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Bricks to Clicks

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Bricks to Clicks

  1. 1. Magdalene KangBRICKS TO CLICKSTHERE AND BACK AGAIN
  2. 2. How do you shop?
  3. 3. RISE OF E-COMMERCE
  4. 4. Average 3-4% growth
  5. 5. Number of Online Shoppers Average Growth Rate = 83.5%Exponential Growth
  6. 6. B2C sales in 2011 $961 billion, growth of nearly 20% from 2010Strong e-Commerce growth
  7. 7. Convenience Cheap Comparison Cross-BorderReasons for the risein online shopping
  8. 8. D E AT H O F T H EBRICK & MORTAR
  9. 9. © Justin Sullivan/Getty Images Pure click Source: Google Images
  10. 10. Blogshops Source: Google Images
  11. 11. • Low capital• Easy to launch• Easy to maintain• Global reachWhy choose Pure Click?
  12. 12. BRICKS CLICKS e-Commerce Channel Growth of e-tailersBricks to Clicks Spectrum Source: Google Images
  13. 13. Brick & Mortar retailers add e-commerce strategyBrick and Click Source: Google Images
  14. 14. Global reach Channel Conflict New customers Solidify brand Response to competitorsAdopting a Brick & ClickStrategy
  15. 15. BRICKS Online to Offline CLICKSBricks to Clicks Spectrum Source: Google Images
  16. 16. MOVING FROMONLINE TO OFFLINE
  17. 17. COUNTER INTUITIVE?DOES THIS MAKE SENSE?BETRAYAL OF ECOMMERCEVALUES?
  18. 18. Groupon Singapore Soure: techinasia.com, e27.sg
  19. 19. • Better customer service• Better merchant service• Test physical products• Face to face interaction• BrandingGroupon Physical Store
  20. 20. tracyeinny physical store Source: sgentrepreneurs.com.
  21. 21. Best of Blogshops Source: http://imcms2.mediacorp.sg/CMSFileserver/documents/006/pdf/20090829/2908SHL010.pdf.
  22. 22. Kissjane Source: sgentrepreneurs.com.
  23. 23. • Dream to own a store• Try on clothes• Walk in customers• Space for loyal fanbaseBlogshops going offline
  24. 24. Amazon to open retail store Source: Google Images
  25. 25. • Experience the Kindle• Provide tech support• Sell Amazon publications• Getting taxed anyway• ShowroomingAmazon retail store
  26. 26. ONLINE TO OFFLINETAOBAO.COM 淘宝
  27. 27. Taobao Mall淘宝城-上海 Source: http://office.sh.soufun.com/photo/1210234142/907_89096020.htm http://newnews.ca/?action-viewnews-itemid-59852
  28. 28. Taobao Mall淘宝城-北京 Source: http://bbs.taobao.com/catalog/thread/508895-252286846.htm e-Commerce Insider Report, June 2011
  29. 29. • 270 showrooms• Self-service style• Self-service terminals• No promoters• Payment options • On the spot • Login to Taobao• 10% of the cost of traditional showroomsTaobao Furniture Mall http://www.whatsonningbo.com/tech173.html
  30. 30. • Furniture showroom• Big ticket item• See and touch• Caters to online shoppers• Plans to open in major cities• No plans for other kinds of mallTaobao Furniture Mall Source: http://office.sh.soufun.com/
  31. 31. TAOBAO.COM TO THE MASSES 40% netizens NETIZENS NON NETIZENS60% still offline Source: en.wikipedia.org/wiki/Internet_in_China
  32. 32. Online Shoppers 22% Shop Online78% Dont Shop Online Source: http://hi.baidu.com/360264986/item/3ab8d01554da30088fbde42f
  33. 33. Reasons for Not Purchasing Online Not familiar Dont know how No payment method Unsafe Others Source: http://hi.baidu.com/360264986/item/3ab8d01554da30088fbde42f
  34. 34. • Need to reach out to the masses• Address their concerns • Purchase process • Payment process • Safety concerns淘宝实体店TAOBAO PHYSICAL STORES
  35. 35. • Off-the-shelf purchases • Order from a catalog • Seasonal promotions • Order anything on taobao • Payment services淘一站 Source: http://baike.baidu.com/
  36. 36. Franchisee Conditions: 1. Have an online taobao store 2. At least 4 diamond rating 3. At least 98% good reviews 4. At least ¥50,000 in monthly revenue 5. Proper legal documents 6. Provide a minimum depositHow to become part of 淘一站
  37. 37. DEAD!• 2008 implementation• 80 shops in 11 provinces and 40 cities淘一站 Source: http://www.0734.com
  38. 38. • Customers were all young people• No return or frequent customers• Customers only came for the novelty factorWHY?
  39. 39. 东山再起REVIVAL OF 淘宝实体店
  40. 40. Takes over entire purchasing process • Purchase on behalf of the consumer • Anything on taobao • Make payments • Accept delivery • Make returns TAOBAO AUTHORIZED DEALER YES!淘 - 淘宝代购店 Source: http://news.ifeng.com/gundong/detail_2011_08/20/8556332_0.shtml
  41. 41. • January 16, 2010• First 150 stores in Hangzhou• Plans to open 30,000 all over China• Expansion into Tier 2 and Tier 3 citiesTAOBAO AUTHORIZED DEALERYES!淘 - 淘宝代购店 Source: http://www.chinainternetwatch.com/548/taobao-expands-into-offlien-retail-business/
  42. 42. Franchisee Conditions:• Commitment of at least 1 year• Basic computer knowledge, typing, experience in online purchasing preferred• Own a store front of at least 2sqm• ¥750 publicity materials• ¥1200 deposit as guarantee (held in escrow)• Miscellaneous marketing feesTAOBAO AUTHORIZED DEALERYES!淘 - 淘宝代购店 Source: http://www.chinainternetwatch.com/548/taobao-expands-into-offlien-retail-business/
  43. 43. 安银电脑(嘉善,浙江)
  44. 44. VIDEO
  45. 45. BRICKS Online to Offline CLICKSBricks to Clicks Spectrum Source: Google Images
  46. 46. NEW MARKETS• New walk in customers• Large number of people still offline WHY MOVE BACKWARDS?
  47. 47. SHOWROOMING• User experience• Try out products first• Human touch• BrandingWHY MOVE BACKWARDS?
  48. 48. SERVICE• After sales service• Customer feedbackWHY MOVE BACKWARDS?
  49. 49. 靠谱• Building trust with the customer• Prove that it is a real businessWHY MOVE BACKWARDS?
  50. 50. BRICKS Online to Offline CLICKS Equilibrium PointCONCLUSIONS

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