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China B2b Market Scene and Future Potential

By: DYLAN

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Take a few facts about B2B market in China, for starters.

1. About 99% of all ecommerce transactions in china are in the B2B market

2. US$ 50bn is being spent over the internet in B2B market segment in China

3. China's online B2B market is larger than B2C market

4. 78% of Chinese websites are operated by enterprises and 5% by businesses

5. Close to 70mn active internet users

Remember, most of these don't include the big multinational purchasing companies looking to tap China's cost potential by global sourcing. Secondly, not all global sourcing activities are ecommerce based and not all non-multinational purchasing activities find place in B2B market surveys.

-Prevailing B2b Market Conditions For Global Sourcing and Multinational Purchasing In China

The China B2B market is growing by leaps and bounds, a fact acknowledged by one and all including the global sourcing giants that depend on China for large scale multinational purchasing. Below the surface, B2B market in china is dominated by small and medium traders while manufacturers are increasing their presence.

For the convenience of global sourcing and multinational purchasing activities, the B2B market is regrouping such as 'enterprise B2B market,' manufacturers' direct sales and B2B market portals like Alibaba.com. No doubt this helps larger enterprises gain higher credibility with the multinational purchasing and global sourcing community for the otherwise scattered B2B market.

On the other side, quite a big volume of B2B market transactions are offline, once having located the products and suppliers, global sourcing companies take them offline for subsequent deals, although this is uncommon in multinational purchasing in other countries. Even if transactions go on online, they stop short of online payment processing which is a typical case with Chinese B2B market.

-Efforts Planned By B2b Market for Better Service for Global Sourcing By Multinational Purchasing Companies

At the onset, the global sourcing and multinational companies are recognizing the efforts being made to consolidate Chinese B2B market, a big step that helps bring to forth legitimate and serious companies. Chinese banks are reorienting themselves to further augment ecommerce payment processing, a long term demand of global sourcing companies engaged in multinational purchasing, especially from China. Once this is in place, much of offline B2B market payments will remain online. Even the larger deals by the global sourcing multinational purchasing companies can complete end-end online without having to go offline for any reason whatsoever. Come 2008, Olympics is expected to give a boost to global sourcing and multinational purchasing.

Article Source: http://depositarticles.com/

news.tootoo.com, which is the shortcut to China's industrical resource belonging to China's leading B2B Portal and Vertical Search Engine, tootoo.com.

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