China Enterprise e-Procurement Market Reaching RMB 590 Billion in 2019
- On July 8, 2020
- enterprise e-procurement
A couple of days ago, the China Institute of Electronic Information Industry Development (CCID) and China International Electronic Commerce Center (CIECC) jointly released the “Chinese Enterprise Digital Procurement Development Report 2019”. The “Report” shows that the scale of the digital procurement market of Chinese enterprises in 2019 is 590 billion yuan, a year-on-year growth rate of up to 64%.
In 2019, the digital purchase transaction volume of enterprises for consumer general products exceeded 220 billion yuan, accounting for nearly 40% of the overall digital purchase market. It is the main field of digital purchase. In the consumer general product procurement market, e-commerce platforms such as JD, which are from the B2C field and have perfect logistics and end-to-end digital service capabilities, are leading in comprehensive strength. JD.com’s enterprise business has the highest market share, accounting for 52.3% of the overall procurement sample, followed by Alibaba’s enterprise procurement system, which accounts for 30.1%, and again Suning’s major customer, which accounts for 12.5%.
With the rapid development of new technologies such as big data, cloud computing, Internet of Things, blockchain and artificial intelligence, the era of the digital economy is accelerating, and corporate procurement is accelerating from pure online procurement behavior to procurement management, supply chain services and even all Industry chain services. Enterprise procurement services are extending to service value. Enterprise e-commerce procurement has accelerated into the digital procurement stage.
In 2019, the penetration rate of digital procurement in the overall enterprise-level e-commerce market was 2.88%, an increase of 1.03 percentage points from the previous year, and it doubled in two years.
The new coronary pneumonia epidemic has accelerated the pace of enterprise digital transformation. The driving mechanism of e-commerce has changed from channel-driven to data-driven. As digital procurement is more efficient, we will see a seamless connection between supply and demand in the intelligent supply chain. This is forcing the upstream enterprises of the industrial chain to accelerate the digital transformation, promoting the traditional industry’s digital collaboration of the entire industrial chain from R&D, production and sales, procurement and distribution, logistics and distribution, and accelerating the arrival of the industrial digital era.