China B2C Ecommerce Market Report 2022: Market is Expected to Grow by 11.68% to Reach $2,676.4 Billion in 2022 - Forecasts to 2026 Featuring Taobao, Tmall, & Pinduoduo
DUBLIN, Sept. 30, 2022 /PRNewswire/ -- The "China B2C Ecommerce Market Opportunities Databook - 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics - Q2 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Ecommerce market in China is expected to grow by 11.68% on annual basis to reach US$2,676.4 billion in 2022
The medium to the long-term growth story of the B2C Ecommerce industry in China promises to be attractive . The B2C Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 10.55% during 2022-2026. The country's B2C Ecommerce Gross Merchandise Value will increase from US$2,396.5 billion in 2021 to reach US$3,997.5 billion by 2026.
Driven by the development of digital technologies and the rapidly expanding consumer market, the B2C e-commerce industry continues to grow significantly in China. Globally, China is ranked first in total online retail sales, with the e-commerce industry contributing more than half of the retail sales in 2021.
Currently, the internet penetration rate in China is quite high, which can result in the huge potential of the Chinese e-commerce segment, given the massive consumer market. Innovation in the digital payment sector, including Alipay and WeChat Pay, has increased consumer confidence in online transactions. This has increased e-commerce purchases, with nearly half of all consumers making online purchases by 2021.
The Chinese B2C e-commerce market has a competitive landscape with a complex web of partners and competitors. In China, the share of independent websites, including brand-own websites and e-commerce marketplaces, doubled in 2021. While the competition is growing in the segment, most of the market share is held by players such as Alibaba Group, Pinduoduo, Xiaohongshu, and JD.com.
Among the trends projected to drive the expansion of China's e-commerce business over the next three to four years is the increasing popularity of social commerce. More Chinese consumers are turning to live streaming events to complete their purchases seamlessly and conveniently. While omnichannel retail is expected to gain more foothold among brands in the country, digital grocery shopping is expected to be another key growth driver of the e-commerce industry over the next three to four years.
Social commerce has been the new growth driver for the e-commerce industry in China
While created for interpersonal connections, social media has since expanded to the e-commerce space. China, which has almost 927 million social media users, offers an enormous audience for brands to target. Along with the content sharing ability and seamless customer journey that social media platform delivers, brands can improve traffic, grow their audience, and increase engagement and retention
Over the last few years, recognizing the potential of social commerce, several Chinese social networking sites have integrated e-commerce functionalities into their platforms. These players include Taobao and Weitao, Douyin store, and WeChat Mini Shop. Pinduoduo and Xiaohongshu are two other social commerce platforms that are reaping the benefits of social commerce. Along with the growing consumer interest in social commerce, conversational augmented reality and voice technology emerging into these platforms, the sector is well placed to be an essential growth element of the Chinese e-commerce industry.
Live streaming e-commerce is expected to further drive the growth of the market in China
In China, consumers watch live streaming e-commerce three to five times weekly. With the high degree of interactivity and the ability to alleviate the fear of missing out, live stream e-commerce continues to gain strong prominence in China.
The popularity of live streaming shopping events can be seen by the sales generated during the first Alibaba Singles Day event in 2021. The Chinese lipstick king, Austin Li, sold US$1.9 billion in goods at the Taobao Livestream event within 12 hours. The Livestream event garnered over 250 million views. Over the next three to four years, live streaming events will gain further popularity as more consumers turn to online shopping channels.
The digital grocery segment is projected to further propel the e-commerce industry in China
While online grocery ordering is not new to Chinese consumers, the pandemic and the subsequent lockdowns that followed, coupled with the fears of being in crowded places, accelerated the adoption in China over the last two years.
Following the pandemic-induced decline, grocery brick-and-mortar sales are expected to grow modestly in China. Despite the increasing number of Chinese consumers returning to brick-and-mortar grocery stores, the convenience of ordering groceries and getting them delivered will remain an appealing factor for many in the country.
E-commerce marketplaces are entering into strategic partnerships, thereby allowing Chinese shoppers to purchase from global merchants
In China, consumers are increasingly shopping for authentic, high-quality products from merchants worldwide. Amid this growing trend of cross-border e-commerce, Chinese firms are entering into strategic partnerships, allowing online shoppers to purchase from global merchants on their platforms.
In January 2022, JD.com, one of the major e-commerce marketplaces in the country, announced a strategic partnership with Shopify. Under the partnership, merchants from the United States will be able to sell their products on the JD Marketplace and gain access to the 550 million active customers in China.
The leading e-commerce platforms that are competing for increasing market share in China
China has one of the most competitive B2C e-commerce markets globally, with several small and large groups competing for market share. Even though the market has a presence of several players, it is largely dominated by five e-commerce platforms, including Tmall, Taobao, Pinduoduo, Xiaohongshu, and JD.com, players that are estimated to hold 80% of the total e-commerce market in the country.
Taobao, owned by Alibaba Group, is the most popular online shopping platform, with a gross merchandise value (GMV) of US$1 trillion. Notably, the platform supports both B2C and C2C transactions. As of 2021, the e-commerce platform had more than 792 million monthly active users and was selling over 40,000 products every minute. The platform also incorporated social commerce functionalities, including Taobao Live, to increase customer engagement and brand discovery.
Tmall, another Alibaba Group-owned e-commerce platform, is the largest B2C e-commerce platform in the country. Notably, Tmall accounts for 51% of the total B2C transactions in China. The platform has more than 780 million monthly active users, buying from over 180,000 international brands, such as Dior, Dyson, Chanel, and many more. In 2020, the GMV reached 3.2 trillion yuan. During the double 11 big sales events, the platform has generated, at its peak, 74.1 billion yuan in a day.
Pinduoduo, another e-commerce platform, is one of the fastest-growing marketplaces in the country. Over the past three years, the platform has recorded a growth of 807%. In 2020, the platform had more than 643 million monthly active users. Compared to other B2C e-commerce platforms in China, females aged 30 to 49 in Tier III cities make up nearly 60% of the demographics. The firm has also integrated social networks into its online shopping process to offer a more interactive and dynamic shopping experience.
The publisher expects these players to dominate the Chinese B2C e-commerce segment over the next three to four years, even though new players with innovative business models continue to enter the industry.
China B2C Ecommerce Market Size and Forecast by B2C Ecommerce Segments (Gross Merchandise Value Trend Analysis, 2017-2026)
- Retail Shopping ( breakdown by clothing, footwear & accessories, health, beauty and personal care, food & beverage, appliances and electronics, home improvement, books, music & video, toys & hobby, auto)
- Travel and Hospitality (breakdown by air travel, train & bus, taxi service, hotels & resorts)
- Online Food Service (breakdown by aggregators, direct to consumer)
- Media and Entertainment (breakdown by streaming services, movies & events, theme parks & gaming)
- Healthcare and Wellness
- Technology Products and Services
- Other segments
Market Share by Key Players
- China Retail Shopping Ecommerce Market Share by Key Players (Alibaba's 1688, Amazon, JD.com, Taobao, Tmall)
- China Travel Ecommerce Market Share by Key Players (Didi Chuxing, Meituan, Qunar, Tongcheng Travel, Yidao Yongche)
- China Food Service Ecommerce Market Share by Key Players (Daojia, Ele.me, Meituan Waimai, Sherpa's)
For more information about this report visit https://www.researchandmarkets.com/r/a98zmt
Media Contact:
Research and Markets
Laura Wood, Senior Manager
[email protected]
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg
SOURCE Research and Markets
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article