My mum bought a set of tea ware from Japan and it was delivered to her within a week. Since then she is fond of globally shopping, so do I. From this piece of purchasing behavior, it reacts that the E-commerce is increasingly being accepted by the public.
Now I would like to show you some figures regarding B2C market in the worldwide base. 1.2 trillion dollars is contributed by the sales of global E-commerce. In figure 1.1 shows below that Asia-Pacific will be the leader of B2C market in the coming years, in another word, the sales are expected to grow 23% in this region, especially in China and Indonesia growing so fast, up 65% and 71% according to this research1
North America and Western Europe has a relative rich experience of B2C market, which makes their E-market growing slowly, however, the trend is still rising up to 17% this year.
In this blog I will put more attention on the North America, and China. In order to explain it more clearly, hereby I would like to give the example of Amazon.Figure 1.2 shows below is a book warehouse of Amazon. 2
First of all, how can they influence the world? Amazon purchased ZhuoYue China which is a company selling books online, furthermore, this strategy let Amazon accounted for the most market share in China. The inventory of books in Amazon is 15 times more than any of the book stores in the world. Amazon is keen on huge potential consumption of Chinese market. With the low labor costs in China, which provides Amazon cost-effective margin.
To accomplish this revenue Amazon adapted to the market since 2004, over 1,200,000 products was launched online. Most of consumers they are focusing on the quality and return. According to this perspective, Amazon guarantees the quality check of the products for both sale and after-sale. If any of the books are below quality, they will recall these books immediately.
Moreover, Amazon has an effective supply chain which assists their service no matter domestically or internationally. For instance, UPS is being chosen as the delivery with 24 hours within the America. They outsourcing the international delivery to a third party that makes them to be more concentrate on the core business.
Now Amazon China declares that they are planning to establish a new site, in order to increase the speed of dispatching the articles to the south-east cities in China. They will realist order before 11 am and the customer could receive the order in the same day. According the statics, until 2013, Amazon has totally 11 operation centers; warehouse is taking up over 700,000 square meters. Except for the Amazon US, this is the biggest operating network in the world. 3
In addition, when we move sight to China does it have own B2C market as well? Yes, we do have and it names Taobao. Taobao is behalf of Alibaba China which is the biggest B2C platform in Asia since 2003. According to the data from Iresearch an internet analysis institution, Taobao.com is account for 80% market share of E-commerce market in China. There are over 800,000 retailers registered in it between 2003 and 2009. Furthermore, due to the prosperous market the logistics, payment, and marketing service is booming in the mean time.4
Besides, Taobao has a global site such as, HongKong, Korea, Japan, US, Britain, EU, etc. It means wherever you want to online shopping you just need sit in front of you computer clicking on Taobao.com. Thanks to Taobao a numbers of international students were starting their business even though they did not have enough invest capitals at the beginning. Some of my friends are joining this market, and most of them have very appreciable incomes. Chinese people like to shop globally nowadays they prefer the quality product rather than focusing on the low price. E-commerce could be considered as tiny internationally trading.
To compare with Amazon and Taobao, both of them are popular in Chinese market. However, why Taobao accounts for 80% of market share even Amazon has better service. The reason is that Taobao could approach to the life of Chinese people closer. It sounds like contradictory of my words. While, people always would like to attempt using new staff which they never seen before. For instance, cutlery such as knife and fork is useless for Chinese people. It means although the overseas market could provide quality product, whereas it does not match the demand of Chinese market.
E-commerce will be the main theme in the coming years. However, some of the people are still doubt for the quality of the product. There are a number of fake or cheap-copy goods are selling online. The problem is how could these staffs can be sold? Is there no monitoring party in charge of it? How can the consumers safeguard legal rights? I would like to hear the voices from you.
- http://www.emarketer.com/Article/B2C-Ecommerce-Climbs-Worldwide-Emerging-Markets-Drive-Sales-Higher/1010004 ↩
- http://www.huffingtonpost.com/2014/01/28/state-of-union-workers_n_4681994.html ↩
- http://126.96.36.199/view/1547624.htm?fromtitle=%E4%BA%9A%E9%A9%AC%E9%80%8A%E5%85%AC%E5%8F%B8&fromid=8464837&type=syn ↩
- http://sea.taobao.com/ ↩