In my article Online Retail Market Booming In China, I outlined how the total transactions in China's B2C market reached $38.03 billion in 2011, an increase of more than 130% compared with 2010.
China's first quarter online shopping transactions were at 228.2 billion yuan, down 0.8% over the previous quarter, but up 40.9% over the same period last year.
Transactions in the B2C market totaled 62.2 billion yuan (27.2%), or around $9.9 billion. Tmall (previously Taobao Mall) leads the B2C-market with a 51.5% market share. As we can see from the above, Amazon (AMZN), Dangdang (DANG) and the others are competing each other for the rest of the pie.
E-Commerce China Dangdang Inc dropped to a 10-week low in New York last Friday, after disappointing forecasts. The stock closed at $5.45. The B2C retailer, posted $172.1 million in revenues and $15.8 million in net losses for Q1 2012. Revenue was up 58%, and the losses were posted against the backdrop of a $3.1 million net profit during the same period a year ago. Increased spending, which was equivalent to 90% of revenue, and compliance spending pushed Dangdang into negative territory.
Dang's CFO Conor Yang stated in an investor conference call on Thursday that Dangdang's revenue in the second-quarter would climb to 1.18 billion yuan or $187 million. That's below the average forecast of 1.27 billion yuan of 8 analysts polled by Bloomberg.
The B2C wars are still ongoing in China and it's still to early to say who is winning. Dangdang could be a high-flyer in the long run, but for now I would bet on Amazon.