Competitors

We compete against both domestic and international e-commerce businesses as well as traditional retailers that are expanding into e-commerce:

  • Taobao.com is China’s biggest online retailer. The company controls about 75 percent of the online retail market. In the third quarter of 2010, Taobao's sales reached $15.2 billion, according to Beijing-based research firm Analysis International. Taobao reported more than 190 million registered users as of April 30, 2010 and generated gross merchandise volume of more than US$29 billion in 2009. In April 2010, Taobao ranked 16th overall in Alexa's internet rankings. Taobao follows the eBay model by facilitating consumer-to-consumer retail by means of a platform for businesses and individuals to open online retail stores. Taobao caters to customers looking for bargains, most users are teenagers, college students, or 20-35 white collars workers in big cities. The major benefits Taobao provides to its customers are convenient online access to inexpensive fashionable goods.

  • Amazon.com holds a 0.6 percent share of the e-commerce market in China. Its online store generates an estimated $750 million in annual web sales, according to Goldman Sachs. Amazon’s China strategy focuses on locating distribution centers and supply chain nodes near the major metropolitan areas and offering Chinese shoppers free or reduced rate shipping.

  • Paipai.com is an online trading platform that launched in March 2006. Paipai consists of a number of major channels, including women, men, online games, digital products, mobile phone, life, sports, students, special offers, mothers and babies, toys, superior quality products, and hotels. Its business model centers on fashionable and trendy brand offerings.

  • Eachnet.com is eBay’s China e-commerce platform. It went live in December 2006 but reportedly control only a 0.8 percent market share.

  • Traditional retailers are developing e-commerce platforms as additional channels to reach consumers. From brand name domestic retailers to state-owned enterprises, there is a major push to go online.
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