B2C Marketplaces

By pjain      Published July 30, 2020, 12:46 a.m. in blog Invest   

B2C Marketplace Key Factors

Marketshares

B2C in China - data as of May 2019

Stats, Market size

Retail EC%|Company | mUsers | Segment -------------|-------------|-------------|-------------| 56% |Alibaba | 654 m | 17% |JD.com' | 311 m | 7.3% |Pinduoduo | 445 m | USA | Amazon | 300 m | 2.5% | Suning | |consumer electronics 1.3% | Gome | 1.2% | VIP.com | 0.6% | Yihaodian | 0.2% | Dangdang | 0.2% | Mogujie | |women’s apparel 0.1% | Jumei |

China EC huge, World's Largest and Growing fast

China maintains the world's largest online retail market, much larger than the online retail market in the U.S. As the middle-class population of China has grown, the online brings the best products for fast delivery * There is more of a desire for international brands among Chinese consumers - they do want quality in EC - not cheap Chinese Shit :)

## Alibaba - Highly Diversified - 56% China EC marketshare - Founded 1999 - led by former English teacher Jack Ma, stepped down Dec 2019 - 3/2020 FY $72b ni=$20b M=$555b.

Alibaba introduced a digital financial services branch. Through its Ant Financial affiliate, Alibaba offers business and consumer loans and mobile payments. Ant Financial also operates Alibaba's online payment platform, Alipay. Currently, Alipay is one of the most popular mobile payment services in China, but it also has international ambitions as Ant Financial works to implement Alipay at retail businesses overseas.

SEG CORE: B2B supply chain directories

  • online wholesale, including 1688.com
  • international marketplaces Alibaba.com
  • AliExpress

SEG CORE: B2C online retail

Alibaba has followed Amazon's example by expanding into businesses that broaden its base of supply hubs.

  • Mobile commerce site Taobao Marketplace
  • Tmall, a third-party online and mobile commerce platform for brands and retailers

SEG: logistics services and data platforms and fulfillment

  • Cainiao Network, a logistics data platform and global fulfillment network;
  • Consumer services like on-demand delivery and local services platform Ele.me,

SEG: Biz, services Guides

  • Restaurant and services guide platform Koubei

SEG: Alibaba Cloud;

SEG: Financial services and Payments

  • Ant Financial
  • payment services platform Alipay

SEG: Mapping

  • Amap, a mobile digital map that provides navigation and real-time traffic information.

JD.com - E2E EC

  • Est 2004
  • 17% China EC marketshare
  • JD.com had a net revenue of $82.9 billion, an increase of 24.9% from the full year of 2018.

In contrast to Alibaba's e-commerce PLATFORM ONLY model, JD.com is akin to Amazon as an End-to-End service.

JD warehouses, markets, and ships merchandise directly to Chinese consumers through its national shipping network, which includes a last-mile delivery component throughout much of the nation.

Pinduoduo social buying app Bargain/Offers

  • 7.3% China EC marketshare
  • 2015 debut by an ex-Googler
  • has succeeded in reaching consumers in smaller, more rural Chinese markets.

Pinduoduo offers discounts on products if consumers join together to buy at the same time. One of the major reasons Pinduoduo was able to go viral was because of the wide use of its WeChat miniapps where the pitch begins as soon the user enters the app, with the navigation menu featuring flash sales, clearance and constant pop-ups displaying deals. And every listing shows shoppers the value of their bargain. Discounts of over 90% are prevalent, and one can easily find deals for RMB1.00 ($0.15). Pop-ups appear frequently showing group buys that other users have joined to maintain the interactive experience. Pinduoduo said that its monthly active app users averaged 289.7 million in Q1 2019.

Suning consumer electronics

  • 2.5% China EC marketshare
  • Segment focus in consumer electronics

This omnichannel retailer has an extensive network of 11,000 physical stores—offering the option of buy online, pick up in-store (BOPUS), as well as post-sale services, such as installation and maintenance. Most stores are based in China, with others in Japan.

Online-to-offline (O2O) integration is a core focus for Suning. The retailer has also opened smart retail stores—outlets equipped with next-generation retail technologies featuring artificial intelligence (AI) and facial recognition.

In February 2019, Suning.com acquired commercial developer Wanda Department Stores’ 37 locations nationwide. Its plan is to augment the retail chain with smart retail technology and turn the stores into destinations for eating, shopping and entertainment.

Gome

  • 1.3% China EC marketshare

The retailer (which also operates approximately 2,000 physical stores in over 30 provinces) specializes in consumer electronics, and it also carries products in such categories as food/beverages, personal care/beauty, apparel/accessories, home furnishing, toys, and auto products and services.

It strives for DIRECT SALES on brand relationships for valid authentic products - high quality at an affordable price

Vipshop VIP.com apparel

  • 1.2% China EC marketshare
  • active digital buyers of its platforms reached 29.7 million in Q1 2019, an expansion of 14% year over year.

Vipshop generated over 50% of its sales in Q1 2019 from apparel.

Yihaodian

  • 0.6% China EC marketshare

Dangdang

  • 0.2% China EC marketshare

Mogujie women’s apparel

  • 0.2% China EC marketshare
  • Segment focus in women’s apparel

Jumei

  • 0.1% China EC marketshare

USA B2C Direct-to-Customer Majors

Amazon

Walmart

B2C Marketplace Majors

SHOPify

Amazon

Walmart

E-Bay

B2C Sites Others

WebdealIndia.com

  • Both B2B and B2C
  • It has a wide selection of products with thousands of categories one can choose. There are single product sales, wholesale packages, offers from various dealers, and stores from all over the world.

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