(E-commerce Insider 2011.01 Market Research Analyst: Emily ZHOU, Joan YANG)

According to a survey issued by CNNIC (China Internet Network Information Center), 2010 was a prosperous year for Chinese Internet market. Hereunder are the key results of this survey.

- User Size & User Structure
- Chinese netizens are 457 million
- Internet penetration rate is 34.3%, +5.4% YOY
- Among total Chinese Internet users,
- 55.8% are males
- 72.7% live in cities
- 89.2% access Internet from home
- 53.2% are aged between 20 & 39 years old
- 68.5% have junior or senior high school education

- Internet Usage Overview
- Top 3 fastest growing Internet usages are (by order) online shopping, online bank and online payment: all belong to “commercial category”
- Both group buying and micro blog are the hottest trends of 2010
- Micro blog reached 63.11 million people
- Besides communication micro blog is used as an important promotion channel for products & services

- Mobile Internet
- Mobile Internet users reached 303 million
- 66.2% of total netizens access Internet with a mobile phone

- Mobile Internet Usage
- Top 3 most used mobile Internet usages are (by order): IM (67.7%), online news (59.9%) and search engine (56.6%)
- The penetration rate of Online shopping (e-commerce) is still relatively low: China’s e-commerce era has not come yet.

- E-Commerce
- Online shoppers reached RMB 160.5M
- B2C market exceeded RMB 100B, representing more than 20% of the total online shopping market
- Guangdong is the province with the most orders
- In 2010, there are about 18,600 e-commerce websites, among which 11,800 sites are B2C oriented

E-Commerce Transactions Value Forecast 2011-2014
(E-commerce Insider 2011.02 Market Research Analyst: Emily ZHOU)

The Chinese e-commerce market value reached RMB 498B, accounting for 3.2% of total retail value while the number was only 2.1% in 2009. The growth rate of online market value reached 89% in 2010, which is estimated to be 55% reaching RMB 771.9B in 2011.

Compared with other well developed countries, China e-commerce market is expected to surpass Japan in 2011 and USA in 2013.

In 2010, B2C market value reached RMB 63B, accounting for 12.7% of total online market value while that for C2C reached RMB 434.8B in 2010. Although the market share of C2C is much bigger than that of B2C, we can find the portion of B2C increases sharply year by year. And some traditional platforms such as Taobao.com put more efforts on their B2C side. So we believe that B2C market will be the main direction for online platforms.