Alibaba and Tencent are already well known names in the world of global ecommerce. However the Chinese ecommerce sector is set to have an even more dramatic impact on the global economy as businesses which grew by meeting huge internal demand start to turn their focus outwards.
Here, we take a look at ten of the biggest Chinese ecommerce companies as a simple way to get you started.
Alibaba Group Holding Ltd (NYSE: BABA)
Alibaba Group Holding was founded in 1999 and is based in Hangzhou, China. The company’s e-commerce segment provides online and mobile marketplaces in domestic retail and wholesale trade, as well as international cross border e-commerce. Its principal businesses include Taobao, Tmall and Alibaba.com. Taobao Marketplace is a China’s largest C2C shopping destination. Merchants on Taobao are primarily individuals and small businesses. Tmall.com is China’s largest third-party B2C retail platform for domestic and international brands selling to Chinese consumers looking for branded merchandise. Alibaba.com is the world’s largest B2B trading platform for SMEs engaged in the import and export business. Alibaba forecasts strong revenue growth as brands shift their sales and marketing online. Further international expansion to south east Asia via investments in Lazada and Tokopedia will augment Alibaba’s cross-border and international consumer businesses.
JD.com Inc (NASDAQ: JD)
JD.com is China’s largest online retailer by revenue and is headquartered in Beijing, China. Founded in 1998, JD Mall offers the direct sales of electronics products, general merchandise, books, home appliances, digital communications, apparel, food, and other goods. JD mall allows local sellers to open individual shop fronts and can import food, beverage products, clothing and shoes straight from overseas. JD Mall’s cross-border service, JD Worldwide, allows international merchants to sell directly to Chinese consumers without a physical presence in China. The company has the largest fulfilment infrastructure of any e-commerce company in China and recently launched JD Logistics to provide business partners with supply chain solutions, including warehousing, delivery, and after-sales service. JD plans to be the world’s largest user of commercial drones in a bid to greatly lower transportation costs to remote areas.
Tencent Holdings Ltd (OTC: TCEHY)
Tencent Holdings is an Internet service portal, founded in 1998, that provides value-added Internet, mobile and telecom services and online advertising. The Shenzhen-based firm’s leading Internet platforms in China are QQ Instant Messenger, QQ.com, QQ Games, social networking service Qzone, QQ Music, mobile payment product QQ wallet, WeChat and Tenpay. Tencent’s platforms have brought together China’s largest Internet community, to meet their various needs including e-commerce. The significant amount of advertising that flows through Tencent’s services, as well as its online payment platform Tenpay — the second largest online payment platform in China — has made Tencent an important e-commerce player.
Baidu Inc (NASDAQ: BIDU)
Baidu, Inc. is the leading Chinese language internet search provider founded in Beijing in 2000. The firm offers internet search solutions and online marketing solutions and operates as an e-commerce platform with an online payment tool. Baidu Wallet provides online and mobile payment services that enable users to complete closed loop transactions seamlessly. Baidu Wallet integrates with Baidu and other third-party products, which facilitates purchases of movie tickets; services provided by Baidu Nuomi — the firm’s takeout delivery service, and daily commutes via Uber. Baidu’s iQiyi segment engages in the online video business.
Vipshop Holdings Ltd (NYSE: VIPS)
Vipshop Holdings is China’s leading online discount retailer and distribution company. Founded in 2008 and based in Guangzhou, China, Vipshop has over 28 million members and positions itself as a “web special sales mall” with its flash sales and time-limited offers. It offers apparel for men, women and children; footwear; accessories; handbags; sportswear and sporting goods; cosmetic goods; home and lifestyle products and luxury goods. It partners with domestic and overseas brand agents and manufacturers who seek to target brand conscious Chinese consumers with deeply discounted merchandise in limited quantities during limited time periods.
NetEase, Inc. (NASDAQ: NTES)
Founded in 1997, NetEase is a Beijing-based firm offering online internet technology services. It operates through the following business segments: Online Games, Advertising, e-mail Services and e-commerce. The e-commerce segment provides an online selling and payment platform, e-reading applications, matchmaking services, online music, and social networking. NetEase e-commerce solutions offer a diverse portfolio of services available to Chinese consumers on both desktop and mobile. NetEase launched Kaola.com in 2015, which operates on a similar basis to Amazon.com and has a customer base of 15 million. NetEase also operates Yanxuan, a cross-border and private label e-commerce business.
58.com Inc (NYSE: WUBA)
58.com Inc. is a Beijing-based company founded in 2005 that operates China’s largest online classifieds and listing platforms. It enables local merchants and consumers in China to connect, share information, and conduct business.
58.com’s online marketplace contains a vast amount of up-to-date local information in approximately 380 cities, across diverse content categories, including real estate, recruitment, used goods, autos, pets, tickets, yellow pages and other local services. According to the firm’s latest results report, among all 58.com’s categories, jobs continued to deliver the fastest year-over-year growth and increasingly accounts for a larger proportion of total revenues.
Jumei International Holding Ltd (NYSE: JMEI)
Jumei International is a Beijing-based holding company founded in 2010 and is China’s leading online retailer of beauty products as measured by gross merchandise volume. It offers branded cosmetics, skin care, fragrances, baby, children and maternity products, light luxury products and health supplements. The Company has three sales formats: curated sales, online shopping mall and flash sales. The firm’s Jumei Global business offers Chinese consumers convenient access to products sourced directly from overseas and allows them to make payments in Renminbi. It also sells exclusive products, under its private label brands.
Autohome Inc (NYSE: ATHM)
Autohome, Inc. is a Beijing-based holding company, which engages in the development, operation, and maintenance of mobile applications and automobile websites. Founded in 2004, it is the leading online destination for automobile consumers in China, offering used vehicles and new car dealer listings.
The company’s dealer subscription and advertising services allow dealers to market their inventory and services through Autohome’s platform, which extends the reach of their physical showrooms to potentially millions of internet users in China to assist in sales leads generation. Autohome also provides other value-added services, including auto financing, auto insurance, used car transactions, and aftermarket services.
Momo Inc (NASDAQ: MOMO)
Founded in 2011, Beijing-based Momo Inc. operates as a mobile-based social networking and entertainment platform. Momo enables its 85 million users to establish and expand social relationships based on location and interests. Users can discover people and groups nearby, message boards as well as events. The platform offers users an enriched conversation experience allowing them to connect with each other through short-form videos and live streaming. Momo generates revenue from mobile games, paid emoticons, user paid membership subscriptions and mobile marketing services.