The 3giants on the Chinese Internet are well known in the industry: Baidu (the preferred search engine for Chinese), Tencent (which holds WeChat and Snapchat) and Alibaba (which owns Weibo and Tango). They all have a net profit of at least 1465 billion and benefit from revenue growth and return very advantageous.
Enormous potential in the B2C market in 2013
If Internet used to be the place where customers did business with customers the trend is turning around. In 2010, only 13.7% of the transactions were from Business to Customer. And client type of customer transactions held 86.3% of the Internet. Now B2C represent 35.1% of the market and it is far from over. In 2017, experts expect they will be more B2C transactions (52.4%) than C2C transactions (47.6%).
The opportunity to smartphone on electronic commerce
In 2013, when Internet users were 618 million, the mobile Internet users were already 500 million. The penetration of this sector has increased by 83%! It is the highest in the world (followed by South Africa and Hong Kong). On the shelf, it is the first in the world as well with 39% (followed by Mexico and Singapore). What does that mean? That means China will be more likely to buy through their smartphones than any other nationality.
Indeed, there are already 69% of Chinese who bought a product on their mobile against 46% of Americans. China has surpassed the mid 2013. At that time, more people were shopping through their smartphone (81%) that their computer (70%). On Double 11, which is called Day 11 November bachelor Chinese consumers spent 127 million € 650 billion on Taobao Mobile. It is 560% more than in 2012 and 21% convered transactions of all Taobao. This site is a favorite of Chinese, two thirds of Internet users (400 million) used in 2013.
The mobile shopping market in China has shown incredible growth and opportunity. In 2011, it generated € 1.37 billion transactions “only” in 2012 already € 7.44 billion in 2013 and nearly 20 billion euros. In three years, this sector has experienced a huge boom and 2017, transactions expected to reach € 117 million 000. How come? Thank you to new mobile payment systems, the penetration of smartphones in the country, increasing 3G coverage and Wi-Fi access points and offline to online tools.
Who will be smart enough to catch this wave so? Taobao Mobile already has 81.45% of the market share and mobile Jingdong 6.67% but the trend can still change.
What are the trends expected in the future?
In addition, forecasts are very optimistic when it comes to the development of this sector. In 2012, the total value of the transaction is equal to 354 billion euros and in 2013 more than 218 billion euros. With growth of 40% from one year to another, the industry should expect to reach € 488 billion transactions in 2017. This is the largest online marketplace e-commerce in the world. Experts predict that by 2020, there will be bigger than the e-commerce of the United States, Britain, Germany, France and Japan combined.