Electronic devices market in ChinaComments Off
The market for traditional products of consumer electronics in China is maturing, more than in the whole world. With the rapid development of information communication technology, China has become the largest manufacturing centre in the world for electronics, including televisions, computers, telephones and DVD players.
Here’s electronic devices market in China.
Market development in China
China became in 2013 the first market for electronic devices ahead of the United States. The spending in Asia reached $ 282 billion, and the world 1,068 billion dollars. The bulk of the expenditure was made by console video games, and televisions. In 2014, it is 1024 billion dollars that were spent in electronic devices around the world, including a three dollar spent in China. Shenzhen is the Chinese city that produces the more electronic devices in the world. In 2014, the city had a gross domestic product of 171 billion, largely due to its electronic production. Giants like Apple, Dell and HP make assemble and build their electronic components in this city.
The different categories
Filcontrol is the technology leader in equipment products for textile machine industries. It is present in the Chinese market since 2005.
Huawei was founded in 1988 in Shenzhen in China. It is a company that provides services in the information technology sector and communication including phones. Its services are present in 140 countries, representing one third of the population. It achieved a turnover of 28 billion euros in 2014.
ZTE was founded in 1985 and also offers telephone services.
Xiaomi is the start-up that had the best start in the world. It was founded in 2010 and was valued at $ 45 billion in 2014. It sold up to 61 million units last year.
Lenovo is a Chinese company founded in 1984 by Liu Chuanzhi. Lenovo mainly manufactures computers, telephones, workstations, computer servers and connected TVs. However, the bulk of sales of Lenovo is done through computers, especially since he bought the PC division of IBM. However, it wants to focus on phones especially abroad, where it is still not very present. He recently bought Motorola Mobility. In 2014, its sales in the last quarter business was 10.8 billion.
Skyworth or Hong Kong Skyworth Digital Holdings Company was founded in 1988 (From Bloomberg). It designs, manufactures and sells televisions and audio-visual products.
Maxpac is an electronics company including LCD TVs.
In the area of ??mobile operators we can find China Mobile, China Unicom and China Telecom.
China Mobile is the largest mobile operator in China. It was founded in China in 1997. It has over 720 million subscribers. This is the largest mobile operator in terms of subscribers which is normal given that China is the most populous country in the world, however it remains only used in China.
China Unicom is the second on the China market. It was founded in 1994 in Beijing. It serves over 80 million subscribers.
China Telecom is the third. It was created in 2002 and has a network of over 70 million people.
Haier was founded in 1984 by Zhang Ruimin in Qingdao. This is a home appliance company but it also manufactures TVs. It makes refrigerators, air conditioning machines and washing machines. Haier’s goal is to position itself as a premium brand but is in many countries a low-end brand. However, the company operates in several countries in Europe and also in the United States.
Hisense is a company of electrical equipment. It was created in 1969 in Qingdao. It is the result of the consolidation of brands Combines, Kelon and Ronshen. It is present in the whole world. Its turnover has exceeded $ 16 billion in 2014.
Development in the future
This will undoubtedly increase in the coming years due to the growing middle class: in fact, nearly 220 million households will be part of this class of 2022 according to estimates. China’s new middle class that have a lot of requirements and applications in the high-tech world: some products that they could not buy are now within their reach and they fully intend to enjoy it. So they try to have the latest electronic devices. New categories appear as 4K televisions that everyone is trying to produce and sell in bulk. The Chinese are particularly equipped to sell as much as possible: Chinese companies dominate the market for 4K TVs. Chinese company for Seiki example sells 39-inch 4K TVs for $ 499, which is low compared to what can be found in the market. Leading brands like Hisense, Skyworth and TCL are all trying to build televisions 4K high standard, always keeping the lowest possible prices. Connected objects are also on the agenda, and China hopes to equip its electronic products.
The electronic market is exploding in China since it is very tighly linked to online activities, something Chinese have come to see as part of their lifestyle. These past few years, numerous local companies have started challenging foreign companies on their own turf: High Quality reliable goods. However, the edge is still in favour of first. Why? Two reasons :
Simply put : trust. Too many scandals have gone between Chinese consumers and local companies in all kinds of industry and the electronic market is not an exception. Besides, it is also a matter of prestige. Foreign companies are often seen as giving more face, the typical Chinese social rule of showing how successful you are to be respected. In this matter for now, in the mind of a large part of Chinese mobile users, there is no possible comparison between Apple, Blackberry, Samsung and say Lenovo or Xiaomi. Ask a Chinese to exchange his iphone for a local brand, something still true even though you can find good phones sold by Chinese brands. Oneplus or the latest Xiaomi have received much praise for their features. Alas, the cliché is still present, much to the benefit of the Foreign brands.
Finally, promoting products via e-marketing and the latest inbound marketing strategies has
More about phone manufacturers on Business Internet in China here
The next evolutionary step for e-commerce in China is e-mobileComments Off
The day the e-commerce will go mobile
When the e-commerce industry in Western countries is becoming mature, in China, it is a huge market that has a lot of untapped potential! The opportunity of having a 600 million clients visibility is attracting businesses from all over the world so why not you ?
Maybe some numbers will help: in 2013, it is 618 million Chinese that were using Internet with a penetration rate of 46% of and it is not even half of the population. Within this population, 300 million of them were already shopping on-line last year.
Who is controlling the Chinese Internet?
The three giants on the Chinese Internet are well known in the Industry : Baidu (the favorite search engine of Chinese), Tencent (which owns WeChat and SnapChat) and Alibaba (which owns Weibo and Tango). They all have a net profit of at least 1,465 billion euros and enjoy a growth of sales and turn over very advantageous.
A huge potential in the B2C Market 2013
If Internet used to be the place where customers were making business with customers the trend is now turning around. In 2010, only 13.7% of transactions were from Business to Customer. And the Customer to Customer type of transactions ruled 86.3% of the Internet. Now, B2C represent 35.1% of the market and this is far from over. In 2017, experts expect that they will be more B2C transactions (52.4%) than C2C transactions (47.6%).
The opportunity of smart phone on e-commerce
In 2013, if the Internet users were 618 million, the mobile Internet users were already 500 million. The penetration on this sector has a 83% growth! It is the highest of the world(followed by South Africa and Hong Kong). Concerning tablet, it is the first one in the world as well with 39% (followed by Mexico and Singapore). What does that mean? It means Chinese will more likely buy through their Smart phone that any other nationality.
Indeed, there are already 69% of Chinese that bought a product on their mobile compared to 46% of American. China passed the hurdle mid 2013. By this time, more people were shopping through their smartphone (81%) than their computer (70%). On Double 11, which is on Nov 11 nicknamed Bachelor’s Day by Chinese, 127 million consumers spent 650 billion euros on Taobao Mobile. It is 560% more than in 2012 and convered 21% of all Taobao’s transactions. This website is one of the favorite of Chinese, 2/3rd of netizens (400 million) used it in 2013.
The mobile shopping market in China has showed incredible growth and opportunity. In 2011, it generated “only” 1.37 billion euros transactions, in 2012, already 7.44 billion euros and in 2013 almost 20 billion euros. In 3 years, this sector has experienced a huge boom and by 2017, transactions should reach 117 billion euros. How come ? Thanks to the new means of mobile payment, the penetration of smartphones in the countryside, the increase of the 3G coverage and the WIFI hotspots and the Offline to Online tools.
Who will be smart enough to catch this wave though ? Taobao Mobile already has 81.45% of the market share and Jingdong Mobile 6.67% but trend can still change.
What are the trends expected in the future?
In addition, the forecasts are all very optimistic when it comes to the evolution of this sector. In 2012, the total transaction value was equal to 354 billion euros and in 2013 over 218 billion euros. With a 40% growth, from one year to another, the sector should expect to reach 488 billion euros transaction by 2017. It is the biggest on-line e-commerce market in the world. Experts predict that by 2020, it will be bigger than the e-commerce of USA, Great Britain, Germany, France and Japan combined.
The Chinese e-commerce market go over $190 billion in 2012Comments Off
The CNNIC (China Internet Network Information Center) has recently published the figures for the e-commerce in China in 2012 and they are very massive. In transactions, the CNNIC announce that the Chinese e-commerce market has reach 1,2 trillion RMB that is to say 190 billion of dollars over the course of the year. It’s so huge because it represents more than 1000 billions of RMB.
The organism also remind that there is 242 millions e-shoppers in China for the year 2012. It’s a big number but the population of China is around 1,4 billion people so there is a significant potential of growth in the next years especially if the economy of China is still growing.
What are Chinese buying ?
When you look precisely what is bought on Internet, the most common items are cloths (this include shoes and hat also) with 81,8% of people who bought at least one clothing item. The daily necessities follow with 31,6%. And the third of the podium are the computers and other digital electronics with 29,6%.
Mobile: a growing trend
Another interesting trend is that 40,7% of e-commerce users are using a smartphone to access the e-commerce websites. In addition with this number, 53,6% are using an app connected to an e-commerce platform (Taobao, Tmall etc.). This is a significant increase compare to 2011.
Life Service sites are popular recently(0)
This ranking has been higher than large-scale information like CCTV network, msn Chinese. Word-of-mouth network has also broke the history record for life service e-commerce platforms they represents. The industry insiders said that incresed ranking for these life service site mapped out the warmer domestic economy as well as people’s rising living consumptions.
Communication Director of Yahoo Word-of-mouth,Wang Tong, introduced that at the peak of the financial crisis last year, especially in the lowest real estate market, users of real estate platform also appeared to have divised concerns for information: attention for the new properties, second-hand housing information decreased near 20%, while concerns for rental information maintained the at the high point, a large number of houses backloged for sale and even entered the rental market. “By the end of last year, information about the rental on Yahoo’s Word-of-mouth daily updated more than 1.3 million pieces.”
Alibaba cash reserves reached one billion U.S. dollars(0)
Alibaba released the news after the first quarter financial report was disclosed. Today its announced financial reports indicated that its revenue for the first quarter was 806,600,000 yuan which was increased by 18.6% from last year’s 680,100,000 yuan;net profit was 253.4 million yuan with a decrease of 15.7 percent for the same period of last year’s 300.7 million yuan.
Ma Yun said that Alibaba’s achievements showed its value, vision and commitment to the mission. “Alibaba has been focusing on the customer’s position, and in the economic winter, our most important task is to help our small and medium enterprises survive the winter.” said Ma Yun.
Wei Zhe, CEO of Alibaba said Alibaba’s achievements proved that the decisions of the company investors to help them achieve the business objectives were correct, and this will bring the win-win-win of worldwide buyers, sellers and Alibaba.
Online shopping in China has less(0)
However, the rapid development of the industry is accompanied by “crisis of confidence” issue, because the disputes are arising from the increasing trend of major disputes generated by the lack of good credibility.
Now, to the online shopping of consumers, the only standard reference to the shops is just seller reputation, so naturally some of the illegal sellers used improper means to increase credibilities to trick consumers. Therefore, bad attitudes of shop sellers are common sense, and there even are people earning money by increasing shop popularity. Credulous consumers who were cheated are not few. A third-party platform for the establishment of credibility, or online shopping laws and regulations have been imperative.
Alibaba.com Initiates Trading In Hong Kong(0)
The debut of Alibaba’s shares was witnessed by the company’s management team, 18 founders and other guests at the listing ceremony.
“We are pleased to welcome investors from Hong Kong and around the world to join us in building a world-class e-commerce company,” said Jack Ma, non-executive chairman of the company and chairman and chief executive officer of Alibaba Group. “Alibaba.com’s IPO ushers in a new era of e-commerce development and we look forward to pioneering an e-commerce ecosystem that benefits businesses in China and around the world.”
Alibaba.com and its parent company Alibaba Group initially offered a total of 858,901,000 shares under the Global Offering, of which 227,356,500 shares were offered by the Company and 631,544,500 shares were offered by Alibaba Group. An additional 113,678,000 shares were sold by Alibaba Group upon exercise by the International Underwriters of their Over-Allotment Option.
The eight Cornerstone Investors which participated in the Global Offering included Yahoo! Inc., AIG Global Investment Corporation (Asia) Limited, Foxconn (Far East) Limited, Industrial and Commercial Bank of China (Asia) Limited, Cisco Systems International B.V., and entities affiliated with Peter Kwong Ching Woo (Chairman of The Wharf (Holdings) Limited), the Kwok family (controlling shareholders of Sun Hung Kai Properties Limited) and Mr. Kuok Hock Nien.
The total cornerstone investment was HK$2.1 billion and all Cornerstone Investors agreed to a lock-up period of 24 months from the date of listing.
Source : Chinatechnews
CITS Offers PayPal Payment For Tourists(0)
By using the service, prospective travelers can use PayPal as an escrow service and relay money to travel agencies without revealing bank account details.
CITS is engaged in providing hotel reservation, air ticket booking and many other travel related services to tourists from both home and abroad. By providing PayPal payment service, it hopes to make its service more convenient and safer for its customers.
Source : Chinatechnews
Ctrip.com Allies With Baidu.com To Explore Chinese Hotel Search Service(0)
By combining Ctrip.com’s rich travel information with the advanced search engine technology of Baidu.com, the parties’ cooperation will enable customers to find the location and information of up to 5000 member hotels of Ctrip.com and make a reservation directly online. In addition, it will allow them to make inquiries on more than 3000 scenic spots and other useful travel information via Baidu’s Map Channel.
At present, Ctrip.com has information on more than 28000 cooperating hotels in 134 countries and regions across the world. Fan Min, CEO of Ctrip.com, says that Ctrip has been committed to supplying convenient and high-quality hotel service for customers, and this cooperation is a win-win for both sides, for it will not only make Baidu’s travel information search more complete, but also bring a booking revenue increase for Ctrip.com.
Source : Chinatechnews
E-Commerce On Horizon For Chinese Search Engine(0)
“We are very excited to enter the rapidly growing Chinese e-commerce market” said Robin Li, chairman and chief executive officer of Baidu. “Baidu’s extensive user base and rich experience in Chinese language search makes e-commerce a natural step for expansion.”"
Search engines already play a critical role in the Chinese e-commerce market. According to iResearch, 49% of China’s current C2C users conducted searches before visiting e-commerce sites. Baidu has already established a new department dedicated to the development of innovative e-commerce technologies. The company plans to continue talent recruitment and launch the C2C service in 2008.
“In China, e-commerce is still in the early stages of development” continued Li. “With Baidu’s high user traffic, popular community platforms, cutting edge technology and commitment to providing users with the best Internet experience, we are confident that Baidu will become a leader in the Chinese e-commerce space.”
Source : Chinatechnews