58.com operates the largest online marketplace serving local merchants and consumers in China, as measured by monthly unique visitors on both the Company’s www.58.com website and mobile applications, according to iResearch. The Company’s online marketplace enables local merchants and consumers to connect, share information and conduct business. With a large and growing user base, merchant network and massive database of local information, 58.com has created a powerful network effect that enables it to maintain its leadership position.
58.com’s online marketplace contains a vast amount of credible and up-to-date local information in approximately 380 cities, across diverse content categories, including housing, jobs, used goods, autos, pets, tickets, yellow pages and other local services. The Company conducts automatic and manual screening using proprietary technology and processes to ensure the relevance and accuracy of information provided on the online marketplace. To further increase the quality of information and enhance the user experience, 58.com leverages its years of experience as it continues to develop processes and features to certify local merchants, encourage user reviews, collect and respond to customer feedback through its customer service team and provide design templates to local merchants to make listings more informative and effective. The Company’s broad, in-depth and high quality local information, combined with easy-to-use website and mobile applications, has made it a trusted marketplace for consumers.
58.com’s online marketplace also provides merchants with an affordable and effective marketing channel to reach a broad and targeted local consumer base. Its sales and customer service team stay in regular contact with its customers to help them use its online marketing services to achieve optimal marketing effectiveness. The well-recognized brand, "58.com," further helps local merchants to attract consumers in China.
The Company’s business model is highly compatible with the mobile internet. 58.com’s listing-based content is easy to display through mobile devices. Location-based services and other mobile functionalities significantly increase user engagement. The Company has launched a separate mobile merchant application to increase consumer-merchant communication and enhance the ability of merchants to manage content and attract consumers.
Leveraging the network effect of its online marketplace with the Company’s focus on providing the best user experience, 58.com has achieved market leadership with significant user traffic and growing user engagement, as shown by:
● no. 1 market position represented by 38.1% market share in terms of cash receipts in China’s online classifieds market in 2012, according to iResearch;
● an average of 129.7 million monthly unique visitors who visited the website or used the Company’s mobile applications in the second quarter of 2013;
● the number of page views per unique visitor on 58.com’s website, which more than doubled in the second quarter of 2013 compared with the same period in 2010; and
● an average of 1.9 million listings per day of local information that users posted on the Company’s website and mobile applications in the second quarter of 2013.