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China B2C E-Commerce Market 2017

  • May 2017
  • 76 pages
  • ID: 4402198

Summary

Table of Contents

Chinese B2C E-Commerce reaching maturity, but rural areas are giving it an extra competitive edge, affirms yStats.com

According to findings in the yStats.com publication, China is forecasted to account for over half of the global online retail market in 2017. The combination of their enormous population and a robust online shopper penetration has led to China maintaining its rank as the world’s largest E-Commerce market, despite an Internet penetration rate of just about half of the population.

Due to a double digit share of total retail sales coming from E-Commerce, China is categorized as having a maturing online market. About 2 in 3 Internet users from urban areas already shop online, with even a higher number in major cities. Various sources cited within the yStats.com report foresee that China’s Internet retail sales will start to see declining growth rates in the future.

Nevertheless, the growth rate through 2020 is projected to remain in the double-digits due to factors such as expanding Internet and online shopper penetration, boosted frequency of digital purchases by urban customers, and an increase in E-Commerce sales from rural China. Official statistics cited by yStats.com revealed that between 2015 and 2016, E-Commerce sales amongst rural areas doubled.

When looking at the competition, over three-quarters of Chinese B2C E-Commerce sales stem from the top two platforms: Tmall.com and JD.com. The yStats.com publication showcases that the leader, Tmall.com, kept a market share in 2016 of over 50%, while JD.com saw a slight increase in share in comparison with 2015. Both platforms have made investments to offline retail channels in an effort to increase omnichannel capabilities.

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