China Ecommerce 2011

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CHINA E-COMMERCE

Shanghai, China | January 2012

2011 China E-commerce - www.them.pro 22012-01-31

TABLE OF CONTENT |

CHINA E-COMMERCE MARKET

CHINA B2B E-COMMERCE

CHINA ONLINE SHOPPING

CHINA ONLINE TRAVEL AGENCY

CHINA GROUP BUYING SITES

CHINA E-PAYMENT

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China E-commerce Market Revenue: 7 trillion Yuan Growth: +46% from 2010

China Online Shopping Users: 194 million Market Revenue: 774 billion Yuan Growth: +68% from 2010 Major Players: Taobao, Paipai, Eachnet, Tmall, 360Buy

China OTA Market Revenue 170 billion Yuan Growth: +61% from 2010 Major Players: Qunar, Kuxun, Ctrip

E-COMMERCE MARKET | 2011 SUMMARY (1/2)





China Group Buying Market Number of Users: 27 million (July 2011) Growth: +1.2% from May 2011 The top 10 daily deal websites account for 75% of the

market share

China Online Payment Online Payment Business Transactions: 456.6 billion Yuan

(2011 Q2) Alipay owns nearly 50% of China’s online payment

market

E-COMMERCE MARKET | 2011 SUMMARY (2/2)





E-COMMERCE MARKET | REVENUE

2008 2009 2010 2011 2012e 2013e 2014e 2015e0

5

10

15

20

25

30

2.9 3.6 4.87

9.8

14.4

19.7

26.5

China E-Commerce Market Revenue (2008-2015)Trillion Yuan

Source: iResearch, January 2012





E-COMMERCE MARKET | BREAKDOWN

SME B2B48,9%

Over-scale B2B 37,7%

Online Shopping11.0%

Online Travel Booking2,4%

China E-commerce Market Breakdown (2011)






B2B E-COMMERCE | MARKET

2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e05

10152025303540

4.2 5.5 6.69.7

13.117.0

22.0

28.5

36.7

China B2B Market Revenue for SMEs (2007-2015)Mainland China Only

Billion Yuan






B2B E-COMMERCE | MARKET SHARE

Alibaba48.9%

Global Sources11.1%Hc360

3.5%

Dhgate3.4%

Made-in-China3.3%

MySteel1.6%

GlobalMarket1.6%

Netsun Toocle1.3%

Others25.2%

China B2B E-Commerce Market Share (2011)






CHINA B2B E-COMMERCE | ALIBABA

Alibaba.comDescriptionAlibaba.com is one of the most popular B2B marketplace worldwide for small businesses. This international platform enables importers and exporters from over 200 countries over the world to do business together. The Chinese platform is known as 1688.com.

FoundedIn 1999 by Jack Ma

HeadquartersHangzhou, Zhejiang, China

Global Alexa Rank80 (Dec. 2011)





CHINA ONLINE SHOPPING | B2C & C2C

2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e0

500

1000

1500

2000

2500

3000

26 56 128 263461

774

1184

1569

2013

2551

China Online Shopping Market Revenue (2006-2015)Billion Yuan






CHINA ONLINE SHOPPING | Online Shoppers

2009 2010 2011 2012e 2013e 2014e 2015e0

50100150200250300350400

109148

187227

269314

363

China Online Shoppers (2009-2015)Million






CHINA ONLINE SHOPPING | BREAKDOWN 1

Clothing, Shoes, Hats, and Bags

26.5%

3C and Home Ap-pliances

24.2%Cosmetics4.9%

Books, Audio and Video Products

3.0%

Others41.4%

China Online Shopping Market Breakdown (2011)






CHINA ONLINE SHOPPING | BREAKDOWN 2

B2B76.8%

B2C23.2%

China Online Shopping Market Breakdown (2011)






CHINA ONLINE SHOPPING | B2C - PLATFORMS

Taobao Mall(Tmall)48,5%

360Buy 18,1%Amazon China

2,4%

Dangdang2,2%

Vancl2,0%

Icson1,3%

Coo81,2%

Newegg1,1%

Yihaodian0,8%

M180,6%

Others21,9%

China B2C Online Platforms Market Share (2011 Q2)

Source: iResearch, July 2011





CHINA ONLINE SHOPPING | B2C - RETAILERS

360Buy 35,1%

Amazon China4,6%

Dangdang4,3%Vancl

4,1%Icson2,6%

Coo82,3%

Newegg2,1%

Yihaodian1,6%

M181,2%

Others41,3%

China B2C Online Retailers Market Share (2011 Q2)






CHINA ONLINE SHOPPING | TAOBAO MALL

Tmall.comDescriptionTmall.com is a dedicated B2C platform created by Taobao. Contrary to Taobao.com, Tmall focuses more on quality and brand names goods. More than 30,000 Chinese and international brands currently sell their products on Tmall.

FoundedIn 2008


Global Alexa Rank62nd (Dec. 2011)





CHINA ONLINE SHOPPING | 360BUY

360buy.comDescription360buy.com is another key actor in China’s online retailer market. Originally selling 3C products, 360buy now delivers anything ranging from books to flight tickets. 360buy also runs other online shops such as Ehaoyao.com (drug) and Qianxun.com (female apparel).

FoundedIn 2004 by Qiangdong Liu

HeadquartersBeijing, China

Global Alexa Rank94th (Dec. 2011)





CHINA ONLINE SHOPPING | AMAZON CHINA

Amazon.cnDescriptionAmazon.cn is an additional Chinese shopping website formerly known as Joyo.com. Originally created as an IT information and download website, the service turned into an online bookstore, and then started to sell any commodities. Amazon acquired Joyo.com in 2004.

FoundedIn 1999 by Kingsoft







CHINA ONLINE SHOPPING | DANGDANG

Dangdang.comDescriptionDangdang.com is a Chinese online retailer selling plenty of products from books to cosmetics. More than 200,000 books and 10,000 software and audio products are currently available. Besides, over 40% B2C customers in China have shopped on Dangdang.com.

FoundedIn 1999 by Peggy Yu and Li Guoqing







CHINA ONLINE SHOPPING | C2C

Taobao 90,3%

Paipai9%

Eachnet 0,7%

China C2C Websites Market Share (2011 Q2)






CHINA ONLINE SHOPPING | TAOBAO

Taobao.comDescriptionTaobao.com is unquestionably China’s leader in online shopping. Launched after eBay acquired Eachnet in 2003, Taobao has become the Chinese reference for C2C and C2B business. As end of 2010, Taobao had more than 370 million registered users and 800 million listings.

FoundedIn 2003 by Alibaba Group







CHINA ONLINE SHOPPING | PAIPAI

Paipai.comDescriptionPaipai.com is the 2nd most-used online C2C auction site in China. Owned by Tencent that also operates the well-known Instant Messaging QQ, Paipai can rely on a huge user base of more than 800 million which is clearly its main advantage in the market.

FoundedIn 2006







CHINA ONLINE SHOPPING | EACHNET

Eachnet.comDescriptionEachnet.com is one of the first online auction websites in China. Acquired by Ebay in 2003, the company didn’t manage to react against Taobao and has lost market share against since that period to now become a minor player.

FoundedIn 1999 by Bo Shao and Haiyin Tan

HeadquartersShanghai, China

Global Alexa Rank43,116th (Dec. 2011)





CHINA ONLINE SHOPPING | PROVINCES

Guangd

ong

Zhejia

ng

Jiangsu

Fujia

n

Shan

dong

Henan

Sichuan

HunanHebei

Shan

ghai

01020304050607080

68.2

55.6

45.1

33.9 32.626.1 25.2 23.2 22.6 20.2

Top 10 Online Shopping Provinces (2011 Q1) Total Number of Orders (million)

Source: iResearch, April 2011





CHINA ONLINE SHOPPING | CITIES

Guangzh

ou

Shan

ghai

Beijing

Hangzh

ou

Chengdu

Shenzh

en

Chongqing

Wuhan

Xi'an

Nanjin

g0

5

10

15

20

2521.7

20.2

14 13.7 13.4 12.210.8 10.4 9.6 9.5

Top 10 Online Shopping Cities (2011 Q1) Total Number of Orders (million)

Source: iResearch, April 2011





CHINA ONLINE TRAVEL AGENCY | MARKET

2008 2009 2010 2011 2012e 2013e 2014e 2015e0

100

200

300

400

500

600

700

49 66104

167

253

347

458

590

China OTA Market Total Revenue (2008-2015) Billion Yuan







Qunar41%

Kuxun17%

Ctrip15%

17u7%

Taobao Trip5%

Elong4%

Mangocity3,0%

QQ Go3,0%

Tuniu2,0%

Tieyou2,0%

China OTA Market Share (Nov. 2011)By Share of Visits (including aggregators)

Source: iResearch, November 2011






Ctrip41,0%

Mangocity9,0%

Elong7,0%

1181147,0%

Huitongke7,0%

12580.100864,0%

Others25,0%

China OTA Market Share (Q3 2011)By Revenue (aggregators excluded)

Source: Experian Hitwise, November 2011





CHINA ONLINE TRAVEL AGENCY | QUNAR

Qunar.comDescriptionQunar.com is China’s leading travel booking service aggregator. It features a price comparison search engine for air tickets, hotels, car rentals and tour packages covering over 700 online agencies. Baidu invested $306 million in Qunar in 2011.

FoundedIn 2005 by Fritz Demopoulos, Douglas Khoo, and CC Zhuang







CHINA ONLINE TRAVEL AGENCY | KUXUN

Kuxun.cnDescriptionKuxun.cn is the 2nd most popular online travel agency aggregator in China. It enables users to search flight tickets, train tickets and hotels. Kuxun is actually a subsidiary of TripAdvisor that acquired the site for $12 million in 2009.

FoundedIn 2006


Global Alexa Rank1,196th (Dec. 2011)





CHINA ONLINE TRAVEL AGENCY | CTRIP

Ctrip.comDescriptionCtrip.com is a Chinese leading online travel agency that sells flight tickets, hotels and vacation packages. Named as one of China’s most innovative company in 2010, Ctrip currently employs over 12,000 people in China.

FoundedIn 1999 by James Liang, Neil Shen, Min Fan, and Ji Qi

HeadquartersShanghai, China






CHINA GROUP BUYING | MARKET

May Jun. Jul. Aug. Sep. Oct. Nov.0

200

400

600

800

1000

1200

554627

766

9341,042

9701,061

China Group Buying Total Revenue (2011)Ju Taobao Excluded

Million Yuan






CHINA GROUP BUYING | MARKET SHARE

JuTao

bao

Lash

ou

55tuan

Meitu

an

24quan

TuanQQ

Tdianping

NuomiT58

Man

zuo

0.00

2.00

4.00

6.00

8.00

10.00

12.009.89

6.064.65 4.47

3.16 3.08 2.52 2.20 2.15 1.92

China Group Buying Market Share by Daily Unique Visits (Jul. 2011)In million






CHINA GROUP BUYING | MARKET SHARE

QQ10.0%

Meituan8.6%

Manzuo8.4%

24quan8.2%

Nuomi7.9%

Ftuan7.0%

Dianping7,0%

58tuan6.6%

55tuan6.0%

Lashou5.1%

Others25.2%

China Group Buying Market Share by Revenue (Jun. 2011)

Source: Dataotuan, June 2011





CHINA ONLINE PAYMENT | MARKET

2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e0

100020003000400050006000700080009000

10000

45 94 258 505 1,0112,204

3,681

5,411

7,486

9,261

China Online Payment Market (2006-2015)Transactions in Billion Yuan






CHINA ONLINE PAYMENT | MARKET SHARE

Alipay49%

Tenpay20%

Chinapay8%

99bill7%

Chinapnr7%

Yeepay3%

Ips3%

Others2%

China Online Payment Market Share (2011 H1)






CHINA ONLINE PAYMENT | ALIPAY

Alipay.comDescriptionAlipay.com is China’s leading online payment platform, mainly used for C2C and B2B transaction payment. Owned by Alibaba Group, Alipay has over 600 million registered accounts and proceeds over 11 million transactions per day.

FoundedIn 2004







CHINA ONLINE PAYMENT | TENPAY

Tenpay.comDescriptionTenpay.com is another very popular online payment solution in China. Owned by Tencent, the platform aims at serving both buyers and sellers, notably for e-commerce platform Paipai.com and other Tencent’s offerings.

FoundedIn 2006

HeadquartersShenzhen, Guangdong, China

Global Alexa Rank872nd (Dec. 2011)




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