April 17 -- The Chinese market share of U.S. e-commerce giant eBay plunged to a
record low last year as local rival Taobao.com gained further ground, according
to an industry report.
The Chinese market share of U.S.
e-commerce giant eBay plunged to a record low last year as local rival
Taobao.com gained further ground, according to an industry report. (File
China IntelliConsulting Corp, founded by Internet
industry analyst Lu Bowang, said Monday that eBay's share in the Chinese
consumer-to-consumer e-commerce market in 2006 was 15.4 percent.
That was in sharp contrast to its 29.1-percent market
share in 2005, according to another survey conducted by Lu a year ago. This
year's survey was done in the first three months and involved 4,000 online
traders in five cities: Beijing, Shanghai, Guangzhou, Chengdu and Wuhan.
Local rival Taobao, a subsidiary of Chinese
e-commerce firm Alibaba, partly owned by Yahoo!, rose from 67.3 percent to 82
percent in the period.
The situation is a reversal of that three years ago
when the U.S. giant held an overwhelming majority of market share in China.
Paipai.com, the online trading arm of the largest
Chinese instant messaging firm Tencent, was third with just 2.7 percent of the
"Even I didn't expect the market shares of eBay and
Paipai to be so low," said Lu, who has been researching Chinese dotcoms since
Chinese joint venture Tom Eachnet, which was formed
in December and is expected to run eBay's trading business, declined to comment,
but said the new trading platform will start operation in the middle of 2007 and
will launch localized and richer services.
And 24 percent of sellers in Beijing, Shanghai and
Guangzhou said in the survey that they planned to open new online stores on
Taobao in the next six months, while only 8 percent chose eBay China and 10
Up to 26 percent of sellers said they would close
their shops on eBay China's website, compared to 7 percent on Taobao and 12
percent on Paipai.
(Source: China Daily)