Thanks to the booming B2C sector, e-commerce replaced online game as the most attractive industry in the Chinese Internet investment in 2010.
China’s Internet market had disclosed 137 investment deals, among which e-Commerce (45.99%), online game (18.25%), online community (8.76%), online-marketing service (8.03%) are the Top 4 industries in terms of investment proportion.
There were 56 investment deals in B2C e-commerce market, accounting for 40.88% of total Internet investments. 40 investments were disclosed in B2C e-commerce market, with a total investment of $ 714M. The average investment in e-commerce market hits $ 17.85M. Investment in online game reached $ 137M last year, a YOY increase but shy of the $ 189M peak in 2008.
Main investment penetrated into premium and luxury markets. In particular watches and bags are taking the lead, with the compound annual growth rate of 35% and 20% to 25% respectively projected to year 2009-2010, compared with the average of 23% (Source: Bain & Company). Some others were invested to expand in logistics and distribution capabilities, and for advertising purpose (i.e. Vancl.com).
The following are the major investment deals in B2C platforms in 2010.