B2B Online Media Report

This is an updated edition of the original report which was published in April 2008.

• Of the 30 businesses in BSGs ranking, 18 are primarily finished goods sourcing websites or online trade directories (e.g. Alibaba.com and Global Sources). There are an additional 6 websites which are vertical industry websites (e.g. Netsuns network of vertical sourcing sites). Five of the 30 are trade publications, mostly technology-focused. There is one general business title, Beijing-based Caijing, in the Top 30.
• The top 10 continues to be stable with the same companies remaining in the top 10, but there way some jostling for positions amongst the leaders. Once again, Alibaba.com held onto the number one position.
• There are eight sourcing sites and two technology-focused websites in the top 10. The Japanese tech portal, ITmedia.co.jp and Chinabyte.com, a Chinese technology industry portal are the two non-sourcing platforms in the top 10.
• There was more volatility in the bottom half of the list. The biggest mover was Guangzhou-based BBspace.cn which moved up 19 places to rank #14. Other significant changes include Caijing.com.cn, the leading general business magazine in China which moved up five places to #16 and Zhejiang Netsuns subsidiary, Efu.com.cn, fell six places to #25.
• The ranking table continues to be dominated by sourcing websites which typically generate revenues by charging suppliers to list their products online. There are 18 general sourcing platforms and an additional six vertical industry sourcing sites. There are another 6 trade publications which typically generate revenues by selling banner ads or by charging for premium content and subscriptions.
• Global Sources and Alibaba continue to have the most sophisticated internationally-focused online sourcing platforms and both firms are battling with HC360.com for a larger slice of the domestic sourcing market in China.
• Amongst the online business publishers, the most significant in terms of traffic are ITmedia (#2), a Japanese media company targeting IT professionals and ChinaByte (#8), the partner of TechTarget in China. Chinabyte is focused on targeting technology professionals in China.
• The vertical industry sites are dominated by Hangzhou-based Zhejiang Netsun which owns five of six vertical industry websites in BSGs Top 30. They are Toocle.com, Chemnet.com.cn, Pharmnet.com.cn, Efu.com.cn and Texnet.com.cn. The exception is BBspace.cn, a Guangzhou-based online and offline B2B publisher.
• BSG believes that the key trends identified in the previous edition of this report remain largely unchanged. However, it will be worth watching how the offline activities change in a difficult economic environment. Some of the less cash-rich competitors may scale-back and even abandon offline activities. In a weak economy, buyers will travel less to trade fairs and manufacturers will cut their marketing spend. The challenge for these online B2B businesses is to attract the reduced spend of the manufacturers across Asia. In a weak economy, manufacturers may decide to allocate a greater portion of their budget to trade show participation or they may opt for a stronger online presence. A protracted recession could provide the larger and better financed companies in the Top 30 with a unique opportunity to consolidate their position in the market.

The key trends driving the industry are:

• Increasingly sophisticated online content and services
• Continuing importance of search engine optimisation (SEO)
• Importance of building offline awareness
• Establishing a presence in Chinas online domestic sourcing market
• Emphasis on deeper supplier data and verification services