China's E-commerce Industry Has Huge Development Space

The analysts of the industry said that the competition of the current e-commerce industry is not fierce enough to the extent of life and death

. The Chinese e-commerce development has a huge space.

First, the Chinese e-commerce development is appropriate to its time. From the point of view of the history of the industry, when the traditional industry is not concentrated, e-commerce already appeared. In the U.S., when Amazon appeared, 70% of the industries have been focused, but Amazon still achieved great success.

China's traditional retail industry is highly fragmented, not focused. Before the awakening of the traditional industries, China's e-commerce is already developing. The analysts of the industry said that about 10% of the U.S. community salesf is obtained through e-commerce. China's e-commerce suppliers can achieve the same level after 3 years and overtake the United States 5 years later.

Second, the traditional retailers are in vain to do e-commerce. Wal-Mart entered the e-commerce business. It has grown for 3 years. Last year's growth rate is 80%. Amazon can not reach this data.

The analysts of the industry said that in overall, Wal-Mart's performance declined 1% in the last yea. In China, Suning Electric's results are very optimistic. Among autonomous e-commerce businesses, Suning ranked the second. But Suning's overall sales growth and net profit are decliningd, with the same with the trend of the traditional industries in the United States and the United Kingdom.

The results are frustrating. The growth in e-commerce did not bring any benefits to the Group's business. The analysts of the industry said that the traditional industries still need e-commerce businesses. From this perspective, the e-commerce growth rate of the traditional industry has not much significance.

Third, the platform providers and independent e-commerce businesses each have their own value. Chinese people like the concept of speculation. In fact, whether it is B2C or C2C, its essence is the same, the sales. Jingdong is different from Taobao, Jingdong's profit model is to bring supply chain services for partners. The cooperative businesses just do R & D, design, production and make good products. Jingdong help people to deliver products from suppliers to the consumers.

Therefore, in the next decade independent e-commerce businesses will exceed platform e-commerce businesses. The analysts of the industry said that Taobao now is the leader of the e-commerce industry. Five years later, Jingdong Mall certainly will exceed it. The competition of e-commerce is finally the competition of the consumer application experience.

by: Amanda Xia

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