MOFCOM to name 'model' e-commerce enterprises
Shanghai. November 3. INTERFAX-CHINA - In order to regulate the nation's online shopping industry, China's Ministry of Commerce (MOFCOM) will identify 50 to 70 model e-commerce enterprises over the next five years, according to a circular issued by MOFCOM on November 2.
The circular stated that model e-commerce enterprises will help to regulate the online shopping industry in terms of business model innovation, the drawing up of industry standards and merchandise pricing.
MOFCOM organizes model enterprises into three categories: consumer-targeted online shopping platforms, business-to-business platforms and online retailing platforms created by traditional offline merchants.
The consumer-targeted e-commerce category includes business-to-consumer (B2C) and consumer-to-consumer (C2C) Web sites, covering both merchandise retailing and online services such as event ticketing, travel services and online education, the circular reported.
Domestic e-commerce enterprises are encouraged to apply to MOFCOM to be considered as model enterprises before November 20. Qualified consumer-targeted e-commerce platforms should have annual sales revenue of more than RMB 100 million ($14.98 million).
Alibaba's Taobao led China's B2C and C2C market in the third quarter (Q3), with sales revenue of RMB 101 billion ($15.1 billion) and a 75.3 percent market share, according to a ranking report by consultancy, Analysys International, which ranked 18 domestic B2C and C2C Web sites. Ranked in the last place was online apparel seller Xiu.com, with sales revenue of roughly RMB32 million ($4.8 million) in the third quarter.
In 2009, China's online shopping transaction value reached RMB 258.6 billion ($38.7 billion), accounting for 2.06 percent of total domestic consumption, according to MOFCOM figures.