China To Overtake The US In E-Commerce Expenditure
The latest industry report named the ‘China E-commerce Report’ conducted by Bain & Co suggests that China is gearing up to give the United States a run for its money, more specifically, its e-commerce money. China’s e-commerce expenditure will potentially pass that of the US by the end of 2013 and is expected to reach CNY 3.3 trillion (US$532 billion) in 2015. The e-commerce market in China will show year on year growth of 32 percent in the coming three years which will be 50 percent higher than the US by 2015 said the annual industry report. This growth can be expected as more and more lower tier consumers come online as infrastructure improves, demand for international brands grows, and to be frank, not using e-commerce becomes a thing of the past. But e-commerce in China is not as simple as setting up an online store because the environment well and truly demands a multi-channel approach as Serge Hoffmann co-author of the report states “Retailers need to reach Chinese consumers across all channels including brick-and-mortar stores, online stores and mobile presence, otherwise they’ll lose growth opportunities,”
Source: Want China Times
E-commerce Sales in Q2 Boom to $71 Billion
China’s e-shoppers now reach a number of over 240 million! The outcome from all these shoppers is an average spending amount $40,000 per second, but wait this number will soon seem small. New iResearch statistics suggest that China’s e-commerce market spending will reach a new record high as Q2 2013 shows growth of 45.2 percent up from Q2 in 2012. In monetary value this equates to an estimated total of CNY 437.13 billion ($71 billion) spent in Q2 2013. So who are the triumphant top e-commerce platforms in this massive market? In the B2C sector, Alibaba continues to be the mega force holding 50.6 percent of market share in sales an increase of 9.1% compared to Q2 2012 while Jingdong (previously 360Buy) follows with 17.1 percent. However the the YoY growth rate of Suning, Tencent, Gome, Yihaodian and Vipshop were higher than the overall growth of B2C industry. While B2C sales are growing well the real power rests in the hand of China’s smaller sellers. Total online sales in China amount to a whopping $71 billion and while B2C sales accounts for $25.6 billion of this the rest is attributed to the C2C sector.
Source: Tech In Asia
Mobile Gets Even Bigger
Xiaomi, which designs, develops and sells Android smartphones and apps, as well as other consumer electronics announced today that its App store had reached a record of 1 billion app downloads. This number becomes more relevant when you learn that the app store was launched only 13 months ago. This app store comes installed within Xiaomi phones, of which reportedly 7.5 million were sold in the first half of this year but does not cover the total of 17 million active users. The store also receives more than 1.3 million searches every day. This company may very well play a large role in increasing mobile commerce in China to a new level with its recently released budget smartphone expected to sell over 20 million by the end of 2013. And in most recent movements Google/Android VP Hugo Barra has joined the team suggesting that we are soon to see an innovative mobile strategy take over China. Everyone get m-commerce prepared!
Source: Tech In Asia