Research On B2C E-commerce Competition Structure And Evolvement Rule

With the developing of Internet, the improving of network environment and the widespread of this concept, e-commerce now facing the tremendous opportunities of growth. Throughout the development of B2 C markets in the US and China, the B2 C market started early in the United States around 1994. It keeps growing for about 20 years until now; the B2 C market in China started relative late. in 1999, the first B2 C e-commerce companies, Dangdang was established. Now it has a history of 15 years development. Among all the e-commerce system models in the world Our B2 C system has become a mainstream form of e-commerce marketing. Along with the rapid development of e-commerce since 2006, the competition in B2 C e-commerce are much more fierce than before. In such a fast-growing, rapidly changing market, the characters of market competition and the rules of market development deserve further investment in research. Therefore, competition and development of B2 C e-commerce market now becomes the focus in both practical and theoretical researches.When comes to this fast growing B2 C e-commerce market, it is important to know whether the competition structure of the market prefers to monopoly or to fully competition now and how it will develop to in the future. Therefore this research based on the data of B2 C e-commerce markets share in China(2007-2013) and in United States(2004-2013). We have verified the exits of power-law distribution(y = cx-a) in the competition structure of both Chinese and United States B2 C e-commerce market. In addition, this research further reveals the relationship between the e-commerce market competition structure and their developing time period. Finally, based on the Logit model, this article studied the mechanism in the formation of B2 C e-commerce market competition structure and demonstrated the authenticity and validity of this mechanism.Our results show that the power-law distribution determination coefficient of the competitive structures in these two countries B2 C e-commerce markets are between 74% to 98%. The competitive structure of the markets in line with the power-law distribution. In the aspect of the dynamic developing of the markets, the coefficients c and index of competitive structure power-law distribution(y=cx-a) are increasing, which indicates the competition structure in both China and US e-commerce markets are becoming increasingly monopole. In the aspect of the evolutionary mechanism, the consumer behavior which based on Logit model makes this change, which from a uniform distribution competitive structure at the initial moment to a power-law distribution competition structure. This simulation verifies the reliability of the model.