{"id":1558,"date":"2016-05-25T07:15:36","date_gmt":"2016-05-25T07:15:36","guid":{"rendered":"http:\/\/www.2open.biz\/?p=1558"},"modified":"2016-05-25T07:23:15","modified_gmt":"2016-05-25T07:23:15","slug":"e-commerce-platforms-china-market","status":"publish","type":"post","link":"https:\/\/www.2open.cn\/?p=1558","title":{"rendered":"Do other e-commerce platforms stand a chance against Tmall?"},"content":{"rendered":"

All of us are\u00a0very well aware of the magnitude of the Chinese online market<\/strong> and, although it is currently the largest e-commerce market in the world<\/strong>, most of the market share is owned by the Chinese e-commerce giant Alibaba<\/strong>. Nevertheless, there are some other companies that also want their piece of the pie and with their vertical e-commerce platforms they are starting to put up a fight. This article will focus mainly on those vertical platforms that constitute an important part of the diverse Chinese e-commerce environment.<\/p>\n

In the 4th<\/sup> quarter of 2015 China\u2019s online transactions surpassed 644.38 billion RMB<\/strong>, the pie chart shown bellow contains the market share of the top ten Chinese e-commerce platforms<\/strong>:<\/p>\n

\"Vertical<\/p>\n

Before we continue, we first have to clarify the concept of vertical e-commerce. In this context, vertical refers\u00a0vendors that offer goods and\/or services that are specific to an industry or customers with specific needs. A\u00a0vertical e-commerce platforms could be a\u00a0independent brand or a specified category within a wide range of products\u00a0such as\u00a0clothes, 3C (computer, communication, and consumer electronics)<\/strong> products, cosmetics, etc.<\/p>\n

If you already have a\u00a0basic understanding of the Chinese e-commerce market, then you are probably familiar with JD.com.\u00a0Currently the second e-commerce platforms in China after Tmall (owned by Alibaba Group)<\/strong>, JD.com started as a 3C products vertical B2C website. Now, let us take a look at the market share of 3C products in China B2C online market<\/strong>:<\/p>\n

\"Vertical<\/p>\n

Although Tmall<\/strong> is still on the first spot, the difference in market share of JD.com<\/strong>\u00a0is considerably\u00a0higher than with regular products. Tmall and JD.com\u00a0combined own more than 80% of the Chinese 3C products market<\/strong>. Suning, on the\u00a03rd<\/sup>\u00a0spot, and Gome, on the 4th<\/sup>, both also started specializing in 3C products, however, nowadays they have also diversified their range of products. At the end, it seems\u00a0that there are\u00a0no actual vertical platforms anymore.<\/p>\n

To study the online market, we cannot miss the biggest category, clothes<\/strong>. In the 4th<\/sup> quarter of 2015, the total transaction of clothes is 235.57 billion Yuan<\/strong>, market\u00a0share is shown below:<\/p>\n

\"Vertical<\/p>\n

In this case,\u00a0Tmall is leading with an absolute advantage of\u00a0almost 3\/4 of the market share<\/strong>. In this category, JD has 8.7% of the market share, VIP.com has 6%<\/strong>, and surprisingly\u00a0others do not even have\u00a01% individually, so from the big picture the vertical market for clothes is not active enough.<\/strong><\/p>\n

Another category that\u00a0has had such a rapid growth we cannot ignore\u00a0is the maternal and children products. Shown below is a pie chart containing China’s maternal and children products\u00a0market share figures of major competitors in the last quarter of 2015:<\/strong><\/p>\n

\"Vertical<\/p>\n

The most noticeable difference in comparison with other categories is\u00a0the porcentage own by other platforms that adds up to almost 20 %. Although Mia, Beibei, Babytree and others are in that 20%<\/strong> it is still a big figure. \u00a0In this category Tmall and JD.com own less than 70 % of the Chinese clothing market<\/strong>, so we can say, to some extend, that there is still space for vertical players.<\/p>\n

The next category is books and, even though the books\u00a0total transaction was just 5.31 billion Yuan<\/strong>, the market share gives us a slice hope of competing with general platforms, in this case Dangdang is leading with 43.8%, and Tmall is only on the\u00a03rd<\/sup>\u00a0spot, just after\u00a0JD.com.<\/p>\n

\"Vertical<\/p>\n

Finally, we cannot say all vertical online platforms are dead in China just because most of the categories are gloomy, there are still some worth a try, and you just need to know enough about the current situation. If you don\u2019t, luckily you saw this article, and you know 2open can always help you to find the right channels. So don\u2019t hesitate, contact us now!<\/p>\n

All in all, even though Tmall dominates in the\u00a0Chinese market, there is still space for other platforms to flourish. Vertical e-commerce platforms seem to be the wisest option, specify in a certain category, gather information about the current situation in the Chinese market, and carry out your business plan. If you need further information about the market<\/a>, would like to help you find the right channels, or want us to set up your business in China, do not hesitate in contacting us<\/a>. Our group of specialists will happily assist you.<\/p>\n

This article was edited by Andres Arroyo Olson from 2 Open.<\/p>\n

References.<\/span><\/p>\n

All products data from<\/p>\n

http:\/\/www.analysys.cn\/yjgd\/17684.shtml<\/a><\/p>\n

3C data from<\/p>\n

http:\/\/www.analysys.cn\/yjgd\/17676.shtml<\/a><\/p>\n

Clothes data from<\/p>\n

http:\/\/www.analysys.cn\/yjgd\/17678.shtml<\/a><\/p>\n

Children products data from\uff1a<\/p>\n

http:\/\/www.analysys.cn\/yjgd\/17680.shtml<\/a><\/p>\n

Books data from:<\/p>\n

http:\/\/www.analysys.cn\/yjgd\/17681.shtml<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

All of us are\u00a0very well aware of the magnitude of the Chinese online market and, although it is currently the largest e-commerce market in the world, most of the market share is owned by the Chinese e-commerce giant Alibaba. Nevertheless, there are some other companies that also want their piece of the pie and with<\/p>\n","protected":false},"author":15,"featured_media":1570,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[14,1,5],"tags":[446,448,165,454,69,236,462,465,464,437,466,451,174,433,434,431,438,439,445,430,239,429,420,469,459,458,457,234,447,467,432,238,436,435,233,449,444,442,460,461,463,468,73,443,455,456,453,452,450,441,440,235],"_links":{"self":[{"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/posts\/1558"}],"collection":[{"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1558"}],"version-history":[{"count":3,"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/posts\/1558\/revisions"}],"predecessor-version":[{"id":1571,"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/posts\/1558\/revisions\/1571"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=\/wp\/v2\/media\/1570"}],"wp:attachment":[{"href":"https:\/\/www.2open.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.2open.cn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}