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iResearch China SME B2B E-Commerce Research

2010-2011

iResearch China SME B2B E-Commerce Research 2010-2011

Contents
I. Research Background of the 10th Chinese Netizens Online Consumption Behaviour II. Methodology III. Definitions IV. Abstract V. Text of Report 1. Overview of Chinas B2B E-commerce Industry Development (2010) 1.1. Review of the Situation in 2010 and Comments 1.2. Analysis of the Current Industry Situation in 2010 1.3. Future Development Tendency and Outlook 2. About the Industry: Monitoring Data of Chinas B2B E-commerce Market (2010) 2.1. Market Scale-Transaction Scale 2.1.1. Transaction Scale of Chinas SME B2B E-commerce Market 2.1.2. Permeability of Chinas SME B2B E-commerce Transaction Scale 2.1.3. Transaction Scale of the Domestic Trade and the Foreign Trade in Chinas SME B2B E-commerce 2.1.4. Chinas Online B2B E-commerce Transaction Scale 2.2. Market Scale-Revenue Size 2.2.1. Revenue Size of Chinas B2B E-commerce Market 2.2.2. Condition of Increase in the Revenue Size of the Four Quarters in Chinas B2B E-commerce Market (2010) 2.3. Market Share-Share of Enterprises 2.3.1. Revenue Share of Chinas B2B E-commerce Operators (2010) 2.3.2. Change Condition of the Revenue Share of the Four Quarters in Chinas B2B E-commerce Operators (2010) 2.3.3. Condition of the Market Share of Annual Visits of Chinas Major B2B E-commerce Websites (2010) 2.3.4. Condition of the Market Share of Annual Webpage Browses of Chinas B2B E-commerce Websites (2010) 2.4. Number of Chinas B2B E-commerce SME (2010) 2.4.1. Number of Chinas SME 2.4.2. Number of Chinas SME Using Third-party B2B E-commerce Service (2010) 2.4.3. Number of Chinas SME Using B2B E-commerce Payment Service (2010) 2.5. User Size-Key Enterprises

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iResearch China SME B2B E-Commerce Research 2010-2011

2.5.1. Size of the Registered Users of Chinas Major B2B E-commerce Enterprises 2.5.2. Size of the Paying Customers of Chinas Major B2B E-commerce Enterprises 2.5.3. Size of the User Coverage of Chinas Major B2B E-commerce Websites 2.5.4. Change Condition of the Total Reading Visits of Chinas Major B2B E-commerce Websites (2010) 2.5.5. Change Condition of the Monthly Total Webpage Browses of Chinas Major B2B E-commerce Websites (2010) 3. About Enterprises: Performances of Chinas B2B E-commerce Enterprises (2010) 3.1. Alibaba 3.1.1. Current Situation of Alibaba 3.1.2. Analysis of Hotspots in 2010 Appendix: Development History of Chinas B2B E-commerce Disclaimers

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iResearch China SME B2B E-Commerce Research 2010-2011

Text of Report

I. Background of 10th Survey on China Internet Users Online Consuming Habits

iResearch Consulting Group (www.iresearchchina.com) made a survey from Dec in 2010 to Jan in 2011, aiming to investigate the China Internet users habits and consuming habits again. The survey has been carried out for ten times in eight years since iResearch made the survey on China Internet users consuming habits for the first time in 2003.

II. Methodology
This report mainly collects data through iUserSurveys online questionnaire and thorough interviews and studies on relevant operators and distributors. iUserSurvey is a market research platform developed by iResearch for online media users. 1.1 Methodology This survey mainly utilizes online surveys according to statistical theory and international practice. The questionnaires can be viewed on iResearchs website (link: http://iclick.researchchina.cn/survey/10/) and on banners and text link ads in 109 mainstream websites in the duration of December 1st, 2010 and January 15th, 2011 for users to answer questions. This survey collects over 80,000 responses to the questionnaire and, ultimately, 70,000 samples were valid due to exclusion invalid questionnaire and the ratio weighting of gender and age of netizens. 1.2 Gender/Area Distribution of Netizens Matching and weighting according to gender and age distribution of netizens issued by CNNIC in January, 2011. 2. Explanation of iResearch Online Survey (Industrial Research) iResearch mainly conducts industrial research through comprehensive industrial interviews and desktop research: Understand the general situation of relevant industries and obtain sales and marketing statistics by interviewing experts, manufacturers, and channels in this industry Desktop research is obtaining statistics of industrial scale by comparing public information and referring to user investigation statistics Analyze through the iAdTrackers online ad supervision system, iUserTrackers online behavior continuity research system, and iResearchs e-commerce comprehensive data supervision system, Ecommerce Plus. The methods through which iResearch obtains public information: Statistics and information from the government Relevant economic statistics Public information about this industry Annual report and quarterly report of enterprises Public views from senior experts of this industry iResearch mainly conducts market estimating research through desktop research,

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iResearch China SME B2B E-Commerce Research 2010-2011

comprehensive industrial interviews and iResearchs statistics and forecasting model. Operating and market data from desktop research and interviews Calculating basic data and making regression and prediction according to the evaluation model and industry experience curve of data At the same time with data flow above processing, iResearch would evaluate key factors affecting future market development, and adjust and correct estimated numbers according to the evaluation of prediction, finally produces market forecasting numbers.

Copyright iResearch Global Inc. 2010

iRe esearch C China SM B2B E ME E-Comme erce Res earch 20 010-2011

1. Overview o Chinas B2B E-co of ommerce Industry D Developme (2010) ent

1.1. R Review of the Situation in 2010 and Comments China B2B Ec as commerce Industry kee eps develop ping at high speed. Fi h irstly, with global g economy recove ered, foreign and dome n estic markets become active gradua s ally, which brings b more clients and revenue to China B2B Ecommerce Secondly, governmen policies su e d o e. nt upport the d development of commer t rce, which cr reates a favo orable climat for China B2B Ecomm te merce. Third each ma d, ajor B2B ec commerce o operators is active in seeking new develop s pment oppo ortunities, w which provide a richer service for SME. iRese es earch made an analysis and s concl lusion on the market co e ondition of C China B2B ec commerce in 2010. n

1.2. A Analysis of the Curren Industry S f nt Situation in 2010 n 1.2.1 Classification of B2B E Ecommerce Models China B2B Ecom a mmerce mod dels turn to d develop in variety and d depth after developing fo or years In 2010, E s. Ecommerce enterprises in differentiation boom in economic recovery, c especially those startups wit great pote th entials. In this special de eveloping st tage, iResea arch sifies the diff ferent B2B E Ecomerce m models existing in the ma arket from different angl les. class

Clas ssifcation of China B B2B Ecom mmerce Platform Mo odels

Chart 1-1 Classifica rt ation of China B2B Ecommerce Platform Models a

Cop pyright iRes search Globa Inc. 2010 al

iRe esearch C China SM B2B E ME E-Comme erce Res earch 20 010-2011

2. Ab bout the Ind dustry: Mon nitoring Dat of China B2B E-co ta s ommerce M Market (2010 0) Market Scale-Transact tion Scale 2.1. M 2.1.1 China B2B Ecommerce Online T 1. Trade Scale e

China B2B Eco a ommerce Online Tra Scale O ade fro 2009 to 2014 om o
18000 28.9% -13.3% 13558 94.8% 89.7% 76.2% 70.4%

15000

12000

9000

7957

6000 4516 3000 948 0 2009 2010 2011e 2012e 2013e 2014e 1222 2380

B2B onl line trade scale( (100mil Yuan)

%y year-on-year gro owth rate

Note: B2B online trade scale refers to th total amount of goods,servic and informa B he t ces ation on B2B Ecommer platform by o rce online payment. Source: The data above is calculated ba T ased on the rele eased financial r reports of enterp prises, interview ws on industr ries and iResea arch's statistical and forecasting data. g 2011.3 iResearch Inc i www.ires searchchina.com m

Chart 2-1 Chin B2B Ecomm C na merce Online Trade Scale fr rom 2009 to 2 2014

Cop pyright iRes search Globa Inc. 2010 al

iRe esearch C China SM B2B E ME E-Comme erce Res earch 20 010-2011

2.1.2 Condition of Increase in the Re 2. e evenue Size of the Four Quarters in Chinas B2B e s s E-com mmerce Ma arket (2010)

Reven of B2B Ecomm nue merce Mark ket in Each Quarter of 2010 f
4 50.0% 13.6% 3 2.7 2 2.4 4 2.1 2 2.5 51.8% 16.3% 53.0% 2.5% 48.6% 9.7 7%

0 Q1 2010 Q2 2010 Q3 2010 Q4 2 2010 gene revenue(billion Yuan) eral % qu uarter-on -quart growth rate ter % y year-on-year gro owth rate Note: Reven nue of B2B Eco ommerce market refers to the revenue of all trades on B2B Ecommerce B platforms. Source: The data abo ove is calcula ated based on the relea ased financial reports of Research's stati istical and forec casting data. enterprises, interviews on industries and iR 2011.3 iRe esearch Inc www.iresearc chchina.com

Chart 2-2 Revenu of B2B Ec rt ue commerce M Market in Eac Quarter of 2010 ch f

Cop pyright iRes search Globa Inc. 2010 al

iResearch China SME B2B E-Commerce Research 2010-2011

2.2. Market Scale-Revenue Size 2.2.1. Condition of the Market Share of Annual Visits of Chinas Major B2B E-commerce Websites (2010)

iUserTracker-Market Share of Major B2B Ecommerce Websites' Number of Visits in 2010

315.com.cn 0.4% globalsources.co m 0.5% mysteel.com 0.8% dhgate.com 0.7%
global market.com 1.7% others 25.3%

alibaba.com 59.0%

cn.made-inchina.com 2.0%

hc360.cn 9.6%

Source: iUserTracker. Home & Office version of 2011.10. It is calculated based on long-term monitoring data of over 200 thousand Internet users' online behaviors at homes & work locations excluding the public Internet access sites. 2011.3 iResearch Global Inc. www.iresearchchina.com

Chart 2-3 iUserTracker- Market Share of Major B2B Ecommerce Websites' Number of Visits in 2010

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iResearch China SME B2B E-Commerce Research 2010-2011

2.2.2. Condition of the Market Share of Page Views of Chinas B2B E-commerce Websites in 2010

iUserTracker-Market Share of Major B2B Ecommerce Websites' Page Views in 2010

315.com.cn 0.4%
others 20.2%

globalsources.co m 0.9% globalmarket.com 0.9% mysteel.com 1.0%

cn.made-inchina.com 1.9%

alibaba.com 65.3%

dhgate.com 2.6%

hc360.cn 6.8%

Source: iUserTracker. Home & Office version of 2011.10. It is calculated based on long-term monitoring data of over 200 thousand Internet users' online behaviors at homes & work locations excluding the public Internet access sites. 2011.3 iResearch Global Inc. www.iresearchchina.com ..

Chart2-4 iUserTracker-Market Share of Major B2B Ecommerce Websites Page Views in 2010

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iResearch China SME B2B E-Commerce Research 2010-2011

2.3. User Size-Key Enterprises 2.3.1. Number of the Monthly Unique Visitors of Chinas Major B2B E-commerce Websites

iUserTracker- Number of Monthly Unique Visitors on China Third-party B2B E-commerce Platform in 2010
180 55.0% 3.4% -27.9% 125 120 96 90 69 60 107 111 118 110 117 120 -0.6% 7.5% -0.9% 7.1% 6.0% 127 116 119 3.1%

150

-4.3%

-9.0%

30

0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

monthly unique visitorsmillion people % quarter-on-quarter growth rate Source: iUserTracker. Home & Office version of 2011.10. It is calculated based on long-term monitoring data of over 200 thousand Internet users' online behaviors at homes & work locations excluding the public Internet access sites. 2011.3 iResearch Inc www.iresearchchina.com .

Chart2-5 iUserTracker- Number of the Monthly Unique Visitors on Chinas Major B2B E-commerce Websites

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iResearch China SME B2B E-Commerce Research 2010-2011

2.3.2. Monthly Number of Visits to China Major B2B Ecommerce Websites

iUserTracker-Monthly Number of Visits to China Major B2B Ecommerce Websites from 2010.1 to 2010.12
450

360

270

180

90 monthly visits million alibaba.com hc360.com made-in-china.com dhgate.com 315.com.cn

0 Jan 300 64 11 3 4 Feb Mar 151 34 6 2 1 331 55 11 2 3 Apr May Jun 363 57 13 4 3 361 60 12 4 3 367 68 14 5 3 Jul 390 66 14 7 2 Aug Sept Oct 419 71 15 8 2 398 57 15 6 2 414 61 15 6 1 Nov Dec 434 62 15 4 1 433 51 10 6 1

Source: iUserTracker. Home & Office version of 2011.3. It is calculated based on long-term monitoring data of over 200 thousand Internet users' online behaviors at homes & work locations excluding the public Internet access sites. 2011.3 iResearch Global Inc. www.iresearchchina.com .

Chart 2-6 iUserTracker- Monthly Number of Visits to China Major B2B Ecommerce Websites from 2010.1 to 2010.12

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