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China Online Shopping Market Comes to a Turning Point

Online Shopping GMV in Q2

Data from iResearch showed that China online shopping enjoyed a relatively fast development. Its GMV attained 872.5 billion Yuan in Q2 2015, up 39.6% from a year earlier, and accounted for 12.3% of the total retail sales of social consumer goods.

The GMV of mobile shopping was 443.5 billion Yuan in Q2 2015, up 133.5% compared with the same period of the previous year. Its growth was much higher than that of online shopping market. It can be seen that mobile shopping has become a key driving force for the online shopping market’s development from this quarter.

iResearch holds the opinion that besides the common promotion activities like discount, coupons, and seckill, the upgrading of the quality goods and services contributed a lot to the growth of the mid-year online shopping promotion. What’s more, brand merchandise and foreign goods improved the general style of the mid-year promotion. In addition, rapid growth of mobile shopping fueled the development of online shopping market in Q2 2015.

Market Structure

B2C has surpassed C2C and became the mainstream of online shopping market. The GMV of B2C market reached 442.1 billion Yuan in Q2 2015, holding 50.7% of the market, up 6.2% from Q2 2014. Meanwhile, B2C market witnessed a growth of 59.1%, much higher than the growth of C2C market, which was just 24.0%.

iResearch believes that online shopping market will have its turning point now that B2C as the main stream surpassed C2C market and mobile shopping became the principal online shopping channel. In the future, branded goods and mobile are expected to be main search engine for the development of the market.

Market Share

In the B2C online shopping market, Tmall.com took a share of 55.6% and JD.com counted for more than 25%. The YoY growth of other B2C companies such as Suning.com and Vip.com were all higher than that of the general growth of B2C market. Meanwhile, in the B2C independent sales market, JD.com accounted for almost 60% while Suning.com and Vip.com occupied around 10% of the market. When it comes to other companies, Xiaomi smartphone official website kept its steady growth.

As the consumers increasingly prefer high quality branded products and mobile internet booms, key players in online shopping market are poised to raise their brand image by introducing more branded goods and imported products. Besides, they will enrich the using scenarios of mobile app to meet mobile shoppers’ individual need while linking online and offline business.

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