Tencent CEO Mahuateng: 150 Vertical B2C Will Exceed 100 Million in 2013
Ma Huateng, CEO of Tencent expressed in an IT leader summit held in Shenzhen today that the market scale of consumer electronic field will achieve 100 billion and there will be more than 150 vertical B2C websites with sales volumes of over 100 million in the next few years.
He said, in 2010, the scale of whole online game market is over 30 billion, while the revenue of online advertising and search advertising could get a breakthrough at 30 billion. The e-commerce business acquiring 40billion revenue in 2015 would not be regarded as large for the market will have a double, even triple or quadruple growth and become the largest Internet market finally.
Ma Huateng believes that C2C business has showed a feature of great variety and low price. Many rapidly growing B2C websites are sellers on C2C formerly. They hope their own platforms could achieve deeply vertical, but don’t expect the help of other retailers. They want to control the profit with their own hands.
Regarding the traditional retailing enterprises jumping on board of B2C area, Ma Huateng held the opinion that the whole B2C business will fade out gradually. More and more enterprises will go back and concentrate on their management of supply chain and back-stage. They won’t put all their strength into online marketing and advertising, because once reaching a certain scale, the major concern will be shifted to the quality and supply of goods.
The concentration of B2C area will be enhanced, Ma Huateng believes, but only one or two enterprises are not able to swallow up the whole market. The number of vertical B2C enterprises with turnover of more than 100 million will exceed 150. However, these companies might become objects of acquisition and merger in the future. So in a long run, the vertical B2C area has a very large space for capital activities.
“Online games are e-commerce in essence, only they sell digit instead.” Ma Huateng said,”when we are talking about conventional life service or business service, we see more and more types of online service such as supplying of flight ticket, hotel, and trading, etc. And for life service, we find online recharging, paying, and consumption card. These are all e-commerce business to some extent. Even travelling, lottery, buying and booking tickets could be a kind of e-commerce.”
Speaking of group purchasing, Ma Huateng said it is undoubtedly another highlighted market. “During the hottest period in China, about ten group-purchase websites appeared each day. But it’s also facing the trend of merger like e-commerce. Rapidly introduce from abroad, rapidly improve and rapidly form an industrial chain.”
When talking about social networking websites, Ma Huateng said, “We could make the most of our advantages to combine the websites with the demands of e-commerce. Many international giants are exploring its potential including Facebook, which created a lot of pressure on Google. An enterprise should increase the investment in social networking if it wants to get more related. We should not depend on the past methods but seek the more suitable ones for current development.”
“We saw the social networking websites played a very important role in promoting the development of the whole Internet world. It provides fresh and live messages with human characters. Everyone is logging in. All what you did or said will be recorded. By combining those records, we could better satisfy the marketing demands in the development of e-commerce in future.” Ma Huateng said at last.