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E-commerce market in China: T-mall seminar 17th February 2014


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Read and download the full presentation from the evening’s seminar including key facts about the e-commerce market in China.

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E-commerce market in China: T-mall seminar 17th February 2014

  1. 1. The Westminster Conference Tmall Seminar 17th February 2014y e Centre
  2. 2. C t ib tContributors Janet Wang TmallJanet Wang Tmall Mike Rowe ESTATE J th W MW T dJonathan Wyness MW Trade Mary-Ellen Field Vintage Ma M k Th R l M ilMark Thomson Royal Mail Domenica Di Lieto Qumin Michael Boarer ProfulfilmeMichael Boarer Profulfilme Richard Unwin Backbone 2 M kMarks anagement Ltd entent IT Group
  3. 3. The Westminster Conference Tmall Seminar 17th February 2014y e Centre
  4. 4. Tmall Seminar Tmall Janet Wangg
  5. 5. AgendAgendaAgendAgenda China Ecommerce Lan Introduction to Tmall and Collaboration Tmall com or Tmall or Tmall Global Enrollment and Preparation to Launch o dada dscape  Model: on Tmall 
  6. 6. Facts About Chinese Netizen China’s online population reached 620 mill t ti f 45 8% Chi i t tpenetration of 45.8% . China internet grow usage frequency.  Unit:  10000 Urban areas have a higher penetration am have more potential to grow.  Mobile  Population reached 500 million by end of 2013 ecommerce Total users reached 300 million in 2013 (half of  total online population) Population grew 24.7% during 2013p g g Mobile commerce accounts for 140 million users s lion by the end of 2013 with an internet th i t l i t ti b t l iwth is not only in penetration but also in  ong the online population while rural areas  Urban Rural Social Media  Reached 530 million users by the end of 2013y Because the ratio of mobile population to total  population is larger than the ratio of mobile  commerce to total commerce, we believe there , is large potential for mobile commerce to grow. Data source:  CNNIC
  7. 7. China eCommerce: Largest eC China surpassed the US in both ecommercep Source: Kantar Retail Analysis Commerce Market in the World e sales and eCommerce share of total retail sales
  8. 8. eCommerce: 10% of China to eCommerce accounted for 10% of China’s t reach 20% by 2017.  Source: Kantar Retail Analysis otal Retail Sales in 2013 total retail sales in 2013 and is forecasted to 
  9. 9. China’s B2C sector has enjoyed rapid devel B2C vs. C2C j y p China eCommerce, the total B2C market is  Source: Kantar Retail Analysis lopment in recent years. With the maturity of p y y forecasted to take over the C2C market in 2018. 
  10. 10. Consumer Profile and Insight Netizens aged 20‐29 are the largest online purchase comments & eCommerce site re brands and price.                                             Under 10 10‐19 20‐29 30‐39 China’s netizens are more engaged in the  Europe’s netizens.  This gives brands much ts e group. In terms eCommerce, they value more on   putation. Older age groups place more value on the                                           Data source:  CNNIC 40‐49 50‐59 Above 60 social environment than the US’s and  h opportunity to connect with consumers. 
  11. 11. AgendAgendaAgendAgenda China Ecommerce Introduction to Tmall a Collaboration ModelCollaboration Model Enrollment and Preparation to Launch o dada and  on Tmall
  12. 12. Alibaba Group’s MAlibaba Group’s Mission and  Miss Vis To make it easy to do bu To become the first plat To be an enterprise tha To last at least 102 year Goals for the C To create an e‐commer • 10 million small busi • 100 million jobs and  • 1 billion people arou ission and VisionVision sion ion usiness anywhere tform of choice for sharing data t has the happiest people rs Current Decade ce platform that will host:  iness enterprises  meet the everyday needs of und the world
  13. 13. Tmall:  China’s Premier Onlin Launched in April 2008 Tmall was estabLaunched in April 2008, Tmall was estab 1. Brand owners’ need for a direct onlin 2. Chinese consumers’ demand for gua On January 11th 2012, Tmall changed its nam from “Taobao Mall (淘宝商城)” to “Tmall (天 猫)”猫)”  This reflects Tmall’s status as a stand‐alone platform offering premium quality productsplatform offering premium quality products e Shopping Destination blished to fulfill two primary needs:blished to fulfill two primary needs: ne channel to the mass Chinese consumer market ranteed authentic, brand‐name products  me  天 s. Today, Tmall has become the largest B2C  shopping  site in China (accounting for over 50%  s. of China’s B2C market) and the premier  destination for  high quality products; catering  to increasingly sophisticated Chinese consumers.g y p
  14. 14. Tmall: China’s Premier Online O 1 T illi RMB i h dOver 1  Trillion  100 000 000 RMB in merchand Tmall and Taobao  Daily Average UV100,000,000 70,000 Daily Average UV  International and  Chinese consumers see Tmall as the premier  destination for:  • Following the latest fashion trends • Accessing the widest variety of brands • Purchasing high‐quality, premium products e Shopping Destination di l d bdise volume transacted by  platforms in year 2012  across Taobao/Tmall platformsacross Taobao/Tmall platforms Chinese Branded Storefronts
  15. 15. International Brand Flagships on Tmall
  16. 16. vs. Tmall Global  • Product is stored customs‐cleared in Mainland China • Customers expect fast delivery (typically within 1‐3 days  of order placement) • Store has Chinese business license • Local team required • Payment received in CNY • Chinese legal entity required • Product may be imported on a per‐order basis • Customers can accept a slower shipping time as  product is indicated as coming directly from abroad • Business is located abroad • No local team necessary • Payment received in local  currency • International legal entity currency
  17. 17. Top Product Categories Food 3% Other Fashion Beauty 4% 14% 40% 3C Digital 22% Home 17% 22% Other 3% Baby Care 17% Health &  N t iti Food 11% Nutrition 19% Apparel 19% Beauty 31% 19%
  18. 18. Successful UK Brands on Tmal • Clarks • Mothercare ll’s Platform • KarenMillenKarenMillen
  19. 19. Marketing on the World’s Larg Tmall is the ultimate platform for Chinese c trends, and to research product and pricin This can be leveraged for executing effectiv gest Billboard consumers to shop, discover the latest  g information.  ve promotions and campaigns: 
  20. 20. How Tmall Creates Social Com Tmall acts as a  big social  platform:   • NBA: online  communitycommunity • Weitao: Mobile  social commerce  page • L’oreal eSkin: online  expert consultation  mmerce Influence M i i i tiMaximize communication  messaging on established SNS  platforms •American Carnival: broadcast via Weibo,  Wechat •Lacoste: co‐op with Sina, SNS  •11.11: Leveraged celebrities’ social power
  21. 21. Merchants selling through Tmall enjoy Marketing Tools and Exposur Merchants selling through Tmall enjoy: • Various marketing and promotional opportuni • Consumers reassured that genuine product is  re Opportunities ities  coming directly from brands/retailers
  22. 22. 11.11 “Singles Day”  “Onlin On this day each year, history is made… ¥30 ¥35  ¥40  MB) ¥17 5 ¥20.0 ¥30. ¥20 ¥25  ¥30  e (Billions RM 2013 ¥5.0 ¥6.7 ¥10.0 ¥17.5 ¥10  ¥15  ¥20  Sales Volume ¥1.0 ¥0  ¥5  0:06 0:38 0:01 5:49 12:00 13:39 24 hours e Shopping Day” 11.11 2011:  ¥5 billion 11.11 2012:  ¥19 billion 11.11 2013:  ¥35 billion … 0 ¥35.0  ¥35 billion by Tmall + Taobao  >2.5x Cyber Monday 2013 ($2.3B) 0  ¥100M RMB in first 55 seconds  >15% sales via mobile device  >400 million total UV in 24 hours 2012  $19.1 billion 21:19 0:00
  23. 23. AgendAgendaAgendAgenda China Ecommerce Introduction to Tmall and Collaboration Tmall com or Tmall or Tmall Global Enrollment and Preparatio Tmall dada  Model: on to Launch on 
  24. 24. Tmall Platform’s Business Str Brand Owner/Retail Tmall Platform In 3rd Party Service Provider  or Brand’s In‐house Team Store  Maintenanc ucture ler Product BrandingBranding Marketing Promotional  IT & Payment  Tools and  Events Data  Analysis & y nfrastructure y Diagnostics Product  Customer Content  Editing Customer  ServiceDay  to Day  Logistics &  e Operations    Warehousing
  25. 25. Tmall Global: Cross‐border So Set up branch office in C or authorize company inMerchantsMerchants or authorize company in China Must comply with Chine CIQ requirements; only c MerchantsMerchants ProductsProducts CIQ requirements; only c import model is accepte Annual fee: 30K or 60K R Deposit: 50K or 150K RMFeesFees p Commission: 2‐5% olution for Global Retailers China  Overseas merchants using    local business entities se  cargo Direct shipment as personal  cargo  d parcel, no CIQ requirements RMB MB Annual fee: 5K or 10K USD Deposit: 25K USDp Commission: 3‐6%
  26. 26. Tmall Global: Cross‐border So MainlaTarget Consumers Within Withi g Legal entity and tax  g Legal entity and tax  registration Corporate bank Within Within Corporate bank  account Warehouse Registere Within Trademark Shipment and  2‐ yDelivery Commission Charge Commission Charge  on Sales olution for Global Retailers nd China Mainland China n China Chi Outside of China H t b kn China in China Home country bank  account Outside of China ed in China n China Any country Overseas directly to  ‐5% Chinese consumers 3‐6%
  27. 27. Merchants’ Import/Fulfillmen  Income Tax Overseas Import Fulfillment  Custom duties  Import Tax  VAT Custom Duties V ✔ Tmall Global nt Models   Personal Parcel Tax Overseas Post China Post EMSEMS *Parcels that would have less than 50 USD calculated tax are tax free VAT Income Tax Personal Parcel  Tax* ✔ ✔ calculated tax are tax-free ✔
  28. 28. li i Tmall Payment and Instant M Secure Online Payment Service • Alipay is the leading online  payment system in China • Alipay provides an escrow service  between Taobao buyers and sellers Alipay Payment ProcessAlipay Payment Process Select Product Pay to Alipay Shopper confirms order arrival Alipay  pays merchant Transa Comp 1 2 3 4 5 Seller fails to deliver/product standard unmet 4 5 Alipay refunds buyer Shopper  applies for  return 3 Messenger Tools Instant Sales Messenger • AliWangWang is the most  utilized IM tool in China’s  ecommerce market action plete Transaction Complete 6
  29. 29. Store Application Process
  30. 30. List of Documents from Merchant Required Docume List of Documents from Merchant Business License Tax Registration Certificates g Certificate of Trademark or Notification of  Acceptance of Trademark  (Mandatory for Brand Owner) Brand authorization certificate  (Mandatory for Agent) Terms of Services Agreement of ServiceAgreement of Service  (Download online and print) Alipay Authorization  (Download online and print)(Download online and print) For full list see: Remarks nts Remarks Business License in Mainland China Tax Registration Certificates in Mainland  ChiChina For Flagship Store For Franchise Store Minimum Guarantee & Commission Rate 5 copies with common seal and5 copies with common seal and   embossed stamp 5 copies plus original sealed copy aoshang_flow.php?spm=3.21146.0.0.g0yFNd
  31. 31. Tmall Global Store Applicatio Send application wSend application w1. Phas 10   Wait for applicatWait for applicat2. se I Days Register forRegister for3. Phase 14‐20  Sign theSign the4. e II Days Tmall GTmall G5. Final  on Process with merchant and product infowith merchant and product info tion processing and approvaltion processing and approval r Alipay oversea version r Alipay oversea version  e service agreemente service agreement lobal Store Openinglobal Store Opening
  32. 32. Tmall Global Required Documments
  33. 33. Visit for more information
  34. 34. The Westminster Conference Tmall Seminar 17th February 2014y e Centre
  35. 35. Tmall Seminar Estate Mike Rowe
  36. 36. ESTATE Exploring the China Market with T Mike Rowe, Director of ESTATE 2/24/2014 TMall Online and Estate Offline
  37. 37. ESTATE Background ESTATE公司背景 Parent company Dyna-Pac established 20+ and exporter of footwear. ESTATE公司背景 20多年之前母公司恒晋鞋业成立于青岛,是一 • Annual output: 4 millions pairs of vulcanized 年产量:400万双热硫化帆布鞋及室内拖鞋 • Key accounts 主要客户: • H&M • Dunlop • Padders • Clarks • Fred Perry • Hush Puppies years ago in Qingdao as a manufacturer 一家专业从事鞋履制造的出口企业。 d sneakers and slippers 鞋
  38. 38. ESTATE as a Luxury Retailer ESTATE:奢侈品零售商 Started importing UK and other European b l di UK b d i t th f f t f ESTATE:奢侈品零售商 leading UK brands into the very forefront of 3年前开始将英国及其他欧洲品牌引入中国, 的最前沿的最前沿。 • Increasing domestic demand of Chinese c 中国消费者不断增长的消费需求 • Rich history and heritage of UK brands 英国品牌自有的历史底蕴和沉淀 • Quality of UK brandsQuality of UK brands 英国品牌的质量水准 brands 3 years ago, and brought many f Chi ’ t il tf China’s retail sector. ,并将优质的英国品牌引进到了中国零售业 consumers
  39. 39. Some of our UK partners 我们的英国伙伴举例们的英国伙伴举例 More brands are enthuMore brands are enthu 更多品牌也在积极 usiastic to join…usiastic to join… 极加入……
  40. 40. In addition to UK brands, there are also many oth 除了英国品牌,在我们的组合当中,也有众多其他 • KENZO of LVMH granted ESTATE as the exclusive pa LVMH旗下的KENZO授权ESTATE为其在中国市场的男LVMH旗下的KENZO授权ESTATE为其在中国市场的男 • We set up Santoni’s very first and so far the only “new 我们为意大利的Santoni建立了其在中国的第一家也是迄 her European brands in our portfolio, for example: 他欧洲品牌,例如: artner of men’s shoes in China 男鞋独家合作伙伴男鞋独家合作伙伴 w concept” shop in China 迄今唯一一个“新概念店”
  41. 41. 8 stores in premium shopping malls within just 2 yea 2年之内建立了8家实体店面 – Beijing 北京: – Shin Kong Place 新光天地 – Season’s Place 金融街购物中心 – Galleries Lafayette 老佛爷百货 – Charter Beijing 卓展购物中心 – Shanghai 上海: – L’Avenue 尚嘉中心 – Qingdao 青岛: – Hisense Plaza 海信广场海信广场 – Changchun: – Charter Changchun 卓展购物中心 ars
  42. 42. ESTATE multi-brand store in L’Aven ESTATE在上海尚嘉中心的多品牌集合ESTATE在上海尚嘉中心的多品牌集合 ue Shanghai 合店合店
  43. 43. ESTATE multi-band store in Season ESTATE 在北京金融街购物中心的多ESTATE 在北京金融街购物中心的多 ’s Beijing 多品牌集合店多品牌集合店
  44. 44. ESTATE multi-brand corners in Galle ESTATE 在北京老佛爷百货的多品牌ESTATE 在北京老佛爷百货的多品牌 eries Lafayette 牌集合柜台牌集合柜台
  45. 45. Our Santoni Mono-brand store at L’Av 我们在上海LV大厦的Santoni单品牌店我们在上海LV大厦的Santoni单品牌店 venue Shanghai 店店
  46. 46. The Right Location: an example “合适的场所”举例合适的场所 举例 LG11LG113 L’Avenue Shanghai – Brand-m LG11 305 s Montbl (Duple LG115 LG112 229 sm Gant 484 sm Burberry (Duplex) LG132 95sm Vertu LG127 50sm Tudor LG114 180 sm Longchamp LG115 308 sm Ralph Lauren (Duplex) LG125 83sm a.testoni LG128 100sm Rolex LG117 LG116 172 sm Loro Piana LG118 221 sm Berluti LG129 76sm Hublot LG120 52 LG117 193 sm Fendi LG101 823 sm Louis Vuitton (Duplex) LG102 255 sm Ermenegildo Zegna (Duplex) 140 LG103-104 334 sm Dior 52 sm Zenit 140 sqm 11 mix of LG1 Fashion & Accessories11 sm anc ex) Menswear Watches LG109 197 sm LG110 167 sm Hackett Jewelry Loewe LG108 121 sm Tod’s (Duplex) LG122 64 sm Santoni 0a LG120b 26 LG106- 107 496 sm PRADA (Duplex) LG105 243 sm Salvatore Ferragamo m th 26 sm Baume & Mercier Ferragamo (Duplex)
  47. 47. ESTATE to expand in 2014/2015 ESTATE在2014/2015年的发展规划ESTATE在2014/2015年的发展规划 ESTATE will expand in 2014/2015 ESTATE在2014/2015年将继续拓展 • 20 new physical shops in 2014 2014年将增加20个实体店面 N b f h ill d bl b d f 2015• Number of shops will double by end of 2015 到2015年底,店面数量将翻番 49 Changchun/长春 Qingdao/青岛 Nanjing/南京 Beijing/北京 Chengdu/成都 Chongqing/重庆 Hangzhou/杭州 Nanjing/南京 Shanghai/上海
  48. 48. Who is the Chinese Consume • In China, luxury consumers are much younger 中国的奢侈品消费者比欧洲消费者年轻很多。 • The growing middle-class are those who g development. 中国迅速增加的中产阶级是在经济迅猛增中国迅速增加的中产阶级是在经济迅猛增 • China’s middle-class are more used to se Alibaba is now the world’s largest e-comm 这些中产阶级更加习惯于先上网查询而后 商平台) • The “second generation wealthy” has comg y 中国的“富二代”也已长大成人 • … r? than their European counterparts. grew up during the country’s rapid economic 增长的大潮中成长起来的。增长的大潮中成长起来的。 eeking information online before shopping (e.g. merce platform) 后再采购(例如:阿里巴巴已经成为全球最大的电 me of ageg
  49. 49. Who is the Chinese Consume • To Chinese consumers, a credible shopping cent credibility to consumers, especially when a brandy p y 对于中国消费者来说,高端商场里面的品牌可以让 候。 • China is the only luxury market where men spend• China is the only luxury market where men spend 奢侈品市场中,中国是唯一一个男性消费者比女性 r? er (shopping mall, department store) gives more d is “unknown”. 让他们更放心,特别是当这些品牌尚不为人知的 d more money than womend more money than women. 性花钱多的地方。
  50. 50. Chinese consumers are migrating from 中国的消费者日趋成熟,并从 “in the s中国的消费者日趋成熟 并从 Source: “China Luxury Stud m “in the show” to “in the know” show” 走向 “in the know”走向 dy 2012”, by Bain & Company
  51. 51. ESTATE to Launch e-commerce ESTATE即将启动电商业务ESTATE即将启动电商业务 E-commerce will fundamentally change the wa commerce growing at the speed and scale ascommerce growing at the speed and scale as 电子商务将彻底改变我们的购物方式。目前没有任 国相比较。 • Broader and deeper exposure of our partners’ brand 使得与我们合作的品牌的曝光率更广更深 • Practically unlimited display of various productsy p y p 产品的展示可以说是几乎是毫无局限的 • More options for the consumers 给了消费者以更多的选择给了消费者以更多的选择 • Larger demographic and geographic coverage 无论在地域上还是目标人群的覆盖都会更加广泛 ay we shop. In no other country is e- in Chinain China. 任何一个国家的电子商务发展速度及规模可以与中 ds
  52. 52. Why TMall for ESTATE ESTATE为什么选择天猫 On the “double 11” event initiated by TMall, China’s largest e-commerce platform, ESTATE为什么选择天猫 China s largest e commerce platform, transaction volume hit RMB35 billion (approximately GBP 3.5 billon) in a one-day trading. 仅仅是在双十一当天,天猫的日成交量就达 到了350亿元人民币(约合英镑35亿元)。
  53. 53. ESTATE flagship store on TMALL will open in M ESTATE在天猫的旗舰店将于2014年3月开幕 March 2014
  54. 54. How will ESTATE work on TMall ESTATE将如何在天猫操作ESTATE将如何在天猫操作 • ESTATE is a one stop shop for both UK brands between brands and end usersbetween brands and end users. 无论是对于英国的品牌还是中国消费者,ESTA 端用户提供了无缝链接。 • ESTATE will ESTATE 将负责: – Organize import of goods and handle tax commodit– Organize import of goods and handle tax, commodit 组织货物的进口、报关报验、完税等一系列手续 – Handle customer service, return of unsatisfactory me 客户服务、退换货等 – Take care of delivering goods to the consumers from 从我们自己的仓库把产品的交付给顾客 – Initiating and implementing marketing activities 策划并执行市场营销活动策划并执行市场营销活动 s and Chinese consumers and a seamless connection ATE提供的都是一站式的解决方案,更是为品牌和终 ty inspectionty inspection erchandise m our own warehouse and
  55. 55. How will ESTATE Support British Bra To explore and grow a market, you must inve 要拓展并培育市场,各个领域的投入是必须的要拓展并培育市场,各个领域的投入是必须的 • Financial investment 资金的投入资金的投入 • Human resources 人力资本的投入 • Time and energy• Time and energy… 时间和精力的投入… ands est: 的:的:
  56. 56. Some Requirements by TMall 天猫国际的部分要求际的部分要求 • Products descriptions must be in Chinese language 商品信息必须用中文 • Chinese live service through Alibaba’s instant messaging platform “Alitalk” 配备中文旺旺客服 • Product return facilities must be in mainland China 必须在中国大陆设置退货点 • Security deposit 保证金: USD25,000.- • Annual Fee 年费: • USD5,000.- or USD10,000.- according to different categories 按不同类目分5,000美金和10,000美金两档
  57. 57. How will ESTATE work on TMall • We also support our partners in other regards, example, we have helped a couple of our partn registration of trade mark. 不仅仅是这些。我们在知识产权保护等方面给品 伴,把他们在中国被恶意抢注的商标夺取回来伴,把他们在中国被恶意抢注的商标夺取回来 • In short, to partner with a RIGHT Chinese com t k ti i t th dcustomer, marketing, service etc. on the ground for a UK brand’s exploration in the China marke 简而言之,对于一个希望开拓中国市场的英国品 中国本土公司联手合作,无论是线上还是线下业 such as intellectual Property Protection. For ners successfully in fighting against malicious 品牌以支持,例如,我们已经成功地协助一些合作伙 ,维护了品牌的利益。维护了品牌的利益 pany with RIGHT skills who handles the logistics, d i Chi ill b d fi it l ffi i lti lid in China will be definitely an efficiency multiplier ets, both online and offline. 品牌而言,与一家拥有“合适的”能力的“合适的” 业务,无疑会事半功倍。
  58. 58. How will ESTATE Market itself on TMa ESTATE将如何在天猫操作 At the same time, as a portfolio manager of imp image, ESTATE is working with an Italian PR co ESTATE将如何在天猫操作 image, ESTATE is working with an Italian PR co as design and construction of corporate website 做为一家进口品牌的管理公司,为了打造一个国 来协助我们的市场推广、网页设计和建设等诸个 all ported brands, in order to build an international ompany for marketing and PR activities, as wellompany for marketing and PR activities, as well e which will be launched very soon. 国际化的形象,我们聘请了一个意大利的PR公司 个领域的工作。
  59. 59. ESTATE marketing activities Pop Up ESTATE市场推广活动举例ESTATE市场推广活动举例 p Stores
  60. 60. Celebrity Endorsements! Boris Johnson, Mayor of LBoris Johnson, Mayor of L 伦敦市长鲍里斯·约翰 Source: BBC ( London visiting ESTATELondon visiting ESTATE 翰逊访问ESTATE media/2013/10/131014_pic_gal_boris_beijing.shtml)
  61. 61. Lesser known Celebrities! Speech at UK-China Business Summit when 受邀在卡梅伦首相访华期间举办受 卡 伦首相访华期间举办 n Prime Minister Cameron visiting China 办的“中英贸易峰会”上演讲办的 英贸易峰会 演讲
  62. 62. Conventional Marketing Special report by GQ and LEON GQ和《男人风尚》LEON杂志的深度专访
  63. 63. Social Media Marketing ESTATE “WeChat” ESTATE自有的微信二维码ESTATE自有的微信二维码
  64. 64. Marketing with Social responsibility Joint-charity sales of ESTATE and Highgrove,y g g , founded and owned by Prince Charles,. ESTATE携手由查尔斯王子创立并拥有的公益 品牌Highgrove举行慈善义卖。
  65. 65. The Westminster Confer Tmall Seminar 17th February 2014y rence Centre
  66. 66. Tmall Seminar MW Trade Marks & M t Ltd Jonathan Wyness & Ma Management Ltd Jonathan Wyness & Ma Vintage ary Ellen Fieldary-Ellen Field
  67. 67. PROTECTING YOPROTECTING YOPROTECTING YOPROTECTING YO • Jonathan W • Senior Partner M • Jonathan W • Senior Partner M• Senior Partner, M A • Mary-Ellen Field, • Senior Partner, M A • Mary-Ellen Field, OUR IP IN CHINAOUR IP IN CHINAOUR IP IN CHINAOUR IP IN CHINA Wyness FITMA MW Trade Marks Ltd Wyness FITMA MW Trade Marks LtdMW Trade Marks Ltd And Vintage Management MW Trade Marks Ltd And Vintage Management
  68. 68. IntroductionIntroduction  What is intellectual property (IP) What is intellectual property (IP)  Risks of doing business in China  How to protect your brands, optio  Benefits of trade mark registration  New Trade Mark Law  Key points  Chinese versions ons, costs n
  69. 69. What are Intellectual Property RWhat are Intellectual Property Rp yp y • Registered U• Registered 1.Trade Marks ® U 1 2.Designs 1 2 3 Patents 3 3.Patents Rights?Rights?gg UnregisteredUnregistered 1. Unregistered Trade Marks1. Unregistered Trade Marks 2. Unregistered Designs 3. Copyright
  70. 70. A trade mark is a sign which distingui those of your competitors A trade mark is a sign which distingui those of your competitorsthose of your competitorsthose of your competitors TMs includeTMs include • Brand names • Logos Product shapes• Product shapes • Colours • Slogans TMs can be owned, bought and sold like tra TMs are valuable business assets which gua shes your goods and services fromshes your goods and services from aditional property rantee of origin and quality to your customers
  71. 71. Risk of doing business in ChinRisk of doing business in Chin  culture of copying  problem with trolls or cybersquatter to sell them back  no protection for foreign brands unle  products on TMall have high visibility  TMall (as with many e-commerce sit opportunity for counterfeiters  Local partners/contract mfrs will re  essential to register your trade mag y nana rs who steal foreign trade marks and try ess registered y tes) provides a cheap and anonymous gister your mark ark
  72. 72. 19
  73. 73. 20
  74. 74. Registration is everythingRegistration is everything  No rights to a mark unless it is regist  Once registered it can be used as a b - Cease and Desist letter against infringer - Opposition to an application to register a sim - Complaint to the administrative authorities - Registration with Customs to prevent import - Bringing infringement proceedings in Court - Licensing local companies and receiving roy in China!in China! tered in China basis for: milar mark (AIC) ts/exports of counterfeits yalties 18
  75. 75. Benefits of RegistrationBenefits of Registration  Provides freedom to use the trade marks without cha l f bl k h d f Essential for blocking the use and registration of simi  Required by law in China for licensing local partners overseas)  Required for assistance from Customs and AIC  Improves the value of the business and the attractiv see that the trade marks and other intellectual propep p  Acts as a deterrent and warning notice to third partie  Allows the licensing of the mark to group companiesg g p p manner and/or control the manner in which the hous  Registrations can be used to generate funds via mortg  Increased remedies (damages) in litigation allenge or interference l k kl d lilar marks quickly and inexpensively (and recordal of license essential for royalty payments eness of it to investors or potential buyers who need to erty are adequately protectedy q y p es or third parties to generate royalties in a tax efficientp g y se marks are used around the group gages or other loans
  76. 76. Protecting your TM In ChinaProtecting your TM In China  Clear your trade mark(s) (circa GBP 450)  Register your trade mark(s) (circa GBP 90  Police, monitor and enforce your trade ma distributors, manufacturers etc.  Register your patents and designs  Keep a record of your copyright works andp y py g aa 0) arks and control their use by local importers, d sales
  77. 77. Registration procedureRegistration procedure  Filing (classification)  Examination  Publication for opposition Publication for opposition  Registration (12-18 months)  Renewal every 10 years
  78. 78. FilingFiling  National or via the Madrid Protocol  National route is good if China is the only co  Madrid Protocol is a more cost effective way China (need a home application)  the application must be filed in respect of sp the application must be filed in respect of sp (45 classes)  China adopts sub-classes (identical marks ca footwear because they fall in different subcfootwear because they fall in different subc must register in all relevant subclasses)  China does not currently allow multi-class ap P t lProtocol  Consider also registering Chinese versions of brands in Chinese (creating an opportunity f 23 ountry of interest (nb. Hong Kong separate) y of covering several countries including pecified classes and goods/servicespecified classes and goods/services an be registered for clothing and for lasses within International Class 25 solasses within International Class 25 - so pplications unless filed via the Madrid f Latin marks as consumers will refer to for infringers)
  79. 79. Register in Latin and ChineRegister in Latin and Chine  Registration in Latin does not offerg transliteration/translation  A quarter of the worlds population A quarter of the worlds population and so you should consider a Chine  Bi b d ll h Chi i l Big brands all have Chinese equival eseese r protection for the Chinesep (your potential customers) are Chinese(your potential customers) are Chinese ese equivalent of your brand name l t ( h th th lik it t!)lents (whether they like it or not!) 24
  80. 80. Highlights of New TM LawHighlights of New TM Law  Effective 1 May 2014 (but no imple  Multi class applications  Reduced time periods for respondin  Statutory damages increases from increased deterrent  Bad faith provisions - to help again ementing regulations yet) ng to office actions and oppositions 0.5 m to 3m RMB (360,000 Euros) - nst TM trolls 29
  81. 81. Key pointsKey points  Search to ensure your mark is available fo  Register it in Latin and Chinese and in all r Register it in Latin and Chinese and in all r  Deposit it with Customs  Put in place agreement and trade mark lic license if royalties to be paid overseas)  Send Cease and Desist letters/complain to Send Cease and Desist letters/complain to  Put in place a trade mark watch service to register your markregister your mark  Keep good records ACT NOW BEFORE IT’S TOO LATEACT NOW BEFORE IT’S TOO LATE r your use and registration relevant classes/subclassesrelevant classes/subclasses cense with distributor/partner (and record o AIC immediately infringements are detectedo AIC immediately infringements are detected o provide early warning of attempts to 30
  82. 82. Top 15 most valuable brandsTop 15 most valuable brands 8
  83. 83. TM protection in Chinese isTM protection in Chinese is Coca-Cola: 可口可乐 (Ke Kou Ke McDonald’s: 麦当劳 (Mai Dang La P & G: 宝洁 (Bao Jie) St b k 星巴克 (Xi B K )Starbucks: 星巴克 (Xing Ba Ke) KFC: 肯德基 (Ken De Ji) s importants important e Le) ao) 9
  84. 84. It is important to get the ChIt is important to get the Ch When Coca-Cola started maW e Coca Cola sta ted a would sound like coca-cola to mean “Bite the wax tad An advertising campaign in Finger lickin’ good! into Chi your fingers off.y f g ff Pepsi allegedly introduced tp g y alive with the Pepsi Genera brings your ancestors back hinese TM righthinese TM right arketing in China they used characters thata et g C a t ey used c a acte s t at when spoken. Unfortunately, it turned out pole”. China attempting to translate the slogan inese failed miserably, proclaiming Eat their slogan into the Chinese market “Comeg tion” translated into Chinese it read “Pepsi k from the grave”. 10
  85. 85. Don’t leave it to chance!Don’t leave it to chance! Ralph Lauren didn’t a L t f d th tLater found that cons ‘San Jiao M Whi h t l t “Which translates as “ Quaker Oatmeal beco ‘Lao Ren Pai’Lao Ren Pai Which translates as “ adopt a Chinese version of their mark. h d d th isumers had made up their own: a’ (三脚马) Th L d H ”Three Legged Horse” ome known as: (老人牌)(老人牌) “Old Man Brand”
  86. 86. Mary-Ellen Field 7a Wyndham Place London W1H 1PN Mary Ellen Field T: 020 8371 3111 F: 020 8371 3112 E:
  87. 87. MW Trade Marks LtdMW Trade Marks Ltd • Jonathan Wyness • Senior Partner, MW Trade Marks Ltd • jon@mwtrademarks com•  25 years experience helping businesses of Chi d i t ti llChina and internationally  including 10 years of industry experience goods groupgoods group  several visits to China to meet with the Re deal with counterfeitsdeal with counterfeits  offer cost effective strategies and practica f all sizes protect their brands and other IP in as in-house IP attorney for Richemont luxury egistrar of Trade Marks and local lawyers to al advice for all budgets 32
  88. 88. The Westminster Conference Tmall Seminar 17th February 2014y e Centre
  89. 89. Tmall Seminar Royal Mail Mark Thomson
  90. 90. Ecommerce fulfillment Chi ’ M k t lChina’s Marketplace Mark Thomson Managing Director - International Royal Mail GroupRoyal Mail Group t - Opening the Door to
  91. 91. The opportunity  China’s cross-border online shoppingpp g worth c. £5.5 billion in 2012 – five times 2011 figures  British brands are trusted and desiredBritish brands are trusted and desired  The “GREAT” campaign  The emerging middle class
  92. 92. How we respond  Royal Mail is expanding its service offering acrooss the parcel delivery value chain
  93. 93. RMG resources & capa Full service offer from all aspects of marketin  – campaign manage to response and evaluationp  capability to man – capability to man to fulfillment  – extensive range of based on value and delivery timescales ability ng to fulfillment ement and advice from planning through nage inward receipts stock managementnage inward receipts, stock management products providing end to end service
  94. 94. RMG resources & capa  Sales specialists providing expert advice and experience for all export productsand experience for all export products  Country specific data on restrictions and prohibitionsand prohibitions  We have helped some of the UK’s largest e-commerce concerns expand globally ae-commerce concerns expand globally a specifically into China  Tailored product development based on Tailored product development based on bespoke customer or sector requirement ability e t ndnd ts
  95. 95. RMG partnerships  Long standing commercial relationship wit  Royal Mail, along with China Post and 8 of organisations is a member of Kahala Post o Improving delivery and service capab o Operational and Customer Service aud o Product development to enhance outbp  Dedicated partnership team co-located UK o Frequent visits to manage service offe  Commercial partnership in China providing th China Post the largest global postal ts Group which aims to: ilities dits bound and return logistics capabilitiesg p K & China ering and joint developments g export to EU capability
  96. 96. RMG fulfilment  Fully tracked Global Priority serviceFully tracked Global Priority service oo 33--6 day end to end delivery timesc6 day end to end delivery timesc collection to delivery and all eventcollection to delivery and all eventcollection to delivery and all eventcollection to delivery and all event oo Supported by a dedicated customeSupported by a dedicated custome Post’s express networkPost’s express network oo Option to build in dedicated after sOption to build in dedicated after s  Tracked small parcel service (InternatioTracked small parcel service (Internatio oo <2kg, providing tracking out of UK<2kg, providing tracking out of UK oo Delivery aim of 5Delivery aim of 5--7 days7 days  Untracked small parcel serviceUntracked small parcel service oo <2kg providing economic service<2kg providing economic service oo Delivery aim of 5Delivery aim of 5--7 days7 daysyy yy  All undeliverable items returned free ofAll undeliverable items returned free of  Loss compensation included for trackeLoss compensation included for tracke purchase additional coverpurchase additional coverpurchase additional coverpurchase additional cover cales. Tracking from UKcales. Tracking from UK ts in betweents in betweents in betweents in between er service link with Chinaer service link with China sales servicesales service onal Signed For)onal Signed For) K and signatureK and signature f chargef charge ed products with option toed products with option to
  97. 97. RMG fulfilment  Currently dispatching over 8 tonnes of parcCurrently dispatching over 8 tonnes of parc China on a daily basis containing documen supplies  Frequency and volume support robust end timescales and an economic supply chain  Now actively engaged with Alibaba to explo opportunities covering: P to Payment o Consolidation and fulfillment o Customs integration cel and letter traffic tocel and letter traffic to nts, clothing and essential d to end delivery ore integration
  98. 98. Top 10 tips for exporting 1. Do Your Research – be clear on any import restri 2. Be Prepared to Adapt2. Be Prepared to Adapt 3. Protect Your Profit 4. Make Your Website Easy to Understand – what w consumer 5. Get Your Payment Sorted 6. Address Packages Accurately – provide telephon used to effect delivery in China 7. Package Securely – items will be flown and mech 8. Get the Price Right 9. Consider Customs and Insurance - product by prp y p 10. Any Questions, we have specialists who can adv on your requirements g success ictions by country works for the Chinese ne numbers as they will be hanically sorted roduct vise specifically
  99. 99. A Guide to Chinese Con • Royal M Busines • We have comprehcompreh Leave you th nsumers Mail is a member of the China British- s Council e worked with them on the development of hensive guide on the Chinese Consumerhensive guide on the Chinese Consumer ur business card with us today & we will give he first 50 a free copy of the guide!!!
  100. 100. Resources Doing Business with China’s C A Guide for UK Business CBBA Guide for UK Business – CBB Consumers – BC & Royal MailBC & Royal Mail
  101. 101. Thank you  For your time todayy y  To UKTI for the opportunity to invo initiativeinitiative  Contact us through :   michael.anderson@parcelforce.c  Good luck with your expansion into lve ourselves with this om o the Chinese market
  102. 102. The Westminster Conference Tmall Seminar 17th February 2014y e Centre
  103. 103. Tmall Seminar Qumin Dominica Di Lieto
  105. 105. WEIBO 50 million  daily active  users 503 m acco FACTS millions  unts   Link with  Taobao  ecommerce
  106. 106. WECHAT 100 million  overseas  users 5.0 ve wit enhan funct T FACTS ersion  th  nced  tions 235.8 million  active users
  107. 107. CONVERTIN • C t t d i f ti th t APPEALS• Content and information that APPEALS • What is the value of the brand? • MerchandisingMerchandising • Price • Offers/ promotionsp • Product adaptations • Customer service NG TRAFFIC
  108. 108. RETAINING C • Aft l i• Aftersales service • CRM • Social media engagementSocial media engagement • Mobile marketing • Listen and adapt- don’t stay still! Be flexible CUSTOMERS
  109. 109. MEASURING • Setting achievable tangible goals is essential • Track success against metrics focused on China tr• Track success against metrics focused on China tr • Social media engagement • Tmall sales • Order value • Site traffic Sit i• Site conversions G SUCCESS raffic/salesraffic/sales
  110. 110. SUMM hChina is  • Listen and adaptListen and adapt • Emphasise your “Britishness “, communicate your • Use a specialist reputable agencyp p g y • Grow credibility and trust through social media MARY f !for you! brand values
  111. 111. The Westminster Conference Tmall Seminar 17th February 2014y e Centre