According to iResearch Consulting Group, the GMV of the whole inventory e-commerce industry was about 20.53 billion Yuan in 2018 and in the market, in which GMV of S2b2C inventory distribution platforms was about 13.03 billion Yuan. iResearch therefore forecasts that the GMV of S2b2C inventory distribution platforms will reached 150 billion Yuan in 2022 with a compounded annual growth rate of 84.2%.
What’s more, the industry is currently in the fast-developing stage. A number of new players entered the market, and only the number of published financing larger than 100 million Yuan amount was nearly 10 in inventory e-commerce field in the past two years and the financing amount totaled around 5 billion Yuan. New comers are expected to all enter the market at the end of 2019, and the competition will be increasingly fiercer.
S2b2C mode is a network for S (Supplier), b(distributor) and C (Customer), in which S and b cooperate closely and serve C jointly. In S2b2C mode of inventory e-commerce, the upstream brands’ ERP system including inventory and orders information is connected to distribution platforms that have payment system. Distribution platforms serve downstream distributors and offer reliable source of supply, rich product presentation materials and comprehensive related services; and distributors in the end reach consumers via community marketing.
Currently there are 100-150 S2b2C enterprises in inventory e-commerce industry. iResearch divided them into three echelons based on their daily GMV, number of registered member and partner brands and finds a significant top effect given that the first- and second-echelon players accounted for 80% in the market.
What’s more, S2b2C mode is easy to copy, which means a relatively low entry echelon for the industry. Therefore, the top effect is resulted from the early start and large size of the leading companies, and the competition barrier among companies has not been actually established.
Meanwhile, the whole industry is still in the exploration stage, and the platforms are still trying to further develop themselves currently. The competition will be fiercer as new comers entering the battlefield, and the market is expected to be saturated in two years.