Professional Documents
Culture Documents
(Brief Edition)
www.iresearchchina.com
2 2
Cross-border E-commerce
Cross-border E-commerce Transaction
(cross-border e-commerce in broad sense adopted by this report)
cross-border e-commerce = cross-border B2C e-commerce + crossborder B2B e-commerce
Cross-border E-commerce
Services (excluded)
3 3
38.0%
23.9%
20.6%
19.5%
8.5%
20
-13.7%
16.8%
4.5%
30.5%
15.7%
6.5%
15.2%
7.3%
5.9%
1.0%
-18.3%
15
10
10.0
9.4
7.8
6.3
7.3
11.3
10.7
13.7
12.9
12.3
12.1
11.4
9.5
8.0
8.2
6.9
6.3
5.4
0
2005
2006
2007
2008
2009
2010
2011
% Growth of exports
2012
2013
% Growth of imports
4 4
There was basically no traditional foreign trade companies and manufacturing companies in e-commerce sector prior to 2012, and
they began to set foot in this area in about 2013. Cross-border e-commerce is gradually becoming a significant choice of traditional
companies.
Traditional
Chinese
Foreign Trade Producer/Manufacturer
Chinese
Exporter
Foreign
Importer
Chinese
Cross-border
Producer/Manufacturer
E-commerce
Online
Merchant
Cross-border
E-commerce
Platform
Chinese
Producer/Manufacturer
Cross-border
E-commerce
Platform
Foreign
Online
Merchant
Chinese
Producer/Manufacturer
Cross-border
E-commerce
Platform
Foreign
Consumer
Foreign
Wholesaler
Foreign
Retailer
Foreign Online
Merchant
Foreign
Consumer
Foreign
Consumer
Foreign
Consumer
5 5
Development Stage
High-tide Stage
C Since 2013
B 2008-2012
10 policies involving
supervision, payment and
settlement, and so on,
placing extra emphasis on
support and guidance.
A 2004-2007
3 policies preliminarily
regulate the development of
e-commerce, placing extra
emphasis on the industry.
2004
2004
2005
2005
2006
2006
2007
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013-2014
2013-2014
6 6
7 7
Project
Startup
Stage
Project
Expanding
Stage
Approval
Time
Pilot City
2012
Zhengzhou, Shanghai,
Chongqing, Hangzhou,
Ningbo
20132014
Examination and
Approval
Authority
General
Administration of
Customs
Direct
Purchase
Import
Bonded
Import
General
Export
Bonded
Export
Chongqing
Guangzhou
Shanghai
Ningbo
Hangzhou
Zhengzhou
8 8
Advantages &
Disadvantages
Goods Price
Structure
Consumers buy goods from abroad. These goods Foreign goods are temporarily stored in bonded areas after arriving in China.
are shipped by international transportation means If someone purchases the goods, they will be regarded as personal items
and then reach domestic consumers directly.
and be delivered to domestic consumers with local logistics.
Advantages: it provides a variety of products, so
Chinese consumers can directly communicate with Advantages: it takes less time to finish delivery; quality is guaranteed by
overseas businesses and buy scarce and novel
customs supervision; convenience in after-sale services like changing and
products with good quality.
refunding improves shopping experience.
Disadvantages: it takes a relatively longer time,
Disadvantages: limited categories of goods
from 7 to 10 days.
Commodity price + logistics costs + personal postal Commodity price + personal postal articles tax (subject to adjustment of
articles tax (subject to adjustment of merchants)
merchants)
Result
Bonded Import
N/A
9 9
Investment and Financing Cases in E-commerce Industry 2010 Sep. 30, 2014
Company
Time
Investor
Announced Amount
Unit
Bn USD
Oct. 8, 2011
1.6
Bn USD
Hundreds of Millions
RMB
200
Mn RMB
3.95
N/A
Mn USD
Jun. 5, 2010
Mn USD
Mn USD
35
Mn USD
Alibaba
DHgate
OSell
Lightinthebox
Global Market
11.31
Mn USD
50
Mn USD
Apr. 1, 2014
19
Mn USD
Sep. 1, 2014
Tens of Millions
RMB
Oct. 1, 2013
Qingsong Fund
Million
RMB
Wish
ZZKKO
10 10
11 11
Product
Logistics
Company
Payment
Company
Overseas
Logistics
Domestic
Logistics
Import
Producer/Manufacturer
Export
Consumer/
Company
Cross-border
E-commerce
Platform
Customer
Customs
Third-party Comprehensive
Service Platform
Consumer
Company
Self-run Crossborder Ecommerce
Company
Customs
Clearance
Logistics
Payment
Cross-border
E-commerce
Company
Producer/
Manufacturer
12 12
2B
2C
Platform
Consumer/Company
self-run Site
Producer/Manufacturer
Comprehensive
Service Company
Logistics Integrating
Company
Payment Company
Logistics Company
Logistics Service
Provider
Finance Company
Financing Company
Insurance Company
13 13
Platform
vs
Self-operation
2B
vs
2C
Comprehensive
Comprehensive: Made-in-China, AliExpress, etc.
vs
(large traffic, large number of goods and diversified business)
Vertical
Others
Self-operation:
DealExtreme, Milanoo, etc.
(with purchase and delivery)
Changing with the development of users demand and companies (such as cross-border shopping guide, etc.)
14 14
15 15
Transaction Service
Resource Integration
Commission
B2B
Early Stage of B2C
B2C
1998-2002
Made-in-China, Global
Market, Alibaba B2B,
Onetouch, etc. were
founded one after another;
Early cross-border B2B ecommerce enterprises
made profits by releasing
paid information.
1997
2002
2003-2005
2005
2008
2011
2013 2014
16 16
41.0%
40.1%
32.0%
31.3%
30.6%
29.3%
25.9%
22.2%
14.8%
17.6%
20.5%
23.1%
11.9%
50
6.3%
9.6%
7.5%
40
34.6
32.0
29.5
30
24.3
23.6
20
27.1
25.8
20.2
10
2.3
1.8
1.3
3.1
8.0
6.5
5.2
4.0
0
2010
2011
2012
2013
2014e
2015e
2016e
2017e
Note: China cross-border e-commerce GMV involves cross-border e-commerce retailing and cross-border B2B e-commerce.
Source: The data is based on the data released by National Bureau of Statistics of China, financial results published by enterprises, interviews with experts and iResearch
statistical model.
17 17
Share of Import and Export in China Cross-border E-commerce GMV 2010 -2017
100%
6.5%
7.6%
9.8%
11.8%
13.3%
14.6%
15.6%
16.2%
88.2%
86.7%
85.4%
84.4%
83.8%
2013
2014e
2015e
2016e
2017e
80%
60%
93.5%
92.4%
90.2%
40%
20%
0%
2010
2011
2012
Export
Import
Source: The data is based on the data released by National Bureau of Statistics of China, financial results published by enterprises, interviews with experts and iResearch
statistical model.
18 18
Share of B2B and B2C in China Cross-border E-commerce GMV 2010 -2017
100%
2.3%
3.2%
4.6%
6.1%
7.6%
9.2%
10.4%
11.1%
95.4%
93.9%
92.4%
90.8%
89.6%
88.9%
2012
2013
2014e
2015e
2016e
2017e
80%
60%
97.7%
96.8%
40%
20%
0%
2010
2011
B2B
B2C
Source: The data is based on the data released by National Bureau of Statistics of China, financial results published by enterprises, interviews with experts and iResearch
statistical model.
19 19
20 20
Was founded
2004
2005
2006
DHgate2.0 was
launched
2007
2008
2009
2010
Set up overseas
customer service
center in the
Philippines
2011
2012
2013
2014
Became Googles
important strategic
partner in China
Became a
partner of UPS
Dhpay was
launched
Dhexpress was
launched
Mobile platform
was launched
21 21
Transaction:
Commission
Nationwide Suppliers
Service object: expanding from small and medium
merchants to large foreign trade companies,
manufacturers and brand owners.
Platform expansion: besides transaction platform,
DHgate launched online cargo center for traditional
foreign trade companies. In August 2013, DHgate
launched a global online cargo center by
cooperating with the merchants in Yiwu.
Integrated Service
Apart from basic services based on the platform,
DHgate is optimizing its integrated services:
Payment: DHpay has access to more than 30 payment
means in the world;
Logistics: online delivery, warehousing and
concentrated freight services. The DHlink supports
more than 20 logistics channels including EMS, UPS,
DHL, etc.
Credit: DHCredit cooperates with financial institutions
to provide credit service.
Other value-added services: training, marketing,
third-party operation, etc.
Platform
Positioning: a third-party B2B cross-border
transaction platform, committing to helping
Chinese SMEs to enter global market through
cross-border E-commerce platform.
Platform advantage: by June 2014, DHgate had
owned 1.2 million merchants, 25 million kinds of
online goods and 5.5 million buyers, with 100
thousand visitors per hour. It has great
advantages in users, traffic and goods categories.
Self-operation and
The second warehouse
electronic products
special offers of apparel
in Suzhou
2007
2008
2009
Established LightInTheBox
Holding Co., Ltd.
Attained first-round investment of
USD5 million
Began to sell wedding dresses
The first warehouse in Shenzhen
2010
2011
2012
2013
2014
24 24
Platform: Commission
25 25
Online Marketing
Online marketing: accurate online marketing
technology penetrating into target market by
promotion means including socialized marketing, search
engine, display ads, etc. Lightinthebox shifts from online
marketing to brand building and seeks a balance
between product promotion and mobile business.
Marketing expense: Lightinthebox invests equally in
Google, SNS like Facebook, local Internet associations,
etc. for marketing. The marketing efficiency is improved
at lower expenses.
Localization
Oversea warehousing: Lightinthebox has established
warehouses in Europe and North American and
warehouse in South America is under planning.
Overseas office: it set up an overseas office in the US
in early 2014
Staff and service: it employs local people in America,
Spain, Poland, etc. It also employs local staff to localize
customer service, serving more than 20 countries.
Localized marketing: it builds and strengthens brand
popularity and reputation in local market through local
Internet associations and socialized marketing.
26 26
Was established
2009
Launched Groupbuy
Promoted its own payment
tool Dino Wallet
Finished first-round
financing in January
Finished third-round
financing in September
2010
2011
2012
Launched 18985,
a domestic
suppliers platform
Established cloud
warehouse
2013
2014
O2O business entered Russia,
Brazil and India
Access to cross-border ecommerce customs clearance
service platform of GACC and
Pingtan
Cross-border e-commerce
O2O conference
The first publicly supervised
warehouse in China was built
in Dongguan
27 27
Supplier
Supply
Goods
Supplier
Registration
Supplier
Overseas
Consumer
Dinodirect
18985
Platform
OSell
Overseas
Retailer
Overseas
Retailer
Overseas
Domestic
Registration
Self-run
Business
Cross-border O2O
Model: OSell is a pioneer and leader of crossborder O2O. It connects domestic suppliers via
18985 and cross-border O2O online trading
association and establishes and integrates
global retailing network through OSell. In the
form of cross-border O2O exhibition and offline
experience shop, it sells Chinese goods to
oversea retailing market and builds a platform
providing service and customization.
Advantages: OSell solves the delivery problem
of Chinese suppliers when selling in global
market and guarantees services and credits
while overseas retailers purchasing from China.
Localized Operation
Office: overseas sales offices are established
in Moscow, Sao Paulo, New Delhi, Montreal,
Canberra, etc., owning more than 200 foreign
employees who are in charge of sales and
promotion in overseas market.
Channel and storage: OSell has more than
1,000 local sales channels around the world
and over 20 overseas warehouses.
Cloud Warehouse
Cloud warehouse: Osells transnational e-commerce storage
and delivery solution covers receiving cargo, sorting, goods
inspection, printing code, storing and delivering. Sellers send
products to the warehouse where the products will be packed
and shipped. Besides the basic services above, cloud warehouse
provides value-added services such as weighing, taking pictures
of products and parcels, customized package, etc., in order to
satisfy different clients needs.
Storage: OSell has warehouses in Yangze Delta and Pearl River
Delta. The total area of the two big warehouses in Shenzhen is
30 thousand square meters. It has a publicly supervised
warehouse in Dongguan which links up with customs as well as
inspection and quarantine departments to complete one-stop
customs clearance. In Heilongjiang, it has cooperative delivery
centers which facilitate foreign trade companies to explore
Russian market. In addition, it also has warehouses in Russia,
India, Britain, America, Australia, and so on.
Delivery: its delivery service reaches more than 200 countries
around the world and it is not limited by weight, volume and sea
route congestion in busy seasons.
Advantages: it helps Chinese manufacturers and merchants to
conduct localized selling in overseas market by reducing logistic
costs. Meanwhile, real time inventory management and
supervision can be achieved. It takes less time to receive goods,
which improves buyers satisfaction.
29 29
30 30
Participants
Before 2012, micro and small businesses, individual merchants and online
merchants were the main participants. Since 2013, the main participators in
traditional trade like foreign trade companies, manufacturers and brand owners
began to enter this sector and have gradually formed certain scale.
Industry Chain
Brand Operation
31 31
32 32
33 33
B2B
B2C
34 34
E-commerce platform is not enough for cross-border e-commerce. It needs upstream guide of information technology and
downstream support of logistics. To change the traditional business pattern and realize fast growth, cross-border e-commerce
needs strong support from information flow, capital flow and logistics.
36 36
Legal Notice
The report is produced by iResearch Co., Ltd. All texts, figures and tables in this report are under the copyright protection of relative
laws and regulations on intellectual property rights in the Peoples Republic of China. No organization or individual is allowed to use
the information in this report for any business purpose without the written consent from iResearch. Some texts and data in this
report are collected from public information and their copyrights are held by the original authors. No organization or individual is
allowed to use the information in this report for any business purpose without written consent from original authors and iResearch.
Data related to operators revenues and market forecasts are mainly obtained through interviews related to the industry, marketing
survey, secondary sources and other research methods, some of which have not been directly confirmed by the related operators.
Some data published in this report is based on sampling method and is therefore influenced by sample structure. Due to the
limitation of research method, sample size and scope of data collection, part of the data may not precisely reflect real market
situation. This report is for reference only and iResearch is not liable for the accuracy of the data in this report.
Introduction to iResearchs Services
iResearch Consulting Group http://www.iresearch.com.cn
Introduction to iResearchs Products
iResearch customer solutionshttp://www.iresearch.com.cn/solution
iResearch continuous data research productshttp://www.iresearch.com.cn/product
iResearch customized consulting services: http://www.iresearch.com.cn/consulting
iResearch views and reportshttp://www.iresearch.com.cn/report
iResearch Institute training serviceshttp://www.iresearch.com.cn/institute
iResearch media conference serviceshttp://www.iresearch.com.cn/meeting
37 37
400-026-2099