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E-commerce: a surging market in China Along with Baidu's announcement to enter inpidual e-business field, online shopping has become the "area of contention of businesses". China's most top-valued Internet companies, such as Baidu.com, Taobao.com of Alibaba Group, eBay.com of TOM Online, and Paipai.com of Tencent Group, are competing against each other in the market. According to the data from iR esearch Consulting Group, the market size of online shopping reached RMB12.26 billion yuan in the second quarter of 2007, being 6.81 times of the whole year of 2002. Such a surging increase is just one profile for people's positive expectation about the market. 33219
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In recent years, more and more people have begun to address living problems through e-business mode. Compared with traditional marketing methods, there isn't rental fee for online stores, so that the cost of entrance is pretty low and people without good economic capability could be able to enter the market. Moreover, online stores have an information channel advantage, and all internet users are potential consumers. On the other hand, online shopping is helping part of social members back to the track of positive and healthy life. Shanghai Youth Committee and Social Work advocated to replace online games with online shops, and to encourage youths to work online instead of playing online games, and the effort has obtained good effect. At present, there have been dozens of youths successfully abstaining from internet addiction and obtaining jobs. From the channel of exchanging and transacting secondhand and unused goods, to creating job opportunities for difficult groups, the little online shops are exerting unexpected commonweal value. For most ordinary people, internet is realizing their dreams of working-online to starting up business online. There are too many stories of starting from scratch successfully. Only in the category of "skin care/make-up/perfume" of Taobao.com, the royal crown sellers have taken up five and a half web pages. According to the provision of Taobao.com, sellers will not obtain royal crown until they make over 10,000 successful transactions; almost all of the royal crown sellers have their own employees and have set up their own online service center. The rise of inpidual internet merchants has brought new careers. Although 23-year old Peng Kai hasn't obtained a job after graduating from the design school of a university, he is quite satisfied with his present career. His title is online shop decorator. "Just as its name implies, my job is to 'dress up' online shops and make them more beautiful. From the head to the background, even the pattern of the counter andthe music, all of them need to be unique enough so as to give a big impression to buyers". Peng Kai said that he knows clearly about the online shop patterns offered by major domestic service providers like Taobao.com, eBay.com and Paipai.com, "then make deep processing on their basis, even though it is different to design the promotion sector of each website". The charge of Peng's "decoration" isn't low, the most expensive "super luxury package" is charged at RMB 498 yuan. But Peng said he still has two or three such "big deals" every week, "There are two many big internet sellers. Such a cost is a little case for them if the decoration is pretty enough". In spite of the fast development, inpidual internet merchants are still weak and isolated. Being restricted by limited inpidual power, it is difficult for them to make large size market development and to get the best of bargain with e-business relevant service providers. Therefore, a new internet-based creation-"internet merchant union" arises at the historic moment. Sellers in the same region, of the same industry or even with the same credit level gather together and set up alliances such as "Beijing Merchant Union" and "Cosmetic Merchant Union", the members of the alliances exchange their links in order to make popularization for each other, and consumers might be able to enjoy discount when shopping in different online stores of the same alliance. Internet merchants of Guangdong established "South China Internet Merchants Association" and obtained the highest discount, 70 percent, in the name of the association; the biggest inpidual internet merchant of the union could even save as high as RMB50, 0 yuan express mail services expenses per year thereof. Wang Leilei, CEO of eBay-TOM, defined eBay-TOM as "Internet Wangfujing" that only provides high quality products to consumers. The products are supplied by nearly a hundred manufactures with famous brands and having signed agreement with eBay-TOM to open online flag ship stores, including such famous brands like HP, ASUS, Goldlion and Daphne. The transformation of eBay-TOM testifies the big trend of the mix of B2C (Business to Consumer e-Business) and C2C. Just like what US e-business experts have said, "Consumers do not care where to buy, what they concern is to buy the product with the most preferential price." The active online inpidual shopping platform is becoming a new marketing channel of traditional enterprises, which could even determine the survival or death of a product. Some other enterprises move a single transaction link to the internet and take internet as a necessary transaction method. Many software, digital communication, and commercial service enterprises allow consumers to use PayPal.com. In Shanghai, "Decoration PayPal" is booming silently. Owners pay the decoration fees to the website, and invite a consulting & supervising company to be supervisor, who will