An Analysis of China’s E-Commerce Industry Introduction A little more than 10 years ago, China’s path to e-commerce leadership would have been difficult to foresee, even as the tech boom in the US and other markets saw the development of e-commerce as an important B2C and C2C channel. In 2000, China had yet to develop any e-commerce applications, and had only 2.1 million total internet users. Payment systems and physical delivery mechanisms to facilitate the development of e-commerce transactions were well-developed in other markets, but were simply lacking in China. Fast forward to the end of 2013: with Chinese internet users quickly approaching 600 million, China is on pace to pass the US and become the largest e-commerce market in the world. China’s e-commerce industry Online retailing in China, dubbed ‘e-tailing’, has doubled every year since 2003. By 2020 the size of China’s online retail market is predicted to reach up to US$650 billion, exceeding the combined value of online markets in the USA, UK, Japan, German and France. With over 590 million internet users, China boasts the world’s largest online population - more than the US and Japan combined – and still growing at almost 10 per cent per annum. The boom in online retail is a key element of the government’s drive to re-balance China’s economy in a way that positions consumption to make a far more significant contribution to GDP growth. China’s new leadership team - Premier Li Keqiang in particular - is actively encouraging the expansion of so-called ‘digital consumption’ - xinxi xiaofei 信息消费. In the first six months of 2013, e-commerce revenue in China reached almost RMB 5 trillion, a 45 per cent increase year on year. Payments through mobile dev... ... middle of paper ... ...oes not dominate the entire market. The Chinese market is so large that even an e-commerce giant like Alibaba is unable to capture the entire market. Here are some other players who are in the market as well: Conclusion E-commerce in China is complex, unlike any other country, and in a constant state of flux. The sheer size of the industry and the sheer number of Chinese consumers - which is still steadily growing as you read this report - make it extremely hard to navigate this complex industry and even harder to find a winning strategy. However, with careful research and acute business sense, one will be able to capitalise on the unique dynamics on this industry and make investments that will make a good return in the long run. I hope that this report has helped to give you some key insights into the industry and improve on your investment process.
This report investigates and evaluates the reasons for ASOS failed in China market. ASOS, standing for “as seen on screen”, is a British online fashion and beauty retailer firstly operating in 2000 in UK. To become the top 1 fashion brand, one of the ASOS’s strategies is to be truly global. With the confidence of being successful in China market, ASOS entered China market in 2013. Two years later, having suffered a loss of profit, ASOS discontinued to operate in China and prepared to exit China market. A general background of general ASOS and ASOS China is given and the main reasons for ASOS to enter China market are justified. Next is the comparison of operation performance between ASOS UK and ASOS China will be demonstrated.
Nowadays China is often called the world’s largest market. Many people might think that it is very easy to start business in China and that success is guaranteed because of the huge potential of the market. But that isn’t true. Making successful business in China is not that easy as it might seem. There are many potential problems which can arise.
The online price war, which is caused by unfair practices in China, has been a serious problem in recent years. Millions of retailers have participated in China’s online economy since 2000 due to the huge market and profit. According to the statistic in 2008, China’s online retail market was worth USD 18.8 billion, with a sustained stable growth rate of over 100 percent each year (Gong et al., 2013). Two wide-ranging online price wars happened last year. The majority of large-scale online retailers, such as alibaba, Jingdong, Suning and Gome were involved. A variety of economic issues have been caused by online price wars, which is troubling for the market economy, owning to the frequent unfair practices. It has also led to deleterious effects on social sustainability, such as the aggravated unemployment issue. This report will identify the effects and implications of online price war, focusing on China, analyze the causes and suggest possible solutions.
A further reason why should focus on second and third tier cities of south-east part China is the rapid growth and penetration of Internet which would bring a booming development to the e-commerce implication in these market. Since TESCO has been successfully implement the on-line shop system in UK, it got technology advanced in this part.
Today, China tops as the largest marketplace globally, with the size of twice as large as the United States’ market. As of 2014, average Internet user in China spends about 20 hours each week staying online on the Internet and the number of users has accumulated to 560 million and most of them do prefer e-commerce compared to traditional retailing. Apart from big manufacturers and companies, Alibaba also focuses on marketing their brand to small and medium-sized business and even to individual business persons, which will have great opportunity in the
The e-commerce industry has become a major player in the global retail environment. E-Bay's large operating history has allowed the company to build a social capital of internet buyers and sellers that has now become its competitive advantage. However, intense competition in e-commerce has lead major players to lead expansion efforts in foreign markets where growing economies exist and the number of internet users is abundant. As a facilitator of online buyer-seller transactions, the only obstacle the company needs to overcome is quickly introducing its presence in new foreign markets where growth opportunities have been identified.
Alibaba is a large online and mobile marketplace for consumers, suppliers, and investors. The firm’s mission is “to make it easy to do business anywhere” (Alibaba Group, 2016, para.1). This is done by providing technology and services to aid consumers, suppliers, and other participants to conduct trade globally (Alibaba Group, 2016,
Lin, Z., Li, J. (2005). The Online auction market in China: A Comparative between Taobao and eBay. ACM International Conference proceeding Series (113): 123- 129.
The purpose of this industry market analysis is to explore Alibaba.com, an internet-based company that provides platforms for consumer to business transactions. The e-commerce industry has become highly saturated however there are only a handful of leaders in the industry including Alibaba. Alibaba’s unique business model is designed to create an ecosystem within e-commerce. Thus, cutting operating costs and reaching a larger demographic. Despite its competition, Alibaba is the leading e-commerce company in China and is expected to continue to grow exponentially.
Vancl is one of the largest online apparel retailers in China with a revenue growth rate of 29,577% from 2007-2010. It has become the first online business-to-customer (B2C) brand for men’s clothing in China, surpassing its rival only few months after its establishment. Vancl has succeeded in its product and brand positioning and is now extending its goods to shoes, women’s apparel, and even household goods. It has made its name familiar to the Chinese market through utilizing a unique online marketing model via advertisements. In 2012, Vancl took 5.3% of the share in independent sales turnover of the entire Chinese online shopping market (Wei & Zhou, 2011). It is a testimony of a successful e-commerce fear for the fast fashion industry.
Electronic Commerce is changing the way business is conducted today. Singapore has positioned itself to become a major part of the E-business trend. Developing technology, government support, and growing internet awareness make Singapore an ideal environment in which E-commerce can thrive. Lee Yock Suan sums up Singapore's E-commerce environment by saying ,"We want to be plugged into this global development, and position Singapore as an international E-commerce hub."
Nowadays too many people would rather shop online instead of walking in shop and there are more and more people starting their business online. So shopping online is becoming more and more popular in China. Most Chinese people like shopping online using Taobao, the biggest Chinese online shopping website, also a network platform like eBay and Amazon that has operated in China by Alibaba Group. TaoBao not only enable people shopping, but also relevant to people’s life. Such as people can buy many different things in different shops and they also can pay the phone bill and electricity or water bill in this network platform.
In the same time, advancements in information and communication technologies also enabled customers to use internet wherever and whenever they want. Digital Marketing easily got accepted by users because of latest developments on internet and internet enabled devices such as mobile phone, computers, and tablet computers. Oppenheim (2006) states that one of the main reasons for the growth of B2C e-commerce is increasing number of internet users. And also there are other effects that shouldn’t be underestimated such as Digital Marketing made it easy to shop and convenient to find more information about products. All of these factors led to growth on Digital Marketing transactions in recent years and it is foreseen that the development will continue in the next year. According to research done by eMarketer2, US retail ecommerce sales reached to $144.1 billion in 2009, and with an increase of 14,8% it has reached to 165.4 billion in 2010 and it is been predicted to reach $188,1 billion in 2011 and $209.3 billion in 2012.
Turban, E., Lee, J., Warketin, M., & Chung, M. (2002). Electronic Commerce: A Managerial Perspective. Prentice Hall.
Nowadays, high-speed development of the technology has changed the daily life and the computer and the Internet have become the mainstream in China markets. The expansion of the Internet rapidly leads the e-commence to develop and change the operation way of Chinese business. At present, there are many people who want to start-up a business on their own. Ma seizes the opportunity to establish a great stage ‘Alibaba’ for those small potential entrepreneurs. In order to adapt to China’s fast-growing e-commerce environment, Alibaba have growth really quick.