Recently, the China E-commerce Research Center released its "2016 (H1) China Online Retail Market Data Monitoring Report" (the "Report"), which contains highlights worth a close read.
The First Logistics Media (WeChat: cn156news) team has excerpted the highlights and key trends to share. Online retail keeps booming with seven distinct features; the 2016 market may reach RMB 5.22 trillion. In H1 2016, China’s online retail transactions reached RMB 2,314.194 billion, up 43.4% from RMB 1,614 billion in H1 2015, accounting for 14.8% of total retail sales of consumer goods — possibly topping 15% by year-end.
China’s online retail transactions are expected to reach RMB 5.2218 trillion for the full year 2016.
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Seven features of online retail stand out. In this half year, online retail showed several clear characteristics:
First, influencer e-commerce became a new model. Taobao, JD, Vipshop, Suning, Mogujie, Jumei and LeEco all adopted the "influencer + livestream" model, kick-starting the "influencer economy".
Second, e-commerce M&A intensified. JD investing in Yonghui, JD acquiring Yihaodian, Meilishuo merging with Mogujie — all in H1. As e-commerce dividends fade, acquiring smaller players or banding together became inevitable moves to defend competitiveness and market share.
Third, privatization returned. In H1, Mecoxlane, Jumei and Dangdang announced privatizations — some betting on domestic investment appetite, some escaping USD-fund financing constraints, others counting on domestic policy support.
Fourth, the new cross-border policy twist left room. The H1 cross-border retail import policy caused a stir, then, just over a month into implementation, the bonded-import and direct-purchase models were suspended for one year. This shows domestic cross-border e-commerce still relies on preferential policies rather than a virtuous cycle of competing on strength. Whether competitiveness and product range improve in a year remains to be seen.
