China Online Shopping GMV Hits 284.22 Billion Yuan in Q3 2012 With Decelerated Growth

According to the data on China online shopping market for Q3 2012 released by iResearch, the GMV of China online shopping market reached 284.22 billion Yuan, up 5.9% QoQ and 43.9% YoY.

GMV of Q3 online shopping market reached 284.22 billion Yuan with growth decelerating.

The data of iResearch shows that the GMV of China online shopping for Q3 2012 amounted to 284.22 billion Yuan, up 5.9% QoQ and 43.9% YoY. The GMV of B2C market reached 101.1 billion Yuan, up 13.2% QoQ and 123.5% YoY, and maintained rapid growth.

According to iResearch, the general slowdown in China online shopping market in Q3 was attributable to three factors. First, the downturn in the economy has resulted in cuts in the budget of consumers. Second, consumers have become immune to sales promotions due to excessively frequent big promotions in the second quarter. Third, the annual “Double Eleven” (11th Nov.) promotion in the fourth quarter has prompted consumers to reduce their online spending in the third quarter.

 

GMV of B2C market reached 101.1 billion Yuan, occupying 35.6% of online shopping market.

According to the research data of iResearch, the GMV of B2C e-commerce (including B2C malls launched by C2C players) in Q3 2012 reached 101.1 billion Yuan and takes up 35.6% of China online shopping market. Based on the current level of growth, B2C market share is expected to exceed 40% in Q4 2012.

The GMV of independent B2C e-commerce grew relatively fast in the third quarter, up 20.1% QoQ and 200.8% YoY. The increase was primarily due to the price war of computer, communication, consumer electronic (3C) and home appliance among mainstream independent B2C retailers.

B2C Market Concentration intensified and C2C Market Pattern Stabilized.

B2C Market

Tmall took a lead, 3C and home appliance enterprises stood out.

Tmall.com, 360buy.com, Tencent B2C including 51buy.com, Sunning.com and Amazon.cn have secured their top 5 rankings in the whole B2C market. Tmall.com ranked the first with its GMV share of 54.6% in Q3 2012 and maintained stable growth. Its share for Q3 dropped slightly mainly because it did not take part in the price war among B2C players. B2C retailers, main categories of whose commodities are 3C and home appliance, such as 51buy.com, Newegg.com, Coo8.com, Sunning.com and 360buy.com, grew relatively fast with a QoQ growth rate of over 20%. In addition, driven by the celebration activities of its fifth anniversary in July, Yihaodian experienced a growth rate of over 30% in the third quarter.

The GMV from the official websites of independent B2C enterprises which are outside the top 11 rankings totaled 4.02 billion Yuan (The figure excludes the GMV of B2C enterprises from platforms including Tmall.com, and such GMV is included in the GMV of corresponding platforms. It also excludes the GMV from Call Centers and physical stores.), taking up only 4.0% of B2C market. The concentration of online shopping market has further intensified with a relatively slow growth rate of the third tier, the number of unique visitors per day of which is below 50,000, B2C enterprises whose market shares are to be squeezed.

360buy.com occupied over half of the share, and the share of sunning.com rose noticeably.

In the B2C market characterized by independent sales, the GMV of 360buy.com reached 22 billion Yuan in the third quarter, taking up 51.1% of the market, followed by Sunning.com whose share continued to rise in Q3 and reached 9.9%. Enterprises whose ranking rose in Q3 include Coo8.com while enterprises whose share increased noticeably include 360buy.com, sunning.com, 51Buy.com, Coo8.com, Amazon.cn and Yihaodian.com.

Apart from Tmall.com and Tencent B2C including buy.qq.com, independent B2C operators continued to add lines of business and product to improve the experience of one-stop shopping of users as well as to enhance their positions in the market. Examples include: 1) DangDang.com launched its Taiwan Pavillion on 14th July and established its Life Service Unit on 13th September which is mainly responsible for the setting up of life services such as cellphone top-up, group shopping, travel, etc.. 2) 360buy.com launched its car rental business on 14th July and started to provide car rental services to a total of 12 districts in Beijing, Shanghai, Guangzhou and Shenzhen. On 10th August, it launched the Real Estate Channel with 18 real estate projects in seven cities across the country in the first phase. 3) Amazon.cn officially launched its Liquor Store online on 2nd August. 

 


C2C Market

Taobao.com Monopolized the Market while the Share of Paipai.com rose slightly

Taobao.com has secured the first place in the C2C market with a share of 94.43%, followed by paipai.com whose share is 5.55%. The pattern of C2C market remains stable with a slight increase in the share of paipai.com. 
 


GMV of China Online Shopping May Exceed 400 Billion Yuan in Q4.

In the fourth quarter, nothing is more exciting than online shopping carnival at the end of the year. Based on the current layout, promotion campaign has been carried out at DangDang.com, buy.qq.com, 360buy.com, etc. Tmall.com has also begun to pave the way for Double Eleven promotions and launched its pre-sale page on 11th October. During 1st to 8th November, it launched carnival town to enable consumers to play games and collect coupons. Online shopping vendors are actively stocking up, which will surely set a new record for quarterly GMV of online shopping.

Based on the current growth of the market and possible future market factors, iResearch believes that online shopping market will maintain a QoQ growth rate of 30.0% to 40.0% in Q4 with an estimated GMV of 370 to 400 billion Yuan. It is optimistically estimated that in the fourth quarter the GMV of China online shopping will exceed 400 billion Yuan for the first time.

 

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