Revenue of China’s SME B2B Platform Experienced Steady Growth in Q3 2016

According to the latest data from iResearch, the revenue of B2B platforms for Chinese medium- and small-size companies (SME) had a steady growth. It attained 6 billion Yuan in Q3 2016 with a YoY growth of 13.7% and a QoQ growth of 3.7%. Alibaba took a share of 49.1% with the significant growth.

Generally speaking, the revenue of B2B platforms for Chinese SMEs had steady growth in Q3 2016. The latest data from iResearch showed that their revenue attained 6 billion Yuan, rising 13.7% compared with the corresponding period of the previous year and 3.7% compared with the previous quarter.

 

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iResearch holds the opinion that the revenue of B2B platforms for Chinese SMEs were mainly affected by three factors. First was the capital environment. According to data from research institutions, 45 in total B2B companies got investment of more than 4 billion Yuan in Q3 2016, while in the first half of 2016, 86 B2B companies got investment of 7.6 billion Yuan. This indicates that B2B companies were still popular among investors.

The second factor was the import and export market. According to the latest data from China’s General Administration of Customs, China’s total import and export value was 6.4 trillion Yuan in Q3 2016, up 8.1% compared with the previous quarter. This showed the trend of medium- and small-size companies’ import and export trades and the prosperous market accelerated the development of SMEs

The third factor was the structure of B2B platform companies. Some companies further explored B2B markets such as online trade, O2O and Internet finance, and at the same time integrated the supply chain resources. The new profit points stimulated the growth of revenue of B2B platform companies.

Top 9 B2B companies held a market share of 73.7% in total in Q3 2016

In Q3 2016, China’s top 9 B2B e-commerce platforms held a market share of 73.7% in total. Alibaba accounted for 49.1% in the market with a significant QoQ growth of 5.3%. It adjusted its charging plan in Q3. The Chengxintong service fee was raised from 3,688 Yuan to 6,688 Yuan, and the price inquiry service for giant companies on 1688.com was officially charged since Q3. The increase of membership fee and paid member number were the main reasons of its market share growth in Q3 2016. What’s more, HC360 took a share of 5.5% and ranked the second. JQW and DHGate both took up 5.2% in the market and ranked the third and the fourth. Other B2B e-commerce platforms had stable performance in Q3 2016.

Generally speaking, the market share of Chinese SME B2B e-commerce platforms and the strategies of the core platforms were almost unchanged, indicating that the sector run smoothly in Q3 2016.

 

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Source: iResearch

Date: 2017-01-09

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