BDA - Opportunity through Insight

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Dec 31 2009	Full PDF Version

China's Me Commerce Revolution

2010 will be the year when the massive momentum of China's burgeoning e-commerce market becomes apparent. This fusion of commerce and social networking is best described as a ‘Me Commerce' revolution, with success driven by meeting the specific aspirations of vendors (including a large number of small merchants) and consumers rather than an emphasis on the ‘electronic' nature of the transactions. Today almost one third of Internet users, or 105 million according to iResearch, are engaged in online shopping. This number is set to almost double within the next two years. Sales generated from these shoppers are set to grow rapidly. BDA believes Taobao accounts for over 80% of the consumer e-commerce market, trailed far behind by Tencent's Paipai and eBay/Eachnet each with less than 10% in 2008. China's consumer e-commerce segments of most promise in China include areas such as books & audio-visual content, apparel, babycare, consumer electronics and IT. In addition to Taobao and other general contenders, niche sites are exploiting growth in the above listed areas as well as other promising categories including health products, housing-related products and services and food/dining related services...

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