BDA - Opportunity through Insight

Impact of Economic Slowdown on B2B E-Commerce in China: Slower Growth in 2009

Jan 24 2009
? This report focuses on third-party online B2B platforms. China's online B2B market reached RMB 4.1 billion (USD 600 million) in 2008. The market saw a robust growth with a CAGR of 49% from 2004 to 2008. Progress made on the political and legal ecosystems for e-commerce provides a positive environment for online B2B development. Alibaba is by far the leader of the third-party online B2B market, accounting for about 70% of the market share. Vertical B2B platforms are expanding into integrated businesses to overcome the cap on their growth potential. ? The rate of revenue growth for online B2B platforms will slow down in 2009, impacted by the economic downturn. After that, the market is expected to rebound with a CAGR of 22% from 2009 to 2013. More consolidation will take place in the future, as some B2B platforms want to scale up their business and industry coverage through M&A. Competition between online B2B platforms and search engines may become fierce in the future as both are being adopted by SMEs as online marketing solutions.

Full PDF Version

Impact of Economic Slowdown on B2B E-Commerce in China: Slower Growth in 2009

more»