China e-Commerce Market Will Reach 10 Percent of Worldwide Retail Sales in 2015

Recent research by consulting firm Boston Consulting GroupChina’s Digital Generations 3.0: The Online Empire, reveals explosive growth of internet usage and e-commerce in China. It’s not such a big surprise for all of us, is it? For sure, we will love the figures disclosed below.

(Photo credit: ShutterStock)

Chinese online retail sales are expected to triple to US$ 364 billion by 2015, which makes the Chinese the largest online retail market by that time, with close to 10% of retail sales occurring online. Thus far, there are more than 193 million online shoppers from an internet population of more than 700 million, and it’s more than 170 million than the U.S. currently has. Notably, this trend driven by more and more Internet users getting online to buy merchandise. This is growing fast, from 36% in 2011 to an estimated 47% of the Internet-using population in 2015.

In the Internet We Trust …

The “Big Three” of internet companies in China, Alibaba with e-commerce,Baidu with search and Tencent with messaging, are in the midst of consolidating themselves and moving into new fields. Interestingly, an increasing number of users put more trust on the Internet as their most trusted source of finding information, at 50%. Television ranked second with 39%, followed by newspapers at 15%. Young professionals and university students lead the pack with 70% and 63% respectively.

If we take a look at last year data, the average time a user spent online increased to 3.6 hours a day. So what do they do when online? Mostly interactivity and content. 79% converse through instant messaging, another 79% enjoy online music and 40% read e-books. What is the position of e-commerce then? It is the second fastest growing activity after micro-blogging.

With regard to the brand that dominates the consumer e-commerce space, unfortunately, the data provided was of two years ago. More products were purchased in Tabao than at the top five brick-and-mortar retailers in the nation combined, with 48,000 products sold per minute. But it already shows something significant.

Businesses Urged to Get Online

Offline and online commerce is like a coin. Companies are urged to have an online presence, instead of only relying on their physical establishments, so that they can engage intimately with customers when they spend their time online, and not just merely do hard selling. Twent percent of consumers say they do research online before buying offline. And this number is predictably growing in the years ahead.

In short, businesses may want to tap into current fascination of the people with the online experience to experiment with new ways to build relationships with the consumers. In particular, the popularity of social media and online video raise opportunities to engage with customers and develop new ways to monetize through innovative business models. Somehow, western companies usually find the Chinese market nearly impossible to penetrate. Or, even if they are successful, apparently there is no chance to dominate, given the prevalence of local brands.

As published in TechWireAsia: http://www.techwireasia.com/2780/china-e-commerce-market-will-reach-10-percent-of-worldwide-retail-sales-in-2015/

China e-Commerce Market Will Reach 10 Percent of Worldwide Retail Sales in 2015

Recent research by consulting firm Boston Consulting GroupChina’s Digital Generations 3.0: The Online Empire, reveals explosive growth of internet usage and e-commerce in China. It’s not such a big surprise for all of us, is it? For sure, we will love the figures disclosed below.

(Photo credit: ShutterStock)

Chinese online retail sales are expected to triple to US$ 364 billion by 2015, which makes the Chinese the largest online retail market by that time, with close to 10% of retail sales occurring online. Thus far, there are more than 193 million online shoppers from an internet population of more than 700 million, and it’s more than 170 million than the U.S. currently has. Notably, this trend driven by more and more Internet users getting online to buy merchandise. This is growing fast, from 36% in 2011 to an estimated 47% of the Internet-using population in 2015.

In the Internet We Trust …

The “Big Three” of internet companies in China, Alibaba with e-commerce,Baidu with search and Tencent with messaging, are in the midst of consolidating themselves and moving into new fields. Interestingly, an increasing number of users put more trust on the Internet as their most trusted source of finding information, at 50%. Television ranked second with 39%, followed by newspapers at 15%. Young professionals and university students lead the pack with 70% and 63% respectively.

If we take a look at last year data, the average time a user spent online increased to 3.6 hours a day. So what do they do when online? Mostly interactivity and content. 79% converse through instant messaging, another 79% enjoy online music and 40% read e-books. What is the position of e-commerce then? It is the second fastest growing activity after micro-blogging.

With regard to the brand that dominates the consumer e-commerce space, unfortunately, the data provided was of two years ago. More products were purchased in Tabao than at the top five brick-and-mortar retailers in the nation combined, with 48,000 products sold per minute. But it already shows something significant.

Businesses Urged to Get Online

Offline and online commerce is like a coin. Companies are urged to have an online presence, instead of only relying on their physical establishments, so that they can engage intimately with customers when they spend their time online, and not just merely do hard selling. Twent percent of consumers say they do research online before buying offline. And this number is predictably growing in the years ahead.

In short, businesses may want to tap into current fascination of the people with the online experience to experiment with new ways to build relationships with the consumers. In particular, the popularity of social media and online video raise opportunities to engage with customers and develop new ways to monetize through innovative business models. Somehow, western companies usually find the Chinese market nearly impossible to penetrate. Or, even if they are successful, apparently there is no chance to dominate, given the prevalence of local brands.

As published in TechWireAsia: http://www.techwireasia.com/2780/china-e-commerce-market-will-reach-10-percent-of-worldwide-retail-sales-in-2015/

Kisah di Lembah yang Melegenda: Dari ‘Nihil’ Jadi Triliuner

Jakarta – Tahun 2010, di sebuah perusahaan layanan rekomendasi perjalanan, NextStop, sosok pemuda berusia 23 tahun ini –Kevin Systrom — ingin mengetahui seluk beluk bagaimana bahasa pemrograman bekerja.

Tidak memiliki latar belakang pendidikan ilmu komputer yang formal, yang dipikirkan adalah mencoba mengintegrasikan elemen check-in Foursquare dengan permainan Mafia Wars.

Setelah belajar setiap malam, prototipe berteknologi HMTL5 dengan nama Burbn lahir dan disempurnakan setiap akhir pekan. Pada sebuah kesempatan, di pesta, manajer produk ini bertemu dengan dua figur penting perusahaan modal ventura Baseline Ventures dan Andreesen Horowitz.

Prototipe diperlihatkan dan ketiganya sepakat untuk bertemu kembali. Setelah pembicaraan lanjutan di kedai kopi dilalui, dia mengajukan pengunduran diri untuk membesarkan produknya sendiri.

Dua minggu sesudahnya, bulan Maret, seed funding sebesar USD 500 ribu diterima. Juli tahun yang sama, NextStop, yang didirikan oleh dua mantan karyawan Google, diakusisi Facebook.

Beberapa fitur ditambahkan dan saat bertemu Mike Krieger, keduanya sepakat untuk fokus pada satu produk saja. Aplikasi yang spesifik dan memang belum ada pada saat itu. Seminggu sesudahnya, prototipe sebagai aplikasi berbagi foto selesai.

Dari aplikasi versi terdahulu, yang dipertahankan hanyalah fitur komentar dan status ‘like’ sementara stabilitas dan kehandalannya ditingkatkan. Dalam waktu 8 minggu, tepatnya Oktober dua tahun lalu, setelah melalui pengujian internal dan eskternal serta perbaikan bug, instant telegram, disingkat dan lebih popular dengan nama instagram, diluncurkan di AppStore.

18 bulan kemudian, perusahaan yang didirikan oleh kedua sosok pemuda di atas, Kevin Systrom dan Mike Krieger, diestimasikan bernilai USD 500 juta. Tahun lalu, hashtag atau tagar dan versi 2.0 diluncurkan serta pendanaan seri A sebesar USD 7 juta (termasuk dari pendiri Twitter Jack Dorsey dan pendiri Quora Adam D’Angelo) diterima.

Perjalanan Bersejarah

Tahun ini merupakan tahun bersejarah bagi perusahaan startup dengan 30 juta pengguna itu. Versi Android yang untuk pertama kali diluncurkan di Google Play mencatat rekor 1 juta unduhan dalam 12 jam. Dana segar kembali diperoleh.

Kali ini senilai USD 50 juta dari pemodal ventura. Yang paling fenomenal adalah Facebook, yang dalam tahapan go public, mengakuisisi penuh dengan nilai USD 1 miliar. Kevin memperoleh 40%, Mike 10% dan sisanya akan dibagikan kepada 11 karyawan serta para investor.

Begitu banyak analisis dan spekulasi beredar menyangkut akuisisi yang menghabiskan seperempat dana tunai Facebook serta masa depan keduanya. Serupa namun tidak sama, sebagai perbandingan, Yahoo! menghabiskan 35 juta dolar saat mengakuisisi Flickr di 2007.

Biaya akuisisi per pengguna sebesar puluhan dolar yang dianggap ‘murah’ sebenarnya adalah sesuatu yang debatable karena ada pengguna Facebook yang juga merupakan pengguna Instagram. Tidak ada data pasti jumlah pengguna yang bergabung kedua media tersebut.

Total sudah 300 juta foto diunggah dengan aplikasi terbaik versi Apple tahun lalu. Singapura, Jepang dan Amerika Serikat merupakan tiga negara dengan mayoritas pengguna terbanyak.

Salah satu kekuatan Facebook adalah foto dan fitur ‘tag’ atas foto yang membuat tingkat user traction dan terutama user engagement menjadi begitu tinggi dan intens.

Dengan target 50 juta pengguna di akhir tahun ini, Instagram berencana untuk melebarkan sayapnya, dimana komunitas tidak hanya berbagi foto namun juga diarahkan untuk berbagi jenis konten lainnya. Dengan tim pengembang yang dimilikinya saat ini, Facebook jelas lebih dari mampu mengembangkan aplikasi serupa maupun khusus untuk berbagi foto.

‘Kemesraan’ dengan Google 

Beberapa bulan terakhir Google dan Facebook sejatinya cukup intensif mengadakan pendekatan kepada kedua pendiri Instagram. Tujuannya? Tidak lain untuk akuisisi.

Dirilisnya Instagram untuk ‘robot hijau’ dengan target 15 juta pengguna tambahan dari kalangan pengguna Android dikhawatirkan akan membuat hubungan Instagram dengan Google semakin mesra. Di sisi lain, dengan menjadi bagian dari Facebook, tingkat independensi Instagram dikhawatirkan pengguna akan menjadi goyah.

Yang jelas Zuckerberg berkomitmen untuk (tetap) mengembangkan Instagram secara independen. Sementara Systrom sebagaimana diutarakan di blognya “It’s important to be clear that Instagram is not going away“. Mengingatkan kita akan hal serupa atas apa yang dilakukan oleh Google terhadap YouTube.

Langkah besar selanjutnya tentu saja layak dinantikan. Sebagai pengguna, mari lanjutkan jalinan tali temali pertemanan dan kekerabatan sembari terus berbagi foto-foto ciamik nan apik!

Sebagaimana dimuat di DetikINET: http://inet.detik.com/read/2012/04/16/102124/1893150/398/kisah-di-lembah-yang-melegenda-dari–nihil–jadi-triliuner