China Online Shopping Market Reaches Over 10% Penetration

Source:iResearch February 10,201510:54 PM

China online shopping GMV totalled 2.8 trillion Yuan.

According to iResearch, China online shopping GMV totaled 2.8 trillion Yuan in 2014 with a high growth of 48.7%. The data from National Bureau of Statistics of Peoples’ Republic of China shows that online shopping GMV occupied 10.7% of total retail sales of consumer goods in China in 2014 and its penetration of 10%.

According to iResearch, with rapid development of mobile shopping, China e-commerce is expanding to third and fourth tier cities, the rural market and even the global market. In the coming years, China online shopping market will maintain the compound growth rate.

B2C made up 45.8% of the online shopping market in China in 2014.

China B2C GMV reached 1,288 billion Yuan, accounting for 45.8% of the online shopping market in 2014. The share rose 5.4% from 40.4% of 2013. China B2C market soared 68.7% in 2014, much higher than 35.2% of C2C. It will remain the core engine for the future growth of China online shopping market. It is expected that share of B2C in online shopping market will exceed that of C2C in China in 2015.

According to iResearch, for C2C market has a large body and owns various categories of goods, it has some advantages in meeting individual demand of online shoppers and will keep stable growth in the future. However, after the online shoppers get mature shopping sense and rational online shopping behavior, quality of products and service will become the key factors influencing the purchase of online shoppers. Correspondingly, online shoppers’ demand for high-quality product will push up the development of B2C market and the share of B2C in online shopping market will expand.

Main players saw fierce competition in online shopping market in 2014.

In China B2C market, Tmall took up over 60% and JD accounted for 18.6% in 2014. Growth of Vip,Yihaodian and Gome all surpassed that of the whole B2C market in 2014. In independent B2C market, JD occupied almost 50%, Suning made up 8.5%, and Vip accounted for 7.7% in 2014. The official website of Xiaomi develop fast. At the same time, the market got a high concentration.

According to iResearch, Alibaba and JD developed diversified business in 2014. While searching for their unique living space, other players made efforts to integrate the industry chain, expand products, build brand and optimize service in order to improve their core advantages. Therefore, the competition in online shopping market turned fiercer.

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