eCommerce in China_Dieter Georg Herbst


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Presentation held in China in May 2013

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eCommerce in China_Dieter Georg Herbst

  1. 1. Private Brand Executive Program:e-Commerce in ChinaProf. Dr. Dieter Georg HerbstShanghai, 18 April, 2013Prof. Dr. Dieter Georg Herbst
  2. 2. e-Commerce“Economic system where firms and consumers areaided by computers and networking technologies thatenable an entirely new market”Choi et al (1995)Choi et al (1995)“Electronic commerce is about doing businesselectronically”Timmers, P.(2000)Prof. Dr. Dieter Georg Herbst
  3. 3. Is it necessary for the retailer to launche-commerce business?Prof. Dr. Dieter Georg Herbst
  4. 4. Over 1.5 billion potential customers are currently connected tothe internet and that number is growing on a daily basisProf. Dr. Dieter Georg Herbst
  5. 5. Internet users in the world by region, 2012 Q2Prof. Dr. Dieter Georg Herbst
  6. 6. Number of internet users by region2012 Q2Prof. Dr. Dieter Georg Herbst
  7. 7. Top 10 countries of usersJune 30,2012Prof. Dr. Dieter Georg Herbst
  8. 8. By 2015, China will have nearly twice the number ofinternet users as the US and Japan combinedProf. Dr. Dieter Georg Herbst
  9. 9. Most brands are onlineProf. Dr. Dieter Georg Herbst
  10. 10. Shifting of marketing spend –US interactive marketing spend 2011 to 2016Source: Forrester ResearchProf. Dr. Dieter Georg Herbst
  11. 11. Online shopping has become commonplaceProf. Dr. Dieter Georg Herbst
  12. 12. Global e-commerce salesare growing at more than19 percent a yearWorldwide retail web sales willreach nearly $1 trillion by 2013e-commerce is growing at 19,4percentSource: Goldman Sachs, Sales in billions dollarsProf. Dr. Dieter Georg Herbst
  13. 13. Top 10 countries by online byersProf. Dr. Dieter Georg Herbst
  14. 14. Forecast: growing industrye-Commerce revenue by countrySource: IDATE, World Internet Markets, edition July 2012Prof. Dr. Dieter Georg Herbst
  15. 15. E–Commerce sales in China• 2011 Online retail generated $121 billion in sales inChina (up 66% from 2010)• Chinas e-Commerce market will be reaching$ 420 billion in sales by 2015$ 420 billion in sales by 2015• China has an estimated 193 million online shoppers• By 2015 those consumers will each be spending$ 1,000 per year onlineProf. Dr. Dieter Georg Herbst
  16. 16. More and more retailers onlineProf. Dr. Dieter Georg Herbst
  17. 17. Online retail sales growth for top 5 marketsSource: EuromonitorProf. Dr. Dieter Georg Herbst
  18. 18. Online share of retail by categorySource: U.S. Census Bureau, Annual Retail Trade SurveyProf. Dr. Dieter Georg Herbst
  19. 19. Forecast:explosivegrowth in onlineretail in China“The recent explosive growth in online retail is set to continue in2012-16. The US-based Boston Consulting Group has estimated that e-commerce sales will amount to more than Rmb2trn (US$334.4bn) in2015, equivalent to around 7.4% of total retail sales.”Prof. Dr. Dieter Georg Herbst
  20. 20. Top 10 online retailers in China by total turnover (RMB,million) in 2010Source: iResearch, China Internet WatchProf. Dr. Dieter Georg Herbst
  21. 21. Forecast:e-commerce in Chinais likely to reach 8percent of retail salesby 2015Prof. Dr. Dieter Georg Herbst
  22. 22. Second largest mail ordercompany in GermanyIncreased its turnover by1.7 percent from 11.6billion to 11.8 billion EurosRetailer generates more sales online than offline(example: OTTO)53 percent of sales fromonline shoppingProf. Dr. Dieter Georg Herbst
  23. 23. Already many private brands online in ChinaProf. Dr. Dieter Georg Herbst
  24. 24. Number of employees: 2010: 100, 2011: 500„Private brands have a prominent place on our website... The privatebrands account for the majority of our sales. We have very closerelationship with the manufacturers, and that is why we can react veryquickly to new trends.”Prof. Dr. Dieter Georg Herbst
  25. 25. e-Commerce: Why?• Selling products and services to a global market» E-tailing or „virtual storefronts“ on websites with onlinecatalogues, sometime gathering into a „virtual mall“• Providing customer service• Collaborating with others (combination of valuechains)• Gathering information about customers• Providing seller support• Publishing and distributing informationProf. Dr. Dieter Georg Herbst
  26. 26. TargetingProf. Dr. Dieter Georg Herbst
  27. 27. Cooperation of manufacturer and dealerProf. Dr. Dieter Georg Herbst
  28. 28. Cooperation of manufacturer and dealer:Amazon KindleProf. Dr. Dieter Georg Herbst