E-commerce Trends in China 2013-2014E-commerce Trends in China 2013-2014E commerce Trends in China 2013 2014E commerce Trends in China 2013 2014Ed Sander

BCECC May 2014Ed Sander

BCECC May 2014BCECC May 2014BCECC May 2014

Today’s Agenda

1 E-Commerce – Alibaba

Social Media in China – Sina’s Weibo2

M-Commerce – Tencent’s WeChat3

Internet UsersInternet Users

564618

600

700

oene

n

Internet Users

46% penetration

457513

564

500

600

Milj

298

384

300

400

137

210200

300

111137

100

02005 2006 2007 2008 2009 2010 2011 2012 2013

The major players: BATThe major players: BAT

http://graphicsweb.wsj.com/documents/chinas-internet

Sales & Profit (Billion USD)Sales & Profit (Billion USD)

9 913

12,00Sales 2012

Sales 2013

7,952

9,913

8,00

10,00 Sales 2013

Net Profit 2012

Net Profit 2013

4 899

6,893

5,1296,00

,

3,582

4,899

3,558

2,543

4,00

1,671 1,492,056

1,689

0 00

2,00

0,00Baidu Alibaba Tencent

E-CommerceE Commerce

Online Shopping Transaction Valuepp g

Billion RMB

Some 2013 statisticsSome 2013 statistics

• 302 million Chinese were shopping online.Th l l f i 10• The total volume of e-com transactions > 10 trillion RMB

• Online retail: 1.850 billion RMB, making it the biggest e-com market in in the world.

• Analysts: “By 2020 China’s e-commerce market will be bigger than USA, Great Britain, Japan, gg , , p ,Germany and France combined.”

B2C Market 2013B2C Market 2013

Online Shopping Transaction Structurepp g

AlibabaAlibaba

International B2BInternational B2B

C2C ( ll b i )C2C (small businesses)

B2C (1st & 2nd tier cities)(1st & 2nd tier cities)

I t ti l B2CInternational B2C

Alibaba statisticsAlibaba statistics

• 24,000 employees (more than Yahoo + Facebook).I 2012 $170 billi i l ( 2% f Chi ’ GDP) t• In 2012 $170 billion in sales (=2% of China’s GDP) went through Taobao & Tmall platforms.

• 2012: 36 7 million users >2 8 million sellers >5 900• 2012: 36,7 million users, >2,8 million sellers, >5.900 product categories.

• Alibaba's accounts for >60% of the packages delivered in• Alibaba s accounts for >60% of the packages delivered in China.

• Taobao + Tmall cover 80% of the total e-com market inTaobao Tmall cover 80% of the total e com market in China and receive 100.000.000+ daily visitors.

• Value is estimated between $136 and $245 billion.$ $

Double 11 2013Double 11 2013

• 402 million visitors to Tmall (2/3e of allnetizens)

• €4 3 billion sales on Alibaba platforms€4,3 billion sales on Alibaba platforms (3x USA’s Black Friday)C• Compare: – €1,2 billion sales on Jingdongg g– e-commerce Belgium 2013 = €1,8 billion.

AlibabaAlibaba

Sina WeiboSina Weibo

Sina WeiboSina Weibo

Sina WeiboSina Weibo

• Only 5% of Weibo users post original content (H K U i it ’ W ib )(Hong Kong University’s Weiboscope).

• Weibo has many zombie accounts for celebrities and brands, automated spam accounts, and many users who just repost other users’ content.

• The number of highly active users who post the most had declined 74 percent between March p2012 and December 2013 (East China Normal University).y)

WeChat: ChatsWeChat: Chats

WeChat Voice MessagingWeChat Voice Messaging

WeChat: SocialWeChat: Social

WeChat: SocialWeChat: Social

WeChat: AccountsWeChat: Accounts

WeChat: m-commerceWeChat: m commerce

WeChat: Taxi bookingWeChat: Taxi booking

WeChat: StickersWeChat: Stickers

WeChat: StreetviewWeChat: Streetview

WeChat: Location BasedWeChat: Location Based

WeChat: ScannerWeChat: Scanner

WeChat: Vending MachinesWeChat: Vending Machines

WeChat: QR Code ShopsWeChat: QR Code Shops

WeChat registered UsersWeChat registered Users

WeChat Monthly Active UserseC at o t y ct e Use s

M-CommerceM Commerce

Internet UsersInternet Users

564618

600

700

oene

n

Internet Users

46% penetration

457513

564

420

500500

600

Milj Mobile Internet Users

298

384

308356

420

300

400

137

210

118

233

200

300

111137

50

118100

02005 2006 2007 2008 2009 2010 2011 2012 2013

Global Mobile Internet Penetration

M-Commerce statisticsM Commerce statistics

• Since mid 2013 more people are shoppingth h th i t h (81%) th tthrough their smartphone (81%) than a computer (70%).

• During Double 11 2013: 127 million consumersspent €653 billion on Taobao Mobile.

• This is 560% higher than in 2012 and covers 21% of Taobao’s transactions.

• 2/3rd (400 million) of China’s netizens shoppedon Taobao Mobile in 2013on Taobao Mobile in 2013.

M-Commerce GrowthM Commerce Growth

• High growth rates for m-commerce are expected in 2014 because of:– new means of mobile paymentnew means of mobile payment– penetration of smartphones in the

countryside (where few stores are located)countryside (where few stores are located)– Increase in 3G coverage

I i WIFI h– Increase in WIFI hotspots– O2O tools

China Mobile Shopping Market 2013pp g

LaiwangLaiwang

LaiwangLaiwang

China’s most visited sitesChina s most visited sites

The major players: BATThe major players: BAT

http://graphicsweb.wsj.com/documents/chinas-internet

ContactEd Sander

E mail: ed@failsafe nlE-mail: ed@failsafe.nlWebsite: www.failsafe.nl / www.chinatalk.nlPhone: +31 6 51 214 206T i @EdS dTwitter: @EdSanderLinkedin: nl.linkedin.com/in/edsander/

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