China remains a market of huge size, short-term opportunities and intriguing potential for foreign companies willing to take risk and go through a long learning curve. To help you explore market possibilities, we provide a China ecommerce 2015 roundup and predictions for 2016. Thomson Reuters estimates that Chinese firms invested more than $102 billion in 2015. China’s top 10 funding rounds included Didi Kuaidi, Aliyun, Ly.com and Zhongan Baoxian. In 2015, Alibaba invested more than $1.5 billion in funding across Asia. Rakuten doubled its online sales to China and now sells about 150 million products from over 41,000 merchants on its Japanese online marketplace.
Luxury products and services sales will continue sharp growth in China in 2016. Cross-border shopping grew again in 2015 from a maturing marketplace according to Nielsen research. What’s popular with Chinese online shoppers? Taobao says healthy food, smart devices, special interest groups, traditional products and sports. While domestic online sales softened in China, online sales abroad for luxury items grew reported Jing Daily. Alibaba had a major coup by avoiding staying on the US blacklist for counterfeit goods.
After fueling $1 trillion Asia deal spree, China’s M&A set to scale new heights in 2016
China Inc’s outbound acquisitions spree in 2015 helped push Asia-Pacific’s annual deal value past $1 trillion for the first time, with 2016 set for a bigger splurge still as Chinese firms buy even more assets abroad to sidestep slowing domestic growth. Asia-Pacific M&A totaled $1.2 trillion so far this year, up 46 percent from last year, preliminary data from Thomson Reuters showed, as China rediscovered an appetite for outbound deals after 2014’s 20 percent drop. With private companies like Fosun International Ltd in the vanguard, Chinese firms spent a record $102 billion so far in 2015, the data shows.
As well as economic growth slowing to its weakest pace in years, bankers and analysts say a need to acquire cutting-edge technology to improve manufacturing, environmental issues and a weakening yuan will all help send Chinese firms like chip makers and agrochemicals suppliers searching for deals overseas next year. Via dealstreetasia.com
China’s 10 biggest funding rounds in 2015
As the year draws to a close and 2016 beckons, we take a moment to reflect on the massive, massive sums of money that were invested in China’s tech startup scene this year. Who took home most of the booty?
Here’s the top ten list, according to Tech in Asia data including: Didi Kuaidi, Aliyun, Ly.com, Zhongan Baoxian, Dianping, Ele.me and more. Via techinasia.com
Alibaba’s biggest investments of 2015
When Alibaba invests, it invests big. None of this softball million-dollar crap. If the sums aren’t in the hundreds of millions – or even billions – of dollars, it’s barely worth Jack Ma getting out of bed.
Alibaba has been investing left and right in 2015. Even limiting our scope to disclosed investments that broke the US$100 million dollar mark, we’re not left with a short list. But these deals were certainly worth Jack not hitting snooze on his alarm. Via techinasia.com
Japanese e-retail leader Rakuten doubles its online sales in China
Rakuten’s Q3 growth from China jumps 101%. The Tokyo-based company plans to open a store soon on Chinese marketplace JD.com.
The falling value of the Japanese yen and China’s relaxed cross-border e-commerce policies have helped Rakuten Inc., Japan’s dominant online marketplace operator, double its web sales in China in the third quarter. Founded in 2007, Rakuten says it now sells about 150 million products from over 41,000 merchants on its Japanese online marketplace, Rakuten.jp. Via internetretailer.com
5 Predictions for China’s Luxury Industry in 2016
As 2015 comes to a close, we’re not only looking back at the year in review for our year-end coverage, but also analyzing what lies ahead for China’s luxury industry in 2016. Based on the developments in the industry we’ve been seeing over the past year, here are our predictions for what luxury brands have in store:
Traveling Chinese luxury shoppers will continue to stay in Asia.
While outbound Chinese travelers have boosted luxury sales in both Europe and the United States, the lion’s share of them continue to travel around Asia thanks to convenience, ease of access, and limited vacation time. Japan crushed the competition this year in terms of Chinese traveler growth thanks to a weak yen and complications for many other destinations—including South Korea’s MERS crisis, Hong Kong’s anti-mainland protests, and safety concerns about Thailand and Southeast Asia.
Chinese shoppers are set to fan out to a wider range of destinations in the coming year as South Korea recovers, Taiwan-mainland links strengthen after the historic Ma-Xi meeting, and burgeoning tourist spots including Cambodia and Sri Lanka invest big in marketing to Chinese travelers. Their preferences will be determined not only by safety issues such as terrorist attacks, but also currency fluctuations and political issues. Via jingdaily.com
Nielsen Survey: China’s Cross-Border Online Shoppers are Increasingly Mature
Thanks to policy incentives, a huge number of fund investments and great consumer demand since 2014, cross-border e-commerce has witnessed rapid growth, an improving ecological environment of the cross-border online shopping and an expanding customer base for overseas merchandize. China’s E-commerce Industry Development and Hangzhou Index White Paper recently issued recently by Nielsen, suggests that affluent and well-educated young people make up the majority of cross-border online shoppers and the cross-border online shopping features at low-frequency and higher spending per order compared to domestic online shopping.
According to the white paper, young men aged 26-35 and young women aged 26-40 prefer cross-border online shopping, compared to their older counterparts. In contrast to domestic online shoppers, these consumers generally work in private enterprises, joint ventures or foreign companies, have a higher education background and a monthly household income of over RMB11,000.
Based on Nielsen’s study, about one-third cross-border online shoppers make 3-5 purchases in the past year or 76% of their domestic online shopping. However, the spending per order of cross-border online shopping is much higher, about 176% of the domestic one. About 1/4 respondents spent RMB1000-3000 per cross-border online purchase and 11% for over RMB5, 000. Via nielsen.com
Taobao data: What do Chinese buy online?
Taobao released a consumer shopping report showing the e-commerce trend in China over the past 5 years. According to this report, Chinese consumer is showing higher demand in the following industries: healthy food, smart devices, special interest groups, traditional products and sports.
Health supplement is among the fastest growing market in F&B industry. Within the health supplement category, digestive enzymes (believed to have a weight losing effect) sales volume has multiplied by 1.3 in the first 3 quarter of 2015. Taobao data shows smart devices is another high growth market. Among the smart watch industry, Apple is leading with around 20% of market share, the rest of the market share is very fragmented. Vacuum robots take most of the market share for home smart devices. Users over 28 purchase more products on average than the younger generation. This may be because users under 28 prefer to shop on other platforms like Tmall, JD.com when buying specialised or higher quality products. Via walkthechat.com
The Top 5 Stories in Chinas Luxury Industry for 2015
As China’s luxury market slowdown continued to hit brands and Chinese shoppers bought even more of their goods abroad in 2015, the industry saw many key changes and developments.
As the year comes to a close, we’ve rounded up the key trends that we saw in the industry, which are likely to continue to have significant effects on the market in the future Via jingdaily.com
Alibaba manages big win by avoiding getting named on US blacklist for counterfeit goods
Chinese e-commerce giant Alibaba Group Holding Ltd has avoided being named on a US blacklist for sites hosting the sale of fake goods, a victory for the firm after lobbying hard to avoid inclusion on the list. The US Trade Representative (USTR) said, though, it was “increasingly concerned” about Alibaba‘s enforcement programmes and warned it must make a greater effort to stop the sale of pirated and counterfeit products on its online platforms.
Inclusion on the annual list of the world’s most “notorious markets” for sales of pirated and counterfeit goods, while not carrying direct penalties, would be a blow to Alibaba‘s efforts to shed perceptions its sites are riddled with fakes. The firm has pushed hard over the last few months to avoid being named on the list, concerned it could drag down its share price after coming under renewed pressure this year over suspected counterfeits on its platforms. Via dealstreetasia.com
We will continue our coverage of the complex Chinese market in 2016. As this is our last post of 2015, we take this moment to wish you a happy and successful New Year. Watch for our first post of the year on Monday, January 4th.