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China’s Lighting E-commerce Market to Become Largest LED Distribution Channel

China’s e-commerce market scale has reached US $445.1 billion in 2014, and fundamentally changed consumers’ daily habits. The emergence of the e-commerce industry, has made establishment of online shops a top priority for LED manufacturers, according to a research subsidiary of the Taipei-based market intelligence company . 

The lighting e-commerce market scale in China has reached US $2.4 billion in 2014, and amounted to 14.4% revenue share among all distribution channels, As LED lighting products continue to sellout online, the online lighting market is expected to grow well into 2017, with Internet sales estimated to reach 30% to become the largest LED lighting distribution channel, and overtake traditional lighting distribution channels including construction project and luminaire retail shops.

E-commerce channels in China are gradually transitioning from C2C (Consumers to Consumers) models to B2C (Business to Consumers), which can be especially seen in the lighting e-commerce segment, e-commerce sales from B2C models reached 55% above C2C’s 45%.

Analysis based on China’s e-commerce platforms indicate Tmall.com has been most successful in its lighting e-commerce business, and has a market share of 54% in the B2C market. JD.com is the second largest lighting e-commerce platform with a market share of 19.2%, but its sales volume and brands represented are much lower than Tmall.com. It will be difficult for newcomers, such as other e-commerce platforms, to make significant breakthroughs in the short term as Tmall.com and JD.com firmly establish their market positions as leaders in the lighting e-commerce sector. Other e-commerce platforms have also placed value on the lighting market, and are trying to attract lighting manufacturers to invest. 

2011-2017 Chinese Lighting Market

 
 
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