B2B e-commerce: are Chinese enterprises ready? (1)

This article analyzes in detail the possible factors that may affect the development of B2B e-commerce in China and the development of B2B in China and the Western society, and looks forward to the development prospects of B2B e-commerce in China. At the same time, it presents potential and opportunities for investors and entrepreneurs interested in e-commerce to develop B2B e-commerce in China.
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B2B in China -- bright future and hard start
Although. the collapse of com is surging, but B2B e-commerce continues to flourish in all walks of life, because it can indeed greatly reduce supply chain operation costs between buyers and sellers and eliminate intermediary, cut transaction costs, facilitate easier transaction fulfillment, and encourage price competition in the electronic trading market.
B2B development should have more potential in China, because supply chain operations in many industries in China are less efficient than Western enterprises, and many enterprises do not have reasonable business processes, they have never experienced business process reengineering and engineering that Western enterprises launched in early 1990s. The development of B2B will provide many opportunities for Chinese enterprises to improve efficiency and increase profits. However, at present, China's B2B is still in its infancy, with transaction volume accounting for only 0.2% of the world's total.
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● In the next five years, B2B e-commerce will develop significantly in Asia and around the world.
● The development speed in Asia will be slower than that in other parts of the world, especially in the Asia Pacific region. This is mainly because the growth of B2B in the region is subject to the social structure and cultural factors we will discuss below.
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● China's current share in Asia is relatively small (currently 2.2%, 2004 in 7.3%), but will maintain the highest annual growth rate of 129% in the next four years (see table 2 ). In 2000, the transaction volume of B2B e-commerce in China reached $0.8 billion.
The development potential of B2B is limitless. Although B2C development both in the West and in China is earlier than that of B2B, in the next few years, B2C shares may only account for 20-30% of total e-commerce transactions in China, while B2B shares 70-80% of total profits during the same period.
However, B2B is a new thing after all. It just emerged in the West. Does its operating model really adapt to the social structure and culture of China? Next, we will discuss various factors that impede or promote the development of B2B e-commerce in China.
Social structural differences in B2B development in China
B2B was first developed in the United States and started in China. However, due to the difference in social structure, the development methods will be different.
1. China's e-commerce infrastructure (information technology, online payment, communication, and information communication) lags behind the West, but it has improved rapidly. The infrastructure of information technology is lagging behind in China, but is slowly improving. As of July 2001, 26.5 million of registered Internet users in China accounted for 1.6% of the population. Every one hundred residents only have one computer. Although the development is fast, the current base is too small. Many factories do not even have computers, let alone ERP and supply chain management.