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1、CONTENTS Error! No text of specified style in document. April 2012 | 1-800-330-3772 | IBISWorld Industry Report 6592 Mail-Order this number represents 38.3% of the population. The number of internet users is forecast to surpass 550 million in 2013. Greater government assistance and strengthened re
2、gulations will help the industrys development in the next five years. However, the industry faces competition from many other industries, such as online secondhand trading (e.g. eBay), and online retailing by existing retailers and manufacturers. Industry revenue is forecast to grow at at the slower
3、 annualized rate of 23.9% over the next five years to total $18.0 billion in 2017. Key External Drivers The key sensitivities affecting the performance of the Mail-Order online sales currently generate 73.0% of industry revenue. Over the five years through 2012, industry revenue has been increasing
4、at an annualized rate of 58.6% per year. Over the same period, the number of online consumers has been growing 48.0% per year. As online payment systems and customer service improve, online shopping will continue to attract consumers. Chinas online shopping market will continue to expand at high rat
5、es. In 2012, industry revenue is expected to increase 43.5% to $6.2 billion. In February 2008, a cold snap in South China forced online retailers whose delivery establishments are concentrated this area (i.e Joyo Amazon and D) to find alternative delivery methods. In May, a devastating earthquake st
6、ruck Wenchuan, Sichuan province, killing tens of thousands of people and destroying most of the infrastructure in the area. During this period, online purchases were low in many parts of China. Additionally, delivery to, and online ordering from, disaster areas was severely affected, negatively affe
7、cting industry performance in some markets and regions. Despite these problems, however, industry revenue totaled $1.3 billion, up 109.6% from 2007. The industry was also unaffected by the global recession in 2009. Due to greater convenience and better pricing, more households shifted to online purc
8、hases. In 2010, the internet shopping market developed rapidly due to improved internet shopping services and higher numbers of consumers shopping online. Mecoxlane and D, two leading internet shopping operators, were listed on the New York Stock Exchange that year. Differentiation Through product s
9、pecialization, industry operators can avoid direct competition with major players that retail general merchandise, such as D and Joyo Amazon. For example, HongHaiZi retails mother- and baby-related products online, while PPG sells clothing. Websites such as also have arrangements with writers and p
10、ublishers to provide direct online book sales. WWW.IBISWORLD.COM.CN Mail-Order this number represents 38.3% of the population. The potential market of Chinese online shoppers is huge. The government has released suggestions and plans on developing electronic commerce, which will benefit this industr
11、y over the next five years. WWW.IBISWORLD.COM.CN Mail-Order 73.0% of industry revenue is generated from sales via websites. Growth in the e-commerce segment is driven by the rising economy and the WWW.IBISWORLD.COM.CN Mail-Order however, larger companies will be more profitable due to economies of s
12、cale. Depreciation Operators in this industry are faced with depreciating assets, commonly on fixed assets such as computers, servers, furniture, fixtures, technology infrastructure, internal-use software and website development. The cost of depreciation varies among operators depending on their siz
13、e and the number of assets involved. The average depreciation expense for this industry is about 1.5%. Purchases Purchases (i.e. cost of goods sold) consist of products purchased from suppliers for resale to consumers via the internet, telephone, or mail-order catalogs. This category makes up the la
14、rgest component of the industrys cost structure, accounting for about 80.0% of industry revenue. Rent and utilities Operators of traditional stores require physical locations from which to operate their businesses, incurring costs for rent and utilities. However, in the case of remote retailing, the
15、se costs are reduced significantly. Wages Unlike traditional retailers, wages are a relatively small component of the cost structure for players in this industry, representing approximately 1.9% of revenue in 2012. Few people are needed to fill orders that are placed remotely. Furthermore, labor in
16、this industry usually requires low levels of specialization and training on unified platforms. Other costs WWW.IBISWORLD.COM.CN Mail-Order however, these businesses generate approximately 20.0% of industry revenue. Foreign investment has brought advanced management into the China market. China opene
17、d the retail market to foreign investment in December 2004 as a result of joining the WTO (World Trade Organization) in December 2001. This enabled foreign retailers to enter China more easily. Foreign capital enters the industry by investing in existing domestic companies. More foreign players are
18、expected to enter the industry in the next five years, increasing the globalization level. WWW.IBISWORLD.COM.CN Mail-Order & Online Shopping in China April 2012 24 Major Companies Major Player Market Share Beijing Science and Culture Book Information Co., Ltd. 15.1% (2012) Happi Go Co., Ltd. 13.3% (
19、2012) Shanghai Mecoxlane International Mailorder Co., Ltd. 10.7% (2012) Best One Home Shopping Co., Ltd. 9.1% (2012) Beijing Century Joyo Information Technology Co., Ltd. 8.5% (2012) Other 43.3% (2012) Beijing Science and Culture Book Information Co., Ltd. Industry Brand Names:D Market Share: 15.1%
20、D was established in November 1999 in Beijing. It is one of the largest book retailing websites in China with very competitive prices. In 2001, Dangdang began selling audio and video products in addition to book. In 2004, Dangdang began retailing other types of products, although books remain its pr
21、imary focus. In 2004, Amazon tried to acquire Dangdang for $150 million before negotiating with Joyo. However, Dangdang refused the acquisition deal as it wanted to retain autonomy. Amazon acquired Joyo at a much lower price. With 20,000 square meters of warehouses in Beijing, East China and South C
22、hina, Dangdang has implemented cash-on-delivery systems in over 180 cities. It delivers products to consumers across mainland China, Hong Kong, Macau, Taiwan, and several foreign countries. Its product categories include furnishings, cosmetics, digital appliances, jewelry and leisure products, books
23、 and audio and video products. Additionally, Dangdang allows suppliers to open dedicated shops on its website, providing integrated product search and payment services, while keeping warehousing and delivery independent. In 2011, Dangdang generated $575 million, up 59.0% over 2010. However, gross pr
24、ofit decreased 8.4%, due to its large investment in advertising and marketing promotions.In December 2010, Dangdang was listed on the New York Stock Exchange with a total financing value of $313.0 million. Happi Go Co., Ltd. Market Share: 13.3% WWW.IBISWORLD.COM.CN Mail-Order & Online Shopping in Ch
25、ina April 2012 25 Happi Go was established in 2005 and has developed into one of the leading home TV shopping enterprises. The company provides over 6,000 kinds of products in 18 categories, including home appliances, digital communications, home supplies, jewelry, skincare, luggage, clothing, trave
26、ling, and insurance. Headquartered in Hunan, Happi Go mainly operates in the Yangtze River Delta, Pearl River Delta, and Chinas major markets. It operates in 15 provinces and municipalities, covering 64 regional markets, and has over three million memberships. Happi Go Co. has four production and op
27、eration areas and a call center with over 600 seats. With 20,000 calls daily, the company has formed the most advanced home shopping IT system in China. In 2010, Hongyi investment, Sequoia Capital and CITIC Industrial Fund invested $51.1 million in Happi Go, the largest investment into the TV shoppi
28、ng field that year. From 2006 to 2010, Happi Go experienced strong revenue growth, generating $324.0 million in 2010. Shanghai Mecoxlane International Mailorder Co., Ltd. Industry Brand Names: Mecoxlane, Euromonda Market Share: 10.7% Shanghai Mecoxlane International Mailorder (MIM) was established i
29、n January 1996 with investments from venture capital funds E.M.Warburg Pincus and iVentures. MIM was the first joint venture approved by the Chinese government to operate a mail-order business. MIMs mail-order business covers 31 provinces and municipalities and serves over 2.5 million customers. In
30、April 2000, MIM started a website and built a 10,000 square-meter shipment center in Shanghai. Currently, MIM offers non-outlet sales of books, electric appliances, cosmetics, clothes, sporting goods, supplies for mothers and infants, and pet supplies. MIMs major market is white-collar women between
31、 20 and 35 years old. MIM has also extended its business into other areas. For example, it has its own womens clothing brand, Euromonda, which is sold online, via mail-order, and in over 30 specialty stores across the country. Moreover, MIM has established many Mecoxlane specialty department stores.
32、 These are owned by the company and by franchisees. MIM is a leader in multiple channel retailing. It has over 2,000, retail stores, and is developing its e- business and telephone sales and distribution. In 2008, Sequoiacap China invested $85.0 million in Mecoxlane. In 2010, MIM was listed on the N
33、ew York Stock Exchange with a financing value of $129.0 million. Best One Home Shopping Co., Ltd. Market Share: 9.1% Best One Home Shopping was established in 2006 by Zhejiang TV Station Group. Based on its advantage in TV broadcasting, Best One Home Shopping covers the most developed regions in Chi
34、na. It has introduced an advanced information system and automated storage, with a customer service center of over 300 seats. The number of effective memberships to Best One Home Shopping has expanded at a high rates. Best One Home Shopping has established relationships with over 600 well-known supp
35、liers, covering five major goods groups: personal fashion products, jewelry, information appliances, living goods, and beauty WWW.IBISWORLD.COM.CN Mail-Order & Online Shopping in China April 2012 26 and health products. It has integrated the sales channels of TV home shopping, online shopping and di
36、rect mail to serve its main consumer groups. Beijing Century Joyo Information Technology Co., Ltd. Industry Brand Names: J, A Market Share: 8.5% Amazon China, operating under the brand Joyo Amazon, was established in 2000 by Beijing Century Joyo Information Technology. In August 2004, Amazon acquire
37、d all of Joyos stock at a cost of $75.0 million, turning Joyo into a subsidiary of Amazon. Joyo has been operating its online retailing business since 2000. Its main product categories are books and audio and video products. Its service coverage was originally Beijing, Shanghai and Guangzhou, but it
38、 has since expanded offering cash-on-delivery services in 346 from its three logistics centers in Beijing, Suzhou and Guangzhou. After being acquired by Amazon, Joyo gradually applied Amazons advanced technologies to enhance its background management, such as electronic data interchange systems to c
39、ontact suppliers instantly, an inventory system to forecast demand of different products in different regions, and an inventory database to enable rapid product inquiry and tracking. In October 2007, underwent a comprehensive overhaul of its website, mimicking completely. This transformed it from
40、a book and audio and video website to having 20 product categories, including digital consumer products and cosmetics. In June 2007, Amazon CEO Jeff Bezos visited China for the first time, announcing that Joyo would be replaced by Joyo Amazon and that would coexist with . His visit significantly in
41、creased consumer confidence in the website. Neither Amazon nor Joyo have released any financial information about Joyo Amazon. However, according to its direct competitor Dangdang, Joyo Amazon has been experiencing losses since its founding. There are several reasons for the losses. First, online bu
42、sinesses are developing slowly in China. Second, online retailing of a large range of products and broad service coverage requires large investment. Amazon in the United States only began to be profitable profit in 2003, nine years after its launch in 1994. Third, after the acquisition, the systems
43、and business module Joyo had been using were replaced by Amazons at a major cost. Lastly, moving from two categories of products to twenty categories caused a shift of management focus and let competitors like Dangdang seize the opportunity to expand their market shares. However, with the transforma
44、tion completed, Joyo Amazon is expected to regain market share and become profitable. Amazons success in the United States indicates a positive future for Joyo Amazon. Other Players Shanghai Lianhua E-business Co. Ltd. Shanghai Lianhua E-business (SLE) was established in 2000 in Shanghai from a join
45、t investment of Lianhua Supermarket Holdings Co. Ltd. and Shanghai Friendship Group Incorporated Company. SLE inherited almost all operation modules from Lianhua Supermarket Holdings, including logistics network management, procurement systems and membership systems. SLE is engaged in electronic ret
46、ailing via several approaches. It has a website () that retails products sold in Lianhua supermarkets, telecommunications products, appliances and miscellaneous goods. It has another website () that retails various consumer cards, such as prepaid phone WWW.IBISWORLD.COM.CN Mail-Order & Online Shoppi
47、ng in China April 2012 27 cards for cell phones and landlines, points cards for online computer games and Shanghai-specific Shenfu cards for civic service fees. SLE also has a telephone ordering hotline, which retails the same categories of goods as but offers telephone-ordering services. This hotl
48、ine has 180 telephone lines and is capable of providing manual consulting and ordering services 16 hours a day, every day, and of providing 24-hour automatic voice inquiries and ordering services. SLE also has a website () that provides special offers to members of SLE and Lianhua supermarkets. SLE
49、outsources its payment, warehousing, procurement system, and logistics systems. Because SLEs goods are shared with Lianhua supermarkets, its delivery range and service coverage are limited to Shanghai. This has slowed its development in the industry when compared with nationwide companies. Shanghai Zhengguanghe Online Shopping Co. Ltd. Sha