Chinese Online Retailers to Grow in Importance During 2012
In 2012, e-commerce will continue to develop at a rapid pace in the Middle Kingdom. More importantly the composition of China’s online retailers will evolve as the marketplace grows more mature. Retailers will establish online stores to compete with China’s existing online platforms. Mature online markets like the US help illustrate how traditional retailers are better positioned to transfer their core capabilities from their real-world operations to create successful online ventures.
Retailers Grow in Importance
The ranking below compares the top 10 Chinese online retailers in 2010 vs. 2011. Over the course of one year Suning’s ranking increased from ninth to third place. In 2011, Gome entered the top 10 as well. It’s evident that traditional retailers like Suning and Gome are growing in importance as they build online channels to reach more consumers across the country.
Retailers Thrive Online in Mature Markets
The list below details the top 5 online retailers in the US according to Comscore’s latest data. Excluding Amazon, all of the top 5 companies are traditional retailers that have built successful online platforms. Given that the e-commerce environment is more developed in the US than China, this data helps illustrate the direction China’s market could be headed.