2022 China Industrial Goods B2B Industry Report

Source:iResearchJuly 21,202211:20 AM Overview
•The constant release of industrial digitalization policy dividends: National policies on industrial digitalization keep promoting deep integration of digital economy and the real economy. Industrial goods B2B platforms make good use of their platformization, digitalization capabilities and service advantages and seize the development opportunities brought by industrial digitalization.
•SMEs are a focus of digitalization policies: The government encourages innovative development of platform companies to constantly empower SMEs. Policy orientation is increasingly detailed and strengthened, providing great new opportunities for industrial goods B2B market.
•Emerging medium- and long-term technological dividends: Thanks to the fast promotion and application of big data, AI, IoT and other new information technologies, the medium- and long-term industrial goods B2B market technology dividends are gradually emerging.
•Growing market size: In 2021, the industrial goods market and industrial goods B2B market in China hit 12 trillion yuan and 584.3 billion yuan, respectively.

•The industrial goods B2B platforms have sped up the improvement of their supporting facilities and services. It is expected that the industrial product B2B market size will maintain a growth rate of over 16% in the next 2-3 years.

In the upstream of the industry chain, platforms increase their cooperation with suppliers by solving the four major development pain points of the upstream suppliers; In the downstream, platforms improve the layout of regional networks and actively increase SME customers.

•Upstream: Platforms increase their cooperation with upstream industrial goods suppliers by helping upstream sellers gain advantages in customer acquisition channels, product exposure, online operation efficiency and improve their product transaction matching based on perfect product standards.
•Downstream: Head platforms enhance their regional network layout and actively increase SME clients. In terms of product positioning, low-barrier MRO categories such as tools are more likely to be used as focuses for platforms to strengthen their industry competitiveness. Meanwhile, based on the supply chain's digital and intelligent services, platforms improve the rapid response of the regional supply chain.

More active players in the industry chain, more market opportunities for SMEs that occupy a favorable position in the industry chain, and constantly improving standards that are applicable to many industrial fields provide the industrial goods B2B market with opportunities for another round of rapid growth.

•The business of the B2B platform of industrial products has changed from mainly driven by the platforms to actively promoted by both the upstream and downstream. Meanwhile, platforms constantly improve their service ecology to provide good conditions for upstream and downstream enterprises to help them actively enter the new business ecology.
•Platforms should further empower SMEs in both the upstream and downstream of the supply chain of supporting state-owned enterprises and large private enterprises to penetrate deeper into the industry chain and seize development opportunities.
•with greater dominance over the standardization of industrial products will be able to further improve supply and demand matching efficiency, thereby helping platforms begin another round of rapid development.
Structure of the Industrial Goods B2B Market in China

The size of China's industrial goods market exceeded 12 trillion yuan in 2021. The size of the MRO market was 2.48 trillion yuan, accounting for 20% of the industrial goods market. The Internet giants have increased their layout in industrial goods. Generally speaking, with constantly improving economic structure, the industrial goods market is facing huge upgrades and reforms, which provides great development space for big platforms involved in the industrial goods B2B market.

Size of the Industrial Goods B2B Market in China 

Thanks to favorable policies, market demand and advancement in digital technologies, the size of the industrial goods B2B market has been growing in the past 5 years. Despite the influence of the pandemic in 2022, China's economy remains promising. The development of the industrial goods B2B will speed up. The market size is expected to maintain a growth rate of over 16% in the next 2-3 years.

Industry Map of the Industrial Goods B2B Market in China
 

Industrial goods B2B platforms empower all parties in the industry chain

Pain Points in the Upstream of the Industry Chain

Upstream industrial goods merchants have bottlenecks in customer acquisition, product exposure increasing, meeting the needs of downstream customers, and online operation efficiency improvement. As the macroeconomic growth slows down and the cost of production elements increases rapidly, optimizing the supply chain, improving the efficiency of production services and reducing comprehensive costs have become the top priorities for upstream industrial goods merchants.

Pain Points in the Downstream of the Industry Chain

Based on the characteristics of industrial products, the level of informatization and digitalization of downstream buyers in the transaction link needs to be enhanced, logistics timeliness needs improvement, and stagnant goods may lead to high storage costs . Meanwhile, buyers' terminal service demand for some industrial goods cannot be met.

Industry Trends

•With growing digital economy and the resurgence of COVID-19, industrial good enterprises in both the upstream and downstream have accelerated their digital transformation. Their online layouts will be more active and the business of the B2B platforms of industrial products has changed from mainly driven by the platforms to actively promoted by both the upstream and downstream.
•With the expanding industrial good B2B business and the improving service ecology of B2B platforms, multi-service capabilities such as online operation, supply chain finance, warehousing and logistics service will be constantly improved, which provides favorable conditions for upstream and downstream enterprises to actively enter the new business ecosystem.

Table of Contents of the Full Report

Abstract

Industry Definition and Caliber

1 Development Opportunities Facing the Industrial Goods B2B Industry in China
1.1 Driven by Policies
1.2 Driven by Technologies
1.3 Driven by Economy
1.4 Market Size of the Industrial Goods B2B Market in China
1.5 Financing History of the Industry

1.6 Inspiration of Overseas Capitalization Path


2 China’s Industrial Goods B2B Industry Chain
2.1 Industry Chain of the Industrial Goods B2B Market in China
2.2 Pain Points in the Upstream of the Industry Chain
2.3 Industrial Goods B2B Platform: Empower Upstream Merchants
2.4 Pain Points in the Downstream of the Industry Chain
2.5 Strong Demand in the Downstream of the Industry Chain
2.6 Industrial Goods B2B Platform: Positioning of Buyers
2.7 Industrial Goods B2B Platform: Product Positioning
2.8 Industrial Goods B2B Platform: Supply Chain Strength Enhancement


3 Case Study of Typical Enterprises in the Industrial Goods B2B Industry in China
3.1 Baidu Aicaigou
3.2 1688 Industrial Product Brands
3.3 JD Industrial Products


4 Trends in the Industrial Goods B2B Industry in China
4.1 More Active Players in the Industry Chain
4.2 SMES Occupying Favorable Positions in the Industry Chain Have Greater Opportunities

4.3 Platform Accelerates the Construction of Industrial Product Standards

Contents

Industrial goods B2B market has strong potential for continuous growth thanks to favorable policies, market demand and advancements in digital technology.

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