Summary of China’s E-Commerce Business Park Development Report (中国电子商务园区发展报告）（2014-2015） Part 1

I. Statistics

1. Quantity
According to incomplete statistics, there are over 510 E-Commerce business parks in China, as of the end of March, 2015. Meanwhile, many other industry parks, pioneer parks, software parks also host many online business operators and E-Commerce service providers.

2. Geographical distribution
These business parks are spread over 110 cities in 29 provinces in China, but the distribution is heterogeneous: over 70% of these parks are located in five provinces: Zhejiang, Guangdong, Jiangsu, Fujian, and Shandong.

Top 10 cities (ranked by the numbers of existing E-Commerce business parks):
Hangzhou
Jinhua
Guangzhou
Wenzhou
Taizhou
Shanghai
Shaoxing
Shenzhen
Ningbo
Quanzhou

3. Size
A majority of these business parks are under 50,000 sqm2

4. Number of resident enterprise
60% < 100. Majority has fewer than 500 employees. There are some exceptions such as Hangzhou’s 东方电子商务园 (Eastern E-Commerce Park: over 300 resident enterprises, and over 7,000 staff.)

5. Profit model
rental income
government subsidies
value-added services income

These parks usually earn their profits from one or more of these models. Overall, enterprise-led parks earn their profits by charging for rent and value-added services. Government-led parks reduce or exempt rent at the beginning, and their income mainly come from government subsidies. Meanwhile, some parks earn their income from estate-development and investment operation.

II. Characteristics

1. Large-scale Emergence
In the past two years, E-Commerce parks have emerged in China rapidly (no specific statistics supporting this statement), and especially in county-regions. By the end of march, 2015, there are over 100 E-Commerce business parks in country regions. In cities where county-level E-commerce is more developed, such as Jinhua, Quanzhou, Taizhou, Suzhou, etc, there are >50% business parks in counties, more than in city-proper.
2. Integrated Services
Most E-commerce business parks offer businesses with one-stop convenient services, combining delivery, operation, training, IT, etc. altogether.
3 types of services:
Business service - delivery, storage, marketing, finance, photography, training, operation, information technology, visual design, etc., primarily provided by the parks or their resident enterprises.
Government affairs services - industry and commerce, tax, intellectual property, consumer protection, custom, etc. Services provided by relevant departments of the government
Life services: restaurants, supermarkets, gym, cafes, hotels, banks, etc. provided by the parks or their resident enterprises.