Alibaba Still Dominated China’s SME B2B E-Commerce Market in 2016

Generally speaking, the revenue of China’s B2B platforms for small- and medium-sized enterprises (SME) increased steadily. According to the latest data from iResearch, the revenue of China’s B2B platforms for SMEs totaled 23.59 billion Yuan with in 2016, up 17.1% from 2015.

iResearch holds the opinion that the revenue was influenced by three factors. The first is the capital market. 169 B2B companies had raised 15 billion Yuan financing in total until second third of December 2016, indicating that B2B platform companies were popular in capital market.

The next is the export and import market. In 2016, China’s exports and imports totaled 24.3 trillion Yuan in 2016, falling 1.1% from 2015. This downtrend in foreign trade market exerted a certain influence on the import and export businesses of small- and medium-sized companies.

The last is the strategy of B2B platforms. Many platforms adjusted their strategies and businesses in 2016 to pursue a diversified development. Alibaba started to pay attention to the revenue of their platform and raised the fee for membership; DHGate enhanced the regulation of the registration on the platform; HC360 invest in more market segments; Cogobuy established IngDan platform to explore intelligent hardware field. What’s more, the B2B platforms integrated resources in the supply chain and increased their investment in B2B 2.0 businesses, such as online trade, O2O businesses and Internet finance, which will accelerate their revenue growth.



Seen from the revenue of main platforms, China’s SME B2B e-commerce market was dominated by Alibaba in 2016. Alibaba together with other main players took up 70% of the market, showing a high market concentration.



In 2016, top 9 core companies took up 72.9% of small- and medium-sized enterprises’ B2B e-commerce market. Alibaba maintained its leading position with a share of 47.5%; Global Resource and JQW ranked the second and the third with a share of 5.6% and 5.1% respective, the both of which expanded slightly. The fourth and fifth were DHGate and HC360 with a market share of 4.8% and 4.6%. They both adjusted their businesses in 2016, but it will take some time to take effect. Other B2B e-commerce platforms had steady growth and their market share remained unchanged.



In 2016, China’s SME B2B e-commerce platforms all maintained a steady growth. Among the top 9 companies, Alibaba had the highest revenue and a growth the same with the whole sector, showing an obvious advantage over other companies; Toocle had the highest growth rate which was nearly twice of that of other companies, indicating a huge competition potential. Other companies had relatively equal revenue and growth, keeping a comparatively stable competiveness.


Source: iResearch
Date: 2017-02-13