E-Commerce News
Nothing But Net: 2011 Internet Investment Guide by J.P. Morgan
JP Morgan Nothing But Net 2011 Report:
“Nothing But Net: 2011 Internet Investment Guide” by J.P. Morgan (Goldman Sachs) was published on Jan 3, 2011. The 416-page Report delves into how e-commerce is expected to evolve and expand over the next few years, and which factors will play a role in that development. It predicts that e-commerce sales worldwide will top $963 billion by the year 2013, growing at an annual rate of more than 19 percent. The report also projects e-commerce growth of 12.4 percent over the course of the next three years in the U.S., totaling $235.3 billion in web sales by 2013.
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Global Ecommerce Revenue to Grow 19% in 2011, predicted JP Morgan
Nothing But Net: 2011 Internet Investment Guide
According to the annual New Year report by JP Morgan senior analyst Imran Khan, global ecommerce revenue will grow nearly 19 percent in 2011 to the tune of $680 billion. In the US alone, Internet sales are expected to grow 13.2 percent to $187 billion.
And the snowball is rolling fast. By 2013, JP Morgan analysts predict ecommerce revenue will hit a staggering $963 billion.
Naturally, those shopping online are doing so in increasing numbers, with 38 percent of shoppers buying items or services online at least once a month. Those who don’t shop online declined to 12 percent in 2010 from the 20 percent that reported never shopping online in 2007. Higher end consumers are most often likely to shop online, with 34 percent of those who make more than $100,000 or more shopping at least three times per month.
However, ecommerce rates are growing significantly slower than online advertising space. While stats as of 2009 estimate that ecommerce sales represent 3.9 percent of US retail, online advertising comprises 13.7 percent of all advertising in the US.
The future blooms bright for ecommerce, as does finding a parking space in the mall next Christmas season. Why brave stressed out crowds when Google is just a keyboard or app away?
China Online Advertising 2010 Report
Below are the China E-marketing 2010 Report by J.P. Morgan in the “Nothing But Net – 2010 Internet Investment Guide” Report released on January 2010.
The online ad market still only accounts for a small portion of China’s overall ad market (still around 10%). We forecast the online ad market to witness 35% Y/Y growth in 2010, to reach Rmb19.3B (US$2.8B) and 34% Y/Y growth in 2011 to
reach Rmb25.8B (US$3.8B).
China Online Advertising Market Forecast from 2005 to 2011. Source: J.P. Morgan
Search Ad Likely to Grow Faster than Brand Ad.
We expect search advertising to see stronger growth in 2010 than brand advertising. From a top-down perspective, search ad is still ~50% of the total online ad market in China. This compares with 67% in the US. As such, we still see room to grow.
From a bottom-up perspective, we expect: 1) higher adoption of pay-for-performance advertising, 2) search usage to increase with the growing eCommerce market, and 3) use of search ads as a brand advertising tool.
China Online payment Statistics 2010
As of June 2010, the utilization rate of online payment in China is 30.5% and the number of users is 128.1 million, with an increase of 36.2% in the half year. It remains the web application with the fastest growth of users.
China Online payment Statistics 2010. Source: The 26th Statistical Report on Internet Development in China
The reasons for rapid growth of online payment mainly include: firstly, web shopping rapidly increase and promotes the fast growth of online payment. Secondly, the support scope of online payment becomes extensive. In variety, more and more enterprises opened the services of online payment of water, electricity and gas fees, etc. In area, not only first tier cities but a large number of second/third tier cities expand their online payment methods. Thirdly, the online applications between enterprises become more extensive. The much deeper extent of enterprise informization and upgrading of hardware and software facilities all speeds up the upgrading of enterprise information flow; the capital flowing between more and more enterprises tend to be conducted by way of online payment.