E-Commerce

[iam802]

China's E-Commerce Set for Rapid Growth

http://english.caijing.com.cn/2010-08-31/110509683.html

The transaction volume of China's e-commerce climbed for two consecutive years in 2008 and 2009, helping the country sustain its foreign trade amid the global recession, the Ministry of Commerce said Monday.

»Internet sales in 2008 grew by 44.8 percent from a year earlier to 3.14 trillion yuan ($461 billion), and in 2009 it rose to 3.83 trillion yuan, marking an increase of 21.7 percent, according to a report entitled China's E-Commerce Report 2008-2009 released by the Ministry of Commerce.

China's e-commerce industry will grow at a high speed in the coming years and the nation is soon expected to overtake Japan as the world's third-largest in terms of value of e-commerce transactions, Vice-Minister of Commerce Jiang Yaoping told a press conference on the report.

Who are the E-Commerce players in China?

[eauyong]

Think ALIBABA is one of the players.

[kennynah]

that travelling agency W mentioned...Baidu...Tencent....Alibaba (if it is still around?).... 古歌 ...

[iam802]

Think ALIBABA is one of the players.

Thanks.

This is what I gathered so far.

1. E-Bay through their acquisition of Eachnet.com

2. Alibaba

3. Taobao.com (<< heard one of the selling point is their escrow services)

4. CTrip (>> I recall long long time ago in a conversation with a person from Abacus... they consider airline ticket sales as the #1 E-Commerce revenue generator... err I disagree...cos I think p*rn should be #1 or maybe online gambling)

[winston]

DJ MARKET TALK: E-Commerce Taking Off In China - JPMorgan

1422 [Dow Jones] JPMorgan says online retail in China has been rising on such a steep trajectory, that developments in e-commerce must now factor into any analysis of the nation's consumer economy.

According to iResearch, a research firm specializing in China's internet industry, Chinese shoppers spent CNY263.9 billion online in the first half of 2012, 51.6% more than in the same period a year earlier.

By this measure, online purchases now account for 5.5% of total retail sales compared to only 1.0% in 2008 and 4.0% in 2011.

To put this in perspective, it took a decade for online retail in the U.S. to achieve the same growth in market penetration.

"The rise of e-commerce has also been a stroke of good fortune for the price-sensitive low-income segment of China's urban population, and is a phenomenon that has contributed to the successful containment of inflation this year."


Source: Dow Jones & Company, Inc.

[winston]

Online US holiday sales seen growing 17 percent

US online holiday sales are already on the rise, and are expected to grow 17 percent from last year to $43.4 billion, a new forecast said Wednesday.

http://www.france24.com/en/20121121-onl ... 17-percent

[winston]

Black Friday

On Black Friday last week, marking the start of the US Christmas shopping season, more people shopped online than last year.

Data from e-payment platform PayPal shows the total value of online shopping on Black Friday may have doubled from 2011, while 500 major US retailers said shoppers spent 20 percent more online than last year.

Also, the National Retail Federation earlier estimated Black Friday store visits to drop by 3 percent from last year.

So, internet shopping has just strengthened its foothold in the world's largest consumer-driven economy.


Source: Andrew Wong Wai-hong, The Standard HK

[winston]

Young people are driving an explosion of ecommerce in Bangkok and beyond

In the UK and the US, ecommerce accounts for 8% and 12% respectively of total retail sales. It is fair to expect that proportion to grow over time.

In Thailand, ecommerce currently accounts for 1.2% but is set to catch up over the next few years.

Much of this growth will come from the countryside.

In Indonesia, Vietnam and the Philippines, the smartphone penetration rate also is set to almost double over the next couple of years.

Meanwhile, across Southeast Asia, online retail spending is projected to grow by 26% CAGR (compound annual growth rate) 2014-16 according international market research group Euromonitor.

#1 Bricks and mortar retailers are in trouble

It is hard to see how plain “bricks & mortar” companies will be left unscathed. As shopping moves online, they will see their tenant base eroded and will subsequently be forced to cut their high dividends.

#2 E-logistics companies will be big winners

Everything that’s bought online need to be packaged and distributed at a low cost and in a timely manner.

The cost of logistics in Asia is often twice as high as in developed economies, acting as a tax on commerce.

Other big winners will be ecommerce aggregators (comparison sites for ecommerce).

#3 Consumer stocks will be rerated

Changes in the nature of retailing will force a re-think about what constitutes a consumer stock. A lot of funds have to construct their portfolios according to strict sector classifications.

A change to how sectors are perceived could lead to stocks being re-rated and that means there’s the possibility for us to make a lot of money if we find the right ones.

Source: The New World

[winston]

Stay positive on China eCommerce sector

We are positive on the momentum of China eCommerce industry; and the key driving forces include penetration into lower-tier cities, international expansion, eCommerce
ecosystem, mobile take-up and O2O.

In face of potentially intensifying competition, we are constructive on Alibaba's dominant C2C platform, and the duopolistic structure formed by Alibaba and JD in China's B2C eCommerce.

We have a Buy rating on Alibaba with a PT of US$112; and a Neutral rating on JD.com with a PT of US$35.

We derive our price targets from a DCF-based methodology and explicitly forecast longterm valuation drivers using UBS's VCAM tool.

Source: UBS

[winston]

China Online Retail Sales Up 37.7% YoY in Jan-Jul

In the first seven months of 2015, China's online retail sales amounted to RMB1.94 trillion, up 37.7% from a year ago, the National Bureau of Statistics reported.

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