Slides of a presentation given by Ed Sander at the Belgian Chinese Chamber of Commerce seminar on e-commerce, May 6th 2014 in Brussels. Note: a Slidecast version with audio can be viewed at the webpage below: http://www.chinatalk.nl/media/presentaties/

1. E-commerce Trends in China 2013-2014E-commerce Trends in China 2013-2014E commerce Trends in China 2013 2014E commerce Trends in China 2013 2014
Ed Sander
BCECC May 2014
Ed Sander
BCECC May 2014BCECC May 2014BCECC May 2014

4. Today’s Agenda
1 E-Commerce – Alibaba
Social Media in China – Sina’s Weibo2
M-Commerce – Tencent’s WeChat3

5. Internet UsersInternet Users
564
618
600
700
oenen
Internet Users
46% penetration
457
513
564
500
600
Milj
298
384
300
400
137
210
200
300
111
137
100
0
2005 2006 2007 2008 2009 2010 2011 2012 2013

6. The major players: BATThe major players: BAT
http://graphicsweb.wsj.com/documents/chinas-internet

7. Sales & Profit (Billion USD)Sales & Profit (Billion USD)
9 913
12,00
Sales 2012
Sales 2013
7,952
9,913
8,00
10,00
Sales 2013
Net Profit 2012
Net Profit 2013
4 899
6,893
5,129
6,00
,
3,582
4,899
3,558
2,543
4,00
1,671 1,49
2,056
1,689
0 00
2,00
0,00
Baidu Alibaba Tencent

8. E-CommerceE Commerce

9. Online Shopping Transaction Valuepp g
Billion RMB

10. Some 2013 statisticsSome 2013 statistics
• 302 million Chinese were shopping online.
Th l l f i 10• The total volume of e-com transactions > 10
trillion RMB
• Online retail: 1.850 billion RMB, making it the
biggest e-com market in in the world.
• Analysts: “By 2020 China’s e-commerce market
will be bigger than USA, Great Britain, Japan,gg , , p ,
Germany and France combined.”

11. B2C Market 2013B2C Market 2013

12. Online Shopping Transaction Structurepp g

14. AlibabaAlibaba
International B2BInternational B2B
C2C ( ll b i )C2C (small businesses)
B2C
(1st & 2nd tier cities)(1st & 2nd tier cities)
I t ti l B2CInternational B2C

15. Alibaba statisticsAlibaba statistics
• 24,000 employees (more than Yahoo + Facebook).
I 2012 $170 billi i l ( 2% f Chi ’ GDP) t• In 2012 $170 billion in sales (=2% of China’s GDP) went
through Taobao & Tmall platforms.
• 2012: 36 7 million users >2 8 million sellers >5 900• 2012: 36,7 million users, >2,8 million sellers, >5.900
product categories.
• Alibaba's accounts for >60% of the packages delivered in• Alibaba s accounts for >60% of the packages delivered in
China.
• Taobao + Tmall cover 80% of the total e-com market inTaobao Tmall cover 80% of the total e com market in
China and receive 100.000.000+ daily visitors.
• Value is estimated between $136 and $245 billion.$ $

16. Double 11 2013Double 11 2013
• 402 million visitors to Tmall (2/3e of all
netizens)
• €4 3 billion sales on Alibaba platforms€4,3 billion sales on Alibaba platforms
(3x USA’s Black Friday)
C• Compare:
– €1,2 billion sales on Jingdongg g
– e-commerce Belgium 2013 = €1,8 billion.

17. AlibabaAlibaba

19. Sina WeiboSina Weibo

20. Sina WeiboSina Weibo

21. Sina WeiboSina Weibo
• Only 5% of Weibo users post original content
(H K U i it ’ W ib )(Hong Kong University’s Weiboscope).
• Weibo has many zombie accounts for celebrities
and brands, automated spam accounts, and
many users who just repost other users’ content.
• The number of highly active users who post the
most had declined 74 percent between Marchp
2012 and December 2013 (East China Normal
University).y)

25. WeChat: ChatsWeChat: Chats

26. WeChat Voice MessagingWeChat Voice Messaging

27. WeChat: SocialWeChat: Social

28. WeChat: SocialWeChat: Social

29. WeChat: AccountsWeChat: Accounts

30. WeChat: m-commerceWeChat: m commerce

31. WeChat: Taxi bookingWeChat: Taxi booking

32. WeChat: StickersWeChat: Stickers

33. WeChat: StreetviewWeChat: Streetview

34. WeChat: Location BasedWeChat: Location Based

35. WeChat: ScannerWeChat: Scanner

36. WeChat: Vending MachinesWeChat: Vending Machines

37. WeChat: QR Code ShopsWeChat: QR Code Shops

38. WeChat registered UsersWeChat registered Users

39. WeChat Monthly Active UserseC at o t y ct e Use s

40. M-CommerceM Commerce

41. Internet UsersInternet Users
564
618
600
700
oenen
Internet Users
46% penetration
457
513
564
420
500
500
600
Milj
Mobile Internet Users
298
384
308
356
420
300
400
137
210
118
233
200
300
111
137
50
118
100
0
2005 2006 2007 2008 2009 2010 2011 2012 2013

42. Global Mobile Internet Penetration

44. M-Commerce statisticsM Commerce statistics
• Since mid 2013 more people are shopping
th h th i t h (81%) th tthrough their smartphone (81%) than a computer
(70%).
• During Double 11 2013: 127 million consumers
spent €653 billion on Taobao Mobile.
• This is 560% higher than in 2012 and covers 21%
of Taobao’s transactions.
• 2/3rd (400 million) of China’s netizens shopped
on Taobao Mobile in 2013on Taobao Mobile in 2013.

46. M-Commerce GrowthM Commerce Growth
• High growth rates for m-commerce are
expected in 2014 because of:
– new means of mobile paymentnew means of mobile payment
– penetration of smartphones in the
countryside (where few stores are located)countryside (where few stores are located)
– Increase in 3G coverage
I i WIFI h– Increase in WIFI hotspots
– O2O tools

47. China Mobile Shopping Market 2013pp g

48. LaiwangLaiwang

49. LaiwangLaiwang

52. China’s most visited sitesChina s most visited sites

53. The major players: BATThe major players: BAT
http://graphicsweb.wsj.com/documents/chinas-internet

54. Contact
Ed Sander
E mail: ed@failsafe nlE-mail: ed@failsafe.nl
Website: www.failsafe.nl / www.chinatalk.nl
Phone: +31 6 51 214 206
T i @EdS dTwitter: @EdSander
Linkedin: nl.linkedin.com/in/edsander/
Download the ‘ChinaTalk’ e-book (Dutch) for free at
failsafe.nl.