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eBay Magento China eCommerce 2014
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eBay Magento China eCommerce 2014






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eBay Magento China eCommerce 2014 Presentation Transcript

  • 1. Federico Manno Head of eCommerce, China and APAC – eBay Enteprise
  • 2. Taming the Commerce Dragon: Expanding into China
  • 3. Lac Tran HEAD of DIGITAL web2asia
  • 4. Patrick Deloy Founder & Executive Director, Bluecom Solutions
  • 5. China eCommerce Market
  • 6. China Online Population US online penetration growing from 80% (2011) to 83% (2015) China 642M online users (46% of population) 1.4B population China online penetration growing from 38% (2011) to 51% (2015)
  • 7. 2009-2016 E-Commerce Sales Revenue 984 1108 1227 1409 1609 1822 2044 2275 263 461 785 1259 1800 2450 3020 3600 2009 2010 2011 2012 2013 2014 2015 2016 USA China RMBBillions! 2013 Value Growth: China 43% ; USA 14.3% 2013 % of Total Retail China 7% : USA 5.3% Chinese ecommerce market exceeded the US to become largest online retail market in the world
  • 8. CHINA 2013! USA 2013! % of online shopper Internet users # of online shoppers 45.8% 81% 270 Million 160 Million 17% 6.7%
  • 9. China B2C Landscape – not all alibaba
  • 10. Penetration % per Category 88! 73! 66! 62! 61! 50! 46! 44! 35! 31! 31! 20! 18! 18! 17!
  • 11. Entering China market
  • 12. China multichannel approach ONLINE RETAILER MARKETPLACE PRESENCE Sales Growth (Wholesale & Marketplaces) MONO-BRAND ONLINE SHOP Online Turnover (Own Retail) MARKETING WEBSITES Market Recognition & Local Touchpoint Mono-Brand Shop as focal Online Selling Proposition Being present on major market places and multi-retail platforms (TMall,.com, JD.com, Suning etc.) Localized marketing website to increase brand awareness and local recognition
  • 13. China Marketplaces vs Webstore Standalone  E-­‐Commerce  Site Pla2orm  Store  (Tmall) Posi%oning  from  consumers  perspec%ve Premium  des%na%on Outlet/Clearance  channel Customer  Acquisi%on  costs High  (typically  nega%ve  marke%ng  ROI   in  1st  year  of  opera%ons) Low  (typically  marke%ng  ROI  of  2-­‐4  for   spending  within  Tmall) Customer  Loyalty  &  repurchase  rate Medium Low Customer  Life-­‐Time  Value High Low Predominant  price  strategy Full  price Heavy  mark-­‐downs  (up  to  70%) Integra%on  with  POS,  CRM,  etc. Possible Not  possible Short-­‐term  scalability Limited  (due  to  high  customer   acquisi%on  costs/immediate  ROI) High Short-­‐term  sales  poten%al 5-­‐10%  of  brands  e-­‐commerce  sales 50-­‐70%  of  a  brands  e-­‐commerce  sales Long-­‐term  sales  poten%al High Medium
  • 14. China Marketplaces vs Webstore Standalone  E-­‐Commerce  Site Pla2orm  Store  (i.e.:  Tmall) Value  proposi%on  to   consumer •  Full-­‐product  range   •  Inseason  products   •  Rich  content:  beWer  brand  history  &  product   experience,  games/simulators,  etc.   •  Web  exclusive  products •  Limited  product  range   •  Overstock/off-­‐season   products Pricing  to  consumer •  Full  price •  Promo%ons  &  mark-­‐downs Addi%onal  benefits   for  consumers •  Loyality  card/VIP  card“:  integrated  with  POS.   Card  holders  e.g.  receive  10%  discount   online  &  offline.  Addi%onally  collect  points   for  every  purchase  that  can  be  redeemed   for  addi%onal  discounts/gi^s. •  Special  seasonal  promos   together  with  Tmall  (e.g.   Singles  Day  11.  November  day   promo,  etc.)
  • 15. Case studies 28% 72% 2013 Sales Tmall eShop 37% 63% 2014 Sales Tmall eShop The long term investment is paying off as we think within a 18 months, the eShop will generate more sales with a much higher gross margin.
  • 16. Magento in China
  • 17. Magento Localization ⺴⽹网商 Language Localization Site UX & Design SNEs & MM Content Delivery / Tracking Checkout Structure Payment Methods Mobile / Responsive Hosting / Server Setup
  • 18. Magento Localization ⺴⽹网商 Language Localization v  Localization of textual content (taking into account marketing best practices, local linguistics) v  Localization of images and visual content v  Adaption of system messages and emails v  Translation / Adaption of meta info
  • 19. Magento Localization Site UX & Design v  Adaption of design to China expectations v  Adaption of structure and UX to local best practices v  Adaption of navigation structure, pathways through site v  Adaption of product pages (image content, description display, product reviews)
  • 20. Magento Localization SNEs & MM Content v  Integration of local social networks (Weibo, Weixin, QQSpace, Duoban, Renren, Kaixin etc.) v  Single-Sign On feature with QQ, Weibo etc. v  Integration of social media feedback, reviews and ratings v  Locally hosted multimedia content (Tuduo, Youku, etc.) Kaixin, Renren, etc. Weibo Youku, Tudou, etc. Facebook Twitter Youtube
  • 21. Magento Localization v  Integration of local delivery service providers v  Integration of delivery tracking service (e.g. Kuaidi100) v  Use of table rates or shipping price calculation v  Integration of order and return management info with OMS Delivery / Tracking
  • 22. Magento Localization v  Adaption of input fields (e.g. name input in single input field, address fields, no separate billing address) v  Inclusion of location dropdowns (e.g. for provinces, city districts) v  Input fields for legal invoice details (“fapiao”) v  One step checkout Checkout Structure
  • 23. Magento Localization v  Integration of local payment gateways (Alipay, Tenpay, Unionpay, 99Bill etc.) v  Payment through e-wallet (e.g. Alipay) or directly through bank v  Payment on delivery (COD) v  Reward points and/or loyalty programs Payment Methods
  • 24. Magento Localization v  Mobile template for catalog or with transactional features v  Mobile template vs. responsive design v  Desktop & smartphone vs. desktop, tablet & smartphone v  Taking into account mobile bandwidth limitations Mobile / Responsive
  • 25. Magento Localization v  “Great Firewall of China” slows down connections from outside China v  Local hosting requirement: ICP registration (for self-sold items) v  Competitiveness of hosting market not as high as in “western” world v  CDN service recommended within China for certain traffic expectations Hosting / Server Setup
  • 26. Case studies Decathlon (Decathlon.com.cn) v  Built on Magento Enterprise v  Language localization (& English version), UX/design for Chinese market v  Shop finder for China v  Social network integration (Weibo, QQSPace, Renren, Kaixin etc.) v  Checkout adaption, local & International payment gateway (Alipay, CC), COD, local shipment tracking v  O2O Membership / loyalty program (reward points) v  Mobile template (m.decathlon.com.cn)
  • 27. Case studies Homes-up (homes-up.com) v  Built on Magento Enterprise v  O2O Integration (Pick up in store, Order online in showroom) v  Language Localization (& English version), & UX/design for Chinese market v  Social network integration (Weibo, Wechat, Instagram, etc.) v  Checkout adaption, local & International payment gateway (Alipay, CC), local shipment tracking v  Local multimedia integration (Youku)
  • 28. Fulfillment in China
  • 29. Domestic vs Cross-Border Fulfillment Domes:c  Fulfillment  Solu:on Cross-­‐Border  Fulfillment  Solu:on Business  Licenses  &  Product  Import Requires  Company  Registra%on,  Trade   License,  Specific  Industry  License.  Goods   need  to  go  through  China  Inspec%on  &   Quaran%ne  Services  before  gecng   imported None Replenishment Takes  longer  if  goods  needs  to  be   imported Quick Time  to  Delivery From  same  day  to  72  hours From  3  days  to  a  month Warranty Easy  return  process  with  rela%ve  low  for   shipping  costs Complex  return  process  with  high  cost   shipping  costs Scalability High Low
  • 30. Omnichannel Fulfillment (O2O) Retail DCs, B2B/B2C DCs, 3PLs, Dropship Suppliers Stores Centralised Delivery Regional Delivery Local Delivery Webstore Mobile Marketplaces Omnichannel Order Broker
  • 31. O2O to reduce delivery time and costs 2013 2014
  • 32. Thank you!
  • 33. Q&A