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China 2010 E-Commerce Market Reaches RMB 4.5 Trln

China E-Business Research Center, 1/20/11

The China B2B Research Center of e-commerce site Netsun Toocle (002095.SZ) has released its 2010 China E-Commerce Market Statistical Report, revealing that as of December 2010, China's e-commerce market value exceeded RMB 4.5 trln, up 22% YoY. B2B online transaction volume reached RMB 3.8 trln for 2010, up 15.8% YoY, while B2C/C2C transaction volume rose 97.3% YoY to reach RMB 513.1 bln.

The number of B2B e-commerce companies in China rose 21.3% YoY in 2010 to reach 9,200, with combined revenues up 35% YoY to reach RMB 9.55 bln. Alibaba held the largest market share with 63.5%, followed by Hong Kong-based Global Sources (Nasdaq: GSOL) with 5.3%, with 3.4%, Netsun Toocle with 2.9%, and HC International's (8292.HK) HC360 with 2.5%.

In 2010 the sector raised USD 550 mln in capital from 42 investors, including 35 VCs, as well as two IPOs that raised a combined USD 389 mln and five mergers.

China had 15,800 B2C/C2C firms in 2010, up 58.6% YoY, with the number expected to exceed 20,000 in 2011. Market share among China's C2C e-commerce platforms broke down as follows: Taobao, 85.4%; Tencent's (0700.HK) Paipai with 11%; Tom Eachnet with 3.1%; and Baidu-Rakuten, a B2C e-commerce joint venture between Chinese internet company Baidu (Nasdaq: BIDU) and Japanese e-commerce firm Rakuten, with 0.4% of the market.

Market share among China's independent B2C websites was as follows: 360Buy with 32.5%; Joyo-Amazon with 9.2%; Dangdang (NYSE: DANG) with 8.9%; Vancl with 5.2%; Mecox Lane (Nasdaq: MCOX) with 4.4%; and Redbaby with 3.8%.

China's third-party payment market reached RMB 1.05 trln, up 79.5% YoY, and is estimated to reach RMB 2.25 trln in 2011. The top three third-party payment platforms were Alipay with 48.9%; Tenpay with 23.1%; and China UnionPay's ChinaPay.

The report states that China's group buying sector saw 12 rounds of funding and two mergers in 2010, with the number of group buy firms reaching 1,880, including 713 websites that have either not yet launched, just launched, shut down, or had few sales. China's group buy market value reached RMB 8.86 bln in 2010 and is expected to reach RMB 24 bln in 2011. The top three group buying websites in 2010 were as follows: Lashou, Meituan, and Nuomi.

China's physical goods (everyday goods, apparel, etc.) m-commerce market value reached RMB 2.6 bln, up 370% YoY. In 2010, the top three m-commerce portals in China were Emay with a 17.8% market share, Beijing Innovative Linkage Technology with 15.2%, and UFIDA's (600588.SH) (Mobile Business Street) with 11.7%, accounting for more than 40% of the market combined.

China's e-commerce companies directly employed more than 16 mln people in 2010. The number of people indirectly employed reached more than 12 mln, and is expected to grow to 19 mln by 2012.

Keywords: national statistics market size growth rate M&A Made-in-China 2010 B2B Vancl e-commerce m-commerce Paipai Redbaby Internet funding Netsun Toocle Alipay Tenpay B2C Baidu C2C Tencent market share 360buy Dangdang China UnionPay Chinapay Global Sources HC International Rakuten third-party payment UFIDA 002095.SZ 0700.HK 600588.SH 8292.HK BIDU GSOL HC360 MCOX Meituan Lashou group buying Nuomi Innovative Linkage Mecox Lane DANG transaction volume 8006.HK MadeinChina Joyo Amazon Tom Eachnet Alibaba Group


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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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