"Network retailing integrated Marketing"--chapter II Platform Marketing

Chapter II Platform Marketing

Section One overview of network retailing industry

China Network retailing Industry

(a) The overall scale of China's network retailing industry

1. In 2011, network retailing accounted for nearly 5% of China's social retail total

According to the National Bureau of Statistics, China's total retail sales of consumer goods amounted to 18.1226 trillion yuan in 2011, an increase of 17.1%. According to the latest statistics released by the January 2012, the Chinese online shopping market in 2011 was close to 800 billion, up 773.56 billion, up 67.8% from 2010. 2010 China's online shopping market volume accounted for the total retail sales of consumer goods from 2010 of 2.9% to 2011 4.3%. Shanghai, Beijing and other first-tier cities have reached more than 5%, is expected to 2012 this proportion in the country will exceed 5%. By the end of December 2011, China's net buyers reached 194 million people, the penetration rate of 37.8% in netizens. Compared with 2010, the net purchase user growth 33.44 million people, the growth rate is 20.8%. Online shopping has become one of the most important applications of Internet.

2, 2010 China's online retail market transactions accounted for about 1/7 of the world

2010 Global online shopping transactions on the scale of 572.5 billion U.S. dollars, an increase of 19.4% per cent, in 2010 global network Shopping Transaction scale, Europe (34%), the United States (29%) and Asia (27%) accounted for the total of 90%, showing pillars pattern, China occupies about 1/7 of the global market.

3, 2015 China became the world's largest network retail market

In November 2011, Business Week, the US Business Week, published a study in which China's online retail market will surpass 2 trillion yuan in volume, surpassing the US as the world's largest online retail market.

Figure 2-1 The overall scale of China's internet retail market in 2006-2015

(ii) Distribution of goods in the net

In the 2011 China Network retail Market, "clothing, shoes, bags category" net goods accounted for the top, the market share of 26.5%; the second is the "3C and home appliances category", accounting for 24.2%. Compared with 2010, clothing, shoes, hats, bags, the share of the increase of 3.7%, 3C and household appliances share of the rise of 7.5%, the category of 3C and home appliances, the growth rate is significant. Books and audio-visual and digital home appliances for the representative of the category competition is particularly fierce, because of its high degree of standardization easy to trigger a price war. Clothing, shoes and hats and bags and other products, such as low standardization, in the seasonal transformation and holiday promotions, the user's explicit demand and stealth demand will be effectively stimulated, the future of the network retail market development space is still huge. Cosmetics, food, medicine and home furnishings and other categories will usher in a rapid growth period in 2012.

Figure 2-2 The distribution of commodity categories in China's online retail market in 2011

(iii) Market structure of network retailing industry

Consumer-to-consumer market structure is stable, the competition of the business market becomes fiercer. Taobao accounted for more than 90% of the market share of Consumer-to-consumer, Pat net accounts for the overall stability of the 9.0%,c2c market pattern. In the business market, Taobao Mall with its own platform advantages and double one, double 12 and other festivals to achieve rapid development, the whole year in the platform-like business market accounted for more than half of the 53.5%;

Figure 2-3 China Consumer-to-consumer and Business-to-consumer market share in 2011

Note: The above data by Eric Consulting company comprehensive Public information, Eric Consulting industry interviews, Eric Consulting own monitoring products iuerstracker, Ecommerceplus and other finishing.

Source: Iris Consulting April 12, 2011 release Information

Figure 2-4 The first 30 incumbent manufacturers in China's business market in 2010

(d) The size of the online shopping crowd

2011 China's online shopping users up to 187 million people, more than 2010 39 million people, accounting for 41.6% of China's PC users. In 2013, China's online shoppers accounted for 50% of the total PC users, the consultancy predicts.

Figure 2-5 the size of Chinese internet buyers in 2009-2015

(b) Analysis of the reasons for the growth of internet retailing industry

The main factors that promote the growth of China's online retailing market are two aspects:

1, Supply level analysis

(1) Continuous improvement of service

Network Retail operators constantly improve the industrial chain, increase warehousing, logistics, payment and other system construction. Brand, channel and other internet giants in the 2011 have increased in the e-commerce industry, investment, marketing and so on, greatly improve the quality of online retail goods and services, enrich the choice of Internet buyers, and promote the network retail market to standardize the direction of development.

(2) Effectively reduce the threshold of internet shopping

Fast login, fast payment and other ways to reduce the consumer network shopping operation threshold, and constantly increase the network shopping application in the infiltration of netizens.

2, demand level analysis

(1) The number of Internet users and Internet buyers has grown rapidly

Chinese netizens grow steadily. CNNIC released data showed that in June 2011, China's internet users reached 485 million, at the end of 2011, China's Internet users exceeded 500 million people, compared to the end of 2010 457 million growth of 10.5%. The increasing number of Internet users has become an important basis for the growth of network retailing, meanwhile, internet shopping has become a driving force and target for consumers to become netizens.

Source: CNNIC Report on the development status of Internet in China (January 2012)

Fig. 2-6 the scale and popularization rate of Chinese Internet users

Source: CNNIC Report on the development status of Internet in China (January 2012)

Figure 2-7 Mobile Internet users scale

(2) Trust-dependent enhancement of online shopping

China's ministries promote the protection of consumers ' rights and interests in the network retailing and reduce the psychological threshold of consumers ' online shopping. Consumer dependence on online shopping and trust further deepened, per capita net purchase consumption expenditure continued to increase.

2011

2010

Application

User size (million)

Usage rate

User size (million)

Usage rate

Annual Growth rate

Instant Messaging

41510

80.9%

35258

77.1%

17.7%

Search

40740

79.4%

37453

81.9%

8.8%

Network Music

38585

75.2%

36218

79.2%

6.5%

Network News

36687

71.5%

35304

77.2%

3.9%

Network Video

32531

63.4%

28398

62.1%

14.6%

Online games

32428

63.2%

30410

66.5%

6.6%

Blog/Personal Space

31864

62.1%

29450

64.4%

8.2%