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Hu Yuefei - Ping’An Bank Vice President

Volume 4, 2013

“It is estimated that in 2012, the total transaction volume of e-commerce in China exceeded RMB 8 trillion, a 28% increase over the year before. Online sales exceeded RMB 1 trillion and accounted for 16% of total transaction volume. B2B e-commerce transactions (a focus of government policy) accounted for more than 80% of the total e-commerce transaction volume.

According to the 12th 5-year plan, by 2015 e-commerce transaction volume will reach RMB 18 trillion, with B2B e-commerce accounting for RMB 15 trillion. Online purchasing and sales will respectively account for 50% and 20% of enterprises’ total purchasing and retailing activity.

More than 60% of SMEs often use e-commerce. Online sales have exceeded RMB 3 trillion, which accounts for more than 9% of the total retailing business. Commercial banks can draw inspiration from these numbers. There are a lot of potential business opportunities in serving SMEs. This kind of sustained and stable chain transaction, we call it ‘1 plus n’, is now one of the major forms of B2B e-commerce.

Core businesses (in their respective industries) are now building their own e-commerce business platforms to connect the up-stream and down-stream suppliers and distributors. For example Baosteel serves over 10,000 suppliers and distributors on its e-commerce portal and therefore creates synergy in purchase, selling and storage. However for mid-scale businesses they will use a third party platform to get the benefits of ‘1 plus n’ e-commerce. For now, not many small businesses have their own e-commerce platform business model. They mostly rely on Alibaba, or companies like Alibaba, to build up their e-commerce.

In terms of what Ping’An Bank has been doing in e-commerce, we have made some attempts, in the past several years, with more than 300 leading supply chains and logistics enterprises. We have been working with those businesses and have seen good results.”