9th May 2013byKen Ardali, Grand eBazaarJohn Muir, eCargo
IntroductionsJohn China-based 16 years within InternationaleCommerce Microsoft, Compaq, MRM Worldwide, Lbi 8 years in fashion retail Ted Baker, Reiss, Gant, Bench, FrenchConnection International logistics and warehousing- core focus on China Enabling regional and global brands toaccess China’s e-commerce boom anddevelop International trading Full end to end outsource offeringKen Consumer Goods manufacturingcompanies channelling B2B2Cinternationally Unilever, Mars, Kodak, Remington, Electrolux Ex-eBay Cross Border Trade = £6 billion Ex-Alibaba (worked in China) Through Tmall and Taobao B2C & C2C in China= £100 billion Opportunity to improve internationalfulfilment for ecommerce Grand eBazaar is working with UKbrands to enter China2
AllPort Cargo Services Group3 Founded in 1962 Leading integrated global logistics solutionsprovider based in Hong Kong and China. Over 7,500 staff and workers in China, theU.K., Australia, South Africa, Singapore andSouth-East Asia. Global network of agents covering 80countries. Storage facilities of over 4 million squarefeet and fleet of more than 1,000 trucks. In December 2010, acquired Allport Limited,the biggest independent logistics operatorand international freight-forwarder in theU.K. HSBC Principal Investments is a strategicinvestor of the company. Annual turnover is over US$1 billion.
Why China?50,000Of these buildings could beskyscrapers - equal to 10 cities thesize of New York5 timesThe number by which GDP will havemultiplied by 202540 billionsquare metres of floor space will bebuilt – in five million buildings170Mass transit systems will be built500 millionNetizens, the largest Internetpopulation in the world5 billionSquare metres of road will be paved5
More facts about China China retail sales £1.3 trillion & growing 15% per year Luxury goods by 35% Growth is being fuelled by mid-tier cities 20 cities with populations more than 7 million China vs other countries Average age 34 years Discretionary spending growing fast and a young and emerging middle-class want to show off their success Quality, foreign brands are desirable and demand is growing China online 242 million shoppers online – 6 x UK Spending £700 per year – on average 8 purchases per month Shoppers sophisticated – buying process interactive Social media plays a stronger role – 44% use it to make purchasedecisions6
Local Chinese site preferred for foreign brandsIn H2 2012:Nearly 12 million Chinese bought overseas goods onlineChinese shoppers purchasing goods overseas made an average offour purchases totalling £170.8
3 Top eCommerce channels in China10Tmall - B2C online retail since 2008, currently features morethan 70,000 international and Chinese brands from more than50,000 merchants and serves more than 400 million buyers.Taobao - C2C online retail since 2003, under the same corporateof Tmall. On Nov 30th 2012, the sales amount of both Taobaoand Tmall reached 1 trillion RMB.360Buy – one of the largest B2C online retailers in China. With35 million registered users, 360Buy processes 300 thousandorders daily. The website has a daily page view of over 80million. Sales amount at 2011 was over 30 billion RMB.
Consider using Tmall as launch platform Alibaba’s flagship B2C portal Now, 55% of China’s B2C Every minute 52 mobile phones 2,950 pairs of women’s shoes 14,368 items of clothing 880 items of cosmetics Once offline preparations are complete, aninternational brand can be on-boarded in lessthan a month11
12Chinese consumers see Tmall as destination for:Following the latest fashion trendsAccessing the widest variety of productsPurchasing high-quality, brand-name productsAsia’s Largest Shopping PlatformB2C Market Share in ChinaRegistered UsersDaily Unique VisitorsGMV in 2012#1>56%>500 million>40,000,000>200 billion RMBKEY STATS26%37%18%9%10%Tmall Demographic18-2525-3131-3636-41>41Tmall: China’s Premier Online Shopping Destination
1.Entry planScope•Assessment of clientbrand, assortment andoperation for CN•Analysis of demand inCN market for aboveRequirement•1 month consultationworking with client & inCNOutput•Report, presentation andrecommendation toclient leading to 2, 3 and42.LogisticsScope•Define order to deliveryjourney for buyer•Set-up logistics foroperationRequirement•Define stock andreplenishment policy•Agree SLA’s andcommercials with 3PLOutputEnd to end logistics costprofileContingencies, includingpeak plan3.eCommerceScope•Based on 1 and2, launching on relevanttransactional platformsRequirement•Prepare client forplatform integration•Build storesOutput•Functional, brand andentry plan-compliantproperties4.MarketingScope•Positioning and targetsegments•Launch program•Ongoing marketingplatformRequirement•Local client budget andresource allocation forCN market entryOutput•Marketing plan forlaunch & to Year 3•Commitment to launchChinese ecommerce recommendation14
Marketing your product/brand in China15Shopping guideWeiboSocialnetwork Video site1. KOLs content links tostore directly.2. Bring fans and trafficto Tmall.Through the win-wincooperation, KOL featuresyour product and sharestheir experience, picturesand text on their shoppingguide website.1. Promotion on brand andproduct2. Place advertisements onsocial sites and share withfans to increase traffic.1. Arrange someactivities with social sites(online or offline) 2. Buildlong term interaction withactive fans to strengthenthe influence of brand.1. Buying experience sharesbetween consumers2. The topic brings new fans toweibo, while increasing both thestore’s reputation and traffic.1. Increase the interaction betweenconsumers and store2. Spread the reputation of your brand3. Pay attention to the comments fromweibo fans4. Lead them positively into your brandand service.5. Spread marketing news, promotionand activities6. Maintain existing customers whiledeveloping new customers7. Increase product popularity andtraffic into sales channels1. Promotion throughembedded advertising2. Increase the brandwithin a short period.As well as the saleschannel, it will also applyto the brand site.