Top 5 Digital Market Places in China
1. Taobao.com & Tmall.com
Chinese platforms such as Baidu, Tencent provide various functions and services. In terms of Alibaba, it is similar to Amazon, which is both operate as online stores. In comparison with Amazon, which provides B2C businesses, Alibaba is divided into two online platforms such as Taobao and 1688.com, these platforms operate C2C and B2B businesses respectively.
Taobao according to DMR has 529 million mobile monthly active users. When it comes to Taobao, it should be mentioned that this platform enables small businesses, customers and entrepreneurs to operate their business in purchasing and selling goods in a very convenient way. Moreover, consumers on that online platform have the function to communicate with other customers and even receiving messages from Taobao vendors in real time. Sellers can sell their products at auction or through the fixed price.
Taobao has long-term mutual and beneficial partnerships with 21 CN, MSN, and Sohu (搜狐). Taobao also creates their promotions in recent years through commercial movies and famous TV programs.
In addition, Alibaba in 2013 invested USD 586 million in the leading Chinese microblogging website such as Sina Weibo (新浪微博). Later Weibo for Taobao was launched by Alibaba, it enables the user to link their Taobao account with their Sina Weibo accounts.
Moreover, Taobao in order to boost sales throughout the year it creates various special promotions. For instance, November 11th is the biggest promotion day for Chinese online selling platform. Alibaba started these promotions in 2009 on Tmall online platform, at that time the total turnover from these promotions overwhelmed expectations. Since that day, November 11th became the fixed date related to a great scale promotion activity on Tmall, later it got expanded to other online platforms such as Taobao, JD.COM, Yihaodian and other e-commerce platforms. The total GMV of Alibaba in 2016 increased up to 1211.8 billion RMB due to promotion Day on November 11th. Remarkably that this day is also celebrated as Global Online Shopping Festival or Chinese as Single’s Day.
Jingdong (JD.com) is also known as formerly called 360buy. It was founded by Liu Qiandong in 1998. Jingdong is one of the largest e-commerce platforms by transaction volume and revenue in China, headquartered in Beijing. Jindong is also a member of the Fortune Global 500, additionally, this platform nowadays is a major competitor to Alibaba-run Tmall.
The platform has 266.3 million active users, according to the JD.com Announces Third Quarter 2017 Results. Moreover, JD.com is the leading company in the world in terms of high tech and AI delivery through drones, robots, and autonomous technologies.
Suning Commerce group is a non-government retailer in China, its headquarter is located in Nanjing, Jiangsu province. Suning operates 1600 stores in 700 cities in China (including Hong Kong S.A.R.) and Japan. This platform among top three Chinese B2C companies. Sunning provides different services, including physical merchandise such as home appliances, 3C products, books, general merchandise, household commodities, cosmetics and baby care products, content products and service merchandise with the total number of SKU exceeding 3 million.
In addition, Suning operates franchised retail shops of electronics appliances in China. Therefore, the company provides services to sell color televisions (TVs), audio and video (AV) players, disc players, refrigerators, washing machines, digital and information technology (IT) products, small household electronics, air conditioners, telecommunications products and other products. In fact, the platform also provides services related to installation and repair services for electronic appliances.
Gome Electrical Appliances Holding Limited(国美电器) is the largest privately owned electrical appliance retailers operated in Mainland China and Hong Kong. The biggest chain store of household electrical appliances platform was founded in Beijing in 1987 by Wong Kwong Yu (Huang Guangyu). However, the brand’s name “GOME” was adopted only in 1993.
The platform started business operating with a heavy focus on 3C products but has developed as a one-stop-shop retailer that even operates a groceries wing. The e-commerce platform operates electronics retail chain in China, additionally it provides services in its four major categories are maternal and baby supplies, health and medical products, home and textiles, and culture and art supplies. In terms of Chinese B2C market, Gome controls 2 percent of it. Additionally in 2009 Gome was recorded by China World Records Association as the biggest chain store of household electrical appliances in China.
Gome operates its business in most of the cities such as Beijing, Shanghai, Tianjin, Qingdao, Xian, Shenzhen. In addition, this platform was listed by Ford in the list of list of the Top 50 Listed Enterprises of Asia. Today Gome is the main rival of Suning and 360buy since it principally offers retail shops’ selling electronics and electrical appliances.
Vipshop is a Chinese e-commerce platform, which is specializing in online discount sales. the headquarter is located in Guangzhou, Guandong province. Vipshop as for 2017 had 52.1 millions of customers, this platform is one of the largest e-commerce platforms in China and it follows after Tmall and JD.com.
In addition, Vipshop provides the largest offers. When it comes to special offers, Vipshop is leading in this terms, since according to the Hangzhou-based supplier, this platform shares 90 percent of the market share in the category of special offers. Therefore, in comparison with Tmall, JD.com which offer 5%, 10% respectively, in this sense, Vipshop offers higher deduction point which fluctuates between 25% and 30 %. This platform also enables suppliers to take advantage of such services as photo shooting, storage, products delivery and customer services.
Guangzhou based e-commerce platform provides discounts for a limited period of time and more focused on women’ purchases. 80 percent of consumers on this platform are females. Remarkably Vipshop in terms of Chinese B2C market, controls approximately around 3 percent.
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