Trending this month



Showing posts with label Tmall. Show all posts
Showing posts with label Tmall. Show all posts

October 15, 2014

How Chinese Online Retail is driving more consumption,without affecting offline retail Sales

Research on Online  Retail Spending in China by McKinsey :how this is aiding future consumption..

share of online retail spending in China :Backward areas vs Upmarket areas



China's e-tail revolution | McKinsey & Company: China  have become the world's largest online retail market in 2013, and has marched ahead of the US. Chinese  Online shopper numbers reached 302 million, and the online retail transaction volume in 2013 exceeded 1.85 trillion yuan, equivalent to 7.8% of total retail sales

Astoundingly around  90% of Chinese electronic retailing occurs on virtual marketplace and online market and e-commerce platforms where manufacturers, large and small retailers, and individuals offer products and services to consumers through online storefronts  similar to  eBay or Amazon, Ther are the the Local Chinese Giants   include PaiPai, Taobao, and Tmall, which in turn are owned by bigger e-commerce groups. A large and growing network of third-party service providers offers sellers marketing and site-design services, payment fulfillment, delivery and logistics, customer service, and IT support."

One of the most interesting insights on the Chinese Online Retail Revolution is that " online retail is not substituting  or affecting offline sales , however they are spurring more consumption that is spurring more consumption across both the lower and middle classs

As China moves towards online retail based consumption ,it has enabled China’s shift from an investment-oriented society to one that’s more consumption driven A recent McKinsey research conducted by analyzing consumption patterns in 266 Chinese cities accounting for over 70 percent of online retail sales, found that a dollar of online consumption replaces roughly 60 cents of sales in offline stores and generates around 40 cents of incremental consumption (Exhibit 1).

The research suggests E-tailing in China as the research indicates, is not simply a replacement channel for purchases that otherwise would have taken place offline. Instead, it appears to be spurring incremental consumption, particularly in less developed regions

September 20, 2014

5 Facts You Did Not Know About Alibaba Group

IPO of worlds biggest Giant and valuation
Add caption
The Biggest IPO and market capitalization compared 
  1.  Alibaba's IPO values the Chinese company at a whopping $168 billion. That's more than triple eBay's $67 billion market valuation and is even above Amazon.com's $150 billion market cap. 
  2. Alibaba.com is global wholesale marketplace online for international customers 1688.com: leading online wholesale marketplace for domestic Chinese small businesses
  3. Alipay: the PayPal-like service processed $623 billion of digital payments in fiscal year 2014
  4. The amount of goods  sold online  at Alibaba.com, is  greater than that of Amazon, eBay, JD.com (JD) and Japanese e-commerce giant Rakuten -- combined.,
  5. "It recently opened 11 Main, an e-commerce platform for high-end boutique products like clothing, home goods and jewelry

September 19, 2014

Alibaba's Tmall to end dominance of Amazon to become world's biggest ecommerce company

 to

It seems that the Chinese eCommerce juggernaut keeps on demolishing  the american internet dominance, as after  the grand success of Alibaba's maiden ADR.Its Tmall .Having overtaken eBay to become the world's second largest internet retailer, Tmall ( a subsidiary of Alibaba.com) appears to be on an unstoppable trajectory to the top. However what most people does not know.is that the entire growth has come to China.. The biggest reason why " China continues to strike gold at eCommerce is because of  its extremely robust domestic market.

Meanwhile  Euromonitor in its latest  report  projects the end of Amazons dominance in eCommerce. "New Study Says Alibaba's Tmall Will Overtake Amazon as the World's Biggest Ecommerce Site by 2015 in terms of revenue:  This will make  making Tmall the world’s largest eCommerce site
 Tmall’s revenues should hit $120 billion by 2017, according to Euromonitor. Amazon’s revenues will likely be $100 billion by then"