This document provides an analysis of the e-commerce market and platforms in China. It discusses the rapid growth of e-commerce in China due to new internet users and the limited reach of brick-and-mortar stores. The top platforms, Taobao, Tmall, and Amazon China, are compared based on features like product categories, events, and aesthetics. Platform services, word of mouth, target customers, and costs are also evaluated. A 2014 sales and marketing checklist is provided, along with a timeline of collections and festivals. Options for self-hosting or outsourcing an e-shop are presented in the conclusion.

1. E-Commerce in China
Dealers Comparison & Sales Plan
Simulation situation
Prepared by Charlotte Lee
2013 Nov

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. 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. E-Commerce Ecosystem
There are 5 type of e-commerce in China. This presentation will focus on 4 main platforms

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. 4 Platforms Frontpage Analysis
Help to evaluate:

the image of platform match with brand

the brand & product controlability

marketing and event ads

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. 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. B2C
E-commerce – Platform
analysis
Product
Promotion
On Sales
Event
•
•
•
•
Shops are shown under Amazon
Emphasis Product diversification
Brand-focus
Standard photo picture

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. 4 Platform Service Analysis
Help to evaluate:

the amount of company resource spent

worth of mouth in chinese communities

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. 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. 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. 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. 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. 4 Platform Comparsion
Help to evaluate:

Financial and Company resource needed

Difference customers segment

ROI self-evaluation

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. E-Shop Opening
2 Options


1. Self-control : Self ownership
2. Sub-contract : Hosting
Pls refer to previous slides

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. Appendix - E-shop Design Template
Standard
Premium

32. Appendix -

33. Appendix -

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