Provides in-depth analysis of the latest trends in online consumer shopping, covering drivers of online shopping, consumer insights, market dynamics (covering 25 product categories) and reviews of the latest best practice in online retail site design. Based on the latest data, the report not only provides details of the size and growth of this increasingly important channel, it also provides essential contexts on the penetration of online sales by product groups, how growth has developed over time and key drivers of this market in the future.
Introduction and Landscape
Why was the report written?
"Consumer Attitudes and Online Retail Development in China" is the result of Canadean's extensive market research covering the online retail industry in China. It provides the magnitude, growth, share, and dynamics of the online retail market in China. It is an essential tool for companies active across China's online retail value chain and for new players considering entry into the Chinese online retail market. It provides data for historic and forecast online retail sales, and also includes the business environment and country risk related to the Chinese online retail environment. By examining best practice from leading national large-scale online retailers (but specifically excluding the likes of Amazon whose sites are well-known and vary little by country), as well as reviewing innovative approaches from smaller players, the report provides insights and ideas about how best to approach growing online sales for your business.
What is the current market landscape and what is changing?
The Chinese online retail landscape is dominated by domestic, pure-play, mass-merchandise online retailers, both in terms of number of players as well as transaction value. Though brick-and-mortal retailers had previously underestimated the rewards the online channel can offer, they now are increasing investments in the online channel.
What are the key drivers behind recent market changes?
Consumers have been reacting to the effects of the global recession, including the following recovery period, on their discretionary spending and retail markets have been no exception. While the country by country market changes have varied, nowhere has been left totally untouched. This report quantitatively examines the components of change in the market by looking at historic and future growth patterns including how changes in consumers' behavior have affected the online retail sector for different product categories.
Key Features and Benefits
Understand the consumer behavior and online trends in China
Understand which products will be the major winners and losers in the coming years
Learn from best practices approaches outline in the case studies of leading online retailers.
Improve market and strategic planning using highly granular, forward-looking market data. Detailed category coverage is provided, covering 25 products across eight product groups that include: Apparel, Accessories, Luggage and Leather Goods, Book, News and Stationery, Electricals and Electronics, Food and Grocery, Furniture and Floor Coverings, Home and Garden Products, Music, Video and Entertainment Software, and Sports and Leisure Equipment.
Assess the impact of economic recession and recovery on market growth
Key Market Issues
Broadband speeds in China are low in comparison to international and Asia-Pacific standards.
Consumer-to-consumer (C2C) transactions represent a large segment of this market. A lack of established B2C retailers meant consumer appetite for online spending was left unaddressed.
Key Highlights
Sports and leisure equipment was the fastest-growing product group, with a CAGR of over 115% during 2006-2011.
Books, news and stationery are expected to become the fastest-growing product group with a CAGR over 55% during 2011-2016.
Table of Contents
1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.2.1 This report provides 2011 actual sales; while forecasts are provided for 2012 - 2016
1.2.2 Changes to terms used in the Canadean taxonomy
1.3 Summary Methodology
1.3.1 Overview
1.3.2 The triangulated market sizing method
1.3.3 Industry surveys in the creation of retail market data
1.3.4 Quality control and standardized processes
2 Consumer Insight: Online Shopping Attitudes and Behaviors
2.1 Overview of the China Online Shopping Environment
2.1.1 Large user base and improving internet penetration to boost online shopping population
2.1.2 Increased penetration and faster speeds forecasted for broadband in China
2.1.3 Increasing adoption of smart-phones and 3G services to boost mobile retailing in the country
2.2 Consumer Attitudes and Behavior
2.2.1 Consumer online shopping preferences shifting from price sensitivity to quality of shopping experience
2.2.2 Low-touch products driving online retail sales; electrical and electronics largest product group while books, news and stationery is the fastest
2.2.3 Online retailers take advantage of the lack of personal customer interaction
2.2.4 New entrants to struggle as consumers search for products on mass merchandise online retailer websites rather than through search engines
2.2.5 Government introducing measures to tackle the counterfeit products market
2.2.6 M-commerce levels low in the country, however growing at an aggressive pace
2.2.7 Third party payment platforms most popular mode of payment, share of credit cards negligible
2.2.8 Delivery and logistics in China poses a significant challenge
3 Online Channel Dynamics
3.1 The Online Channel's Share of Total Retail Sales
3.1.1 Chinese online vs. offline channel forecasts
3.1.2 Online penetration: global and regional comparisons
3.1.2.1 China Online Retail Sales Penetration compared to Global Average
3.1.2.2 China Online Retail Sales Penetration compared to Asia Pacific Average
3.2 Channel Dynamics
3.2.1 China retail channel dynamics - future performance
3.2.2 Channel group share development
3.2.3 Individual channel performance
3.3 Category Dynamics
3.3.1 Online vs. offline retail sales comparison by category group, 2011
3.3.2 Online retail market dynamics by category
3.3.3 Online retail sales share by category group
3.3.4 Online retail sales growth by individual category
3.3.5 Food and grocery categories: market size and forecasts
3.3.6 Electrical and electronics categories: market size and forecasts
3.3.7 Music, video and entertainment software categories: market size and forecasts
3.3.8 Apparel, accessories, luggage and leather group categories: size and forecasts
3.3.9 Books, news and stationery categories: market size and forecasts
3.3.10 Sports and leisure equipment categories: market size and forecasts
3.3.11 Furniture and floor coverings categories: market size and forecasts
3.3.12 Home and garden categories: market size and forecasts
4 Case Studies: Leading Online Retailers in China
4.1 Retailer 1: 360buy.com
4.1.1 Business Description
4.1.2 Site Experience
4.2 Retailer 2: Taobao Mall (Tmall)
4.2.1 Business Description
4.2.2 Site Experience
4.3 Other Innovative Retailers in China
4.3.1 Dangdang
4.3.2 Vancl
5 Appendix
5.1 About Canadean
5.2 Disclaimer
List of Tables
Table 1: China Exchange Rate CNY-US$ (Annual Average), 2006-2011
Table 2: Canadean Retail Channel Definitions
Table 3: Canadean Retail Category Definitions
Table 4: Changes to Canadean Taxonomy
Table 5: Canadean Retail Country Coverage
Table 6: China Online vs. Offline Retail Sales and Forecast (CNY billion),2006-2016
Table 7: China Online vs. Offline Retail Sales and Forecast (US$ billion),2006-2016
Table 8: China Online vs. Offline Retail Sales and Forecast (% Share), 2006-2016
Table 9: China Online Sales vs. Global Average
Table 10: China Online Sales vs. Asia Pacific
Table 11: China Overall Retail Segmentation (CNY billion) by Channel Group, 2006-2016
Table 12: China Channel Retail Sales and Forecast (CNY billion) by Channel Group, 2006-2016
Table 13: China Channel Retail Sales and Forecast (US$ billion) by Channel Group, 2006-2016
Table 14: China Channel Retail Sales and Forecast (% Share) by Channel Group, 2006-2016
Table 15: China Channel Retail Sales and Forecast (CNY billion) by Channel, 2006-2016
Table 16: China Channel Retail Sales and Forecast (US$ billion) by Channel, 2006-2016
Table 17: China Retail Sales Split (CNY billion), Online vs. Offline, 2011
Table 18: China Retail Sales Split (US$ billion), Online vs. Offline, 2011
Table 19: China Online Retailers Market Dynamics by Category Group, 2006-2016
Table 20: China Online Retail Sales and Forecast (CNY billion) by Category Group, 2006-2016
Table 21: China Online Retail Sales and Forecast (US$ billion) by Category Group, 2006-2016
Table 22: China Total and Online Retail Sales in Food and Grocery Categories (CNY billion),2006-2016
Table 23: China Total and Online Retail Sales in Food and Grocery Categories (US$ million),2006-2016
Table 24: China Total and Online Retail Sales in Electrical and Electronics Categories (CNY billion), 2006-2016
Table 25: China Total and Online Retail Sales in Electrical and Electronics Categories (US$ million), 2006-2016
Table 26: China Total and Online Retail Sales in Music, Video and Entertainment Categories (CNY billion),2006-2016
Table 27: China Total and Online Retail Sales in Music, Video and Entertainment Categories (US$ million),2006-2016
Table 28: China Total and Online Retail Sales in Apparel, Accessories, and Luggage and Leather Categories (CNY billion),2006-2016
Table 29: China Total and Online Retail Sales in Apparel, Accessories, and Luggage and Leather Categories (US$ million),2006-2016
Table 30: China Total and Online Retail Sales in Books, News and Stationery Categories (CNY billion),2006-2016
Table 31: China Total and Online Retail Sales in Books, News and Stationery Categories (US$ million),2006-2016
Table 32: China Total and Online Retail Sales in Sports and Leisure Equipment Categories (CNY billion),2006-2016
Table 33: China Total and Online Retail Sales in Sports and Leisure Equipment Categories (US$ million),2006-2016
Table 34: China Total and Online Retail Sales in Furniture and Floor Coverings Categories (CNY billion),2006-2016
Table 35: China Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ million),2006-2016
Table 36: China Total and Online Retail Sales in Home and Garden Products Categories (CNY billion),2006-2016
Table 37: China Total and Online Retail Sales in Home and Garden Products Categories (US$ million),2006-2016
List of Figures
Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Internet Users and Online Shoppers in China, 2006-2015
Figure 3: China Internet Penetration According to Region, 2011
Figure 4: Total Fixed Broadband Internet Subscribers and Penetration, 2006-2011
Figure 5: Total Mobile Users and Penetration, 2006-2011
Figure 6: China Online Retail Sales and Percentage Contribution to Total Retail Sales, 2006-2016
Figure 7: China Category Group Online Retail Sales Penetration, 2011
Figure 8: China Online and Offline Retail Sales and Forecast (US$ billion), 2006-2016
Figure 9: China Online Sales vs. Global Average (% of Total Retail)
Figure 10: China Online Sales vs. Asia Pacific Countries Average (% of Total Retail)
Figure 11: China Overall Retail Market Dynamics by Channel Group, 2006-2016
Figure 12: China Retail Sales and Forecast (CNY billion) by Channel Group, 2006-2016
Figure 13: China Retail Sales, Online vs. Offline, 2011
Figure 14: China Online Retailers Market Dynamics by Category Group, 2006-2016
Figure 15: China Online Retail Sales and Forecast (US$ billion) by Category Group, 2006-2016
Figure 16: 360buy.com- Usage of Online Space
Figure 17: 360buy.com - Organized Product Page
Figure 18: 360buy.com- Product Image and Zoom-In Tool
Figure 19: 360buy.com- List of Ways Users Can Access the Mobile Website
