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BY CAMELLIA AEBISCHER

China’s e-commerce giants face more competition

It may be no surprise that Alibaba is listed as China’s largest e-commerce retailer, but competition grows from niche players

China’s e-commerce giants face more competition

Alibaba headquarters

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A report by eMarketer has shown Alibaba as China’s largest online retailer, with a whopping 58 per cent of market share.

JD.com followed in second place with a 16.3 per cent share, giving the two retailers a combined market share of nearly three-quarters.

The report revealed the e-commerce heavyweights face competition from smaller niche players, who are able to offer competitive pricing on products, successfully gaining business in Tier 3 and 4 cities.

Senior director of forecasting at eMarket, Monica Peart, said that Tier 3 and 4 cities are becoming rapidly more involved in the e-commerce market, and are beginning to seek out more affordable genuine products online.

Alongside a growing number of smaller retailers who compete in niche markets, the report states Alibaba is seeing increasing competition from electronic retailer Suning and fashion site VipShop, who command 2 and 1.8 per cent respectively.

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