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China B2B Market Quarterly Tracker Q4 2005
Analysys International, April 2006
Domestic e-commerce, particularly, the B2B market is developing very well. More and more small and mid-sized enterprises are beginning to use the B2B platform to carry out product and image marketing activities. This multi-functional platform will also largely promote credit management and trading practice.
Market expansion can be attributed to the fact that small and mid-sized enterprises are increasingly aware of B2B e-commerce service. To be more specific, the increasing number of charge user and vigorous information campaign help expand the market.
However, there are some problems: the rate of access to e-commerce for small and mid-sized enterprises is low; domestic B2B market is in the initial stage of development; scale effect of internet service is blocking the way to occupying market and obtaining benefits for new entrants. But against the back ground of B2B boom, from mid 2005, poured into the market were a host of B2B service suppliers from small and mid-sized companies specialized in the sector. Therefore, to some extent, the market will be dominated by three major players in 2006, namely, alibaba.com, hc360.com and global resources.com. Performance of new entrants in this field is yet to be identified, but their market share will grow.
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