Analysys International Predicts China's e-commerce Industry Will Reach RMB620 Billion in 2005
Wednesday December 22, 8:15 am ET
BEIJING, Dec. 22 /Xinhua-PRNewswire/ -- Analysys International announced, in their ''Research Report Series on Internet -- E-commerce (2004),'' the volume of e-commerce transactions in China reached 440 billion RMB. It's predicted to reach 620 billion RMB in 2005.
Analysys believes that the Chinese e-commerce market has entered into a period of pragmatic development. It now focuses less on raising awareness and seeking short-term profits, but more on developing long-term benefits. E- commerce will become the next trend and profitable market venture. New types of business models for e-commerce in China are constantly emerging, displaying diversified development trends.
Analysys International believes that the three major barriers for the development of e-commerce in China are professional logistics, payment systems and credit systems. In various market segments, companies that are less dependent on logistics, payment and credit will have a relatively smooth development in the Chinese market.
Industry analysis conducted by Analysys International is based on a third party perspective and is vastly different from the financial information publicized by various companies. Therefore, it is able to reveal profitable levels, different business model capabilities and their future development.
Analysys believes that e-commerce, as a platform for business transactions, can provide an environment for information communication, supported by the basic credit systems, while depending less on logistics and payment systems. Online tourism is entering a period of rapid development, depending less on logistics and payment systems. These two business areas are the most promising in the market.
Due to the fact that online retail and personal trade platforms are still limited by logistics, payment and credit problems, online vendors are trying their best to solve payment and logistics problems, while attempting to improve margin benefits with further expansion. In the near future, online vendors hope to gain scaled benefits.
Personal trade platforms are still exploring the appropriate model for their business, while attempting to find a predictable profit. In relation to specific vendors, Alibaba.com has been able to reap profits, Ctrip.com and elong.com look good in profits, Joyo.com and Dangdang.com are in the critical period of attempting to break-even. Eachnet.com and Taobao.com still have a long way to go in the e-commerce market while 8848.com and 6688.com are still exploring their ways.
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