Cross-border

E-commerce Retail

Imports in China: 2016

Report

22

2

The Market in Early to Middle Growth

Stage with 1 Unicorn

Investments in cross-border e-commerce import market averaged 1 to

2 deals per month in 2015. The market was still in early to middle

growth stage with investments concentrating in Series B round. In

addition, a number of investments were in angel and Series A rounds.

The value of each investment averaged 370 million Yuan. Bolome, the

dares horse in the sector, completed 3 rounds of investment in 2015. At

present, Mia has risen to be the unicorn in the market and takes a

commanding lead in valuation.

Company Time Round Value Valuation

(RMB)Note

Beibei Jan. 2015 C $100 mn 6 bnMainly

domestic trade

Ymatou Jan. 2015 B $100 mn 1.5 bn

Bolome

Mar. 2015 Angel$3 mn

300 mnApr. 2015 A RMB 10 mn

Sept. 2015 B $30 mn

Haojiemi Mar. 2015 ASeveral millions of US

dollars/

Taoquanqiu Apr. 2015 AngelSeveral millions of US

dollars/

Gou May 2015 B $50 mn /

BabytreeJun. 2015 D ≈RMB 100 mn

3 bnMainly

communityJul. 2015 / $300 mn

Xiaohongshu Jun. 2015 BTens of millions of US

dollars860 mn

Taoshijie Aug. 2015 B $30 mn 1.16 bn

Mia Sept. 2015 D $15 mn 6 bn

Ou-meng Dec. 2015 Angel Undisclosed /

Wzhouhui Dec. 2015 B RMB 1.57 bn /

Investments in Cross-border E-commerce

Retail Import Market in 2015

The first unicorn

1-2 investment

deals per month

Average value of each

investment: RMB 370 mn

3 rounds of

investment

in a year

33

3

Growing Percentage of Cross-border

Online Shoppers among Online

Shoppers in China

iResearch data shows that cross-border online shoppers made up

22.7% of online shoppers in China, which rose by 9.1% from 13.6% in

2014.

Source: Survey on Online Shopping Behavior of Internet Users conducted by iResearch in 2014 and 2015.

Note: Domestic online shoppers refer to consumers who purchase domestic goods from domestic e-commerce

sites in China.

Cross-border online

shoppers 13.6%

Domestic online

shoppers 99.0%

Cross-border online

shoppers 22.7%

Domestic online

shoppers 98.5%

Share of Cross-border Online Shoppers in

2014

Share of Cross-border Online Shoppers in

2015

44

4

Online Retail Sales of Imported Goods:

Industry Chain

Manufacturer

Consumers

Brand Agent Retailer

Platform-based Direct Sales

Domestic Foreign

Global Comprehensive

Payment Others

Logis

tics

Pro

vid

er

Ware

housin

g

Pro

vid

er

Oth

er

Serv

ice

Pro

vid

er

Onlin

e R

eta

ilers

of

Import

ed G

oods

Supp

lier

55

5

Online Retail Sales of Imported Goods

Skyrocketed in 2015, Growth to Stabilize

in the Next Few Years

As the Chinese government loosened the grip on online retail sales of

imported goods in the second half of 2014, a large number of domestic

e-commerce operators and startups swarmed into the market. Online

retail sales of imported goods reached 118.4 billion Yuan in 2015,

surging 111.9% YoY. The proportion of online retail sales of imported

goods to total online sales of imported goods arrived at 13.2%.

According to iResearch, the market will maintain stable growth in the

next few years amidst favorable government policy.

Source: Based on the financial results published by enterprises, interviews with experts and iResearch’s statistical

model.

21.3 32.6 55.9 118.4

219.8

341.4

526.0

20.1%53.0% 60.0%

111.9%85.6%

55.3% 54.1%

7.4% 7.3% 8.6% 13.2% 19.0% 23.2% 27.9%

-500.0%

-400.0%

-300.0%

-200.0%

-100.0%

0.0%

100.0%

200.0%

02571012141719222426293134363841434648505355586062656770727477798284868991949698101103106108110113115118120122125127130132134137139142144146149151154156158161163166168170173175178180182185187190192194197199202204206209211214216218221223226228230233235238240242245247250252254257259262264266269271274276278281283286288290293295298300302305307310312314317319322324326329331334336338341343346348350353355358360362365367370372374377379382384386389391394396398401403406408410413415418420422425427430432434437439442444446449451454456458461463466468470473475478480482485487490492494497499502504506509511514516518521523526528530533535538540542545547550552554557559562564566569571574576578581583586588590593595598600602605607610612614617619622624626629631634636638641643646648650653655658660662665667670672674677679682684686689691694696698701703706708710713715718720722725727730732734737739742744746749751754756758761763766768770773775778780782785787790792794797799802804806809811814816818821823826828830833835838840842845847850852854857859862864866869871874876878881883886888890893895898900902905907910912914917919922924926929931934936938941943946948950953955958960962965967970972974977979982984986989991994996998100110031006100810101013101510181020102210251027103010321034103710391042104410461049105110541056105810611063106610681070107310751078108010821085108710901092109410971099110211041106110911111114111611181121112311261128113011331135113811401142114511471150115211541157115911621164116611691171117411761178118111831186118811901193119511981200

2012 2013 2014 2015 2016e 2017e 2018e

Online Retail Sales of Imported Goods in China & Growth 2012-2018

Online retail sales of imported goods (bn Yuan)

% Growth of online retail sales of imported goods

% of online retail sales of imported goods to total onlinesales of imported goods

66

6

21.3 32.6 55.9 118.4 219.8 341.4 526.0 1,187.1

1,892.5

2,783.3

3,816.0

4,980.8

6,240.8

7,507.9

1.8% 1.7% 2.0% 3.1% 4.4% 5.5% 7.0%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

022446688110132154176198220242264286308330352374396418440462484506528550572594616638660682704726748770792814836858880902924946968990101210341056107811001122114411661188121012321254127612981320134213641386140814301452147414961518154015621584160616281650167216941716173817601782180418261848187018921914193619581980200220242046206820902112213421562178220022222244226622882310233223542376239824202442246424862508253025522574259626182640266226842706272827502772279428162838286028822904292629482970299230143036305830803102312431463168319032123234325632783300332233443366338834103432345434763498352035423564358636083630365236743696371837403762378438063828385038723894391639383960398240044026404840704092411441364158418042024224424642684290431243344356437844004422444444664488451045324554457645984620464246644686470847304752477447964818484048624884490649284950497249945016503850605082510451265148517051925214523652585280530253245346536853905412543454565478550055225544556655885610563256545676569857205742576457865808583058525874589659185940596259846006602860506072609461166138616061826204622662486270629263146336635863806402642464466468649065126534655665786600662266446666668867106732675467766798682068426864688669086930695269746996701870407062708471067128715071727194721672387260728273047326734873707392741474367458748075027524754675687590761276347656767877007722774477667788781078327854787678987920794279647986800880308052807480968118814081628184820682288250827282948316833883608382840484268448847084928514853685588580860286248646866886908712873487568778880088228844886688888910893289548976899890209042906490869108913091529174919692189240926292849306932893509372939494169438946094829504952695489570959296149636965896809702972497469768979098129834985698789900992299449966998810010100321005410076100981012010142101641018610208102301025210274102961031810340103621038410406104281045010472104941051610538105601058210604106261064810670106921071410736107581078010802108241084610868108901091210934109561097811000

2012 2013 2014 2015 2016e 2017e 2018e

Online retail sales of imported goods (bn Yuan)

Online shopping GMV (bn Yuan)

% of online retail sales of imported goods to total onlinesales

Penetration of Cross-border Online

Shopping Was on the Constant Rise and

Reached 3.1% in 2015

Online retail sales of imported goods in China continued to grow, so did

its penetration in China’s online shopping market.

iResearch predicts the penetration will reach 7.0% by 2018.

Source: Based on the financial results published by enterprises, interviews with experts and iResearch’s statistical

model.

Penetration of Online Retail Sales of Imported Goods

in Online Shopping Market in China 2012-2018

77

7

B2C to Overtake C2C by 2016

C2C e-commerce sites represented by Taobao Global dominated

online retail sales of imported goods market in China from 2012 to

2015. Nevertheless, a large number of B2C e-commerce sites

swarmed into the market in the second half of 2014 following the

loosening of government policy. The share of B2C reached 46% by the

end of 2015.

iResearch believes that B2C model is still in the early growth stage and

thus boasts huge growth potential in the future.

Source: Based on the financial results published by enterprises, interviews with experts and iResearch’s statistical

model.

Note: The share of C2C and B2C is based on online retail sales of imported goods.

1.1% 1.5%

21.7%

46.0%

56.4%62.9% 65.8%

98.9% 98.5%

78.3%

54.0%

43.6%37.1% 34.2%

-230

-180

-130

-80

-30

20

0%

20%

40%

60%

80%

100%

% C2C % B2C

GMV Structure of China’s Online Retail

Sales of Imported Goods Market 2012-2018

88

8

Legal Notice

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and tables in this report are under the copyright protection of

relative laws and regulations on intellectual property rights in

the Peoples’ Republic of China. No organization or individual

is allowed to use the information in this report for any

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Some texts and data in this report are collected from public

information and their copyrights are held by the original

authors. No organization or individual is allowed to use the

information in this report for any business purpose without

written consent from original authors and iResearch.

Data related to operators’ revenues and market forecasts are

mainly obtained through interviews related to the industry,

marketing survey, secondary sources and other research

methods, some of which have not been directly confirmed by

the related operators. Some data published in this report is

based on sampling method and is therefore influenced by

sample structure. Due to the limitation of research method,

sample size and scope of data collection, part of the data may

not precisely reflect real market situation. This report is for

reference only and iResearch is not liable for the accuracy of

the data in this report.

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99

9

Table of Contents

1. Environment for the Development of Cross-border

E-commerce Retail Imports in China

1.1 Online Shopping and Import & Export Trade Market

1.2 Policies

1.3 Consumer Demand

1.4 Investments

2 Status Quo of Cross-border E-commerce Retail Imports

Market in China

2.1 Definition

2.2 Classification

2.3 Milestones

2.4 Industry Chain

2.5 Suppliers

2.6 Inspection & Quarantine

2.7 Logistics Model

2.8 Bonded Warehousing Model

2.9 Operations Models

2.10 Profit Models

2.11 Marketing Models

2.12 Market Size, Growth and Structure

3 Case Studies of Cross-border E-commerce Retailers in

China

3.1 Tmall Global

3.2 Kaola

3.3 Ymatou

3.4 Xiaohongshu

4 Trends of Cross-border E-commerce Retail Imports in

China

4.1 Policy Trends

4.2 Market Size Trends

4.3 Logistics Trends

4.4 Consumer Demand Trends