Viewpoint

1. China’s B2B market is just started in 2000, with online payment of 350 million RMB.  If online contract and payment offline are included, the transaction reached over 76.77 billion RMB.

2. In 2000, the functional websites of the third part transaction market occupies 4%, which are only 7.  Facing the market of 15 million small and medium-sized enterprises and 150,000 large enterprises, this number can hardly meet the vast demand and form a competition.  The market is still a seller’s market.

3. The current B2B business model is still based on the online sales and purchase model, and is still in the developing stage.  Even the transaction market is formed; it still focuses on information provision or is simplified.  It needs to be developed to be transaction-oriented.

4. In 2001, B2B transaction will reach 94.2 billion RMB.

I. Overview of B2B market environment in 2000

1. International Environment

a. Rapid development of the global INTERNET

b. B2B development around the globe

2. Domestic environment

a. Macro economic situation

b. Hardware environment for E-commerce

c. Soft ware environment for E-commerce

II. Total market volume and B2B composition for the year 2000

1. Total volume and growth

a. Total B2B transaction volume in 2000

b. E-commerce in 2000 and B2B market growth

2. Total volume and composition of B2B service providers in 2000 (B2B websites)

a. Categories based on business model

b. Categories based on platform type (horizontal 、vertical)

Chapter Highlights

Based on the above-mentioned topics, this chapter introduces the total volume and composition of China’s B2B market in 2000-2001, as well as the features of market composition, business models and platform types of B2B websites.  The transaction in China’s B2B market in 2000 is 76.77 billion RMB.

III. Supply and demand analysis for the B2B market in 2000

1. Demand volume in B2B E-commerce market

2. Enterprise’s demand for B2B E-commerce

a. Analysis of the status of enterprise websites and the reason for them not being networked

b. Enterprise’s demand for B2B

Chapter Highlights

This chapter mainly describes the features of the B2B market in 2000 from the angle of market demand.  It was found that small and medium-sized enterprises have a large demand for B2B and large enterprises establish their own B2B E-commerce platforms.  In addition, this chapter also analyzes the status of enterprise log-in, geographic and industrial features of online enterprises and the reasons of not being networked.

IV. Analysis on supply of B2B E-commerce market in 2000

1. Comprehensive B2B E-commerce service providers (horizontal portal websites)

a. Main comprehensive B2B websites

b. Industrial distribution

c. Business model and platform type

2. Industrial B2B E-commerce service providers (vertical portal websites)

a. Different features of industrial B2B websites

b. Industrial distribution of vertical B2B websites

3. B2B E-commerce solution providers

Chapter Highlights

This chapter introduces the market features of B2B horizontal websites, vertical portal website providers, and solution providers.  It also analyzes the business model of B2B websites, in which online transaction is one of the mature business models.  The horizontal websites include 8848、Alibaba.com, MeetChina.com, AsiaEC.com, Asia Business, ChinaPage.com, Hisen.com. The vertical websites include chem.com.cn, EB2000, Chinaeh.com, Texsino.com, Sino-shipping.com.

V. Main features of the B2B market in 2000

1. New business model – online transaction market is booming

2. Large demand for small and medium-sized enterprises

3. Rapid increase of business volume and under-utilization of Internet potential

4. Difficult situation of industrial vertical websites

5. Information flow is the key for website success

6. Underdeveloped level of competition, huge potential of the value-added service market, exploitation of new service types

Chapter Highlights

This chapter summarizes the main market features of B2B in the year 2000, including the booming of the online transaction market, the large demand of small and medium-sized enterprises, and the underdeveloped level of competition in the B2B market.

VI. Main factors affecting B2B market development between 2001 and 2003

1. Positive factors

a. Influence of enterprise demand on market development

b. Support of government policy

2. Negative factors

a. Low level of enterprise informatization

b. Influence of security on market development

c. Influence of payment on market development

3. Other factors

a. influence of state policy and regulations on market development

b. "XV" Plan

c. Influence of admission to the WTO on B2B E-commerce

Chapter Highlights

This chapter analyzes the factors that will affect B2B market development (both positively and negatively) over the next 3 years.  The positive factors include the large demand of small and medium-sized enterprises and the supporting state policies.  The negative factors include the low level of enterprise informatization and online payment security.  In addition, this chapter also analyzes the influence of several policies, such as the related regulations, “XV” Plan，and WTO on the B2B market.

VII. Development trends of the B2B market in 2001-2003

1. Increase of online payment

2. Transfer from an information platform to a transaction platform

3. Increase of demand on the physical flow of third part

4. Market demand will increase with the rapid development of enterprise informatization

5. Development of B2B will drive the development of information technology

6. The economic globalization trend drives enterprises to look for outside cooperation

Chapter Highlights

This chapter summarizes the possible development trends of the B2B market over the next 3 years.  The transfer from an information platform to a transaction platform is the main trend.

VIII. Predictions for, and analysis of the B2B market between 2001 and 2003

1. Predictions for and analysis of the market scale between 2001 and 2003

2. Predictions for and analysis of the development of the business model

Chapter Highlights

This chapter predicts and analyzes China’s B2B market scale and business model over the next 3 years. The summary is that the transaction of B2B in 2001 will increase by over 20%, in which the online payment will have a higher increase rate of X times, reaching 3.89 billion RMB.  By 2003, the market will increase by 70%, compared with the market in 2000.  Online transaction market has a strong vitality and dramatic growth.

IX. Conclusion and Suggestions

1. At the early stage of B2B market, the development is in a good status.

2. Enterprise informatization is the development basis for B2B

3. The competition of domestic B2B transaction market of the third part has not been formed.  The market is still the seller’s market.

4. Most B2B websites are still in the investment stage.

5. China’s B2B business has not been mature.

6. Profit-earning model and value-added services are to be further developed.

Data

Figure 1 Comprehensive categories of B2B websites business model

Data Sources：CCID

Based on the above figures, we can see that most of B2B websites are still in the primary online direct sales or info-agency stages, and that the transaction platform is also a relatively new thing in China.

Figure 2       Expectation of enterprises on services provided by B2B websites

Data sources：CCID

From this chart, we can see that almost all the enterprises will search for and publish business information on B2B websites.  Even those who have no website will search for new business opportunities.

Figure 3   Reasons that enterprises are not being networked

                         Data sources：CCID

Some reasons include the fact that enterprises are not familiar with the functions of network applications, enterprise network construction is not well recognized, a lack of technicians, and a fear that there won’t be sufficient after-sales service.