Offline Media Dominate China's B2B Sector with a 75% Market Share

Offline Media Dominate China's B2B Sector with a 75% Market Share

June 20, 2007

Export Promotions Exceed Domestic Spending, Accounting for
70% of Revenue


    BEIJING, June 20 /Xinhua-PRNewswire/ -- Analysys
International's China's B2B Media Industry Research Report
( http://www.english.analysys.com.cn ) shows trade
publications and trade shows dominate mainland China's
business-to-business media with 72 percent market share,
while online media accounts for 25 percent.
 
    (Photo: http://www.xprn.com.cn/xprn/sa/200706201042.JPG
)

    Market shares of China B2B media platforms in 2006
    
http://english.analysys.com.cn/admin/images/1538_1.JPG

    Other key findings show foreign trade-related
advertising accounts for about 70 percent of total China
B2B media revenue.  Total B2B advertising is expected to
top RMB 9.3 billion in 2007, up 25 percent over 2006.

    The size of China's B2B market
    
http://english.analysys.com.cn/admin/images/1540_1.JPG

    Domestic and foreign trade market share
    
http://english.analysys.com.cn/admin/images/1537_1.JPG
  
    Analysys' Sr. research analyst, Haiying Chen, said:
"Contrary to common belief, online media spending does
not dominate China's B2B media space.  Our research shows
quite the opposite, with spending on traditional media
accounting for well over double that of online
media."

    "Another interesting finding is that foreign
trade-related B2B services accounted for 70 percent of B2B
media spending in 2006.  China's domestic B2B market is
still in its early stages.  Consequently, many companies
serving the local market are small players and have focused
on the online model, largely due to its ease of
entry."

    "However, foreign trade is far more sophisticated
than domestic trade. Just some of the hurdles that
foreign-focused B2B media help overcome include distance,
language, culture, clarity on safety standards, customs,
and liability issues - the list goes on.  Consequently,
both Chinese exporters and overseas buyers require more
robust channels to communicate.  They rely heavily on
specialized media, including trade publications and trade
fairs, and online marketplaces."
 
    Market shares of top B2B service providers
    
http://english.analysys.com.cn/admin/images/1539_1.JPG
 
    The report notes that suppliers serving the domestic
market are also shifting from competing on low price to
focusing more on value-added services. This move will
intensify competition among suppliers and drive demand for
more sophisticated media solutions.

    Foreign trade-focused firms will have a distinct
competitive advantage when developing the comprehensive
media offerings that China's B2B domestic market will
increasingly require.

    The China's B2B Media Industry Report provides an
overview of both the online and offline media business,
including a detailed analysis of the current status and
future trends of the overall China B2B media market for
2006. It offers recommendations to B2B media users, service
providers and investors interested in China's B2B media
market.

    SWOT analysis of different B2B media platforms
    
http://english.analysys.com.cn/admin/images/1536_1.JPG

    A free executive summary of the report is available at 
 
http://english.analysys.com.cn/3class/tbml.php?id=180&name=report_main&FocusAreaTitleGB=&daohang=Report&title=China%20B2B%20Media%20Industry%20Research%20Report

    About Analysys International

    Analysys International is the leading advisor about
technology, media and telecom (TMT) industries in China. 
We provide data, information and advice to 50,000 clients
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investment community and government agencies.

    For more information, please contact:

     Karen Bai
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     Email: [e-mail]