NetEase game publisher in China in recent years into a strong e-commerce market, e-commerce revenue quarter by quarter, has become the company's most important source of growth.
Data show that in the third quarter of this year, e-commerce sector contributed 29.5% of total revenue for Netease. The department revenue growth rate of 79.5% year on year, becoming the fastest growing department in the three major Netease departments.
In contrast, Netease e-commerce sector in the second quarter of the year-on-year increase of 68.9%, accounting for 24.5% of total revenue. In the third quarter of last year, revenue growth of the department exceeded 100%, accounting for 22.1% of the total revenue.
NetEase's advertising, e-commerce and online games revenue comparison
These numbers underscore the growing importance of e-commerce businesses to NetEase, which explains why the company plans to double its e-commerce offerings. Recently, NetEase CEO Ding Lei in an interview with Bloomberg said Netease electricity supplier plans to spend more than 11 billion US dollars in the next three years to purchase goods.
In the area of e-commerce, NetEase focuses mainly on cross-border channels, purchasing goods from overseas suppliers and then selling them to Chinese consumers.
Right now, Chinese consumers are increasingly in demand for overseas products such as the United States and Europe, and NetEase hopes to take these needs to a trail in China's highly competitive e-commerce market.
For the $ 11 billion purchase budget, Netease plans to import 3 billion U.S. dollars of U.S. products, 3.4 billion U.S. dollars of Japanese products, and 3.5 billion U.S. dollars of European products. In addition the company also plans to purchase goods from South Korea and Australia.
NetEase vigorously develop e-commerce, because the company is very optimistic about China's cross-border e-commerce market. According to Netease's own estimates, the market value of 2021 will be more than 500 billion yuan. The research firm McKinsey and iResearch estimates that by 2018 China's cross-border e-commerce market will reach 758 billion yuan in sales.
According to iResearch data, NetEase's share of China's cross-border electricity market has now surpassed Alibaba and the only product.