E-commerce Development Plan in china - Simulation situation


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E-commerce Development Plan in china - Simulation situation

  1. 1. E-Commerce in China Dealers Comparison & Sales Plan Simulation situation Prepared by Charlotte Lee 2013 Nov
  2. 2. Agenda 1 China Market and Platform comparison 2 Platform Ecosystem and ROI Analysis 3 Chinese Digital Landscape 4 2014 Sales Checklist 5 E-Shop Set up and Hosting Package in China 6 Conclusion 7 Appendix
  3. 3. Business Background: E-Commerce in China China rapidly expand ecommerce market rapidly in New Internet users because: limited reach of brick & mortar: geography hampers the sales of retail store  wider product selection  better bargain power  high trust on some ecommerce
  4. 4. E-Commerce Ecosystem There are 5 type of e-commerce in China. This presentation will focus on 4 main platforms
  5. 5. E-Commerce Rank in China Source:     http://www.ectop.com.cn The top e-commerce channel rank in China is always B2C 1st : Taobao  2171th : Glamour Sales 2nd: Tmall 3rd: Amazon China
  6. 6. 4 Platforms Frontpage Analysis Help to evaluate:  the image of platform match with brand  the brand & product controlability  marketing and event ads
  7. 7. C2C E-commerce – Platform analysis Event Weekly or Monthly • Shops are private • Cheaper Price • Fake product • Aesthetic photo Product Category Tmall Advertisemen ts Theme Sales
  8. 8. B2C E-commerce – Platform analysis Product Category Event Weekly or Monthly • Normal Mall • Guarantee of quality • Comparative higher price • Better aesthetic photo • Brand products including multinational and Chinese local Theme Sales
  9. 9. B2C E-commerce – Platform analysis Product Promotion On Sales Event • • • • Shops are shown under Amazon Emphasis Product diversification Brand-focus Standard photo picture
  10. 10. B2C E-commerce – Platform analysis Product Promotion by BRAND • Shops are under GLS • Membership customer segment – Private Club • Luxury brand product • Big discount • Vendor offered picture • GLS marketing campaign
  11. 11. 4 Platform Service Analysis Help to evaluate:  the amount of company resource spent  worth of mouth in chinese communities
  12. 12. Platform Service + Word of Mouth Consumer Service Policy        VAT Invoice provided Credibility of Shop 7 days return & exchange service Refund triple if fake products Delivery within 24 hours 30 days free-of-charge repair & maintain 3rd party quality checking service
  13. 13. Platform Service + Word of Mouth   Chinese is social during the shopping process More than 40% will read and post reviews online.  Forums & communities • Exposure of fake products The ways to discern the fake • Feedback from customers    Detail understanding of shop Leave inquiry messages Product quality (Word of Mouth)
  14. 14. Platform Service + Word of Mouth Word of Mouth Focus the user’s private forum or bloggers. Consumer Service Policy    VAT Invoice provided Credibility of Shop 7 days return & exchange service
  15. 15. Platform Service + Word of Mouth Consumer Service Policy     7 days return & exchange service Brand guarantee Free Delivery if sales amount > 688 On-line Q&A
  16. 16. Platform Service + Word of Mouth University student and Young professional are the most Active in both online and E-commerce Since university student has lower purchasing power, Young professional will be our Target customers ** Each internet user segment details shown in Appendix
  17. 17. 4 Platform Comparsion Help to evaluate:  Financial and Company resource needed  Difference customers segment  ROI self-evaluation
  18. 18. E-Commerce Ecosystem – dealer operation comparison Details Suppliers Sourcing Online platform shown in previous 5 presentation Payment Delivery Customers Suppliers Business model Selling format + deposit Final Payment Charges to platform Customers Amazon B2C Consignment Based Zero (0) deposit fr Amazon. General public 2 per month Monthly Fixed rebate: 5% Annual Volume rebate: 1-5% Annual Marketing: 25K – 80K TMALL B2C Zero (0) deposit fr customer after receipt goods 14 days after deliver Security deposit 100-150K IT service charge 30-60K Marketing: 10K – 100K General public (higher salary) Taobao C2C Zero (0) deposit Ditto Marketing: 10K – 100K General public Glamour Sales B2C Consignment Based 20% Deposit Fr GLS. 99 days after deliver GLS commission: 35% Marketing: Zero (0) Membership affluence CMSDC B2C Consignment Based 20% Deposit Fr CMSDC. ?? payment period Commission: ??% Marketing: Zero (0) Grass-roots
  19. 19. E-Commerce Ecosystem – Objective, Resource, Customers comparison Company Resource Custome r Amazon TMALL Taobao Glamour Sales Brand Image Middle Middle Low High Sales Middle High High Low (Flash sales) Financial Invested Middle High Low Middle Photos workload Middle Very High High Low Marketing High Middle Middle Low Customer service Low (Amazon offer) High Very High Low (GLS offer) Target group Business Objective Factors • Young professionals • students • Active mid-agers • Young professionals • mid-agers All • Young professionals • Active mid-agers
  20. 20. Chinese in China: E-commerce behavior Help to evaluate:  what media we can use for entre China market  how to implement sales + marketing program  1 Year action plan
  21. 21. Digital Landscape – Chinese vs. Western China’s digital landscape is more complicate than western. The Chinese internet users exhibit distinctive online - Communication (instant messaging) - Entertainment (music, game, news-reading)
  22. 22. Chinese Distinctive Online Behavior U$10B  Only 19% of consumer in China go official brand or manufacturer websites (Japan 41-60%)  Chinese is social during the shopping process – word of mouth  Shoppers develop the habit of not rely Search Engineer to find product online – but taobao U$24B U$2B  Fragmented Social network • Kaixin001 for white collar, Renren for student Douban for artistic, Qzone for young & active. Sina weibo for general public • • • •
  23. 23. How Lead to Sale in 3 E-commerce (% of awareness rate) (% of total e-shoppers) Trial Rate • Taobao 92% • Tmall 88% • Amazon 67% Awareness Rate (% of total e-shoppers) • Taobao 89% • Tmall 69% • Amazon 44% • Taobao 91% • Tmall 82% • Amazon 70% Frequency of usage (% of trial rate) Frequency of usage • Taobao 74% • Tmall 50% • Amazon 21%
  24. 24. Marketing Checklist 1. Do a brand search on Baidu (China’s Google): Even brand is not in China yet, it do create buzzle - try to find out what people already know and what they’re saying. 2. Set up a Sina Weibo account (China’s Twitter): Talk about what’s going on with your brand at home, not just in China, so customers can experience your brand’s personality. Make sure to offer incentives to shoppers visiting from China. (A solution to stagnant retail sales at home?) 3. Sell with high-end e-tailers like OMEI.com or Glamour Sales: See this as a lower-risk way to test product, price and positioning in the cut-throat China market.
  25. 25. Marketing Checklist 4. Set up a Tmall “store” > 450M Chinese customers shopped online, with 370 million of them using Taobao.com. Don’t try to change the buying habits of the Chinese. 5. Build presentable site: Website is where customers can experience your brand’s unique personality — even if they prefer to purchase elsewhere. Also, list the addresses of your overseas stores, so potential Chinese customers know where to find you when they travel. 6. Get socializing: None of this matters if you’re not out there socializing. Hong Huang (often called ―China’s Oprah‖) cited DVF as the best social media brand in China.
  26. 26. Timeline   How Invicta brand viral – refer to previous slides Marketing Plan 2014 in HK will match for China market – refer previous slides Q1 – Q2 JAN FEB MAR APR MAY JUN Festival New Year 1/1 CNY Valentine Boy / Girl Festival Eastern Worker’s Day Summer Collection Gent Watch Gent Ladies Ladies Ladies Gent Ladies Function – Brand Viral like Invicta
  27. 27. Timeline   How Invicta brand viral – refer to previous slides E-shop hosting package details – shown in this last part of slides Q3 - Q4 JUL AUG SEP OCT NOV DEC Festival Summer Father Day 8/8 Autumn Festival Nation Day 10/1 Single Day 11/11 X’Mas 12/24 Collection Gent Ladies Gent Gent Ladies Ladies Gent Ladies Gent Ladies Function – Brand Viral like Invicta E-shop Hosting Package
  28. 28. What we need to consider ?  Multi-Channel advantage  Increase customer’s desire  Get confident on brand  Media Utilization  Glamour Sales as test.  Taobao create awareness.  Tmall generate traffic  Risk and Challenges  Stock-keeping units  Logistic  Marketing invested  Grey Market  Fake brand
  29. 29. E-Shop Opening 2 Options   1. Self-control : Self ownership 2. Sub-contract : Hosting Pls refer to previous slides
  30. 30. THANK YOU Prepared by Charlotte Lee 2013 Nov I seek a long-term association with a well established organization where I would get a chance to lead, exercise the skills that I have developed, build lasting relationships in the field of Marketing and in turn benefit the organization and progress with it.
  31. 31. Appendix - E-shop Design Template Standard Premium
  32. 32. Appendix -
  33. 33. Appendix -
  34. 34. Appendix •Low cost generate traffic •UPS, high inventory product, raise marketing budget All product Promote Stock Clearance • Stock Clearance Star Product Potential Product •Select potential product to prepare as next Star product