Amid the fierce competition among online retailers in China, total transactions in the Internet retail market place jumped 47.3% year-on-year to 754.2 billion yuan ($123.2 billion) in the first half of this year, according to a report released on Monday(August 19th ).
Online retail transactions accounted for 6.8% of all the retail sales in China during the same period, and online shopping is expected to contribute 7% of China’s retail sales by the end of this year, with the total turnover of online shopping reaching 1.74 trillion yuan in 2013, said the report.
Tmall.com, a leading B2C online platform owned by China’s e-commerce giant Alibaba Group, is the biggest winner in the first half of this year by securing 50.4% of the market share in Web-based retail business.
JD.com, another online retailer, slightly increased its market share to 20.7%, taking second place.
The online business sector of Suning Commerce Group Co Ltd, a leading home appliance retailer, made significant progress in the first half of the year. The company’s market share increased 54% year-on-year, securing a total of 5.7% of China’s online shopping market between January and June.
Despite that booming growth, online retailers still feel a certain chill. Liu Qiangdong, the founder and chief executive officer of JD.com, said “it is difficult to sell” at the company’s open platform conference in late July. His speech was echoed by a lot of seated vendors, who sell their products via JD.com.
Mao Ajing, an e-commerce analyst with the Beijing-based research firm Analysis International, said with the maturity of the online shopping market in China, the extremely high records in sales, which were set by Web platforms in the previous two years, are unlikely to happen again.
China’s State Council issued guidance in mid-August to boost information-sector consumption, aiming to make the industry a new economic powerhouse for China.
According to the guidance, the transactions of e-commerce, which is a major part of the information sector, are forecast to total 18 trillion yuan, with online retail transactions reaching 3 trillion yuan by 2015.
Source: China Daily