B2B Online MediaReport(2007 April)

What's in the Report?

• The Top 30 Asian online B2B media companies continue to be dominated by consumer merchandise sourcing websites. Of the 30 in our ranking, 20 are primarily sourcing websites or online trade directories. The remaining 10 businesses publish IT and Internet, trade or general business titles.
• The sourcing websites typically generate revenues by charging suppliers to list their products on their websites although a few are also developing paid subscription models. Other businesses in our Top 30 generate revenues through selling banner ads or charging for premium content and subscriptions.
• Alibaba retains the number one position by a wide margin. Alibaba has more than triple the reach of number two, HC International and over three times the reach of number three, Made-in-China.
• Global Sources (#7) has the opportunity to gain considerable ground on Alibaba if it decides to proceed with its acquisition of HC International. Global Sources currently owns about 10% of HC International and the company has until the end of June this year to decide if it wants to acquire all outstanding shares of HC International.
• Of the sourcing websites, Global Sources and Alibaba have the most sophisticated online sourcing platforms offering a variety of services and content ranging from proprietary research to voice and instant messaging services.
• Interestingly, Global Sources and Alibaba also have the most diverse source of revenues compared with their competitors. In addition to its online sourcing platform, Global Sources has a viable print-based trade catalogue business and it operates a series of sourcing exhibitions in Hong Kong. Alibaba has its sourcing platform, online search services, Taobao.com (an auction site similar to eBay) and it operates Yahoo! China.
• Amongst the online business publishers, the most significant in terms of traffic are ITmedia (#4), a Japanese media company targeting IT professionals and 51fashion.com.cn (#6) which is focused on the fashion and garment industry in China.
• There are three key trends that are significantly affecting the rankings.

1. Increased content: this is especially evident amongst the more sophisticated sourcing sites, Global Sources and Alibaba. They are continually moving to offer more content such as industry research, supplier credit reports and export guidelines.

2. Search engine optimisation: SEO is playing an important role in determining which B2B websites move up the rankings. SEO involves making continual technical adjustments to the website to ensure that their website appears at the top of Google's search results.

3. Creating offline awareness: Leading B2B websites including Global Sources and Alibaba are also focused on building their brand offline through outdoor advertising campaigns, participating in trade shows globally and, in the case of Global Sources and some others, continuing to offer print catalogues.