Due to the Pendamic this year, e-commerce has undoubtedly ushered in explosive growth. This is especially true of Chinese e-commerce.
In terms of the number of users, the annual active users of the three major e-commerce companies, Alibaba, JD, and Pinduoduo, have continued to rise. Ali is close to the ceiling of the industry, while JD.com has stepped out of its previous decline, and user growth has begun to look back. Pinduoduo’s rapid momentum remains, with quarterly growth leading the three major e-commerce platforms.
According to the second-quarter financial reports of various e-commerce companies, the number of annual active buyers of Pinduoduo increased by about 55 million in the second quarter to 683 million, which is getting closer to the leader Alibaba. JD.com’s annual active buyers increased by more than 30 million, the best performance in the past ten quarters. As the industry leader, the number of active sellers on Alibaba has reached 726 million, which is close to the growth limit.
1. Market prospects
Judging from the 2020 semi-annual report, the penetration rate of e-commerce, the number of active buyers, and the volume of online physical shopping transactions increased rapidly in the first half of the year. In the long run, although the industry has entered a mature period, the growth potential of leading e-commerce companies is still considerable.
2. Current situation
Ali, JD and Pinduoduo are at different stages of development. It seems that the three leading e-commerce companies are in a difficult situation, but their development models and stages of development are quite different.
- Alibaba, occupying an absolute high ground, develops new profit growth points in new retail, cloud computing, logistics and other fields
- Jingdong, based on absolute supply chain capabilities, attracts incremental users through development strategies of expansion in tier 3-4 cities
- Pinduoduo, users are close to the ceiling. At this stage, increasing the repeat purchase rate is the top priority
3. New e-commerce players
There is never a shortage of new players in the e-commerce field. In the first half of 2020, Tencent relied on WeChat to gradually deploy in the fields of social e-commerce and live broadcast e-commerce. Based on its strong intra-city distribution capabilities, Meituan has huge potential in the fields of fresh food and daily necessities, but it is clearly separated from traditional e-commerce competition.