Wednesday, 14 October 2015 14:36

China Digital Landscape

In November 11th 2014 we call it double eleven in Chinese , TMall.com the largest B2C e-commerce platform generated 5.7 Billion RMB in one day. If we compare it to the yearly revenue of largest offline shopping centres in Beijing Shin Kong Place 新光天地 750 million and Shanghai Ba Bai Ban (Next Age) Shopping Mall 八百伴 470 million we can see the size of the bubble.

Now there are a lot of festivals created by e-commerce leaders in China not, only double 11 but also double 12, double 10 and it becomes a truly online shoppers carnival.

Digital Transformation has lead the dramatic change in China’s consumer behaviour. More than 50% of Chinese population are accessing internet by their desktop and mobile and the usage of mobile phone is growing rapidly.

If we will look at the data provided by global website traffic monitoring tool for 2015 about 1/3 of the top 15 websites are emerging from China.

When it comes to ecommerce Alibaba group has two brands which are Tmall and Taobao. Combined they have over 300 million active buyers and this number is close to the Amazon’s world wide active buyers.

Another noticeable e-commerce player in China is JD.com Their customer base is growing fast and it has very strong logistics network. There are about 30,000 couriers delivering goods every day and if you are able to place the order online in the morning usually you can get goods in the afternoon or in the evening.

In 2005 when Taobao first launched its service in China a year later they took over China’s leadership in ecommerce area from Ebay. Ebay’s market share in China dropped from 70% to 30% in one year.

There are many reason why Taobao could win over the battle. One of the main reasons is Taobao is providing all of their services to the small business and to people for free. It does not charge any transaction fee or any product listing fee.

And the other reason is AliPay which is bundled together with TaoBao as a third party payment system enabling the buyers to confirm their payment after they receive the goods from the sellers. It is also easily used in the most of the convenience shops in China.

Social Media is absolutely different as well. Chinese netizens are using Qzone, Tieba, Wiebo and Youku for their social networking, blogging, tweeting and for online video streaming.

WeChat is the most popular instant messaging and social network tool in China. Although its user base is fewer than Facebook and WhatsApp, most of WeChat users are heavy users. According to survey more than 55% of the WeChat Users open the application 10 times and 25% open 30 times a day.

QQ is installed on almost every netizens desktop in China since it was launched in 1999. It is the most widely used IM in China. QQ together with WeChat and Qzone makes its parent company Tencent the largest social media company in China. It’s market value reaches 180 Billion USD.

With the development of mobile usage and the infrastructure like 4G and WIFI more and more O2O players are coming to market. There are diversified services in our life time. OTA – online travel agencies, Group buying , Car services and the dining services these are all services that we need in daily life, more and more large players are arriving to the market.

Published in Marketing

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