Winners And Losers In The Electricity Supplier

P, China's largest home appliance retailer is learning how to compete on the Internet in a small research laboratory adjacent to PaloAlto and HP (HPQ.N: quotes) and Stanford University in California.

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< p > Shenzhen sunning Yun Shang (002024.SZ: quotes) is turning to Silicon Valley experience to help it cope with a huge challenge: facing the competition of Alibaba of the industry giant, how to stand out in China's booming a href= "http://www.91se91.com/news/index_s.asp" e-commerce sub /a market.

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< p > "so you enter e-commerce and want to compete with Tmall Taobao. I think it might be wrong at the beginning," Alibaba chairman Ma Yun recently said at the Hangzhou headquarters of the company. "We should add something that Ali, Tmall and Taobao did not do well, and they might do better."

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< p > according to the data of Euromonitor of consulting company, the Alibaba established by Ma Yun has occupied half of China's online retail sales market through its Tmall network, while Taobao also controls about 80% of C2C online sales.

Alibaba is also preparing for an initial public offering (IPO), which will be valued at more than $100 billion.

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By contrast, China's second largest e-commerce company Jingdong accounts for nearly 13% of the market share of P.

Suning network (online) retail market share, which is mainly engaged in electrical appliances sales, is slightly more than 3%.

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< p > but even if the Alibaba is omnipresent, the huge potential of China's online market can not be ignored. It has attracted Suning, Jingdong, WAL-MART's first store and Amazon and other retailers to enter.

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China's online retail sales are estimated at 1 trillion and 700 billion yuan (US $286 billion) this year, which surpassed the United States as the largest in the world, P Bain &Co. said.

The consultancy expects that online retail sales in China will grow by 32% annually by 2015, which is two times faster than that in the US.

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< p > analysts also estimate that by 2015, online retail sales accounted for more than 9% in the retail sales market in China totaling 31 trillion and 500 billion yuan (US $5 trillion and 170 billion).

This proportion will rise to 25% by 2028.

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Zhang Jindong, executive director and chairman of Suning, said in an interview with Reuters, "we do not think that China's e-commerce market is a single company, that is, Alibaba." P

Because of China's large population, its e-commerce market is very broad and far-reaching.

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< p > < strong > winner and loser < /strong > /p >

< p > in the battle of China's electricity supplier feast, some famous companies have failed. Fierce competition means more bloodshed.

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< p > according to the data of Euromonitor, since 2012, Amazon has changed its name to Z.cn, and its market share has dropped to 1.7% from 7.3% five years ago.

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Amazon P did not immediately comment on China's business.

Last year, the US online retailer told Reuters that the Chinese market would eventually become "huge". The company's goal is to enter the top three of the Chinese electricity supplier market.

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Less than P, Suning competitor, the market share of Gome (0493.HK: market) fell from 2.5% to 0.4% last year.

Bain Capital owns the company's shares.

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The market share of P, including Dangdang, computer maker DELL, new egg, red children and Mcglaughlin international, is also gradually losing its market share.

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At the same time, the Tmall network with < a href= "http://www.91se91.com" > Alibaba < /a > is rapidly expanding its market share. The market share increased from 35% in 2010 to 50.6% last year.

By comparison, Amazon accounts for nearly 20% of its largest market in the US.

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< p > "if you look at the overall situation, there are not many surviving businesses," said Shen Haoyu, chief operating officer of Jingdong, China's second largest online retailer.

Saudi investment company KingdomHolding4280.SE holds part of Jingdong shares.

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< p > "but the real situation is that in the next two to three years, the number of surviving businesses will be even less."

This is the intensity of competition. "

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< p > < strong > play the long term < /strong > < /p >.

< p > the Chinese government issued last week's guidance to encourage consumers to shop online to further help the online retailing industry.

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< p > however, because few companies can compete with Alibaba, retailers are fighting for niche market or making full use of the advantages of offline channels or social media.

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< p > specialized electronic business includes jumei.com, who sells cosmetics, sells alcoholic beverages and buys wine network and discount retail website vip.com.

Vip.com (VIPS.N: market) began to profit in the last quarter of 2012.

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< p > Yi Xun (also known as 51Buy) uses WeChat (WeChat) to attract online shoppers.

WeChat is a popular social messaging application developed by Tencent Holdings (0700.HK: market).

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< p > WeChat has nearly 300 million users worldwide, and micro-blog, which has surpassed Sina (SINA.O: quotas), has become the most popular social messaging application in China.

Alibaba holds 18% stake in Sina micro-blog.

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< p > "if you are good at a certain field, you can do better than any big web site," said Jeff Walters, a partner with China in Boston consulting company (BCG).

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P, WAL-MART's chairman and chief executive, told analysts this month that DougMcMillon, the majority of the company's Yihaodian, is also using WAL-MART's global channels to provide Chinese consumers with imported products they often crave.

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With the help of shop No. 1, WAL-MART's global e-commerce sales increased by nearly 40% in the third quarter, although its sales in 401 outlets in China dropped by 8%, P.

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< p > < strong > struggle for survival < /strong > /p >

< p > in terms of size and commodity category, Jingdong mall and Alibaba are most similar.

Jingdong focuses on selling directly with its own brand, which is its advantage, because shoppers are more trusting in shopping for single, all inclusive sellers.

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< p > however, because of its wide range of packages, the sea has to compete fiercely with Tmall. When confronted with bigger and more abundant rivals, there is a danger of falling into the price war.

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JasonYu, director of Kantar Worldpanel, a retail consultancy, said: "China's online market is likely to be integrated, with one or two large online stores and some smaller specialties in P.

Between them, they may not survive. "

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Internet sales are also the key to survival of traditional entities like Suning, P.

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Less than P, Suning closed hundreds of stores this year and cut its store area for the first time in at least six years.

The company is using bar code scanning system to help consumers in the store to purchase online at any time, and invest in employees and regional distribution centers that are skilled in technology to overcome the logistics bottleneck of online sales.

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< p > as for the lab of Palo Otto, Suning chairman Zhang Jindong hopes to help strengthen Su Ning's Internet dominance and make it better able to compete with Alibaba and Jingdong.

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< p > Zhang Jindong pointed out that < a href= "http://www.91se91.com/news/index_c.asp" > Suning < /a > there are still many things to learn in the development of technology, because that is a new concept for them; they are not only learning, learning in the market, but studying in China as a whole.

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