Digital C-Type Printing: Revolutionizing The Future Of Photographic Prints
China Online Retail Market - iResearch - Will Tao
1. New Trends of
China Online Retail
June 2012
Will Tao
Analysis Director
willtao@iresearch.com.cn
iResearch Consulting Group
www.iresearchchina.com
2. iResearch – China Internet Expert
Founded in 2002, became the leading Internet research firm in China;
Databases and reports are regarded as the industry standard;
Quoted by most of listed Internet companies in their IPO documents;
Cited by a number of famous financial, tech and investment institutes.
www.iresearchchina.com 2
3. Online Retail Is Booming
2009-2015 China Online Shopping GMV 2009-2015 China Online Shopping Construction
4,000 100%
105.2% 8%
14%
75.3%
66.3% 54.5% 24%
32.5% 28.3% 26.8% 30%
34%
80% 38% 41%
2.0% 2.9% 4.2% 5.5% 6.5% 7.5% 8.6%
3,000
2,551
60%
2,012
2,000
1,569
40% 92% 86%
77% 70% 62% 59%
1,184 66%
1,000
767
20%
461
263
0 0%
2009 2010 2011 2012e 2013e 2014e 2015e 2009 2010 2011 2012e 2013e 2014e 2015e
GMV of online shopping (B RMB) YoY growth rate(%) C2C(%) B2C(%)
% of Total retail sales(%)
Source: The data is calculated based on the financial reports of enterprises, interviews on industry and experts, and iResearch statistical and forecasting model.
3
4. China Is Just One Step Behind the US
$ Billion US-China Online Shopping Dollar Sales With YoY Growth
88% 92%
80 81% 80% 75% 73%
53%
70 47%
10% 9% 9% 11% 12% 14% 13% 14%
60
$49.7
50
$43.4
40 $38.0 $37.5 $37.6
$36.3
$33.9 $32.9 $32.1 $31.3
30 $28.1
$25.6 $25.7
20 $18.1
$16.5
$13.4
10
0
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
China US China US
Note: The convert rate of RMB/USD in this slide is 1USD=6.3RMB and China’s statistics is the sum of B2C and C2C.
Source: The data is calculated based on the financial reports of enterprises, interviews on industry and experts, and iResearch statistical and forecasting model.
4
5. Major e-Commerce Websites in China
General Websites
B2B C2C B2C Entrance
Domestic B2C Export B2C
Platform Platform Platform
Vertical Websites
Shoes & Customer
Clothing Cosmetic Luxury Others
Bags Electronics
Online Travel Local
Group-buying
Reservation Services
Payment &
Delivery 5
6. China B2C Is Highly Concentrated
Market Share of China B2C Online Shopping US & China B2C Top Players Market
Websites in 2012 Q1 Share in 2011
Newegg Others
Coo8 0.8% 9.4%
1.2% 100%
VANCL
1.3% 22.4%
32.6%
51buy 80%
1.5%
Dangdang
1.8% 60%
Top
Suning.com Tmall Top 5
3.1% 51.5%
40% 25 77.6%
67.4%
Tencent B2C
3.2%
20%
Amazon
3.5%
0%
360buy
US China
22.7%
Source: iResearch, CNNIC, ComSorce;
6
7. And Models Are Not The Same
Models Companies Power Monetization
Platform Ads, commission
Online retailers Markup
Brick and mortar
Markup
retailers
7
8. Where Is the $ From?
Transactions Dollars per Dollar
2011Q4 Buyers(M)
per Buyer Transaction Sales (B)
182 2.8 $97 $50
Vs Q410 10% -2% +6% +14%
194 4.6 $42 $38
Vs Q410 20% +31% -8% +46%
Note: China’s statistics excludes B2C and C2C and the convert rate is 1USD=6.3RMB
Source: iResearch, CNNIC, comSorce;
8
9. Driver One: More Buyers
User Scale of China Online Shopping Market Online Shopper Penetration in China Still Has
From 2009 to 2015 Huge Potential
600 unit: m
49.8% 53.2% 56.6%
45.5% 200 80%
36.3% 40.5%
32.9%
500
35.8%
31.5% 26.4% 21.8%
18.1% 16.7% 15.6%
150 60%
400 1.8x
363
314
300
269 100 209
40%
228 185 74%
187
200
148
109 50 20% 41%
100
0 0 0%
2009 2010 2011 2012e 2013e 2014e 2015e US China US China
User Scale of Online Shopping (M)
% Growth Rate
% of PC Internet Users
Source: The data is calculated based on the financial reports of enterprises, interviews on industry and experts, and iResearch statistical and forecasting model. & comScore
9
12. Social Commerce in China
User Gender User Age
China Internet user 14% 28% 35% 24%
China online shopper 6% 26% 43% 25%
30.0% 70.0%
Mogujie 19% 43% 24% 14%
35.5% 64.5%
Meilishuo 16% 42% 25% 16%
31.8% 68.2%
<18 18-24 25-35 >35
Source: China: iResearch & iUserTracker a panel measuring over 200,000 Internet users' online behaviors in China on Jan. 2012; US: comScore
12
14. The Alibaba Monarchy (Cont’)
Tmall Tmall Revenue 2011
392%
140
247%
207%
120
100 92.0
Commission
28%
80
60
Ads
40 72%
30.0
20
6.1
1.8
0
2008 2009 2010 2011
Tmall Transcation(B RMB) YoY Growth(%)
Business model Management
Brand
Source: The data is calculated based on the financial reports of enterprises, interviews on industry and experts, and iResearch statistical and forecasting model.
14
15. Key Players
Online Shopping Websites’ UV in 2011 Online Shopping Conversion rate in 2011
unit: m
180 8%
160 7%
140
6%
120
5%
100
4%
80
3%
60
2%
40
20 1%
0 0%
01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12
1 2 1 2
Taobao 360buy Dangdang Amazon Vancl Taobao 360buy Dangdang Amazon Vancl
Note: 1. The data includes Tmall and Taobao. 2. The data excludes V+
Source: EcommencePlus, iResearch's professional e-Commence measurement software.
15
16. 360buy – A Game Never Stops
30B RMB sales in 2011
No.1 in B2C websites (except Tmall)
360buy
50
202%
40
177% 183%
User scale
User experience
30.8
30
20
10.2
10
3.6
Management
0
1.3
Cash flow
2008 2009 2010 2011
IT system
360buy Transcation (B RMB) YoY Growth(%)
Source: The data is calculated based on the financial reports of enterprises, interviews on industry and experts, and iResearch statistical and forecasting model.
16
18. Conclusion
Online retail in China is different
Online shopping has a great growth potential.
It become more and more concentrated.
Better drivers, more advantages
How to attract more customers and persuade them to spend.
Alibaba shows the best way of doing it.
2012 is the critical point
This year will determine who will win.
Some new strong players might emerge.
18
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21
22. Thank you
iResearch Consulting Group
US office:
Allen Chen
Mobile: +1 650 283 5955 (US)
+86 139 1073 0015 (China)
Email: allenchen@iresearch.com.cn
Beijing office:
Will Tao
Mobile: +86 136 9306 4820
Email: willtao@iresearch.com.cn