Analysis of International and Chinese marketplace for the Prospect in ECommerce Industry October 2011
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International Marketplace Growth dependent on Chinese exports •
• • • •
International marketplace accounts only for 38.3% of total users, 25.1% of total store fronts but it accounts for 61% of total revenues for the prospect US, EU and India account for more than 44% of prospect’s registered user base. The store fronts are still dominated by Chinese suppliers with international suppliers accounting for only 8.6% of total stores The segment revenue is largely dependent on the performance of Chinese suppliers and their exports. VAS Revenue accounts for 28% of China Gold supplier revenue
Registered users and Storefronts(millions) 25
18.0
0.0 2008
2009
United States
3.8
16.5%
200
European Union (without UK)
3.0
12.6%
150
9.3%
United Kingdom
1.4
5.3%
Australia
0.8
2.9%
2010
2011(june) Storfronts
Paid users (in thousands)
% of Total International Users
2.1
0.5
11.6
8.9
0
Number of Users(Mn)
India
1.0
23.4
Registered Users Country
1.5
1.0
10 5
2.0
1.4
20 15
1.9
1.7
177
100 58.2 50
132.4
122.3
121.3
112.2
10.6
9.1
111.1 96.1
43.0 16.5
0 2008 2009 Paying members
2010 2011(june) China Gold suppliers
Global Gold supplier Source: Company Report, Morgan Stanley Analyst report.
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China Marketplace Growth Driven by Strong Chinese Online Retail • •
• •
The china marketplace generates revenue by charging a subscription fee on the China Trust pass members Membership has slowed down and paid members have decreased slightly in Q2 2011 due to the tightening entry requirement standards. Trust pass membership is closed to new members VAS services contribute to 20% of the China Trust pass revenue. Advance and premium placement are the main contributors. Strong growth prospects for a transaction based B2C platform
Registered Users and Storefronts 50
10
40
8
30
6
7
6.3 5.1
20
4
3.3
10
2
31.5
34.8
41.8
45.3
2008
2009
2010
2011(june)
0
0 Registered Users
Growth in Paid users lags growth in storefronts • • •
The growth in the China marketplace revenue is driven by the growth in paying members (China Trustpass members). This is currently at 18.3% slightly behind the growth of storefronts on the china marketplace. The current portion of paid suppliers are at 9.1%, which prospect needs to improve to generate higher revenue.
Storfronts
Storefronts, Paid (China Trustpass) Members 8,000
10.3%
7,000 5,425
6,000
9.2%
9.8%
5,000 4,000
12.0%
7,382
6,874
10.0%
8.4%
3,548
8.0% 6.0%
3,000
4.0%
2,000 1,000
511
377
657
649
0
2.0% 0.0%
2008 Storefronts
2009 Paying members
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2010
2011(June)
paid members as % of storfronts
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