User Scale and Utilization Ratio of Online /Mobile Online Shopping Users Dec. 2015 – Dec. 2016 10,000 persons 70000 60.0% 63.8% 70% 60000 63.4% 60% 50000 41325 54.8% 46670 44093 50% 40000 33967 40% 30000 30% 20000 20% 10000 10% 0 0% 2015.12 2016.12 Number of online shoppers Number of mobile online shoppers Usage rate of online shopping (by all Internet users) Usage rate of mobile online shopping (by all mobile Internet users) Source: Statistical Survey on Internet Development in China 2016.12 Figure 56 User Scale and Utilization Ratio of Online /Mobile Online Shopping Dec. 2015 – Dec. 2016 The online shopping market entered the mature stage in 2016. The increasing proportion of B2C transactions results in the further deepened online-offline integration and more industrial consolidation and acquisitions. In some fields, there are the following new features: The application of new technologies and new models has driven the diversification of the forms of e-commerce. As live streaming enjoys more audience and We Media develops rapidly in a more professional way, online shopping, driven by Internet celebrities and live streaming, enriches itself with more entertainment and enables its customers to experience more content. E-commerce platforms have increased investment in content fields and new aggregated traffic has promoted the conversion of transactions in specific categories. Meanwhile, the application of VR and AR in e-commerce has brought customers new shopping experience and future technologies will change the forms of retailing. New policies on cross-border e-commerce gradually standardize the industry. Influenced by the new policies in 2016, the market as a whole was improved and standardized. From the perspective of the market structure, SMEs lacking qualification and supply chain management capabilities will be gradually eliminated, with market concentration further improved; structurally, the mode is shifting from bonded delivery and hot sale to direct mail delivery and multi-category long-tail sale, which benefits the long-term orderly development of the industry. E-commerce needs to expand its production and marketing channels to rural areas in a bid to 6565 The 39th Statistical Report on Internet Development in China

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