The online distribution Market in China !
The clothing online market in China increased by less than 45% in the second quarter of this year, the highest ever downturn, down more than 70% last six months.
JD followed the Alibaba step to explore a custom clothing niche market, apparently preparing for the maturation of online clothing market.
It is worth watching to see if the trend of deceleration continues in the next 2 quarters and whether it would affect the revenue and profit of Baba, JD and VIPS. booming online clothing market in China experienced a sharp slowdown in the second quarter. The annual growth rate fell by more than 70% six months ago to a two-year low of less than 45%. If the sharp slowdown continues in the second half of this year, it will have a significant impact on the revenues and profits of the largest online retailers in China Alibaba (NYSE: BABA), Jingdong Mall (NASDAQ: JD) and Vipshop ( NYSE: VIPS).
According to the latest quarterly report by Analysys, China's trade B2C clothing to look for a record 208.9 billion yuan in the second quarter of this year, an increase of 44.7% compared to there a year. It was also higher than the 186.77 billion yuan in the first quarter. Sales figures for the second quarter of each company are higher than the first quarter due to two factors. First, most people buy winter clothes in the fourth quarter, partly to prepare for the Chinese New Year. Secondly, the second quarter is the time to buy summer clothes and spring. To further stimulate this seasonal demand, various e-tailers have organized in recent years, three promotions, namely 19 April, 20 May and June 18. These three days have become "festivals" national and are successful in driving the overall growth of online clothing market.
Online clothing sales growth rate down nearly 30 percentage pointsHowever, sales of Chinese clothing online now experiencing a strong deceleration. The transaction growth rates each year has dropped from a high all-time 72.2% in the fourth quarter of last year, only 44.7% in the second quarter of this year. It was also the growth rate the lowest in the last two years.