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China E-Commerce Market Growing Fast | Overview of China E-commerce Market

According to iResearch,China e-commerce GMV hit 12.3 trillion Yuan in 2014, up 21.3% from 2013. It is expected to keep stable growth in the next few years and to reach 24.2 trillion Yuan in 2018.

The market size in 2014

As one of the e-commerce market segments, online shopping increased 48.7% in 2014 compared with 2013 and occupied 10% of the total retail sales of consumer goods in China, which showed that online shopping became the most powerful engine for the development of e-commerce in China. Additionally, online travel market rose 27.1% and online to offline business (O2O) of local lifestyle service grew 42.8% in 2014, contributing to the rapid growth of China E-commerce market.

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The market structure in 2014

According to iResearch, small and medium sized enterprises’ B2B e-commerce made up 50% of the e-commerce market and the whole B2B e-commerce occupied 70% in 2014, which implied that B2B e-commerce was still the principal part of the e-commerce market in China. Moreover, online shopping market shared 22.9% in the e-commerce market, up 4.2% versus 2013. Online travel and O2O of local lifestyle service both saw a slight increase in market share from 2013.

B2B e-commerce operators will input more in online transaction, supply chain finance, quality control, logistics and other supporting services. It is expected that China small and medium sized enterprises’ B2B e-commerce keep steady growth in the next three and four years.
In the coming years, online shopping market will embrace surging for mobile shopping rapidly develops and major e-commerce operators expands to the third and fourth tier cities, rural market and even the global market. Certainly, its share in the e-commerce market will increase.
Furthermore, online travel had small market share in the e-commerce market in 2014. However, it still keeps 25% of growth rate, driven by surging online booking of hotel and vocation. Therefore, it will be the important part of China e-commerce market. At the same time, O2O of such services as catering, leisure and recreation and wedding celebration gradually takes shape and will have huge potential in the future.

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The e-commerce market outlook

According to iResearch, among China e-commerce market segments, mobile shopping will develop fast and maintain 48% of compound growth rate in the next few years. It will be the key push for the rapid development of online shopping market. Moreover, online travel and O2O will sustain 20% of compound growth rate as well.

In the future, online shopping and O2O will be the fastest developing segment in the e-commerce market.

The soaring usage of mobile internet, shift from PC to mobile device of internet users, improved mobile shopping scenarios, e-commerce operators’ rising efforts on mobile business and development of mobile shopping platform all contribute to the surging of mobile shopping in China. Therefore, it is expected that mobile shopping will maintain fast growth in the future years.

O2O of local lifestyle service grows tremendously, especially catering, leisure and recreation have come into its early stage. However, it has low penetration in the local lifestyle service market. In the next few years, it will increase by leaps and bounds, ascribed to the increasing of online purchase of online physical goods shoppers and surging of mobile internet.

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Source: I research China

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