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Wednesday, 27 August 2014

China online sales continue to grow

Warc, 1 August 2014
BEIJING: E-commerce sales in China are set to rise by more than 45% this year to RMB2.76tr ($446.6bn), according to a new report from iResearch, the insights provider.

The company had previously predicted that online sales would increase by 32.4% on an annual basis to RMB2.45tr ($396.4bn), but it has now revised these figures upwards in light of new information.

More specifically, Alibaba Group, a leading player in China's e-commerce sector, has published a set of previously private figures in preparation for going public on the New York Stock Exchange.

"Based on the financial documents from Alibaba's coming IPO, we made an adjustment for our historical data and modified the market size accordingly," Jodie Ting, an iResearch analyst, told Internet Retailer.

Amongst the data revealed by Alibaba were that Taobao and Tmall, its online marketplaces, generated $248bn in sales last year.

This suggests their parent company was responsible for 81% of purchases completed by Chinese shoppers on the web in 2013 as a whole.

Drawing on the statistics provided by Alibaba, iResearch also upgraded its estimates for online retail sales in China for 2013 to RMB1.89tr ($305.8bn), compared with its original total of RMB1.85tr ($299.4bn).

Further evidence of the growth of this channel has come from the State Post Bureau of China, which reported that the amount of packages delivered nationwide rose by 60% in 2013, and 53.7% in the first half of 2014.

"In China, about 70% to 80% of parcel deliveries stem from online orders," said Wang Fang, of logistics consultancy China Express Consulting.


Data sourced from Internet Retailer; additional content by Warc

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