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Top 500 E-Retailers in China Hailiang Chen, Assistant Professor Department of Information Systems College of Business, City University of Hong Kong http://www.cb.cityu.edu.hk/staff/hailchen/ hailchen@cityu.edu.hk

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Agenda Overview of E-retailing market Data E-retailers Type and Category Sales Operations Chinese VS Non-Chinese E-retailers

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Overview of E-retailing market Worlds largest e-retailing market Huge growth potential 2013 E-retailing sales: $305.5 billion Sales growth rate: 42.8% Of total retail sales: >8% Online shopping population: > 300 million China Internet population: 617 million E-retailing usage rate: from 42.8% to 48.9% Average frequency and amount of online purchase keep increasing every year.

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Top 500 E-retailers Ranked by web sales Financial Data: 2011-2013 web sales Category and Type Merchandising Category Merchant Type Operational Data Customer Service features Web site features and functions Promotions used by e-retailers

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E-retailers Type and Category Merchant Type 55.4% are web only. 24.6% are consumer brand manufacturers

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E-retailers Type and Category Merchandise Category

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Sales Analysis

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2013 Web Sales Growth Rate Most e-retailers sales growth rates are in the ranges of 0-25% and 25%-50%. Only 4 retailers web sales decrease. The max growth rate is 317%. The max decline rate is 68%.

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Sales Analysis

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Sales Growth Rates for Different Merchant Types The overall average sales growth is 44.29%. The number of web-only e-retailers is the largest. But the strong competition of web-only e- retailers caused the lowest average growth rate. The growth rate of Consumer brand manufacturer websites is much higher than others.

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Sales Analysis

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Sales Growth Rates for Different Merchandise Categories Consumers trust of e-retailing is increasing. The categories with a high growth rate are those selling high price products.

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Operation Analysis 9 out of 24 customer services are related with shipping.

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Operation Analysis

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Chinese VS Non-Chinese Merchant Type Non-ChineseChinese Catalog/Call Center613 Consumer Brand Manufacturer4281 Retail Chain2160 Web Only21256 Grand Total90410

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Chinese VS Non-Chinese

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Merchandise Category Non- ChineseChinese Apparel/Accessories19100 Automotive Parts/Accessories 1 Books/Music/Video527 Computers/Electronics2543 Flowers/Gifts14 Food/Drug230 Hardware/Home Improvement13 Health/Beauty1245 Housewares/Home Furnishings324 Jewelry112 Mass Merchant1281 Specialty535 Sporting Goods24 Toys/Hobbies21 Grand Total90410

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Chinese VS Non-Chinese