China Food E-Commerce Industry Market Research and Investment Forecast Report, 2013-2017
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As an important industry of modern service industry, E-commerce is regarded as “sunrise industry, green industry”. It is the direct result of Internet explosive development and the new development direction of network technology application. The internet characteristics, which are open, global, low-cost and high efficient, are also the internal features of E-commerce. As a new trade, the E-commerce is with a higher value, changes the production, operation and management and has an impact on the whole social economic operation and organization. As the network economic era is coming, development of E-commerce means not only business opportunities but also the birth of new global network-driving economy for a corporation. E-commerce in China develops rapidly and has become an important marketing channel and brand promotion channel.
The total sales revenue of China food industry in 2011 is 7.62 trillion Yuan with a year-on-year growth rate of 38.52%; the total industry output value is 7.66 trillion Yuan with a year-on-year growth rate of 38.88%; the total selling profit is 902.759 billion Yuan with a year-on-year growth rate of 44.62%; the total profit is 549.5 billion Yuan with a year-on-year growth rate of 55.34%. View from the growth scale the production and marketing of food industry is in healthy increase and the growth of profit is higher than that of production and marketing. It means the industry profit level is increasing. And the China food consumption is upgrading since 2010 due to the unification of key items of food industry, quality issue and rise in price. But the reactions of China food corporations reflect that they are not yet ready for the up grade. Their marketing ideologies are still in the model which focuses on traditional products. Therefore they lack of strategic penetration of consumption demand, technology up-grading and business model, etc. It results in the homogenization rather than fresh situation for current food industry.
It is the common sense for food corporations to develop E-commerce and expand new marketing channels as well as brand promotion channels. However, according to market research data the proportion of vertical food E-commerce network to E-commerce is only 3.9% which is far lower than the industry position. The food E-commerce is still on the primary stage and with great potential.
The COFCO I Buy Network successfully starts business in 2009. Its E-commerce is labeled as low price, green and safety. And depending on strong strength of COFCO and completed industrial chain, the I Buy Network comes to be the leader of food B2C stores since its establishment. Besides, some big-scale general-merchandise-oriented B2C platforms also start the food on-sale, such as 360buy and DangDang. In the meantime, there are two mainstreams for food online sale. The first one is some outstanding food online shops of C2C trading platforms (such as Taobao) like Double Golden Candy House and Beans Home, and some special local product online stores. The second one is some brands B2B in the fields of food segmentation, such as Food Business Network, Food Partner Network, Premier Food Network and China Candy and Wine Network which with a fast development.
Competition for future food E-commerce industry is fierce and the industry is doom to reconstruct. On one hand, enterprises with strong financial background will occupy large-scale E-commerce market by the way of merger and purchase and it has a high requirement for the financing capability. And the entry of mature networks which possess geographical advantages, dealer and user resources will become the new threat for the existing E-commerce networks. Maybe there is a similar micro-blog story for future E-commerce: developing from copying and introducing independent small-size networks to a module function of big companies and big platform. On the other hand, the practitioners face challenges like standardization service system construction for food E-commerce network, meeting the users’ experience demand, related logistic quality and loyalty construction of online shoppers.
Main features of this report is forward-looking and timeliness. It bases on the abundant first-hand market data and roundly analyzes the market status, development mainstream, external environment, competitive landscape, platform selection and construction for food manufacturing corporations and food E-commerce corporations. It is of high value for food corporations and E-commerce corporations to accurately handle the latest industry development trend and market opportunities, and make a correct management strategy as well as clear the enterprise development direction.
Here, we’d like to express our sincere gratitude to Commerce Department and China International E-Commerce Center, State Administration for Industry and Commerce, National Statistics Bureau of China, National Tsing Hua University Library, Institute of Market Economy of the State Council Development Research Center, and Beijing Qinghua Forward Market Research Center, etc. Thank you so much!
Notice: all the market data, especially the corporation list data in this report is only for business reference. Please don’t take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!
Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Food E-Commerce Industry
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