Top 500 E-Retailers in China
Hailiang Chen, Assistant Professor
Department of Information Systems
College of Business, City University of Hong Kong
http://www.cb.cityu.edu.hk/staff/hailchen/
hailchen@cityu.edu.hk
Agenda
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Overview of E-retailing market
Data
E-retailers’ Type and Category
Sales
Operations
Chinese VS Non-Chinese E-retailers
Overview of E-retailing market
World’s largest
e-retailing market
• 2013 E-retailing sales: $305.5 billion
• Sales growth rate: 42.8%
• Of total retail sales: >8%
• Online shopping population: > 300 million
Huge
growth potential
• China Internet population: 617 million
• E-retailing usage rate: from 42.8% to 48.9%
• Average frequency and amount of online
purchase keep increasing every year.
Top 500 E-retailers
• Ranked by web sales
• Financial Data: 2011-2013 web sales
• Category and Type
– Merchandising Category
– Merchant Type
• Operational Data
– Customer Service features
– Web site features and functions
– Promotions used by e-retailers
E-retailers’ Type and Category
Merchant Type
• 55.4% are web only.
• 24.6% are consumer
brand manufacturers
E-retailers’ Type and Category
Apparel/Accessories
119
Mass Merchant
93
Computers/Electronics
68
Health/Beauty
57
Specialty
40
Books/Music/Video
32
Food/Drug
32
Housewares/Home Furnishings
27
Jewelry
13
Sporting Goods
6
Flowers/Gifts
5
Hardware/Home Improvement
4
Toys/Hobbies
3
Automotive Parts/Accessories
1
Merchandise
Category
Sales Analysis
Web Sales (Chinese Yuan)
250
200
150
100
50
0
>=100billion
2013
1
2012
0
>=10billion
6
4
>=1billion
59
33
>=100million
244
233
>=10million
185
214
<10million
5
16
Sales Analysis
Web Sales (USD)
300
250
200
150
100
50
0
2013
2012
>=10billion
1
0
>=1billion
11
9
>=100million
95
54
>=10million
258
276
>=1million
135
157
<1million
0
4
Sales Analysis
2013 Web Sales Growth Rate
• Most e-retailers’ sales
growth rates are in the
ranges of 0-25% and
25%-50%.
• Only 4 retailers’ web
sales decrease.
• The max growth rate is
317%.
• The max decline rate is
68%.
Sales Analysis
Average 2013 Percent Growth
60.00%
54.08%
50.00%
44.19%
44.29%
43.03%
40.32%
40.00%
30.00%
20.00%
10.00%
0.00%
Catalog/Call
Center
Consumer Brand
Manufacturer
Retail Chain
Web Only
Overall
Sales Growth Rates for Different
Merchant Types
• The overall average sales growth is 44.29%.
• The number of web-only e-retailers is the largest.
• But the strong competition of web-only eretailers caused the lowest average growth rate.
• The growth rate of Consumer brand
manufacturer websites is much higher than
others’.
Sales Analysis
Average 2013 Percent Growth
Toys/Hobbies
29.87%
Sporting Goods
31.15%
Specialty
34.44%
Mass Merchant
35.05%
Jewelry
59.37%
Housewares/Home Furnishings
55.13%
Health/Beauty
52.32%
Hardware/Home Improvement
90.25%
Food/Drug
Flowers/Gifts
33.94%
18.98%
Computers/Electronics
45.44%
Books/Music/Video
39.94%
Automotive Parts/Accessories
33.30%
Apparel/Accessories
0.00%
50.82%
20.00%
40.00%
60.00%
80.00%
100.00%
Sales Growth Rates for Different
Merchandise Categories
• Consumers’ trust of e-retailing is increasing.
• The categories with a high growth rate are
those selling high price products.
Operation Analysis
Account Status / History
Shipment Tracking
Return Policy
Return Window
Estimated Delivery Date
Free Shipping
Free Return Shipping
Live Chat
Customer Service Call Support
Customer Center Hours
Shipping Cost Calculator
International Shipping
E-mail
Express Checkout
Shipping Cut-off Time
Currency Converter
Click to Call / Click to Talk
E-gift Certificate
Multiple Languages
Overnight Shipping
Ship to Multiple Addresses
Buy Online / Pickup In-Store
In-store Returns
Pre-Paid Labels
432
268
253
244
223
207
198
193
184
155
138
121
93
37
31
29
28
21
19
17
Customer Service
• 9 out of 24 customer
services are related with
shipping.
9
7
4
4
0
50
100
150
200
250
300
350
400
450
500
Operation Analysis
Promotions
250
210
200
150
142
100
50
26
21
0
Gift with Purchase
Internet Only
Sales/Promotions
Limited Hour Specials
Sweepstakes/Contest
Chinese VS Non-Chinese
Merchant Type
Non-Chinese
Catalog/Call Center
6
Consumer Brand Manufacturer
42
Retail Chain
21
Web Only
21
Grand Total
90
non-chinese
Chinese
13
81
60
256
410
Chinese
62.44%
46.67%
23.33%
23.33%
19.76%
14.63%
6.67%
3.17%
Catalog/Call Center
Consumer Brand
Manufacturer
Retail Chain
Web Only
Chinese VS Non-Chinese
Merchandise Category
Chinese
non-chinese
Toys/Hobbies
Sporting Goods
Specialty
Mass Merchant
Jewelry
Housewares/Home Furnishings
Health/Beauty
Hardware/Home Improvement
Food/Drug
Flowers/Gifts
Computers/Electronics
Books/Music/Video
Automotive Parts/Accessories
Apparel/Accessories
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Chinese VS Non-Chinese
NonMerchandise Category Chinese Chinese
Apparel/Accessories
Automotive Parts/Accessories
Books/Music/Video
Computers/Electronics
Flowers/Gifts
Food/Drug
Hardware/Home Improvement
Health/Beauty
Housewares/Home Furnishings
Jewelry
Mass Merchant
Specialty
Sporting Goods
Toys/Hobbies
Grand Total
19
5
25
1
2
1
12
3
1
12
5
2
2
90
100
1
27
43
4
30
3
45
24
12
81
35
4
1
410
Chinese VS Non-Chinese
Average 2013 Web Sales (USD)
Chinese
non-chinese
Toys/Hobbies
Sporting Goods
Specialty
Mass Merchant
Jewelry
Housewares/Home Furnishings
Health/Beauty
Hardware/Home Improvement
Food/Drug
Flowers/Gifts
Computers/Electronics
Books/Music/Video
Automotive Parts/Accessories
Apparel/Accessories
$0
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000