In Q3 2014, total China online video ads revenue was RMB4.67 billion (US$762.06 million) with increase of 13.7% QoQ and 43.6% YoY according to data of EnfoDesk. 

In TNS Connected Life study, it found that one third (33%) in mainland China, 32% in Hong Kong, watch online video every day, on either PC or mobile devices. Ads is the major part in China online video market in Q3 2014; and, its revenue accounted for 62.3% of total online video revenue.

Because of the high content quality in online video market, online video advertising market is performing good in Q3 2014. Of which, China mobile video advertising market’s transaction value exceeded RMB1.43 billion (US$233.35 million), representing 30.6% of total online video advertising market in Q3 2014.

It is estimated that mobile video advertising market share is expected to increase in the near future as popularity of mobile device as well as rapid development of 4G in China.

Also read: Youku App Daily UV Exceeded over 40 Mln in October 2014

Mobile app stores are the most used channels for downloading apps among China mobile phone internet users; besides, they are also the channels for app updates. 70% app downloads are from mobile app stores in China.

360 mobile assistant accounted for 65.4% and 58.5% in brand awareness and usage rate, ranking top among popular China mobile app stores, followed by Tencent mobile app store and Wandoujia in Q3 2014 according to data of iiMedia.

Tencent Myapp app store had daily distribution volume of 110 million, covering more than 90% China mobile gaming users according to Tencent’s vice president, Wang Bo.

The top 3 mobile app stores by market share in Q3 2014 were Baidu app stores (61.3%), 360 and Tencent according to CNNIC. See more about: China Mobile App Distribution Channels Market Share in Q3 2014

The data shows that instant messenger were the most popular app among China mobile phone internet users in Q3 2014, representing 69%. It is believed that 7 out of 10 mobile phone users installed instant messenger app in Q3 2014 which indicates social need is the basic need for China mobile phone internet users.

The biggest concern of China mobile internet users was the charge issue, which represented 66% of all users. Only 22.8% mobile phone internet users bought application value-added service in Q3 2014. Of which, 53.5% paid for mobile games. As of June 2014, the usage rate of mobile games in China was 47.8% with an increase of 4.7%. Mobile gaming is becoming a habit for many China mobile users’ daily life.

Also read: China Social Video Users to Reach 191M in 2014

82% Sina Weibo users do online shopping in Q3 2014, which made Weibo rank top among social apps in the world according to data of Global Web Index.

The data shows 82% Sina Weibo users purchased a product online and 80% of them searched product or service to buy in Q3 2014. Sina Weibo monthly active users (“MAUs”) were 167 million as of September 30, 2014, an increase of 36% year over year according to its official released financial results.

In China, most social media users shop online more than three times every month. Major users on Weibo are about 20-35 years old, who have great consumption capability in online shopping. In comparison, Weibo users are more used to online shopping than other social media users in China. See the difference: Weibo Users V.S. China Social Media Users

Besides, China e-commerce community is powerful with 24 million fans by the end of July 2014 which provides great opportunity for online retailers.

Also read: Reasons Why China Internet Users Buy on Weibo

In Q3 2014, the number of China app distribution exceeded 28.6 billion with an increase of 12.3% from prior quarter. Baidu league remained to be the top distribution team with market share of 41.8%. Tencent’s mobile app distribution kept rapid development in Q3 2014 and it increased by 1.4% from Q2 according to data of EnfoDesk.

As of 30 June 2014, the total number of users in Baidu app distribution platforms exceeded 600 million and with an average of 130 million daily distribution and 10 million developers, having become the largest Android app distribution platform in China in Q2 2014.

The improvement of China mobile internet effectively promotes use of mobile application and distribution of mobile app. As of the third quarter of 2014, 3G/ 4G subscribers exceeded 550 million, representing 43% of total mobile phone users. With 4G’s popularity in China, internet quality has been further improved and traffic charge has been gradually reduced. All these can stimulate mobile internet users to download apps in app stores which further brings great opportunity for China mobile app distribution market.

Also read: Top 100 Mobile Apps in China

In Q3 2014, top 3 automobile websites by total user reach on desktop were Autohome.com, BitAuto.com and PCAuto.com with 47.68 million, 35.6 million and 32.48 million respectively according to data from EnfoDesk.

China top 3 automobile websites all had strategies for competing for traffic: Autohome.com reached Baidu Alading platform (it is Baidu’s search open platform which shares data and display hidden wed information to obtain valuable traffic); BitAuto.com cooperated with 360 onebox; PCAuto.com cooperated with Sougou.

Good performance on desktop will stimulate competition for traffic on mobile device among automobile websites. Automobile.com occupied the first display of mobile search results; BitAuto.com shifted to mobile Baidu Alading; PCAuto.com cooperated with Shenma search. Search engines’ revenue from mobile search was the key driving force for China search engine market in Q3 2014.

Except large traffic of top 3 automobile websites in Q3 2014, they must keep their advantages and show some unique features for users. Good content and active online community are the keys. China automobile websites could promote automobile online purchase to develop automobile e-commerce.

Social media is another platform that got automobile industry’s serious attention in Q3 2014. During 14 days’ promotion on Weibo, a total number of over 60 thousand cars were ordered with a total worth of over RMB9.2 billion (US$1.5 billion). Chinese users displayed the highest level of engagement and interactions with brands on social media, according to PwC research. And, A McKinsey survey pointed out that social media has a greater influence on purchasing decisions for consumers in China.

Also read: China Automobile Market Overview in August 2014

In Q3 2014, total transaction value of China online shopping market was RMB691.41 billion (US$112.69 billion) with an increase of 49.8% year on year. Total retail value exceeded RMB6.5 trillion (US$1.05 trillion) and China online shopping accounted for 10.6% of total consumer retail market according to data from National Bureau of Statistics of China.

China e-commerce companies are now not only optimizing logistics and after-sale services, but also actively making efforts in tier-3 & tier-4 cities even in rural China. Besides, international strategy and mobile shopping become new strength in online shopping market in China.

The online transactions generated by counties and villages in north China, central China and south China, have shown stronger growth momentum, accounting for 30% of the overall online transactions made by counties and villages in 2013 in China.

Total transaction value of China B2C market was RMB305.38 billion (US$49.77 billion), representing 44.2% in online shopping market in Q3 2014. China B2C market value in Q3 2014 increased by 38.8% from the same period of prior year and increased by 70.4% year on year, much more rapid than growth rate of C2C market.

Total transaction value of China mother care market exceeded RMB23.48 billion and China 3C home appliance B2C market was RMB107.88 billion; China clothing B2C market was RMB91.62 billion ($14.91 billion) with an increase of 54.2% from the same period of prior year according to data from EnfoDesk. All these added powerful strength for rapid growth of China online shopping market in Q3 2014.

China C2C market is featured with various categories and large number of products which can meet online shoppers’ personalized needs. E-commerce also pay attention to C2C market. Paipai.com, part of Jingdong, is launching micro-shop platform for both business and individual sellers targeting C2C mobile shopping market. China B2C and C2C markets will both develop steadily.

In China B2C market, Tmall represented 57.6% market share by transaction value in Q3 2014, ranking top, followed by Jingdong(19.3%) and Suning(4%). In terms of online shopping websites with self-operated products, Jingdong accounted for 51.9% market share, followed by Suning and Vipshop in Q3 2014. Find out more on B2C performance in Q3 2014 here.

With Alibaba and Jingdong’s IPO, their standings have been confirmed in China online shopping market. Other e-commerce companies are positively making great efforts.

Related to Q3 2014 Performance in online shopping: Jingdong, Alibaba, Dangdang, Vipshop, GOME.

Also read: Chinese Consumers STRONG Intention for Online Purchase with Higher Buying Rates Than Browsing

In Q3 2014, total transaction value of China group buying market was RMB22.96 billion (US$3.74 billion) with an increase of 43.6% quarter on quarter.

The group buying orders were 31.3 million with an increase of 20.4% from the same period of prior year; the number of group buying users was 340 million with an increase of 30.8% YoY; per customer transaction was 67 yuan, which increased by 11.7% YoY in Q3 2014 in China according to data of EnfoDesk.

It is estimated that in the second half of 2014, transaction value of China group buying market will exceed RMB46.2 billion (US$7.53 billion) and total transaction value will be RMB75 billion (US$12.2 billion) in 2014. China group buying market is performing continuously well and it has stepped into a new stage for rapid development.

Meituan, Dianping and Baidu Nuomi were top 3 group buying providers in China in Q3 2014 by transaction value. It is believed that fierce competition for market share will be among the top 3 providers in the future.

China group buying market’s major revenue was from food, entertainment， hotel & traveling service in Q3 2014. Food accounted for 57% with an increase of 7% while entertainment service accounted for 21% with a decrease of 4%. In the first half of 2014, China group buying websites obtained more market share of online food ordering market comparing with other channels. The top 4 group buying websites in China online food ordering market are Meituan.com, Dianping.com, Nuomi.com and Lashou.com.

In Q3 2014, market share of tier-3 cities accounted for 35% with an increase of 3% YoY and tier-4 & lower cities increased by 2%. Besides, different group buying websites focused on different tier cities since first half of 2013 in China which changed market share in August.

China group buying market has become the arena for internet giants since first half of 2014. With powerful technology of search and LBS, Baidu Nuomi are making efforts in lifestyle O2O market. And, Tencent is creating lifestyle O2O ecological system based on Wechat as well as groupon, Dianping.com and 58.com. Wechat POS is consisted of customized POS machine and Wechat payment, targeting offline stores’ payment solution which means it is ambitiously boosting O2O service.

Also read: 10 Case Studies for Wechat Marketing

Qunar’s total revenues for Q3 2014 more than doubled YoY to US$81.6 million and its mobile revenues was US$33 million an increase of 445.1% YoY.

Qunar’s total revenues for the third quarter of 2014 were RMB501.1 million (US$81.6 million), an increase of 107.8% year-on-year. Mobile revenues for the third quarter of 2014 were RMB202.7 million (US$33.0 million), an increase of 445.1% year-on-year, representing 40.4% of total revenues, compared to 15.4% in the corresponding period of 2013. Pay-for-performance (“P4P”) revenues for the third quarter of 2014 were RMB476.4 million (US$77.6 million), an increase of 119.3% year-on-year and 25.8% quarter-on-quarter.

Qunar’s total Estimated Flight Ticket volume (TEFT) and Total Estimated Hotel Room-night volume (TEHR) for the third quarter of 2014 were 22.7 million and 10.0 million, respectively, an increase of 57.0% and 84.6% year-on-year.

Hotel network direct sales contributed 51% of Qunar’s total hotel volume for the third quarter in 2014. Mobile continued to be a key driver of the growth, accounting for 40% of total revenue, 55% of TEHR, and 43% of TEFT.

For the fourth quarter of 2014, Qunar expects year-on-year revenue growth in the range of 90% to 95%.

Find out Ctrip and eLong’s Q3 performance here and here.

Also read: Guest Satisfaction Research of China Hotels

In Q3 2014, China online gaming market kept stable growth; mobile gaming market’s total transaction value had an increase of 8.2% quarter on quarter. China online gaming companies are positively developing browser games, mobile games in oversea market and having achieved good results.

Total transaction value of China online gaming market exceeded RMB27.76 billion ($4.51 billion) in Q3 2014 with increase of 20.3% year on year and 4.1% quarter on quarter.

Games on desktop were still the key component in China online gaming market, which represented 56.1% market share in Q3 2014. Mobile gaming market is stepping into a stable stage as its growth rate slowed in Q3 2014. Besides, there was a slowdown in number of new games launching among mobile gaming companies in Q3.

In Q3, Perfect World gaming company ranked 3, replacing Shanda Games & Changyou Games (ranked 3 in Q2). China top 5 online gaming companies by total revenue remained Tencent, Netease, Perfect World, Shanda Games and Changyou Games in Q3.

Tencent is the only one whose business structure is similar to online gaming industry structure, covering desktop gaming, browser gaming and mobile gaming market. Its Wechat platform featured with social elements can also attract more mobile game users.

According to the 2014 Second Quarter Mobile Game Market Analysis Report published by Analysys International, CMGE again ranks first among China’s mobile game publishers with 19.3% of market share in China (in terms of gross billings).

In Q3, mobile gaming transaction value was RMB6.98 billion ($1.13 billion) with an increase of 72.8% from the same period of last year. China mobile online gaming users exceeded 321.8 million in Q2 2014 with an increase of 6.4% from prior quarter according to data of GPC IDC and CNG. Influenced by the slowdown of growth rate in smart mobile device shipment and gaming users, China mobile gaming market’s driving force transferred from the size of user base increase to ARPU (Average Revenue Per User) increase in Q3 2014.

As of September 2014, the number of China mobile games and gaming companies exceeded 4,342 and 2,182. Android games and gaming companies both surpassed the ones in Appstore and iOS market. In Q3 2014, China mobile games and gaming companies both had rapid growth quarterly.

Driven by China’s summer holiday (from July to September), gaming companies increased ads placement which stimulated rapid growth of gaming advertisers and gaming products.

In China browser gaming market, the numbers of platforms, games and developers increased steadily in Q3 2014.

From Q2 2014, the number of browser game advertisers and browser games had sharp decrease.

Also read: China Mobile Gaming Market to Reach 2 Bln Yuan in 2014

In Q3 2014, total transaction value of China mother care market exceeded RMB23.48 billion ($3.82 billion) with an increase of 129% from the same period in 2013.

Tmall represented 55.5% market share by transaction value, ranking top in China mother care market in Q3 2014, followed by Jingdong and Dangdang. Japanese brand Merris was the best seller in Tmall‘s baby care category with a total sales value of RMB32.97 million ($5.37 million) in September 2014.

China’s professional mother care products sprang up from recent two years and its great power generated from post-80s consumers in China, who have high salary and mature online shopping habit. As post-80s and post-90s consumers are reaching marriage and childbearing age, their demand for mother care products will increase which further drive China mother care market’s rapid growth.

At present, China mother care B2C e-commerce market is still at early stage where consumers are cultivating their shopping habits. Different B2C e-commerce companies are exploring business models, such as products with special offers, O2O model and mothers’ online community. On desktop, online community’s UVs exceeded 360 million with an increase of 15.5% YoY in August 2014. Online Community will be more powerful in China social media for Chinese moms.

Also read: INFOGRAPHIC: China’s Top 30 B2C Websites

In Q3 2014, total transaction value of China 3C home appliance B2C market was RMB107.88 billion ($17.56 billion) with an increase of 67.9% from the same period of the prior year.

In Q3 2014, Suning launched new channels of “Big party” & “Shanpai” on its platform which drove up its sales. Overall, China 3C home appliance B2C market had stable growth in Q3 2014. In category of major home appliance and kitchen appliance, Midea ranked top among all the brands on Tmall/Taobao in September 2014.

Jingdong represented 36% market share in Q3 2014, followed by Tmall and Sunning.

Here are the highlights in China 3C home appliance B2C market:

1. There’s rapid growth in traditional home appliance, such as refrigerator, washing machine, air condition and FPD (Flat Panel Display). The demand for dust purification equipment, personal care equipment and functional kitchen appliance in China is increasing nowadays.
2. China 3C home appliance B2C e-commerce companies have high standards about delivery, home installation and after-sales service. For example, Suning and Gome have complete service system for online selling. Tmall purchased RRS.com (a website of Haier Group) which strengthened home appliance delivery service. Jingdong not only has self-logistics system but also provides extra service like “refund goods within 30 days without a reason”.
3. Penetration of online shopping for major home appliance is still low and there is great potential in tier-3 & tier-4 and lower cities in China. Besides, the competition among China home appliance e-commerce companies will be more fierce.

Also read: INFOGRAPHIC: China’s Top 30 B2C Websites

In Q3 2014, total transaction value of China clothing B2C market was RMB91.62 billion ($14.91 billion) with an increase of 54.2% from the same period of prior year according to data from EnfoDesk.

Tmall represented 73.4% market share by transaction value in Q3, remaining top in China clothing B2C market. Jingdong kept working on project of “Shang Jingdong” in Q3 which made it to 5.5% market share. Jingdong surpassed Vipshop, ranking second in Q3 2014. Total transaction value of China online shopping market was RMB691.41 billion (US$112.55 billion) with an increase of 49.8% year on year in Q3, which was much more than transaction value in Q2.

Nowadays, China B2C clothing market’s development is relatively mature. Clothing is an active vertical among online goods. In Q3, various e-commerce enterprises made great efforts competing in this vertical.

Clothing is a category with high net profit and potential retention; and it accounts for major revenue for e-commerce companies in China. Four leading online retail websites in China, Tmall, Jingdong, Dangdang and Vipshop, are now all promoting heavily the clothing and apparel vertical and associating their brand with “fashion”. China clothing B2C market tends to be featured with more elements of fashion and young.

Also read: Stats of Top Selling Brands on Taobao/Tmall in 18 Categories in Sep 2014

For the third quarter of 2014, Ctrip reported total revenues of RMB2.3 billion (US$368 million), representing a 38% increase from the same period in 2013. Total revenues for the third quarter of 2014 increased by 24% from the previous quarter.

Ctrip accommodation reservation and transportation ticketing services maintained robust growth, reaching 69% and 98% year-over-year in volume respectively. The number of Ctrip mobile app downloads reached 350 million, growing 75% from the previous quarter.

Through the open-platform, Ctrip work with around 1,000 hotel agency partners, China’s top 600 air ticketing agencies, and over 800 local travel agencies. Total hotel transactions through the open-platform reached approximately RMB1 billion during the third quarter.

Accommodation reservation revenues amounted to RMB950 million (US$155 million) for the third quarter of 2014, representing a 56% increase year-on-year, primarily driven by an increase of 69% in accommodation reservation volume, partially offset by the decrease of commission per room night. Accommodation reservation revenues increased by 26% quarter-on-quarter.

Transportation ticketing revenues for the third quarter of 2014 were RMB800 million (US$130 million), representing a 32% increase year-on-year, driven by an increase of 98% in ticketing volume. Transportation ticketing revenues increased by 10% quarter-on-quarter.

Packaged-tour revenues for the third quarter of 2014 were RMB358 million (US$58 million), representing a 12% increase year-on-year, driven by an increase of 52% in volume of organized tours and self-guided tours. Packaged-tour revenues increased by 74% quarter-on-quarter, primarily due to seasonality.

Corporate travel revenues for the third quarter of 2014 were RMB104 million (US$17 million), representing a 45% increase year-on-year, primarily driven by the increased corporate travel demand from business activities. Corporate travel revenues increased by 15% quarter-on-quarter, primarily due to seasonality.

For the third quarter of 2014, Ctrip net revenues were RMB2.1 billion (US$347 million), representing a 38% increase from the same period in 2013. Net revenues for the third quarter of 2014 increased by 24% from the previous quarter.

Gross margin was 72% for the third quarter of 2014, compared to 75% in the same period in 2013 and remained consistent with that in the previous quarter.

For the fourth quarter of 2014, the Company expects to continue the net revenue growth year-on-year at a rate of approximately 30%.

Ctrip Income Statement

Read more: Understanding Chinese Luxury Travelers

In Q3 2014, total transaction value of China mobile shopping market was RMB230.96 billion ($37.59 billion) with an increase of 250.9% from the same period of prior year. Total transaction value of China online shopping market was RMB691.41 billion ($112.55 billion) with an increase of 49.8% year on year in Q3 2014.

Compared with desktop, mobile device has particular features like portability, entertainment, convenience and so on which can satisfy users’ instant shopping needs.

In Q3 2014, China mobile shopping transaction value accounted for 33.4% of China total online shopping transaction value. And the percentage of mobile shopping in overall online shopping market is continuously increasing quarter on quarter. In Q2, mobile shopping represented 26.8% of total online shopping transactions in the same period in China.

China mobile shoppers mainly depend on smartphones and 10% of them shop on tablet. They tend to favor mobile shopping apps like Taobao, JD and etc. which are extended from desktop. MMB.cn targets users from China’s tier-2 and lower cities and even covers non-smartphone users.

Besides, at the end of June 2014, Sina Weibo launched smartphone apps “Weimai” (or Micro-sell) for sellers to manage product inventories and provide online customer service and it is performing well. Weibo had 167 million monthly active users in Q3 2014, remaining the most popular Weibo app in China, which indicates Weimai still has great potential in online shopping market.

Alibaba remained ranking top in Q3 2014, followed by Jingdong (5.4%) and Vipshop (2.1%). Jumei made advantage of mobile device and its transaction value in Q3 was near RMB1.5 billion ($244.19 million).
Also read: 7 Charts on China Mobile Shopping App Market

In Q3 2014, total transaction value of China third-party online payment market exceeded RMB2,015.43 billion (US$328.1 billion) with increase of 41.9% year on year and 9.5% quarter on quarter.

In Q3, traditional online payment related industries like air ticket booking, online gaming…all had increase in total online payment transaction value.

In Q3 2014, total concierge transaction value of China UnionPay was RMB842.67 billion (US$137.18 billion) with increase of 9.3% QoQ and 79.8% YoY. With rapid growth of China third-party online payment market, China UnionPay plays an important role in standardizing the market.

In Q3 2014, Alipay accounted for 49.2% in China third-party online payment market, followed by TenPay (19.4%), Unionpay Merchants Services (11.6%) and 99Bill (6.9%).

As end of Q1 2014, Tencent had made cooperation with JD to integrate B2C and C2C business with each other. This cooperation made slight change to online shopping market. Alibaba still remained its leader status in Q3 as its stable online shopping profit as well its IPO; and Alipay’s market share had slight increase in Q3 while TenPay had a decrease. 99Bill and Unionpay Merchants Service benefited from Jingdong due to their cooperation relationship.

Total concierge transaction value of China third-party online payment market exceeded RMB2,627.3 billion (US$427.7 billion) with an increase of 14.3% quarter on quarter in Q3 2014 according to data of EnfoDesk.

Alipay, China UnionPay and TenPay represented 37.31%, 32.07% and 15.06% respectively in China third-party online payment market by concierge transaction value in Q3.

In Q3 2014, total settlement transaction value of China third-party online payment market was RMB2,237.6 billion (US$364.29 billion). The top three third-party online payment providers were Alipay, TenPay and China UnionPay Merchants Service.

Mobile payment is growing more and more popular as mobile internet and e-commerce developed, Alipay ranked top in China mobile payment market in Q2 2014, accounting for 79.9% by total transaction value, followed by Tenpay and Lakala according to iResearch data.

In Q3 2014, total transaction value of China third-party mobile payment market was RMB1,433.27 billion (US$233.24 billion) with an increase of 415.5% from the same period of prior year. The transaction value mainly generated from mobile e-commerce, mobile group buying, mobile business trip and mobile-related consumption.

Alipay remained top in third-party mobile payment market by transaction value in Q3 2014, followed by Tenpay and Lakala.

Due to the popularity of Wechat payment since the former three quarters in 2014, Tenpay’s market share had a big rise in Q3 2014. Lakala’s transaction value kept stable by Q3 2014.

Having gone through the finance fluctuation in first half of 2014, mobile finance went stable in Q3 2014, of which mobile payment representing from 35% to 40%.

Also read: China Top 5 Online Payment Mobile Apps in Sep 2014

In Q3 2014, newspaper ads accounted for nearly 70% of total ads in China tourism industry according to research of Meihua. info. The online ads’ market share increased to 16.2%, following newspaper ads in China tourism industry. Compared with the same period from 2013, newspaper ads placement had sharp decrease in Q3 2014.

Since 2011, ads placement in tourism industry had stable growth in China. Online ads placement realized rapid growth since Q3 2012 and it increased by 70.1% year on year in Q3 2014.

Influenced by overall economy status in China, the growth of China online advertising market slowed in Q3 according to data from iResearch. In Q3 2014, total transaction value of China online advertising market was RMB42.22 billion ($6.87 billion).

In Q3 2014, newspaper ads placement accounted for 65.7% of total ads in China tourism industry, followed by online ads (19.7%), outdoor ads (11.4%) and magazine ads (3.2%).

In China tourism industry, online ads for branding accounted for 55.2% and the placement had an increase of 128.9% QoQ. While the market share of online ads for event promoting decreased from 45.8% to 34.2% Q0Q.

The most popular online ads for advertisers in China tourism industry was the horizontal banner ad, which represented 27.2% of total online ads in China tourism industry in Q3 2014, followed by pre-rool ads and square large-sized ads.

The total online ads placement of top 10 brands in China tourism industry accounted for 58.9% in Q3 2014. Caissa and InterContinental Group had increase of 4741.2% and 525.5% respectively year on year.

In Q3 2014, China online tourism ads placement on travel websites had a decrease of 34.4% from the same period of last year. The online ads placement rapid increase on Weibo and client-side added limited strength in China online advertising market in Q3.

The travel agencies for inbound and outbound tourism remained the top spenders in Q3 2014 in China.

In Q3 2014, magazine ads in hotel resort ranked top by ads placement and total spend, followed by airlines and travel agencies for outbound tourism.

In Q3 2014, the most popular magazine advertising media for advertisers in China tourism industry was English & free magazine, representing 27.1%, followed by sports magazine (24.2%) and fashion & clothing website.

Platform ads was much popular in outdoor ads for advertisers in China tourism industry in Q3 2014. Meihua. info believed that platforms are the place where many people would stay for a while and they can attract young people like students and tourists.

The placement of outdoor ads was 3,190 in Q3 2014 in China with an increase of 62.4% year on year. Outdoor ads in China involved 20 cities, 37 media and 285 brands(products) in Q3.

Also read：Chinese Traditional Brand Advertisers Favor Mobile Advertising

39% respondents surveyed by GlobalWebIndex used WeChat in the past month, making WeChat the most popular messaging app in APAC in the third quarter of 2014.

Combined MAU of Weixin and WeChat reached 468 million at the end of the third quarter of 2014, representing growth of 39% YoY.

WeChat provides business accounts for team collaboration. In addition to business accounts, companies can also utilize the Wechat advertising platform to drive traffic and app downloads, and increase Wechat fans.

Wechat released a Wechat Contacts app as an enhancement to smartphones’ existing contacts and only users who use this Wechat app can make and receive free calls under 2G/3G/4G network. Besides, its social elements can attract more mobile gaming users on its gaming platform.

Wechat launched a “card payment” option with which users can make fast payment at supported retail chains (currently 9 supported retail chains). Its online payment function is developing rapid and it is now aiming international e-commerce market with payment solutions.

Its international impact can be seen in the  surveyed in India by GlobalWebIndex which showed 21% correspondents used Wechat in September, more than Line and Snapchat app.

Also read: Insights of China Mobile Payment (Wechat, Alipay) Users

Qihoo 360 Technology reported revenues of $376.4 million, a 100.3% increase from $187.9 million in the third quarter of 2013.

Total monthly active users of Qihoo 360’s PC-based products and services reached 495 million in September 2014, compared to 465 million in September 2013. User penetration of Qihoo 360’s PC-based products was 94% in September 2014, compared to 94% in September 2013.

Total smartphone users of Qihoo 360’s primary mobile security product, 360 Mobile Safe, reached a record of 673 million in September 2014, compared to 408 million in September 2013. In addition, Qihoo 360’s Android-based app store, 360 Mobile Assistant, continues to lead the market with the largest Android app distribution market share.

Monthly active users of Qihoo 360’s PC browsers were 357 million in September 2014, compared to 342 million in September 2013. User penetration of Qihoo 360’s PC browsers was 68% in September 2014, compared to 69% in September 2013.

Average daily unique visitors to the 360 Personal Start-up Page and its sub-pages were 129 million in the third quarter of 2014, compared to 126 million in the third quarter of 2013. Average daily clicks on Qihoo 360’s Personal Start-up Page and its sub-pages were approximately 723 million in the third quarter of 2014, compared to 681 million in the third quarter of 2013.

360 Search (so.com) takes 30% of PC search traffic share and continue to gain more according to Qihoo 360 Technology. And, 360 have started to allocate significantly more resources to support product development for and market penetration of their mobile search.

In Q3 2014, total transaction value of China search engine market was RMB16.45 billion ($2.67 billion) with increase of 11.7% quarter on quarter and 50.6% year on year according to data from iResearch. Read more here.

For the fourth quarter of 2014, the Company expects revenues to be between $410 million and $415 million, representing a year-over-year increase of 85% to 87% and quarter-over-quarter increase of 9% to 10%.

Find out more companies’ performance in Q3 2014 here.

WeChat official account has been launched for over two years, which has attracted businesses and individuals to the platform. QQ, being quiet connecting businesses and individual users, launched their “Lifestyle Service Account” in November 2014.

Smart device MAU of QQ was 542 million, more than WeChat which was 468 million in Q3 2014. This is a bit surprising considering the growth rate of QQ has been slowed down.

Mobile QQ’s service account, similar to that of WeChat’s, offers merchants service account via 2D code, which connects users and businesses once scanned and followed. However, it kept one key dial-in to merchant customer service on a prominent position. Users can use voice guidance as services such as tracking for delivery status and requesting for delivery.

Mobile QQ and WeChat official accounts can roughly provide the same service to users; one with voice, the other with text menu. Many China internet users would prefer getting services via voice comparing with text menu on WeChat, especially on services with immediate or even real time response required.

Mobile QQ service account will be open for public registration at the end of 2014 or early next year according to Yin Yu, VP of Tencent at World’s Internet Conference.

Read more: Wechat Launched Wechat Contacts App Offering Free Calls

In Q3 2014, total transaction value of China mobile Internet market was RMB51.56 billion ($8.39 billion) with increase of 11% quarter on quarter and 93.4% year on year according to data from iResearch.

As China mobile Internet market’s rapid development in these years, it has formed stable structure and meanwhile it is developing with reasonable strategy.

There are three reasons for China mobile Internet market’s rapid development in Q3 2014:

• Operators in China made great efforts in promoting 4G smartphones, which can increase 4G smartphone’s market share as well as accelerate the replacement of 3G & 2G mobile phones in China
• The increasing mobile Internet users brought urgent need for mobile services
• Traditional industries had been improving themselves with mobile internet which pushed China mobile internet market into fast development.

In Q3 2014, mobile shopping represented 51% of total value of China mobile Internet market, ranking top, followed by mobile value-added services (20.2%), mobile marketing (15.3%) and mobile gaming (13.5%).

Mobile shopping remained its status in mobile Internet market in Q3 2014. iResearch estimates China mobile shopping market is going to exceed RMB800 billion (US$129.7 billion) this year and it is continuously keeping strong growth in China. Value-added service was squashed by other service and its market share was decreasing continuously.

Programmatic buying chain forming initial shape as well as new mobile advertising methods stimulate new increase in mobile market. eMarketer estimates that China’s mobile online display and search ad spend will exceed over $2.83 billion in 2014; and, China mobile internet ad spend will exceed $12 billion in 2017 which indicates revenue from mobile marketing is expected to increase a lot in China mobile Internet market.

China mobile internet which is featured with mobile and convenience can be integrated with many entity industries and then it can further improve their development. Take mobile payment as an example; China mobile payment market covers public transportation, retail & catering industries and ect. It integrates with lifestyle service industry via various applications which adds new power for such industry. Know more about China mobile payment users: Wechat payment VS Alipay users

Also read: China Mobile Internet Statistics 2014

In Q3 2014, total transaction value of China e-commerce market was RMB3.19 trillion ($0.51 trillion) with increase of 13.1% quarter on quarter and 27.3% year on year.

B2B e-commerce market is the major part in China e-commerce market. The transaction value of small and medium enterprises in B2B e-commerce accounted for 46.3% with a decrease QoQ while online shopping transaction value as a percentage of total e-commerce increased to 30% in Q3 2014 from 22.1% according to data from iResearch.

SMEs in B2B e-commerce market as well as online travel market had growth rate of over 10% in transaction value year on year. Online shopping’s transaction value had increase of 49.8% QoQ in Q3 2014.

Morgan Stanley estimates that China’s e-commerce industry will account for 18% of the total retail sales in 2018, up from 8% in 2013.

Here are some highlights in China E-commerce market in Q3 2014:

1. Influenced by downturn of China economy in Q3, China B2B e-commerce market had slow growth as well.
2. With the popularity of online shopping in China, e-commerce enterprises are not only making efforts on optimizing its operation in online shopping market but also planning to extend development in tier-3 & tier-4 cities or even in rural China.
3. Chinese travelers are enthusiastic about outbound tourism nowadays. China e-commerce enterprises compete with online travel agencies.

Also read: Demographics of China E-Commerce Community on Weibo

In Q3 2014, total transaction value of China online advertising market was RMB42.22 billion ($6.87 billion) with increase of 37.9% year on year and 10.6% quarter on quarter. Influenced by overall economy status in China, the growth of China online advertising market slowed in Q3 according to data from iResearch.

Specifically, several factors for China online advertising market’s increase in Q3 2014:

1. China search engine ads kept stable increase and market share of mobile search continuously increased.
2. China web portals were in differential development; key marketing service and products contributed to ads revenue increase.
3. Sports matches and hot variety drove brought ads revenue increase on video websites.

Meanwhile, real estate market, which was influenced by China’s new policy, reduced investment in Q3 2014. So there was decrease in real estate ads placement in Q3 2014. Besides, China e-commerce industry remained conservative about marketing cost in Q3. All these led to slow growth of China online advertising market in Q3 2014.

In Q3 2014, China search engine ads accounted for 34.1% market share, ranking top, followed by e-commerce ads (24.6%), banner ads (22.9%) and video ads (8.2%).

Driven by small and medium-sized advertisers’ marketing demands in China, search engine market kept stable growth. Baidu, Sogou and other search engines are making efforts on mobile market which can further promote mobile search ads market. Baidu mobile traffic surpassed PC traffic in Q3 2014 and mobile revenue contributed 36% of our total revenue. Sogou Search mobile traffic was also up 20% in Q3 2014.

Wechat and other social network can provide sustained demand for Tencent social ads. Tencent’s Wechat launched Wechat advertising platform in late June 2014 and started with text link ads, connecting Wechat Official Accounts with advertisers. Besides, Wechat advertisers can use official accounts platform to drive fan growth of their own official accounts directly after users click on the ad; or, drive direct mobile app downloads.

China e-commerce ads will show its great potential in the last quarter. Double 11 (on 11 November) on Tmall is a big event in China which bring many opportunities for advertising market in China.

Also read: China Online Advertising Market, Top Online Advertisers in Q3 2014

In Q3 2014, the number of total active users in China mobile security market was 274 million. Top 3 mobile security apps in China were 360 mobile safeguard, Tencent mobile manager and Baidu mobile safeguard with active user coverage of 50.9%, 40.9% and 23.5% respectively in Q3 2014

At present, the continuous growth of mobile payment market urgently need protection of mobile security market. Various mobile security enterprises are now focusing on safety of mobile payment.

Tencent is making positive efforts on dealing with mobile safety issues and has created an ecosystem which including three operators, 15 mobile phone manufactures (such as Samsung, Xiaomi and Lenovo), SF Express，12 mobile apps (such as Shuame mobile app).

The mobile security open platform that created by Baidu mobile safeguard has three mobile security technology including mobile payment protection, ad blocking, virus scan & vulnerability detection. Baidu has cooperated with safety agencies, developers, app stores, banks, third party payment providers and operators. Besides, it is establishing platform’s interface to improve its mobile security ecosystem.

Also read: Insights of China Mobile Payment (Wechat, Alipay) Users

eLong revenue by product for Q3 2014 was 323.5 million yuan, an increase of 100% QoQ and 2% YoY according to its unaudited financial results.

Hotel room nights stayed in the third quarter increased 22% to 9.4 million room nights compared to 7.7 million in the prior year period. Hotel commission revenue for the third quarter increased 6% to RMB269.8 million (US$44.0 million), compared to RMB255.2 million (US$41.7 million) in the third quarter of 2013.

eLong’s net revenues for the third quarter increased 2% to RMB301.5 million (US$49.1 million), compared to RMB296.9 million (US$48.5 million) in the third quarter of 2013. Total revenues for the third quarter increased to RMB323.5 million (US$52.7 million).

eLong mobile bookings comprised 48% of eLong brand room nights, and cumulative downloads of eLong mobile apps reached the 100 million milestone, in the third quarter.

More than 20,000 properties have contracted to use the free, cloud-based, multi-device hotel property management systems, Yunzhanggui and Zhuzhe, produced by eLong investee companies, compared to over 10,000 in the second quarter.

Our mobile lodging transactions have now surpassed 100,000 per day on peak days during holiday periods; and our lodging network has grown to more than 155,000 properties in China and over 365,000 properties worldwide. Every day our mobile applications provide real savings to our customers with tens of thousands of discounted lodging products, including pre-paid, flash sale and last minute products,

said Guangfu Cui, Chief Executive Officer of eLong.

eLong’s total revenues by product for the third quarter of 2014 as compared to the same period in 2013 were as follows (in RMB million):

Air ticketing commission revenue decreased 24% in the third quarter of 2014 compared to the prior year quarter, due to a 21% decrease in commission per segment and a 4% decrease in air segments. Decline in commission per segment was primarily due to the lowering by major Chinese airlines of the base air commission rate from 3% to 2% in July 2014. Air ticketing commission revenue decreased to 8% of total revenues from 11% in the prior year quarter.

eLong gross margin in the third quarter of 2014 was 70%, compared to 75% in the third quarter of 2013. Gross margin decline was primarily due to a decrease in hotel commission revenue per room night.

eLong operating expenses for the third quarter of 2014 as compared to the same period in 2013 were as follows (in RMB million):

Total operating expenses increased 4% for the third quarter of 2014 compared to the third quarter of 2013. Total operating expenses increased to 96% of net revenues in the third quarter of 2014 from 95% in the prior year quarter. Operating loss wasRMB79.5 million in the third quarter of 2014 compared to operating loss of RMB57.9 million in the prior year quarter.

Net loss for the third quarter of 2014 was RMB58.3 million, compared to net loss of RMB50.4 million during the prior year quarter.

eLong currently expects net revenues for the fourth quarter of 2014 to be within the range of a decline of 20% to an increase of 10% compared to the fourth quarter of 2013.

Read more: Guest Satisfaction Research of China Hotels

In Q3 2014, China online video market reached RMB6.82 billion (US$1.11 billion) with increase of 9.3% from prior quarter and 83.2% year on year according to data from iResearch.

China online video market had an increase of RMB3.1 billion ($504.6 million) from the same period of prior year. It is believed that revenue from advertisement was still the key growth driver in China online video market in Q3 2014.

Total value of China online video in mobile advertising market was RMB970 million ($157.89 million) with an increase of 10.8% QoQ, which accounted for 22.8% of total online video advertising market in Q3 2014.

With popularity of mobile device as well as rapid development of 4G in China, online video platforms can provide various marketing service for advertisers under which which China online video mobile advertising market is expected to grow steadily.

In August 2014, the number of monthly active users of online video on PC-webpage was 501 million which was more than the one on PC-client side. In TNS Connected Life study, it found that one third (33%) in mainland China, 32% in Hong Kong, watch online video every day, on either PC or mobile devices.

Also read: China Top Online Video Providers by Monthly Browsing Time

GOME sales revenue in the first three quarters of 2014 was RMB44.645 billion, up 7.2% year-on-year and the sales growth of its comparable stores was up 6.0%.

GOME E-Commerce Gross Merchandise Volume (including GMV of GOME marketplace) was up 72.7% year-on-year in the first three quarters; unique visitor was up 63.9% year-on-year.

Consolidated gross profit margin was 18.6%, up 0.6 percentage point year-on-year; GOME net profit was RMB 1.018 billion, up 74.9% while its net profit margin was 2.3%, up 0.9 percentage point year-on-year.

GOME off-line store. Tier-1 and Tier-2 Cities: Same-store sales grew by 4.7%. There were 68 stores
upgraded to new smart comprehensive stores during the reporting period. Tier-3 and Tier-4 Cities: Same-store sales grew by 12%. During the reporting period, the Group opened a total of 58 stores.

GOME E-Commerce GMV including GMV of marketplace was up 72.7% year-on-year (of this, GMV for the third quarter rose 100.8% year-on-year). Unique Visitor went up 63.9% year-on-year (of this, UV traffic for the third quarter rose 104.1% year-on-year). GOME Mobile Terminal GMV increased to 12.4% of the E-Commerce GMV.

Mr. Wang Junzhou, CEO of GOME, said,

GOME’s ‘Open Omni-Channel Retailer’ strategy has enabled us to record impressive results that have outpaced the industry average and our peers for seven consecutive quarters. Going forward, our four unified service platforms –
procurement, logistics, information technology and financial services – will offer full support to the Group’s omni-channel development. This includes offline, online, mobile applications and other social channels to further drive business expansion, while providing quality onestop services for consumers and business partners. We are committed to achieving our goal to ‘Build another GOME’ by 2017, and to creating greater value for our shareholders and society as a whole.

Read more: JD.com Active Customer Accounts and GMV Both Doubled in Q3 2014

Jingdong’s (JD.com) GMV for the third quarter of 2014 was RMB67.3 billion (US$11.0 billion), an increase of 111% compared with the third quarter of 2013. Its net revenues for the third quarter of 2014 were RMB29.0 billion (US$4.7 billion), an increase of 61% YoY.

Jingdong’s net loss for Q3 2014 was RMB164.4 million (US$26.8 million) and net margin was -0.6%. Active customer accounts of JD.com increased from 22.1 million in Q3 2013 to 46.1 million in Q3 2014, an increase of 109% YoY or 21% QoQ.

GMV generated from Jingdong marketplace tripled compared to the third quarter of 2013 as Jingdong expanded their merchant base and diversified product offerings. Jingdong also improved mobile offerings on both the JD.com native app and their level-one access points on Wechat and Mobile QQ, spurring mobile orders to grow more than five times year-over-year.

Related: Alibaba’s Performance in Q3 2014

Jingdong’s Business Developments in Q3 2014

• In July, JD Finance launched crowdfunding platform “Coufenzi” to provide funding for creative business concepts. Concurrently, JD.com also unveiled several crowdfunding projects focused on the smart hardware and popular culture industries
• In August, JD.com became the first e-commerce company in China to leverage high-speed train for shipping. Six high-speed trains travelling daily between Beijing, Shanghai and Guangzhou are used to deliver JD.com’s orders, which has reduced shipping time and enhanced JD.com’s customer experience.
• In October, JD.com launched the initial phase of “Asia No.1” warehouse in Shanghai as part of an initiative to strengthen its nationwide fulfillment  infrastructure. The initial phase of the warehouse, comprising total floor area of 100,000 square meters with capacity to sort up to 16,000 packages per hour, has expanded JD.com’s fulfillmentability to support its future growth
• During the third quarter of 2014, JD.com significantly enhanced its advertising platform’s mobile capabilities through its collaboration with Tencent’s advertising platform which improves the ability of JD.com vendors to target relevant audiences, particularly on Wechat and Mobile QQ, and to boost mobile traffic
• As of September 30, 2014, JD.com operated 118 warehouses with an aggregate gross floor area of approximately 2.3 million square meters, 2,045 delivery stations and 1,045 pickup stations. Jingdong delivery network covered 1,855 counties and districts as of September 30, 2014. The Company’s 211 same-day and next-day delivery program covered 130 and 815 counties and districts, respectively, as of September 30, 2014, rising from 111 and 622 counties and districts, respectively, as of June 30, 2014.
• JD.com had approximately 50,000 merchants on its online marketplace as of September 30, 2014 and a total of 62,051 full-time employees as of September 30, 2014

Jingdong expects its net revenues for the fourth quarter of 2014 to be between RMB32 billion and RMB33 billion, representing a growth rate between 59% and 64% YoY.

Read more: Alibaba Double 11 Sales Exceeded $2 Bln in One Hour

In Q3 2014, total transaction value of China search engine market was RMB16.45 billion ($2.67 billion) with increase of 11.7% quarter on quarter and 50.6% year on year according to data from iResearch.

China search engine market was keeping its stable growth in consecutive three quarters in 2014 and it is still performing well. In Q3 2014, Baidu accounted for 82.2% market share in China search engine market by revenue, ranking top, followed by Google China, Sougou and 360 search.

Search engines’ revenue from mobile search was the key driving force for China search engine market in Q3 2014. The revenue from mobile search increased RMB5.53 billion ($0.9 billion) representing 59.9% of total growth from same period of prior year.

Sogou’s search and others revenues for the third quarter of 2014 were US$98 million, up 88% YoY and 16% QoQ, mainly due to increases in the number of paid clicks and higher average cost per click according to Sohu’s released financial results for Q3 2014.

As shown above, according another Chinese research company Analysis’s EnfoDesk data, Baidu accounted for 79.45% market share by revenue in Q3 2014 including revenue from overseas but excluding revenue from channels, ranking top, followed by Google China (12.04%) and Sougou (including Soso) (5.53%) in Q3 2014 in China.

Including revenue from overseas and channels, Baidu had 77.31% market share, followed by Google China (10.41%) and Sougou (8.27%).

Excluding revenue from overseas, Baidu had 85.63% market share by revenue, followed by Sougou (6.24%) and Google China (4.78%) in Q3 2014.

Google China’s market share was decreasing continuously as it only accounted for 4.78% in China search engine providers market by revenue not counting revenue from overseas.

Sogou cooperated with social platform to strengthen its status in Q3 2014. It provided mobile search service on Wechat official platform and had access to hundreds of Wechat official accounts to establish database.

Also read: China Mobile Search User Behaviors in H1 2014

In Q3 2014, total transaction value of China online advertising operator market was RMB43.55 billion ($7.08 billion) with increase of 51.4% year on year and 16.7% quarter on quarter according to data of EnfoDesk.

It is also believed that in Q3, China online advertising operator market had stable growth with increased budget from FMCG advertisers and rapid development of mobile business in China.

Keyword ads were still the preferred among advertisers and in Q3 2014, accounting for 38.9% in Q3 2014 according to EnfoDesk; market share of online video ads and brand display ads increased to 23.5% and 25.2% respectively with the growing video website advertising market and the development of programmatic buying.

Baidu accounted for 30.8% of market share by ad revenue in Q3 2014, ranking top, followed by Alibaba (21.5%) and Tencent (5.6%) in Q3 2014 in China.

Baidu and Alibaba’s market share accounted for over half of China online advertising providers market. In Q3, Baidu launched Zhida account (an official service account on Baidu mobile platform which can make mobile search more efficient) to attract various advertising and service business.

Alibaba had been making efforts on mobile advertising with rapid development of mobile online shopping. China mobile shopping market total transactions reached RMB210.32 billion (US$34.23 billion) in Q3 2014 with an increase of 238.7% quarter on quarter.

Also read: Baidu and Alibaba Dominate China Online Advertising Market

Netease total revenues for the third quarter of 2014 were RMB3,325.9 million (US$541.9 million), compared to RMB2,951.9 million and RMB2,514.3 million for the preceding quarter and the third quarter of 2013, respectively.

Its net profit for the third quarter of 2014 totaled RMB1.2 billion (US$188.8 million), compared to RMB1.2 billion and RMB1.0 billion for the preceding quarter and for the third quarter of 2013, respectively.

Revenues from online games were RMB2,459.6 million (US$400.7 million) for the third quarter of 2014, compared to RMB2,336.5 million and RMB2,105.5 million for the preceding quarter and the third quarter of 2013, respectively.

Revenues from advertising services were RMB478.3 million (US$77.9 million) for the third quarter of 2014, compared to RMB389.1 million and RMB298.8 million for the preceding quarter and the third quarter of 2013, respectively.

Revenues from e-mail, e-commerce and others were RMB388.0 million (US$63.2 million) for the third quarter of 2014, compared to RMB226.3 million and RMB110.1 million for the preceding quarter and the third quarter of 2013 (252.5%), respectively.

Netease YiChat (Yixin) provides a platform for integrating their mobile applications and services. With a focus on our ‘Fresh Social Life’ strategy, the introduction of exciting new functions has supported their growing YiChat user base and increased activity levels.

Our third quarter revenues were driven in part by the success of a number of our self-developed games, and our strategy to increase our focus on mobile games is progressing well. We saw standout performances from games including the PC and mobile versions of Fantasy Westward Journey II, as well as our mobile card battle game, Mini Westward Journey. New Westward Journey Online II also delivered a strong performance following the launch of an expansion pack in July and an item-based version in August. For our licensed games,Blizzard Entertainment’s Hearthstone^®: Heroes of Warcraft^™ (‘Hearthstone’) performed well, and we rolled out Curse of Naxxramas^™, Blizzard’s first solo adventure for this game, in July. We continue to work closely with Blizzard to bring exciting new games to Chinese audiences, and an early test version of Blizzard’s free-to-play, online team brawler Heroes of the Storm^™, was launched in China in October. We are also looking forward to the Chinese launch of the fifth expansion for Blizzard’s World of Warcraft^®, Warlords of Draenor^™, on November 18, 2014

Read more: The Secrets Of Xiaomi Marketing Success in China

Tencent’s total revenues were RMB19,808 million (USD3,220 million) in Q3 2014, an increase of 28% YoY. Profit for the period was RMB5,676 million (USD923 million), an increase of 46% YoY.

Mr. Ma Huateng, Chairman and CEO of Tencent, said,

We achieved another quarter of solid growth in our platforms, revenue and earnings. Our online advertising business expanded particularly swiftly, as we deployed targeted performance-based advertising on Mobile Qzone and Weixin Official Accounts. Given our traffic leadership and logged-in relationship with users, together with the proven scale of performance-based advertising services in China and overseas, we see ample scope for growth in our performance-based advertising business. During the quarter, we also retained our industry leadership in mobile and PC games, increased the market share of our app store YingYongBao significantly, and reinvigorated our subscription products via enhanced mobile privileges. Looking forward, we will deepen our partnerships with vertical leaders and continue to invest in our platforms, products, and people.

Tencent’s revenues from smart phone games integrated with Mobile QQ and Wechat also grew, with an expanded user base and full quarter revenue contribution compared to the same period last year. Social networks revenues increased by 47% to RMB4,723 million, due to increased item sales on mobile platforms and renewed growth of subscription revenues, as Tencent enhanced mobile privileges and mobile user experience for QQ Membership, Super VIP and Qzone subscription service.

In the third quarter of 2014, QQ and Qzone benefited from further growth in mobile user base and enhanced user engagement. For QQ, smart device MAU increased by 36% YoY to 542 million at the end of the quarter.

Mobile QQ experienced enhanced popularity of location-based groups and growth in the user base of Mobile QQ Wallet. New lifestyle services, including shopping, restaurant deals and health monitoring, were integrated with Mobile QQ to deepen its connection with users’ daily lives. For Qzone, smart device MAU increased by 26% YoY to 506 million at the end of the quarter.

Combined MAU of Weixin and WeChat reached 468 million at the end of the third quarter of 2014, representing YoY growth of 39%. Tencent deepened user interaction with the launch of a short video sharing feature (and a contacts app this month), and they improved content discovery through integrated in-application search.

Wechat Payment gained popularity as Tencent focused on enhancing its functionalities. Wechat extended the “shake” function to enhance the real-time engagement of Wechat users with TV programmers, such as the Voice of China 3, via interactive games and social sharing.

Tencent Key platform statistics

• MAU of QQ was 820 million, an increase of 1% YoY
• Smart device MAU of QQ was 542 million, an increase of 36% YoY
• PCU of QQ was 217 million, an increase of 22% YoY.
• Combined MAU of Weixin (Chinese version of Wechat) and WeChat were 468 million, an increase of 39% YoY
• MAU of Qzone was 629 million, an increase of 1% YoY
• Smart device MAU of Qzone was 506 million, an increase of 26% YoY.
• Fee-based VAS registered subscriptions were 89 million, stable YoY.

Read more: Stats of Top Selling Brands on Taobao/Tmall in 18 Categories

By the end of Q3 2014, Dangdang’s traffic on mobile device had already surpassed traffic via desktop computers, accounting for over 60% of total traffic with an increase of 25% QoQ. At the same time, orders on mobile device accounted for over 40% of Dangdang’s total orders. It is estimated that by the end of 2014, orders on mobile device will account for 50%.

Mobile shopping showed great strength in Q2 2014. Total transaction value on mobile Alibaba accounted for 32.8%. During period of “6.18” promotion, orders on mobile Jingdong accounted for 25% and Vipshop accounted for 46%.

Dangdang believes that there are several reasons for its increase on traffic and orders on mobile device.

1. Part of Dangdang users transferred from desktop to mobile device.
2. New Dnagdang users add powerful strength.
3. Dangdang carried out various kinds of promotion.
4. Improvement on mobile device has been made to make it more competitive among China online shopping websites

Also read: Dangdang GMV Had An Increase of 81.6% YoY in Q2 2014  & 7 Charts on China Mobile Shopping App Market

Kantar Worldpanel reports 5.7% value growth for China’s FMCG market for the latest 52 weeks up to Sep 5th 2014 which remains low in comparison to historic levels. FMCG growth recovered to 6.9% in Q3 2014, higher than both Q2 (4.7%) and Q1 (4.6%).

Small and less developed cities maintained fast growth at 9.7% for 2014 Q3 while key cities returned to positive value growth at 1.6%. According to Kantar, consumer trading up to more premium products is the key reason for this rebound. While this trend is present across all city tiers, it’s most noticeable in county level cities.

FMCG international retailers continue to lose share to local retailers. At national level, international retailers showed declines in penetration with stagnant shopper spending. And are losing share to local retailers across all four regions, with performance especially marked in the north. Conversely, local retailers maintained penetration levels while increasing shopper spending.

Retailers competing in the east face challenging circumstances with the region showing the highest level of consolidation. The top 10 retailers combined share accounts for 63.1% of modern trade in comparison to the nationwide top 10 share of 41.2% according to Kantar report.

Yonghui continued its strong performance with its national value share growing from 2.3% to 2.7% over the past 3 months. This was primarily driven by its fast expansion in the north, with a 0.6% share increase in Q3. Yonghui also demonstrated an impressive value share level of 5.4% in the west region; already making it the third largest player and only marginal lower than the second player, Vanguard group with 5.5%.

Steady penetration growth remains the driving force for e-commerce in FMCG, as the channel attracts more shoppers as a result of price, product choice and convenience. Kantar Worldpanel reports that 34% of Chinese urban families now shop online in the year. With the historical debut of Alibaba in NYSE in September, it is expected that more investment will be made on building infrastructure of the logistic network to make e-commerce more accessible to consumers across all life stages and locations in China.

E-commerce today is clearly no longer a preserve for younger consumers. Kantar Worldpanel observed that online shopping penetration is now growing strongly amongst older families where 26% shopped online in the latest year – an increase of 49% compared to 2 years ago.

According to Kantar Worldpanel, older consumers tend to buy more; household cleaning products, liquid milk, nutrient supplement, kitchen products and pet food from e-commerce retailers. Online retailers will need to ensure that user interfaces are friendly and easy to navigate with suitable support and assurance for those consumers who move from offline channels to online channels. At the same time, brand owners should also embrace the new reality, learning to communicate with consumers throughout the path to online purchase.

Also read: China Top 5 Group Buying Websites in Different Tier Cities