Table of Contents
Executive Summary
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- The market
- Online retail still growing fast, but slowing
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- Figure 1: China – Total online retail market value, 2011-21
- Companies and brands
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- Figure 2: China – Leading online B2C retail portals’ share of market value, 2014/15
- The consumer
- Mobile persists, shops resist
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- Figure 3: Consumer purchasing of products by type of online or offline channel, April 2016
- Shoppers still like shops
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- Figure 4: Consumer motives for shopping either online or offline, April 2016
- Seeing is believing?
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- Figure 5: Consumer influences for shopping either online or offline, April 2016
- Consistency of performance, quality of experience
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- Figure 6: Key motivators for consumers to shop either online or offline, April 2016
- Online still holds practical advantage
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- Figure 7: Key motivators for consumers to shop either online or offline, April 2016
- Ratings, reviews and recommendations
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- Figure 8: Key motivators for consumers to shop either online or offline, April 2016
- The core consumer groups
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- Figure 9: Key consumer groups according to attitudes towards shopping online and in-store, April 2016
- What we think
Issues and Insights
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- Is ‘peak internet’ around the corner?
- The facts
- The implications
- It’s all just retail!
- The facts
- The implications
- Tailoring the shopping journey to individual tastes
- The facts
- The implications
The Market – What You Need to Know
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- Online growth still fast, but slowing rapidly also
- Grocery retail the ‘next big thing’
- Moving to mobile and reaching rural
- The push for price parity
Market Size and Forecast
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- Online retail still growing fast, but slowing
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- Figure 10: China – Total online retail market value, 2011-21
- Forecast methodology
Market Segmentation
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- The rise of B2C retail
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- Figure 11: China – e-commerce total value, by B2C/C2C split, 2011-15
- Bigger than the US market
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- Figure 12: China/US – Total online retail compared, 2011-15
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- Figure 13: China/US – Total online retail compared to total retail, 2011-15
- What consumers are buying online
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- Figure 14: China – Online retail sales by broad product category, 2011-15
Market Drivers
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- More than half the population
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- Figure 15: China – Penetration of internet and online shopping use, 2010-15
- The shift to mobile shopping
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- Figure 16: China – mobile online users & revenues within total online retail, 2011-15
- The opening of rural China
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- Figure 17: Percentage of rural households by net household income level and percentage change, 2005-12
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- Figure 18: Average rural & urban per capita disposable household income, 2010-14
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- Figure 19: China – Rural/urban internet user population, proportion, growth and penetration rate, 2010/15
Regulatory and Legislative Changes
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- Government continues to support O2O development
- Changes in taxing overseas online shopping
- Price parity in online shopping
Companies and Brands – What You Need to Know
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- Market leaders increase their share
- More retailers focus on O2O integration
Market Share
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- The market leaders further flex their muscle
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- Figure 20: China – Leading online B2C retail portals’ share of market value, 2014/15
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- Figure 21: China – Top-4 online B2C retail portals’ share of market value, 2014/15
- Alibaba moves more to mobile
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- Figure 22: Alibaba China commerce retail GMV total and mobile, Q1-4, 2015
- Figure 23: Alibaba China commercial retail division major operational metrics, March 31, 2015-March 31, 2016
- JD.com
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- Figure 24: JD.com key financial data, 2012-15
- Suning
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- Figure 25: Suning key financial data, 2012-15
- VIPShop revenue grows 65%
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- Figure 26: VIPShop Holdings key financial data, 2012-15
Competitive Strategies
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- The national flag as retail banner
- Anchoring national online to local, physical stores
- Alibaba buys into Suning stores
- Walmart buys into Yihaodian webspace
- New Look China’s rapid roll-out pays off
- Ikea self-assembles its omni-channel plans
The Consumer – What You Need to Know
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- Mobile persists, shops resist
- Shoppers still like shops
- Seeing is believing?
- Consistency of performance, quality of experience
- Online still holds practical advantage
- Ratings, reviews and recommendations
- The core consumer groups
Products Bought
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- Mobile persists, shops resist
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- Figure 27: Consumer purchasing of products by type of online or offline channel, April 2016
- Are we reaching ‘peak online shopping’?
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- Figure 28: CHINA – Online retail sales by broad product category, 2011-15
- Figure 29: Consumers’ online and offline shopping incidence in the last 6 months, April 2016
- Better engage the 40s
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- Figure 30: Consumers’ online and offline shopping incidence in the last 6 months, by age group, April 2016
- Targeting the harder-to-reach shoppers
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- Figure 31: Consumer purchasing of products by type of online or offline channel, by key consumer groups, April 2016
- Targeting the young shoppers
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- Figure 32: Consumer purchasing of products by type of online or offline channel, by gender and age group, April 2016
- Targeting the lower income shoppers
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- Figure 33: Consumer purchasing of products by type of online or offline channel, by monthly personal income group, April 2016
Shopping Motives
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- Shoppers still like shops
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- Figure 34: Consumer motives for shopping either online or offline, April 2016
- Older men trust stores, young men trust online
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- Figure 35: Male consumer motives for shopping either online or offline, by age group, April 2016
- The omni-channel approach as a tailored service
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- Figure 36: Female consumer motives for shopping either online or offline, by age group, April 2016
- Lower income shoppers not persuaded either way
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- Figure 37: Consumer motives for shopping either online or offline, by personal monthly income group, April 2016
Key Shopping Influences
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- Seeing is believing?
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- Figure 38: Consumer influences for shopping either online or offline, April 2016
- Youngsters online, oldsters offline
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- Figure 39: Consumer influences for shopping either online or offline, by gender and age group, April 2016
- Shopping influences versus retailer performance
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- Figure 40: Consumer influences for shopping either online or offline, by aspects online retailers perform better than physical stores (A), April 2016
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- Figure 41: Consumer influences for shopping either online or offline, by aspects that online retailers perform better in than physical stores (B), April 2016
Key Shopping Motivators
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- Consistency of performance, quality of experience
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- Figure 42: Key motivators for consumers to shop either online or offline, April 2016
- Consumer motivation versus retailer perceptions
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- Figure 43: Key motivators for consumers to shop either online or offline, by consumer perceptions of shopping online or in-store (A), April 2016
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- Figure 44: Key motivators for consumers to shop either online or offline, by consumer perceptions of shopping online or in-store (B), April 2016
Channel Perceptions
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- Online still holds practical advantage
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- Figure 45: Key motivators for consumers to shop either online or offline, April 2016
- Older men prefer shopping online
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- Figure 46: Key motivators for male consumers to shop either online or offline, by age group, April 2016
- Women’s shopping habits shift with age
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- Figure 47: Key motivators for female consumers to shop either online or offline, by age group, April 2016
- Channel perceptions versus consumer attitudes
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- Figure 48: Key motivators for consumers to shop either online or offline, by consumer attitudes towards shopping online and in-store (A), April 2016
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- Figure 49: Key motivators for consumers to shop either online or offline, by consumer attitudes towards shopping online and in-store (B), April 2016
Consumer Attitudes
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- Ratings, reviews and recommendations
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- Figure 50: Key motivators for consumers to shop either online or offline, April 2016
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- Figure 51: Consumer attitudes to online/offline shopping, April 2015
- Give men an incentive to go shopping
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- Figure 52: Key motivators for male consumers to shop either online or offline, by gender and age group, April 2016
- Emphasise social shopping to women
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- Figure 53: Key motivators for female consumers to shop either online or offline, by gender and age group, April 2016
Key Consumer Groups
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- The core consumer groups
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- Figure 54: Key consumer groups according to attitudes towards shopping online and in-store, April 2016
- Shopping haters
- Who they are
- What they like
- How to market to them
- Word-of-mouth (WOM)-shoppers
- Who they are
- What they like
- How to market to them
- O2O shoppers
- Who they are
- What they like
- How to market to them
- Reticent shoppers
- Who they are
- What they like
- How to market to them
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- Figure 55: Key consumer groups according to attitudes towards shopping online and in-store, by demographics, April 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Total market size and forecast
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- Figure 56: China – Value sales of Online to Offline Retailing by segment, 2011-21
- Forecast methodology
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