China’s Local Life O2O GMV Is Expected to Attain 590.7 Bn Yuan in 2019

GMV of The Whole Market

In the past two years, a number of O2O platforms emerged in China, which accelerated the development of China’s O2O market. According to the latest data from iResearch, the GMV of local life O2O market reached 327.1 billion Yuan in 2016 with a growth of 28.2%, and is assumed to attain 590.7 billion Yuan in 2019.



GMV of O2O Market Segments

iResearch holds the opinion that the fast development of local life O2O market can be attributed to the surging vertical sectors.

Data from iResearch shows that the GMV of China’s catering O2O market totaled 192.7 billion Yuan in 2016, accounting for 5.3% of the catering industry, and its GMV was expected to reach 289.8 billion Yuan in 2018. iResearch believes that the high growth rate of catering O2O sector indicates more and more catering companies started to explore online businesses.



According to iResearch, the GMV of China’s take-out food O2O sector reached 71.6 billion Yuan in 2016 with a penetration rate of 19.7%, and the GMV was estimated to exceed 150.0 billion Yuan in 2018. iResearch believes that the large GMV of take-out food O2O sector shows catering companies are receptive to O2O, and this contributed much to the high growth rate of take-out food O2O market. Meanwhile, how to improve the delivery efficiency and customer experience are the problems take-out food companies urgently need to solve in the future.



In the recent years, the community retailing O2O sector developed with the instant shopping demand resulted from consumption upgrading. More capital flooded into O2O market and stimulated the development of community retailing O2O market. In 2016, the GMV of China’s community retailing O2O attained 8.2 billion Yuan with a growth rate of 63.9% which implies that there was a large room for its future development. With the maturing of supply chain system and the increase of customers’ demands, the community retailing O2O sector will keep its fast growth in the future and obtain a GMV of 20.2 billion Yuan in 2018.



China’s online movie ticket booking market boomed up these years. Its GMV reached 33.3 billion Yuan in 2016 with a penetration rate as high as 74.7%. iResearch forecasts that its penetration rate will attain 81.5% and its GMV will exceed 40 billion Yuan in 2018. Online movie ticket booking has become the main channel for movie ticket purchase, so iResearch holds the opinion that movie ticket service platforms should search for new businesses and growth points with the saturation of online movie ticket booking market.



Market Structure

In local life O2O market in 2016, catering O2O grabbed the largest market share of 55.3%, and entertainment ranked the second with a share of 33.3%. Online wedding services, maternal & child services, beauty care services and community retailing only held small market shares, but the community retail O2O market with a high growth rate had a larger share than beauty care services O2O market.


Source: iResearch
Date: 2017-01-23