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1.2 B2C eCommerce Market Size and Forecast
According to TechNavio, the B2C eCommerce market in China is forecast to reach $2.4
billion by 2010 from $0.7 billion in 2007, growing at a CAGR of 45.9 percent over the
forecast period (exhibit 1.1).

Exhibit 1.2: China’s B2C Market Size and Forecast 2007-2010 (In $ billion)


          3.0
                                                                                 2.4
          2.5

          2.0
                                                             1.6
          1.5
                                          1.1
          1.0          0.7
          0.5

          0.0
                      2007               2008               2009                2010

                                                                        Source: TechNavio Analysis

The B2C eCommerce market in China is still in its infancy. Merchants in China are adopting
eCommerce, but have not yet applied eCommerce as their principal channel to grow their
business and therefore pave the way for eCommerce as a whole. Also, lack of trust is one of
the factors inh
								
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