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China's e-Business Market Achieves Greater Prosperity in Manufacturing Industry

2008-05-28 16:19 1302


BEIJING, May 28 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China’s e-business market in China’s manufacturing industry.

The e-business market in China’s manufacturing industry has prospered

The e-business trading volume in the world’s manufacturing industry reached $8,928 billion in 2007, up by almost 5 times over the $1,840 billion in 2002. This shows that there has been a greater understanding and application of e-business across the manufacturing industry. In addition, the e-business market in China’s manufacturing industry reached a size of RMB949.6 billion in 2007, up by 34.9% over 2006, greeting a period of sound growth.

Thanks to a more and more favorable policy, economic, social and technological environment, manufacturing enterprises in China have increasingly realized the advantages of low cost and high efficiency which e-business has brought to them. In particular, large-sized manufacturing enterprises as represented by BAOSTEEL, FAW and SAIC play an important role in the e-business field. They not only use third party e-business platforms to conduct online trading but also establish their own e-business websites and even set up their own e-business companies to be especially responsible for e-business trading. This no doubt plays a positive role in the overall improvement of e-business in China’s manufacturing industry. It can be said that as the manufacturing industry continues to grow, the penetration and application of e-business will continuously improve the level of IT applications in manufacturing enterprises, thus driving forward overall industrialization.

The e-business market in China’s manufacturing industry diversified

-- Diversification of market entities. The e-business market in the manufacturing industry mainly refers to the market in which enterprises and links in the manufacturing industry use IT and e-business platforms to carry out e-business trading. It mainly includes integrated e-business websites, vertical e-business portals and self-built e-business portals in the manufacturing industry, as well as system integrators and equipment suppliers that are an important link of the e-business market within the manufacturing industry.

As far as the value chain is concerned, the manufacturing industry must adopt e-business to optimize its industry chain structure, improve industry efficiency and realize their values; the market-oriented nature of e-business means that it must make profits. This also determined that the main entity of the e-business value chain of the manufacturing industry is manufacturing enterprises, while various e-business application platforms form the core. Among them, the concerned administrative departments directly affect and determine the development direction and trajectory of e-business in the manufacturing industry, while the equipment suppliers and system integrators form the foundation of the value chain, and channels and agents integrate and connect the whole value chain, and ensure stable flows through the chain.

Fig. 1: The E-Business Value Chain of the Manufacturing Industry

http://www.ccidconsulting.com/upload/13092.jpg

Source: CCID Consulting, Jan. 2008

-- Diversification of e-business types. These mainly include three types. The first type is of integrated e-business websites; such e-business websites include Alibaba, www.ccgp.gov.cn, HC360.com and www.globalsources.com.cn. They mainly provide comprehensive enterprise and product information in the manufacturing industry as well as third party B2B or B2C e-business trading services. Through online search, member services, e-business certification and online trading, these websites often provide services to manufacturing enterprises and different clients, with profits helping to carry out website building and reconstruction. The second type is of e-business websites in vertical manufacturing industry segments. These websites mainly include such vertical search websites as made-in-china.com, www.jx.cn and chinacars.com. They mainly provide special manufacturing enterprise and product information in vertical industry segments as well as third party e-business trading services. These websites often get profits through advertising, business promotion and member services, and provide manufacturing enterprises and clients with special online services. The third is of manufacturing enterprises’ self-built portal e-business websites. These are mainly e-business websites built by BAOSTEEL and FAW. They mainly provide clients with product information, quotations, comparisons and online trading services. Such e-business websites achieve direct communication between manufacturing enterprises and their customers. They make direct and electronic transactions, and strengthen customers’ reliance on manufacturing enterprises.

-- Diversification of profit models. For third party e-business platforms in the manufacturing industry, the main profit models include the following. The first is the advertising model. This model mainly charges relevant fees by releasing enterprises’ advertising information on websites. It is a rather common model for e-business websites in the manufacturing industry. The second is the membership model. This model mainly charges a membership fee over member enterprises, and provides them with special and value-added services to make profit. The third is the sales channel model. It mainly charges channel platform fees by providing different clients with supply and demand platforms. The fourth is of other value-added service profit models. As for manufacturing enterprises’ self-built e-business platforms, the main profit model is “online supply & sales + logistics management + information search + consulting services + product trade + member services + other services”. Such websites often carry out high-level e-business through online sales, online procurement, online logistics, online finance, online research, online joint supply and online trading by subsidiaries.

The e-business market in China’s manufacturing industry is improving

While the demand and market continue to grow, there are still problems in the e-business market in China’s manufacturing industry. These include the small-scale penetration of e-business and narrow applications. CCID Consulting thinks that certain measures must be adopted to make the e-business market more prosperous. For the government, these measures will include: 1. Strengthen the formulation and standardization of e-business policies and regulations in the manufacturing industry to create a favorable policy environment for e-business operations within the industry. 2. Guide the diversified e-business demands in the manufacturing industry to develop along the rational direction. 3. Improve the logistics, payment and financial environment for e-business in the manufacturing industry. For enterprises, these measures include: 1. Improve the integration of e-business systems. 2. Expand the scope and penetration of e-business applications. 3. Strengthen infrastructure and platform building for e-business applications. 4. Strengthen mobile e-business, and improve manufacturing enterprises’ e-business efficiency.

About CCID Consulting

CCID Consulting Co., Ltd (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliate to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China.

Based on the major competitiveness of the powerful the industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management. Her customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits herself to become the No.1 advisor for enterprise management, the No.1 consultancy for government decisions and the No.1 brand for informatization consulting.

For more information, please contact:

Cynthia Liu

Coordinating Manager

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9080

Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.
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Keywords: Machinery
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