ey-on-the-beam-issue-6

1
I s s u e 6 | 2 0 1 6I s s u e 6 | 2 0 1 6
事
影响业
F r o m c l a s s r o o m to b o a r d r o o m
C r ea ti ng a c u l tu r e f o r hi g h-
i m p a c t entr ep r eneu r s hi p :
K ey ex tr a c ts f r o m a new
EY r ep o r t
务 B2 B
eC o m m er c e: B2 B
务
M- c o m m er c e s tr a teg i es a nd
“ m u s t- ha v es ” i n C hi na

2
OntheBEAM
过去几十年所发生的数字革命，改变了我们做
事的方式。新技术带来新的可能性、新机遇，
锐意进取的企业家们也能用新的思维方式，以
及前所未有的速度开拓全球业务。
As a result of the digital revolution of the
last few decades, the way we do many things has
changed: New technologies have brought with
them new possibilities, new opportunities, and
allowed enterprising entrepreneurs with new
ways of thinking to create global businesses
with unprecedented speed.
“
“

3
息
营环境业
确
事
业
业务
运营务行业业
和和务
G 2 0 业
影响业项
和业行业
将业
和业务
F o r ew o r d
W
el c o m e to the s i x th i s s u e o f On the Beam, the EY
G r ea ter C hi na j o u r na l a i m ed a t s u m m a r i z i ng the l a tes t
i ns i g hts a nd s tr a teg i c thi nk i ng o n d ev el o p m ents i n
G r ea ter C hi na a nd the f a s t- c ha ng i ng b u s i nes s env i r o nm ent.
Y o u m a y b e r ea d i ng thi s a t y o u r d es k , w hi l e w a i ti ng f o r a
m eeti ng o r a t the b ea c h o n o u r d i g i ta l f o r m a t – b u t o ne thi ng I
c a n a l m o s t b e c er ta i n o f , a m o b i l e d ev i c e tha t l i nk s y o u to the
w o r l d i s no t f a r f r o m y o u r s i d e. I t i s a c l i c hé to s a y w e a r e l i v i ng
i n a n er a u ni m a g i na b l e f o r tho s e j u s t a g ener a ti o n a g o , b u t
s o m eti m es i t d o es need to b e r em em b er ed .
As a r es u l t o f the d i g i ta l r ev o l u ti o n o f the l a s t f ew d ec a d es , the
w a y w e d o m a ny thi ng s ha s c ha ng ed . N ew tec hno l o g i es ha v e
b r o u g ht w i th them new p o s s i b i l i ti es , new o p p o r tu ni ti es a nd
a l l o w ed enter p r i s i ng entr ep r eneu r s w i th new w a y s o f thi nk i ng
to c r ea te g l o b a l b u s i nes s es w i th u np r ec ed ented s p eed . Mo b i l e-
i nter c o nnec ted nes s i s the new r ea l i ty , a nd i t’ s o nl y j u s t g etti ng
s ta r ted .
EY ’ s Op er a ti ng Mo d el Ef f ec ti v enes s G r o u p s p o k e w i th
c o m p a ni es i n m a i nl a nd C hi na i n a r a ng e o f i nd u s tr i es a b o u t
thei r d i g i ta l a nd m o b i l e s tr a teg i es . T he tea m ha s a na l y z ed
thei r f eed b a c k i n M- c o m m er c e s tr a teg i es a nd “ m u s t- ha v es ” i n
m a i nl a nd C hi na a nd o u tl i nes s o m e u s ef u l a nd s u g g es ti o ns .
Ou r r ep o r t s tem m i ng f r o m thi s y ea r ’ s G 2 0 Y o u ng
Entr ep r eneu r s ’ Al l i a nc e S u m m i t o u tl i nes s i x r ec o m m end a ti o ns
f o r c r ea ti ng a hi g h- i m p a c t c u l tu r e tha t f o s ter s entr ep r eneu r i a l
s u c c es s . T hi s r ep o r t a l s o i nc o r p o r a tes r ec ent EY r es ea r c h
o u tl i ni ng the u r g ent need f o r g o v er nm ent a nd enter p r i s e
a c ti o n to p u s h entr ep r eneu r s hi p to the to p o f the j o b - c r ea ti o n
p o l i c y a g end a .
I tha nk y o u f o r the c o nti nu ed s u p p o r t o f o u r c l i ents a nd
b u s i nes s p a r tner s a nd I ho p e tha t y o u enj o y thi s i s s u e.
A lb ert N g
C ha i r m a n, C hi na
Ma na g i ng P a r tner , G r ea ter C hi na

4
OntheBEAM
3 2
务
M- commerce strategies and
“ must- haves” in China
事
影响业
F rom classroom to b oardroom
Creating a culture for high-
impact entrepreneurship: K ey
extracts from a new EY report
0 8
I s s u e 6 | 2 0 1 6
I ns i d e. . .
W orld in numb ers
6
Managing Editor
Al b er t N g
Editorial team
And r ew Ma l c o l m
C l a u d i a C hu
W i nni e W Y C heu ng
D esign
And y Y eu ng
L ea ne C ha n
Ed i to r ’ s no te: On the Beam i s p u b l i s hed
ex c l u s i v el y f o r c l i ents o f EY . I f y o u w o u l d l i k e to
r ec ei v e c o p i es o f o u r p u b l i c a ti o n o r w i s h to s u g g es t
to p i c s o f i nter es t to b e c o v er ed i n the f u tu r e i s s u es ,
p l ea s e w r i te to : T he ed i to r , On The Beam, EY a t
EY o ntheb ea m @ hk . ey . c o m
EY o ntheb ea m @ hk . ey . c o m
P r i nted b y Y i D u n P r i nti ng L td
务
A vailab le on- the- go
D o w nl o a d o u r m o b i l e
a p p l i c a ti o n v i a the i T u ne
s to r e o r the Ma r k etp l a c e.
S ea r c h f o r On the Beam
u nd er “ C hi na ” .
2 0

5
4 6
行
Strategy leads the w ay in overseas
mergers and acq uisitions
5 8 入境
China’ s health care:
G etting w ell soon
8 0
行业
An outline of the significant policy
and regulatory adjustments in
China’ s auto industry
6 8
收入确认
业将 ? ?
The new revenue recognition
standard: N ew challenges or
opportunities for companies?
E Y | A ssurance | Tax 税务 | Transactions 务 | A dvisory
A b ou t E Y
EY i s a g l o b a l l ea d er i n a s s u r a nc e, ta x , tr a ns a c ti o n a nd a d v i s o r y s er v i c es . T he
insights and quality services we deliver help build trust and confidence in the
c a p i ta l m a r k ets a nd i n ec o no m i es the w o r l d o v er . W e d ev el o p o u ts ta nd i ng
l ea d er s w ho tea m to d el i v er o n o u r p r o m i s es to a l l o f o u r s ta k eho l d er s . I n s o
d o i ng , w e p l a y a c r i ti c a l r o l e i n b u i l d i ng a b etter w o r k i ng w o r l d f o r o u r p eo p l e,
f o r o u r c l i ents a nd f o r o u r c o m m u ni ti es .
EY r ef er s to the g l o b a l o r g a ni z a ti o n, a nd m a y r ef er to o ne o r m o r e, o f the
member firms of Ernst & Young Global Limited, each of which is a separate
legal entity. Ernst & Young Global Limited, a UK company limited by guarantee,
d o es no t p r o v i d e s er v i c es to c l i ents . F o r m o r e i nf o r m a ti o n a b o u t o u r
o r g a ni z a ti o n, p l ea s e v i s i t ey . c o m .
w w w . ey . c o m / c hi na
T hi s m a ter i a l ha s b een p r ep a r ed f o r g ener a l i nf o r m a ti o na l p u r p o s es o nl y a nd i s no t i ntend ed
to b e r el i ed u p o n a s a c c o u nti ng , ta x , o r o ther p r o f es s i o na l a d v i c e. P l ea s e r ef er to y o u r
advisors for specific advice.
关
税务务和务
和务资和信和信
培通关
工业程
Ernst & Young Global Limited
Ernst & Young Global Limited
务
w w w . ey . c o m
© 2016 Ernst & Young, China. All Rights Reserved.
© 2 0 1 6
AP AC no . 0 3 0 0 2 3 7 9 ED N o ne
信息制税务业
业
A b rief note on cultural and creative
industries in Taiw an
8 6
营
资
F rom government- led projects
to pub lic- private partnerships
Infrastructure construction
financing: The current situation
and the prospects
9 0

6
OntheBEAM
W orld in numb ers
统业业理者
业 | Q u e stions f amily b u sine ss le ad e rs sh ou ld b e ask ing
6 8 %8 7 % 6 4 % 6 4 %3
确管理 ?
W hatcanw edotohelpensureasmoothsuccession?
业业 ?
H ow can b randling ourselves as a family b usiness improve performance?
确业
Clearly define who has the
r es p o ns i b i l i ty f o r s u c c es s
Bu i l d i ng c o hes i o n
培
W o r k s tea d i l y to p r ep a r e the
nex t g ener a ti o n f o r l ea d er s hi p
D i f f er enti a te y o u r s el f i n
the m a r k et
Enha nc e c u s to m er l o y a l ty
者确
业
Mo r e tha n 8 7 % c l ea r l y
i d enti f y w ho i s r es p o ns i b l e
f o r s u c c es s i o n.
入业
工
Av er a g e nu m b er o f y ea r s
f a m i l y m em b er s m u s t
w o r k o u ts i d e the b u s i nes s
b ef o r e j o i ni ng .
业
s a y thei r f a m i l y s tr o ng l y
identifies with the
c o m p a ny — i t i s p a r t o f
w ho they a r e.
s a y i t hel p s them
d i f f er enti a te them s el v es
f r o m thei r c o m p eti to r s .
业
s a y i t i m p r o v es the
r ep u ta ti o n o f the c o m p a ny
w i th c u s to m er s .
信息控制程
系
入入
管理
An ex p l o s i o n i n m o b i l e hea l th tec hno l o g i es i s em p o w er i ng p a ti ents w i th m o r e tr a ns p a r ent i nf o r m a ti o n a nd m o r e c o ntr o l o v er thei r
hea l th. S m a r tp ho ne a p p s a nd w i r el es s l y c o nnec ted m ed i c a l d ev i c es a r e c r ea ti ng r ea l - ti m e d a ta a nd ena b l i ng r ea l - ti m e i nter v enti o ns .
S o c i a l m ed i a s i tes a r e a l s o p l a y i ng a n i nc r ea s i ng l y i m p o r ta nt r o l e, c o nnec ti ng p a ti ents a nd p r o v i d er s a nd a l l o w i ng them to i nter a c t
a nd l ea r n f r o m ea c h o ther i n new w a y s .
The emerging field of wearable and implantable sensors promises to integrate mobile health technologies even more seamless into
o u r ev er y d a y l i v es . T hes e tec hno l o g i es a r e tr a ns f o r m i ng “ hea l th c a r e” ( d el i v er ed p r i m a r i l y i n ho s p i ta l s a nd c l i ni c s ) i nto “ hea l th”
( m a na g ed w her ev er the p a ti ent i s ) .
将息息关 | H e alth care w ill
b e come more conne cte d to d aily lif e th rou gh th e grow th of mob ile and social h e alth solu tions
资信
T e ch nology
Capital Confidence Barometer
认
程项
s ee c y b er s ec u r i ty
as a significant
r i s k d u r i ng the
d ea l p r o c es s .
资将
o f a v a i l a b l e
c a p i ta l w i l l
b e a l l o c a ted
to g r o w th
s tr a teg i es .
业将
1 2
收
o f c o m p a ni es
ex p ec t to a c ti v el y
p u r s u ea c q u i s i ti o ns
i n the nex t 1 2
m o nths .
管
o f ex ec u ti v es
a r e p o s i ti v e i n
thei r ec o no m i c
o u tl o o k .
9 1 % 6 0 % 4 5 % 8 0 %

7
A hea l thy b u s i nes s w i th l o ng - ter m g r o w th p o tenti a l , a c o hes i v e f a m i l y a nd p r o u d l eg a c y – tha t’ s the i d ea l f o r nea r l y ev er y f a m i l y
b u s i nes s . And i t’ s o ne tha t m a ny o f o u r s u r v ey p a r ti c i p a nts ha v e m a na g ed to a c hi ev e.
业业 ?
S o u r c e: EY p u b l i c a ti o n – S ta y i ng p o w er : ho w d o f a m i l y b u s i nes s c r ea te l a s ti ng s u c c es s ? G l o b a l s u r v ey o f the w o r l d ’ s l a r g es t f a m i l y b u s i nes s es
5 6 % 9 0 %1 3 % 7 0 %
?
How do we reduce unhealthy conflict?
制
G o thr o u g h the p r o c es s o f c r ea ti ng a c o d e o f c o nd u c t, a m i s s i o n
s ta tem ent o r a f a m i l y c o ns ti tu ti o n to u nc o v er a ny hi d d en i s s u es
沟通业
C o m m u ni c a te r eg u l a r l y w i th f a m i l y m em b er s a b o u t w ha t’ s g o i ng o n i n the b u s i nes s
ha v e a m i s s i o n s ta tem ent. ha v e a f a m i l y c o ns ti tu ti o n. ha v e r eg u l a r f a m i l y m eeti ng s to d i s c u s s
f a m i l y i s s u es .
业务
ha v e r eg u l a r f a m i l y o r s ha r eho l d er m eeti ng s
to d i s c u s s b u s i nes s i s s u es .
资业 2 0 1 5
S o u r c e: EY p u b l i c a ti o n – Health reimagined, Extract from Megatrends 2015, Making sense of a world in motion
• 2 0 , 0 0 0 程
将
• Ov er 2 0 , 0 0 0 hea l th c a r e s m a r tp ho ne a p p s a r e
a v a i l a b l e – w i th m o r e o n the w a y .
• 2 0 1 3 2 0 1 8
将 4 0 %
• Global mobile health and fitness sensor market
will grow at 40% CAGR between 2013 and 2018.
• 将目
5 0 2 0 2 0 2 5 , 0 0 0
• Social media channels will generate significant
hea l th c a r e d a ta – f r o m 5 0 p eta b y tes to d a y to
2 5 , 0 0 0 p eta b y tes b y 2 0 2 0 .
2 0 , 0 0 0 pe tab y te s
tod ay
pe tab y te s
b y 2 0 2 0
2 5 , 0 0 0
5 0
+ 4 0 %
2 0 1 3 2 0 1 8
资业资信 2 0 1 5 1 2 1 3
S o u r c e: EY p u b l i c a ti o n – Technology Capital Confidence Barometer (13th Edition, December 2015)
认行
s ee the s i z e o f
thei r d ea l p i p el i ne
a s s ta b l eo r g r o w i ng .
业行业
行业行收
o f c o m p a ni es
i ntend to p u r s u e
a c q u i s i ti o ns o u ts i d e
thei r o w n s ec to r .
收
s a y d i g i ta l
d i s r u p ti o n i s
d r i v i ng thei r
a c q u i s i ti o n
s tr a teg y .
目
now cite R&D
a nd p r o d u c t
i ntr o d u c ti o ns
a s thei r p r i m a r y
f o c u s f o r o r g a ni c
g r o w th.
9 6 % 3 4 % 3 7 % 3 5 %

8
OntheBEAM
从教室到董事会
创造高影响力的企业家文化：
安永最新报告主要内容摘录
From classroom to
boardroom
Creating a culture for high-impact
entrepreneurship: Key extracts
from a new EY report
在青年失业率奇高的全球经济环境中，各国政府都
在寻求可持续发展的方案，以应对这个主要劳动
力市场的问题和青年失业率的社会挑战。具有持续影响力
的解决方案首先需要可支撑自身。政策制定者需要促进其
所在经济体的商业生态环境发展，长期有效地刺激经济增
长和就业。企业家精神是创造就业机会和创新的重要催化
剂。“高影响力”创业公司可以带来巨大的经济效益，这
在它们对创造就业机会、创新或客户利益、财富创造和社
会影响的贡献中得到充分体现。

1 0
OntheBEAM
1 0
OntheBEAM
事影响
业 G 2 0 影响业
行
业划
G 2 0 业 Y o u ng
Entr ep r eneu r s ’ Al l i a nc e
业行
入
资管税收
业系统
业系统影响
业 2 0 1 3
G 2 0 业
1 5 0 0 业行认业
资和
业和
G 2 0
影响业制者
流业
认业
通将业工和
业
行业和业
信业和业
业
关和职业
和行
业通业

1 11 1
和
业和业业投入
影响业
制者影响业业
和和影响影响
业业业
1 % 业 4 4 % 收入和4 0 %
业业和业
和环
影响系统
确影响业目
制
业事投资者
和制者业
系统
影响业
影响业
关业系统
环业系统
业和业通
业系统和
影响业
业系统
业税收
业关
制者
业业和关
业和制
业通
业职业
业业
业和业
业和
业系统影响
工业划目
工
业 I F C
营工
信资
和工
管
境业
业业
和程 G 2 0
业业
业环境
资业
业资业
资

1 2
OntheBEAM
1 2
OntheBEAM
影响业通
培业
通关工业行
G 2 0 培
业
影响业项
G 2 0 业业
划流
业务 G 2 0
业和关
和业
业流业
业通
业流
流项目制将
行业
业
培业业通
业培训
工
系统划职业和行业
关系
关
业将
业务
关业和业
将影响
业业
资和
和
划和影响
业划和
影响和业
和制项目
和划
影响业收入业和
关业
和影响业 G 2 0
关系统
系统
流和 G 2 0
通业
业入系统
行业关
业
将影响将
事影
响业 http : / / w w w . ey . c o m /
Publication/vwLUAssets/ey-from-classroom-to-
b o a r d r o o m / $ F I L E/ ey - f r o m - c l a s s r o o m - to - b o a r d r o o m . p d f
1
5
6
2
3
4

13
风
向
13
风
向
I
n a global economic environment characterized by
disproportionally high youth unemployment, governments
are searching for answers to this major labor market and
social challenge. Any solutions with lasting impact need to
be self-sustaining. Policymakers need to boost the business
ecosystems in their economies to effectively stimulate
economic growth and employment over the long term.
Entrepreneurship is a significant catalyst for job creation and
innovation. “High impact” entrepreneurial companies bring
disproportionately large economic benefits, reflected in their
contribution to job creation, innovation or customer benefits,
wealth creation and societal impact.
EY’s new report, From classroom to
boardroom: Creating a culture for high
impact entrepreneurship focuses on the
role of culture in driving high-impact
entrepreneurship in G20 countries.
The report provides six actionable
recommendations for governments and
a clear, time-bound path for achieving
support for young entrepreneurs. Our
report was released alongside this year’s
G20 Young Entrepreneurs’ Alliance (YEA)
Summit in Turkey. It drills down on the
one driver that is omnipresent yet difficult
to quantify or capture: entrepreneurial
culture.

1 4
OntheBEAM
1 4
OntheBEAM
Culture is one of the five
pillars in the EY model
of an entrepreneurial
ecosystem — alongside
access to funding, education,
coordinated support,
regulation and taxation. O ur
previous research on the
entrepreneurial ecosystem
confirms the importance of
culture in supporting high-
impact entrepreneurship.
F or example, in our G20
Entrepreneurship Barometer
released in 2 0 1 3 w e surveyed
1 , 5 0 0 entrepreneurs w ho
identified a supportive culture
as having access to funding,
mentorship and innovation.
W i th hi g h y o u th u nem p l o y m ent
p er s i s ti ng i n s o m e G 2 0 c o u ntr i es
a nd w i th ev er - p r es ent d em a nd s f o r
i nno v a ti o n, s u s ta i na b i l i ty a nd s o c i a l
i nc l u s i o n, g o v er nm ents a c r o s s the
G 2 0 a r e i nc r ea s i ng l y f o c u s ed o n
c ha nnel i ng s u p p o r t to hi g h- i m p a c t
entr ep r eneu r s hi p a m o ng y o u th. T he
c ha l l eng e then f o r p o l i c y m a k er s
i s to u nc o v er b es t- i n- c l a s s p o l i c i es
to f o s ter r ea l i m p r o v em ent i n
entr ep r eneu r i a l c u l tu r e i n thei r
r es p ec ti v e ec o no m i es .
T her ef o r e i n o u r v i ew , ed u c a ti o n
p o l i c y i s a m a j o r c ha nnel f o r
g o v er nm ents to d r i v e c ha ng es
to entr ep r eneu r i a l c u l tu r e. I n
p i v o ti ng ed u c a ti o n to f o c u s o n
the to o l s a nd s k i l l s nec es s a r y f o r
entr ep r eneu r s hi p , p o l i c i es c a n
s u p p o r t a c u l tu r e s u p p o r ti v e o f
entr ep r eneu r s hi p o v er a p er s o n’ s
l i f eti m e.
Any ed u c a ti o n p o l i c y i ni ti a ti v e
f o c u s ed o n c u l tu r e need s to i nv o l v e
i nd u s tr y a nd entr ep r eneu r s . At
EY, we firmly believe the solution
l i es i n the “ P o w er o f T hr ee, ”
w her e g o v er nm ent, b u s i nes s
a nd entr ep r eneu r s j o i n f o r c es
to c r ea te new o p p o r tu ni ti es f o r
y o u ng entr ep r eneu r s a nd d r i v e
l a s ti ng c ha ng e. W e p r o p o s e
s o m e a c ti o n p o i nts her e f o r
g o v er nm ents , o n ex p er i enti a l a nd
v o c a ti o na l ed u c a ti o n, m ento r s hi p
a nd m o b i l i ty . T hes e i ni ti a ti v es
c a n p r o v i d e c o m p r ehens i v e
l ea r ni ng o p p o r tu ni ti es f o r y o u ng
entr ep r eneu r s a nd r ea l l y d r i v e
ho m e a s u p p o r ti v e c u l tu r e thr o u g h
ex p er i enc e.
Of c o u r s e, c ha ng e to ed u c a ti o n a nd
c u l tu r e w i l l ta k e ti m e. T hi s i s a l l the
m o r e r ea s o n to s ta r t enc o u r a g i ng
the g o v er nm ent, enter p r i s es a nd
entr ep r eneu r s to d r i v e i nv es tm ent
i n y o u ng entr ep r eneu r s a nd c r ea te a
s hi f t i n c u l tu r e.
H igh - impact e ntre pre ne u rsh ip is a
policy priority
F o r p o l i c y m a k er s , hi g h- i m p a c t
entr ep r eneu r s hi p i s a d r i v er to
p r o m o te j o b a nd w ea l th c r ea ti o n,
i nno v a ti o n a nd p o s i ti v e s o c i eta l
impact. High-impact firms drive
the l i o n’ s s ha r e o f j o b c r ea ti o n
among start-up firms, with a recent
g l o b a l s tu d y s ho w i ng tha t the to p
1% of firms contribute 44% of total
r ev enu e a nd 4 0 % o f to ta l j o b s .
Entr ep r eneu r s hi p c a n a l s o p r o v i d e
an important link between R&D
a nd ec o no m i c g r o w th thr o u g h i ts
r o l e i n k no w l ed g e tr a ns f er a nd
c o m m er c i a l i z a ti o n.
“ H igh - impact” policy solu tions
are sy ste mic
H a v i ng s et a c l ea r o b j ec ti v e o f
hi g h- i m p a c t entr ep r eneu r s hi p ,
g o v er nm ents s ho u l d b e f o c u s ed
o n ef f ec ti v e p o l i c y s o l u ti o ns .
N ew i nter v enti o ns c a nno t b e
c o ns i d er ed i n a v a c u u m . J u s t a s a n
entr ep r eneu r ex i s ts i n a netw o r k
o f p eer s , m ento r s , i nv es to r s ,
c o m p eti to r s a nd p o l i c y m a k er s ,
entr ep r eneu r s hi p p o l i c i es a r e p a r t o f
the ec o s y s tem .
T h e “ P ow e r of T h re e ” f or h igh -
impact e ntre pre ne u rsh ip
N o o ne c a n g o i t a l o ne w hen
i t c o m es to hi g h- i m p a c t
entr ep r eneu r s hi p . T he “ P o w er
o f T hr ee” i s c r i ti c a l f o r ef f ec ti ng
p o s i ti v e c ha ng e. W i th a l l el em ents
o f the ec o s y s tem c l o s el y
i nter l i nk ed , f o s ter i ng a n ef f ec ti v e
entr ep r eneu r i a l ec o s y s tem i s c l ea r l y
a j o i nt ef f o r t b etw een g o v er nm ent,
entr ep r eneu r s a nd enter p r i s es .
W o r k i ng to g ether , thes e thr ee
a c to r s c a n s u p p o r t a thr i v i ng
entr ep r eneu r i a l ec o s y s tem , a nd
p r o v i d e d i f f er ent s tr eng ths a nd
c a p a b i l i ti es to d r i v e r es u l ts .
C u ltu re can su pe rch arge h igh -
impact e ntre pre ne u rsh ip
T he d ev el o p m ent o f a s tr o ng
entr ep r eneu r s hi p c u l tu r e s ta nd s
o u t a s o ne p i l l a r i n the ec o s y s tem .
T hi s ha s eno r m o u s p o tenti a l
to s tr eng then s u p p o r t f o r
entrepreneurial activity. Unlike
ta x p o l i c i es , g o v er nm ent g r a nts
o r ed u c a ti o n r ef o r m , the ex p l i c i t
l ev er s f o r c r ea ti ng a p o s i ti v e
“ entr ep r eneu r s hi p c u l tu r e” a r e

1 51 5
not well-defined. As a result, it
presents a significant opportunity
f o r p o l i c y m a k er s . Entr ep r eneu r s hi p
c u l tu r e i s i nter tw i ned w i th
entr ep r eneu r i a l a tti tu d es a nd
ed u c a ti o n, a nd the i ni ti a l c ha l l eng e
i s to tr u l y u nd er s ta nd i ts r o l e a nd
significance in entrepreneurial
a c ti v i ty i n o r d er to d es i g n p o l i c y
i ni ti a ti v es tha t hel p s u p p o r t i t. W i th
the r i g ht s u p p o r t, g o v er nm ents
c a n hel p i nd i v i d u a l s a d o p t a n
“ entr ep r eneu r i a l m i nd s et” i n w hi c h
they s tr i v e to b e j o b c r ea to r s
r a ther tha n j o b s eek er s a nd d r i v e
entr ep r eneu r i a l a c ti v i ty hi g her . T he
p r es enc e o f s tr o ng r o l e m o d el s ,
r es p ec t f o r entr ep r eneu r s a nd
s o c i a l to l er a nc e o f b u s i nes s r i s k a nd
f a i l u r e a r e i m p o r ta nt i n s p u r r i ng a
s u p p o r ti v e c u l tu r e.
S u pportiv e e ntre pre ne u rsh ip
cu ltu re is also a critical cataly st
f or an inclu siv e and su stainab le
e conomic grow th
C u l tu r e a l s o ha s a n i m p o r ta nt
s o c i a l i m p a c t i n s tr eng theni ng
the entr ep r eneu r i a l ec o s y s tem .
C r ea ti ng “ d ec ent w o r k ” f o r y o u th i s
a n i m p o r ta nt o b j ec ti v e f o r a ny j o b
c r ea ti o n p r o g r a m . T he c o nnec ti o n
b etw een g o o d j o b s a nd s o c i a l
c o hes i o n i s c l ea r , w i th u nr es t i n
s o m e ec o no m i es i n r ec ent y ea r s
hi g hl i g hti ng the i m p o r ta nc e o f
em p l o y m ent o p p o r tu ni ti es tha t
ena b l e y o u th to r ea c h thei r f u l l
potential. IFC research also finds
tha t q u a l i ty p r i v a te s ec to r j o b s
hel p c o ntr i b u te to the c r ea ti o n
of global public benefits such as
r es p ec t f o r r i g hts , i nc r ea s ed l ev el s
o f tr u s t, hu m a n c a p i ta l , g end er
eq u a l i ty , p o v er ty r ed u c ti o n a nd
p ea c e. T he m ea ni ng o f “ g o o d ” o r
“ d ec ent” j o b s v a r i es d ep end i ng
o n the ec o no m y o r l ev el o f
d ev el o p m ent o f a c o u ntr y . W ha tev er
the c o ntex t, the p r o m o ti o n o f
entr ep r eneu r s hi p c u l tu r e i s
c entr a l to the c r ea ti o n o f thes e
o p p o r tu ni ti es . Entr ep r eneu r s c a n
g a i n s a ti s f a c ti o n f r o m d ev el o p i ng
a n i nd ep end ent b u s i nes s , c r ea ti ng
v a l u e f o r c u s to m er s a nd g ener a ti ng
thei r o w n w ea l th. T he EY G20
Entrepreneurship Barometer s ho w s
tha t a s u p p o r ti v e c u l tu r e i s o ne tha t
provides a level playing field for all
entr ep r eneu r s . T he c u l tu r e s ho u l d
b e i nc l u s i v e to y o u ng p eo p l e — f o r
example, in accessing finance. In
tho s e c o u ntr i es w her e the c u l tu r e
i s s u p p o r ti v e, y o u ng entr ep r eneu r s
ha v e s i m i l a r a c c es s to f u nd i ng a s
m o r e ex p er i enc ed entr ep r eneu r s .

1 6
OntheBEAM
1 6
OntheBEAM
Create a G 2 0 multilateral
entrepreneurs start- up visa
( now )
Mu l ti l a ter a l v i s a s , o r
r eg i o na l v i s a p r o g r a m s , a r e
c r u c i a l to i m p r o v e l a b o r
m o b i l i ty , c o nd u c t b u s i nes s
i nter na ti o na l l y a nd tr a ns f er
p o s i ti v e entr ep r eneu r i a l
c u l tu r e a nd no r m s thr o u g ho u t
the G 2 0 .
Encourage international
netw ork ing ( now )
N ew a nd y o u ng entr ep r eneu r s
need the o p p o r tu ni ty to
p a r ti c i p a te i n i nter na ti o na l
netw o r k i ng a nd c o l l a b o r a ti o n
w i th o ther entr ep r eneu r s to
ex c ha ng e k no w l ed g e, m ento r
ea c h o ther a nd s tr eng then
the entr ep r eneu r s hi p c u l tu r e.
Y o u ng entr ep r eneu r s need to
b e ex p o s ed to i nter na ti o na l
m a r k ets , thr o u g h tr a d e
m i s s i o ns , to d r i v e thei r
c o m m er c i a l ed u c a ti o n,
netw o r k a nd a l s o s u p p o r t
c u l tu r a l ex c ha ng e. An
ex c ha ng e p r o g r a m a nd a c c es s
to ta i l o r ed tr a d e m i s s i o ns
w o u l d b e p o w er f u l i ni ti a ti v es .
Start teaching
entrepreneurship early
( near term)
G o v er nm ents need to
s u p p o r t entr ep r eneu r s hi p
ed u c a ti o n f r o m the
el em enta r y s c ho o l l ev el to
eng end er a n “ entr ep r eneu r i a l
m i nd s et” a nd ex p a nd the
entr ep r eneu r i a l c u l tu r e. T hi s
c o m es thr o u g h ex p er i enti a l
l ea r ni ng a nd entr ep r eneu r s hi p
tr a i ni ng i n s c ho o l s a nd
ex tr a c u r r i c u l a r p r o g r a m s .
An i m p o r ta nt c o m p l em ent
w i l l a l s o b e i nf o r m a l l ea r ni ng
o p p o r tu ni ti es f o r y o u th,
i nc l u d i ng w o r k s ho p s a nd o ther
ex p er i enti a l l ea r ni ng a nd
o nl i ne to o l s .
1 2 3
Six specific recommendations for creating a culture for high-impact entrepreneurship
T o “ mak e ” h igh - impact
e ntre pre ne u rsh ip, gov e rnme nts
ne e d to d riv e a su pportiv e cu ltu re
th rou gh e d u cation
By f o c u s i ng ed u c a ti o n p o l i c y o n
r el ev a nt to o l s f o r entr ep r eneu r s hi p ,
g o v er nm ents c a n f o s ter a c u l tu r e
s u p p o r ti v e o f entr ep r eneu r s hi p ,
f r o m el em enta r y s ta g es o f l ea r ni ng
thr o u g h to a d u l tho o d .

1 71 7
F oster these programs
through the education
system w ith a pivot tow ard
vocational education and
industry partnerships ( near
term)
Ed u c a ti o n i ni ti a ti v es to f o s ter
s k i l l s l ea r ned i n el em enta r y
a nd p r i m a r y s c ho o l y ea r s
a r e c r i ti c a l a t the s ec o nd a r y
a nd ter ti a r y l ev el s to d eep en
s tu d ents ’ “ entr ep r eneu r i a l
m i nd s et” a nd c o nv er t thi s
thi nk i ng i nto c o m m er c i a l
a b i l i ti es a nd p r a c ti c e.
F ocus on “ q uality”
entrepreneurship and
“ q uality” employment
( medium term)
G o v er nm ents c a n u s e c u l tu r e
a s a k ey d r i v er to s u p p o r t
g r o w th i n hi g h- i m p a c t
entr ep r eneu r s , no t “ l i f es ty l e”
entr ep r eneu r s . T hi s i nc l u d es
ta r g eted g r a nts , c el eb r a ti o n
o f s u c c es s es a nd ena b l em ent
o f netw o r k s to s u p p o r t
k no w l ed g e tr a ns f er a nd r i s k
ta k i ng .
Estab lish longitudinal
programs to link culture and
education through to impact
( long term)
Entr ep r eneu r i a l ed u c a ti o n
p r o g r a m s need a s o u nd
ev i d enc e b a s e, l i nk i ng
ed u c a ti o n a nd c u l tu r e
thr o u g h to i m p a c t, i nc l u d i ng
i nno v a ti o n a nd j o b c r ea ti o n.
I ni ti a ti v es tha t enc o u r a g e
k no w l ed g e- s ha r i ng a nd
c o m m u ni ty d ev el o p m ent a r e
a l s o i m p o r ta nt to r ep l i c a te
l ea r ni ng s , s c a l e p r o g r a m s a nd
p r o v i d e l o ng i tu d i na l d a ta o n
p r o g r a m s .
4 5 6
S u p p o r ti ng the g r o w th o f hi g h- i m p a c t entr ep r eneu r s hi p i s c r i ti c a l to g ener a ti ng
g a i ns i n i nc o m e, em p l o y m ent, p r o d u c ti v i ty a nd c o m p eti ti v enes s g a i ns . At
the s a m e ti m e, a p o s i ti v e entr ep r eneu r s hi p c u l tu r e i s need ed to a d v a nc e the
development and scaling of high-impact firms. For G20 governments, education
i s the k ey c o nd u i t f o r s tr eng theni ng c u l tu r e. L a s ti ng c ha ng e i n ed u c a ti o n
s y s tem s , a nd r ea l c ha ng e i n c u l tu r e, ta k es ti m e. As a r es u l t, g o v er nm ents need
to m a k e a l o ng - ter m c o m m i tm ent to r ef o r m thei r ed u c a ti o n s y s tem s to s u p p o r t
c u l tu r e a nd s ta r t to i m p l em ent new p o l i c i es . I n the nea r ter m , new v i s a s to ena b l e
m o b i l i ty a nd i nter na ti o na l netw o r k i ng i ni ti a ti v es c a n b u i l d b r i d g es a c r o s s the
G 2 0 a nd d r i v e p o s i ti v e c ha ng e i n a n entr ep r eneu r s hi p c u l tu r e thr o u g h p eer - to -
p eer , a nd ex p er i enti a l , l ea r ni ng . I n the m ed i u m ter m , entr ep r eneu r s hi p need s
to b e em b ed d ed i n f o r m a l ed u c a ti o n s y s tem s , f r o m p r i m a r y thr o u g h to ter ti a r y ,
w i th i nd u s tr y a c r u c i a l p a r tner i n the p r o c es s . T hi s s ho u l d b e p a r t o f a b r o a d er
ec o no m i c d ev el o p m ent p l a n f o c u s ed o n “ q u a l i ty ” entr ep r eneu r s hi p . I n the l o ng
ter m , m ea s u r i ng c u l tu r e i n ed u c a ti o n, a nd l i nk i ng i t thr o u g h to i m p a c t, w i l l hel p
to define effective policies and refine initiatives.
Read the full report From classroom to boardroom: Creating a culture for high
impact entrepreneurship at http://www.ey.com/Publication/vwLUAssets/ey-from-
c l a s s r o o m - to - b o a r d r o o m / $ F I L E/ ey - f r o m - c l a s s r o o m - to - b o a r d r o o m . p d f
EY

1 8
OntheBEAM
入 Buy?
Build?
制收
D eveloping your grow th strategy involves choosing the
right acq uisitions to complement your organic grow th.
ey.com/tas #BetterQuestions
业
The b etter the q uestion. The b etter the answ er. The b etter the w orld w ork s.

2 2
OntheBEAM
务 ?
通认务行
务理确
制
务
务
务统务
B2 C B2 B E2 E B2 B2 B 统务
业务和运营程
程
务 B2 C
和 B2 B 收入 B2 C
Forrester Research和iResearch 2 0 1 3
B2 B 1 . 2 B2 B 5 5 9 0
B2 C
业务通
务者
务和
务2 0 1 3
B 2 B
1 . 2
B 2 C
3 , 0 4 0
B 2 C
2 , 5 2 0
B 2 B
5 , 5 9 0
资 Forrester & iResearch

2 3
B2C
B2 C 务目
收
1
H ei l a nho m e. c o m
C 2 C 行收
收
S ea r s 1 0
统
营 B2 C 务
和投
资和投
资
B2B
B2 C B2 B 关
B2 B 务收入
务 2 0 1 3 B2 B
1 . 2 2 0 1 4 2 2 % 1 . 6
iRearch B2 B 将 2 0 1 7 2 . 7
1 6 . 7
B2 B 务业 2 0 1 4 收
入 2 4 % 务
4 0 %
行业 B2 B 务务
1 8 . 5 %
B2 B 务 ?
B2 B 务入
统 B2 B
务 B2 B通业
H C 3 6 0 B2 B2 B
业务
业
制B2 B 务
营 ?
目和
务制入
行管
业
管理业 I T 和
ERP 业
认
确 I T
务和行 ?
B2 B 务入
?
营 B2 C
工将目管理
和务
运营
2 0 1 3
1 . 3
2 0 1 7
2 . 7
B2 B

2 4
OntheBEAM
营理和
制 2 0 2 5 将信息制业
行业制
和务
行划统行业信息
项 3 0 行者
将者
E2 E和B2 B
务 E2 E
业和
信息流关系
关系
E2 E 务和营
工和运营
E2 E 务 ?
1 .
E2 E
?
信息? 划
制和流程
务
务
2 .
E2 E 业通
行业理通 B2 B
业 E2 E 务事
和
资和
通理确
E2 E 务
业业
沟通

2 5
3 . 关
E2 E 务业和程
关理流程
和
E2 E 务业务
和
4 .
E2 E 务
B2 B E2 E 务系统
业行
和通行
制营投资收
将
和
和信息将
业业统业
和统业投资 B2 B 务
业
业将和
和将
和确关系业务
和业将
关将关系将
制将流行
业
制确务
投资I T 入境
系统
1 . 制和业
• 制目投资和流程
• 确管理投
2 . 管理
• 管理制
• 运营
• 确务关
3 .
• 业确管业务行
行职
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• 制和工
• 认管理流程确流程管理
关
5 . 和
•
•
• 确收行

2 7
W
hat does eCommerce mean to you? Most would
generally associate the term with using the internet
for trading and generating profit, and fundamentally
they would be correct. But this definition is far too broad to be
of any use in developing an understanding of an eCommerce
strategy customized to your business.
eC o m m er c e’ s c ha r a c ter i s ti c s a r e a s d eep a nd a s d i v er s e a s tho s e o f the p hy s i c a l
m a r k etp l a c e. I ts c ha nnel s ec to r s m i r r o r tho s e o f tr a d i ti o na l C o m m er c e: B2 C , B2 B,
E2 E, B2 B2 B a nd s o o n. L i k e tr a d i ti o na l c o m m er c e, ea c h e- c ha nnel ha s a d i f f er ent
set of rules of engagement and operating procedures that define its parameters
a nd g o v er ns ho w s u c c es s i s a c hi ev ed .
I f ther e i s a g ener a l l y u nd er s to o d m ea ni ng f o r eC o m m er c e, i t l i k el y c enter s
a r o u nd the B2 C v a r i ety . T hi s i s w ha t m o s t p u b l i c a ti o ns w r i te a b o u t a f ter a l l .
However in both mainland China and the US, B2B far outstrips B2C in terms of
sales revenue. Based on data from Forrester Research and iResearch, mainland
China had US$1.2t in B2B purchases in 2013, more than double the B2B sales
in the US (US$559b) and triple the B2C sales in mainland China during the same
p er i o d . H o w ev er to o o f ten eC o m m er c e, a s a b u s i nes s ter m , i s b a nd i ed a b o u t a s a
generic catch-all that fundamentally signifies everything, and therefore nothing
a t a l l . F o r d ec i s i o n m a k er s l o o k i ng to b u i l d a n ef f ec ti v e eC o m m er c e s tr a teg y , i t’ s
w o r th ta k i ng the ti m e to u nd er s ta nd the o p p o r tu ni ti es a nd c ha l l eng es i ts c ha nnel
s ec to r s p r es ent.
2 0 1 3 eCommerce
China ( mainland)
B 2 B
US$1.2t
B 2 C
US$304b
B 2 C
US$252b
U SA
B 2 B
US$559b
Source: Forrester & iResearch

2 8
OntheBEAM
B2C
As a l r ea d y m enti o ned , m u c h ha s b een
w r i tten a b o u t B2 C eC o m m er c e. T o d a te
thi s c ha nnel p r i m a r i l y f o c u s es o n “ c l i c k
a nd r ec ei v e” m o d el s tha t c a n ei ther
s u p p l em ent ex i s ti ng b r i c k s a nd m o r ta r
o u tl ets ( S u ni ng , Ba i l i a n) , p r o v i d e a n
enti r el y o nl i ne r eta i l c ha nnel ( Y i ha o d i a n,
J i ng d o ng ) , o r b e a n i nter na l d i r ec t s a l es
p l a tf o r m ( H ei l a nho m e. c o m ) . S i m i l a r l y ,
C 2 C ( T a o b a o ) tr a ns a c ti o ns a l s o f a l l
u nd er thi s p r ev a i l i ng “ c l i c k a nd r ec ei v e”
m o d el .
T her e ha v e b een s o m e i nno v a ti o ns
r eg a r d i ng thi s “ c l i c k a nd r ec ei v e”
m o d el , a nd i t i s m o v i ng to w a r d s a
“ c l i c k a nd c o l l ec t” d el i v er y f u nc ti o n.
Al tho u g h “ c l i c k a nd c o l l ec t” ha s b een
a r o u nd f o r q u i te s o m e ti m e i n m o r e
m a tu r e m a r k ets ( S ea r s d i d i t o v er a
d ec a d e a g o ) , the r ec ent i nno v a ti o n
ha s b een to s et u p m i c r o - d i s tr i b u ti o n
c enter s thr o u g ho u t m a j o r m etr o p o l i ta n
a r ea s . F o r i ns ta nc e, l ev er a g i ng a l o c a l
c o nv eni enc e s to r e netw o r k to d el i v er
hy p er m a r k et p r o d u c ts s er v i c ed f r o m
a l a r g er c entr a l w a r eho u s e. T hi s i s
j u s t o ne w a y tha t tr a d i ti o na l r eta i l
outlets are becoming more flexible and
a d a p ti ng to B2 C eC o m m er c e d y na m i c s
w her e the c o r e d i f f er enti a to r s a r e c o s t,
c o nv eni enc e a nd c ho i c e. I nv es tm ent
i n d i s tr i b u ti o n c ha nnel s a nd the
i nf r a s tr u c tu r e a nd p hy s i c a l w a r eho u s i ng
r eq u i r ed i s the new b r i c k s a nd m o r ta r
f o r thi s m o d el .
B2B
C o m p a r ed to B2 C , B2 B d o es n’ t g et
a l o t o f p u b l i c i ty o r m ed i a c o v er a g e.
H o w ev er , B2 B d o es g et a m a j o r s l i c e o f
the eC o m m er c e r ev enu e p i e. Ba s ed o n
d a ta p r o v i d ed b y the C hi na E- C o m m er c e
Research Center (CECRC), B2B gross
m er c ha nd i s e v o l u m e i n m a i nl a nd C hi na
in 2013 totaled US$1.2t and grew 22%
to US$1.6t in 2014. And iResearch is
f o r ec a s ti ng B2 B v o l u m e to b a l l o o n to
US$2.7t (RMB16.7t) in 2017.
N o t s u r p r i s i ng l y , B2 B eC o m m er c e
c o m p a ni es a r e thr i v i ng : r ev enu e g r ew
24% in 2014. According to the CECRC,
Al i b a b a c o nti nu es to l ea d the p a c k w i th
nea r l y 4 0 % m a r k et s ha r e, f o l l o w ed
b y S ha ng ha i G a ng l i a n E- C o m m er c e
H o l d i ng s C o . , L td . , a v er ti c a l B2 B
s er v i c e p r o v i d er f o c u s i ng o n the i r o n
a nd s teel s ec to r , w i th 1 8 . 5 % . Bu t d o
thes e e- m a r k etp l a c e p l a tf o r m s r ea l l y
eq u a te to B2 B eC o m m er c e?
2 0 1 3
US$1.3t
2 0 1 7
US$2.7t
G r o w th p o tenti a l
ofB2B
m a r k et i n m a i nl a n
d
China
Y o u d o n’ t need a d eep u nd er s ta nd i ng
o f B2 B eC o m m er c e to u nd er s ta nd tha t
u s i ng a n e- d i s tr i b u ti o n o r s a l es c ha nnel
l i k e Al i b a b a ’ s m a y no t b e tr a d i ti o na l
B2 B eC o m m er c e. Bu s i nes s – to – b u s i nes s
ty p i c a l l y r ep r es ents a d i r ec t c ha nnel
b etw een tw o enter p r i s es . H a v i ng a n
i nter m ed i a r y l i k e Al i b a b a ( H C 3 6 0 )
b r o k er i ng the ex c ha ng e a nd s i tti ng i n
the m i d d l e i s c l o s er to B2 B2 B. Onc e y o u
r ea l i z e tha t the m a j o r i ty o f a c ti v i ty i n
thes e ‘ i nter m ed i a r i es ’ i s f r o m s m a l l -
to m ed i u m - s i z ed l o c a l enter p r i s es ,
i t b eg i ns to b ec o m e c l ea r ho w thes e
r el a ti v el y new c ha nnel s a r e b ei ng u s ed ,
a nd s o m ew her e ther ei n c o u l d l a y the
essential first question in developing
a f o c u s ed , ta i l o r ed B2 B eC o m m er c e
s tr a teg y .
C aptiv e mod e l or d istrib u tion
f ocu se d ?
I f y o u r g o a l i s j u s t to p - l i ne g r o w th a nd
m a r k et p enetr a ti o n w i th l i ttl e r eg a r d to
c u s to m er s er v i c e, b r a nd p o s i ti o ni ng o r
p o s s i b l e p r o d u c t c o m m o d i ti z a ti o n, then
g etti ng l i s ted a s a v end o r o n ev er y l a r g e
o nl i ne o u tl et c a n b e a v i a b l e s tr a teg y .
F u r ther m o r e, w hi l e m o s t d ev el o p i ng
m a r k ets a r e a d a p ti ng q u i c k l y to the
m o d er n ec o no m y , ther e a r e s ti l l m a ny
i ns ta nc es w her e l a r g e enter p r i s es l a c k
the d es i r e o r I T k no w l ed g e a nd s k i l l s et
to d ev el o p a p r o f es s i o na l i nter na ti o na l
w eb s i te w i th o nl i ne o r d er m a na g em ent,
let alone implement a robust ERP
p l a tf o r m . F o r tho s e i nd i v i d u a l

2 9
c o m p a ni es , o u ts o u r c i ng the f o r m er
a nd l ev er a g i ng a g l o b a l l y r ec o g ni z ed
p l a tf o r m m a k es s ens e a nd i s i n g o o d
p a r t a r ea s o n f o r Al i b a b a ’ s c o nti nu ed
s u c c es s .
Bu t w ha t i f y o u d o ha v e thi s i nter na l
I T c a p a b i l i ty ? W ha t i f y o u a r e f o r w a r d
thi nk i ng a b o u t the nex t l ev el o f s er v i c e
d i f f er enti a ti o n a nd b r a nd p o s i ti o ni ng ?
I n es s enc e, w ha t i f y o u w a nt B2 B
eC o m m er c e to m ea n m o r e to y o u
tha n j u s t g etti ng a l i s ti ng o n a g l o b a l
c a ta l o g u e? T hi s c o u l d m ea n tha t y o u
a r e r ea d y to d i s c u s s y o u r o w n c a p ti v e
p l a tf o r m , s i m i l a r to a B2 C i nter na l d i r ec t
s a l es c ha nnel . T o d o thi s , y o u r f o c u s
w o u l d need to s hi f t f r o m b l i nd ex p a ns i o n
to lean efficiency, towards improving
v i s i b i l i ty , c u tti ng o u t i nter m ed i a r i es ,
r ed u c i ng i nv ento r y , u p s el l i ng new
p r o d u c ts , k no w i ng w ha t y o u r c u s to m er
a nd m a r k et s eg m ent w a nts a nd need s
b ef o r e they d o , a nd i n tu r n c r ea ti ng
the s ti c k y s er v i c es to s tr a teg i c a l l y
s tr eng then c u s to m er l o y a l ty a nd g r o w
s a l es w hi l e o p ti m i z i ng o p er a ti ng c o s ts .
T hi s c a p ti v e m o d el i s v er y m u c h
a l i g ned w i th the na ti o na l s tr a teg i es
o f “ I nter net P l u s ” a nd “ Ma d e i n
C hi na 2 0 2 5 ” , a d v o c a ted b y C hi na ’ s
P r em i er L i K eq i a ng . T he k ey a i m i s
to i nteg r a te i nf o r m a ti o n tec hno l o g y
w i th m a nu f a c tu r i ng i n o r d er to ena b l e
‘ i ntel l i g ent m a nu f a c tu r i ng ’ w hi l e
s ti m u l a ti ng k no w l ed g e- i ntens i v e
i nd u s tr i es . Mo b i l e i nter net, c l o u d
c o m p u ti ng , Bi g D a ta , the I nter net o f
T hi ng s a nd eC o m m er c e a r e a l l i nteg r a l
p a r ts o f the “ I nter net P l u s ” a c ti o n p l a n.
I t i s c l ea r tha t the i nf o r m a ti o ni z a ti o n
o f tr a d i ti o na l i nd u s tr i es ha s b ec o m e a
na ti o na l s tr a teg y . As c l ea r l y ex hi b i ted i n
the l a s t 3 0 y ea r s o f g r o w th, i t w i l l b e the
first movers that benefit the most from
the d a w ni ng o f the new d i g i ta l a g e i n
m a i nl a nd C hi na .
E2E and B2B
J u s t l i k e eC o m m er c e, E2 E c a n m ea n
m u l ti p l e thi ng s to m a ny p eo p l e. Bu t
w ha t w e a r e ta l k i ng a b o u t her e i s
end - to - end , enter p r i s e- to - enter p r i s e
information flow that transmits
i nv ento r y l o c a ti o ns , s to c k i ng d a ta , a nd
u p - to - the- s ec o nd s a l es . Ad d p r ed i c ti v e
a na l y ti c s to thi s tr a ns p a r ent m a r r y i ng o f
d em a nd to s u p p l y a nd y o u s u c c es s f u l l y
m i ti g a te the b u l l w hi p ef f ec t. Of c o u r s e
thi s l ev el o f ti g ht i nter p l a y w o u l d o nl y
m a k e s ens e, o r ev en b e d es i r a b l e, w i th
y o u r l a r g es t c u s to m er s o r s u p p l i er s .
Issues facing E2 E eCommerce
Enter p r i s e
K no w w ho y o u w a nt to b e
i n the d i g i ta l w o r l d
Data analytics to find
m o r e o p p o r tu ni ti es
Channel conflict for
s a l es a nd m a r k eti ng
K no w y o u r c u s to m er
i n the d i g i ta l w o r l d
S u p p l i er s Enter p r i s e c u s to m er s
Any w her e a nd a ny ti m e
c o m m u ni c a ti o n

3 0
OntheBEAM
An E2 E eC o m m er c e s tr a teg y w o u l d
ta p i nto the v a s t a r r a y o f d i g i ta l s a l es
a nd m a r k eti ng , s u p p l y c ha i n a nd b a c k
office tools and solutions that are the
v a ng u a r d o f b es t- i n- c l a s s o p er a ti ng
efficiency today.
T hen w ha t a r e the a r ea s y o u s ho u l d
c o ns i d er w hen thi nk i ng a b o u t E2 E
eC o m m er c e?
1 . K now your k ey customer
Bef o r e d es i g ni ng a c a p ti v e E2 E
p l a tf o r m , a p r i m a r y c o ns i d er a ti o n i s to
g et a b etter u nd er s ta nd i ng o f ho w y o u r
k ey c u s to m er s a r e eng a g i ng w i th the
d i g i ta l w o r l d . Of c o u r s e y o u a r e p r o b a b l y
a l r ea d y f a m i l i a r w i th thei r p u r c ha s i ng
habits offline, but what about in the
d i g i ta l w o r l d ? W ha t i nf o r m a ti o n d o y o u r
c u s to m er s l o o k f o r o nl i ne a nd w her e
d o they l o o k f o r i t? I t i s a l s o i m p o r ta nt
to thi nk a b o u t the ty p es o f c u s to m er
y o u p l a n to eng a g e w i th ( OEMs o r end
c u s to m er s ) a nd the u s er ex p er i enc e,
s el l i ng p r o c es s ( w hi c h s eg m ents c a n
b e d o ne o nl i ne? ) , a nd a ny v a l u e- a d d ed
s er v i c es ( e. g . , l end i ng s er v i c es f r o m
third-party financial institutions) to be
p r o v i d ed .
2. Beware of channel conflict
E2 E tr a ns a c ti o ns ex i s t i n a m u l ti -
channel world. Channel conflict is a
m a j o r c o nc er n w i th E2 E eC o m m er c e
b ei ng new to m o s t enter p r i s es s ti l l
d i s tr i b u ti ng a m a j o r i ty o f thei r p r o d u c ts
v i a d i r ec t s a l es , r eg i o na l o r i nd u s tr y
d i s tr i b u to r s , o v er s ea s a g enc i es o r ev en
thr o u g h a thi r d - p a r ty B2 B p l a tf o r m .
T hi s c a n l ea d to d i r ec t c a nni b a l i z a ti o n
o f s a l es a nd r es o u r c es w i th s ep a r a te
channels creating conflict and internal
competition and inefficiencies. This
hi g hl y d i s r u p ti v e i s s u e c a n b e m i ti g a ted
thr o u g h a r ea s o ned o r g a ni z a ti o n
s tr u c tu r e, c l ea r s a l es s tr a teg y a nd
hi g hl y tr a ns p a r ent p r i c i ng p o l i c y a c r o s s
a l l s a l es c ha nnel s .
3 . Mob ile relevancy
W hen d ev el o p i ng a n E2 E eC o m m er c e
a p p r o a c h, enter p r i s es s ho u l d c o ns i d er
the r el ev a nc y o f m o b i l e w eb a nd a p p s .
I d ea l l y , a l l o nl i ne s a l e p r o c es s es a r e
also configured for the mobile platform,
s u c h a s i ni ti a l c o nta c t, c o ntr a c t
neg o ti a ti o n a nd o r d er p l a c em ent.
T y p i c a l l y , enter p r i s es em p l o y i ng m o b i l e
E2 E eC o m m er c e a r e a b l e to i m p r o v e
the efficiency of transactions to a
l a r g e d eg r ee. N o t o nl y d o es m o b i l e
s er v e to ena b l e c u s to m er s to ea s i l y
and efficiently place orders, but it
also empowers the field sales team
b y p r o v i d i ng i m m ed i a te a c c es s to a
c u s to m er ’ s k ey m etr i c s l i k e l ea d - ti m e,
i nv ento r y a nd d em a nd .
4 . B ig data
Bi g d a ta a na l y ti c s i s o ne o f the p r i m a r y
g a m e- c ha ng i ng el em ents ena b l ed
thr o u g h E2 E eC o m m er c e. One c l ea r
a d v a nta g e o f a n E2 E eC o m m er c e
s y s tem o v er a thi r d - p a r ty B2 B p l a tf o r m
i s tha t enter p r i s es a r e a b l e to a na l y z e
the d a ta g ener a ted b y thei r o w n E2 E
p l a tf o r m . Bi g d a ta a na l y ti c s c a n b e
hel p f u l i n c u s to m er a c q u i s i ti o n a nd
r etenti o n b y , a m o ng o ther thi ng s ,
i d enti f y i ng c u s to m er b eha v i o r , p r o v i d i ng
c u s to m i z ed p r o d u c ts , i m p r o v i ng the
r etu r n o n m a r k eti ng i nv es tm ent,
a nd o p ti m i z i ng p r i c i ng p o l i c i es .
F u r ther m o r e, i f p r ed i c ti v e m o d el i ng i s
a p p l i ed to the d a ta , i t c a n hel p to p u t a n
end to a c ho p p y , l u m p y d em a nd c u r v e.
F orw ard look ing
A m a s s i v e a m o u nt o f d a ta i s g ener a ted
ea c h d a y o n m o b i l e d ev i c es , s o f tw a r e
logs, sensors and RFID readers etc.
Ba s ed o n T he I nter net o f T hi ng s a nd Bi g
D a ta a na l y ti c s , a l l o f thi s i nf o r m a ti o n
w i l l a c t a s a g a m e c ha ng er , tr a ns f o r m i ng
b u s i nes s m o d el s a nd r ec a s ti ng
to m o r r o w ’ s b u s i nes s l a nd s c a p e.
T o d a y ’ s tr a d i ti o na l a nd no n- tr a d i ti o na l
c o m p a ni es ha v e the o p p o r tu ni ty
to i nv es t i n a tr a ns f o r m a ti v e B2 B
eC o m m er c e s tr a teg y , a k ey ena b l er
a nd f o u nd a ti o n f o r a s u c c es s f u l d i g i ta l
b u s i nes s m o d el .
C o m p a ni es tha t i m p l em ent thi s w el l w i l l
b e a b l e to enha nc e the a g i l i ty o f thei r
value chain from R&D and material
a c q u i s i ti o n to p r o d u c ti o n a nd s a l es .
T hey w i l l m a k e f a s ter a nd m o r e a c c u r a te
p r ed i c ti v e d ec i s i o ns b a s ed o n c l ea r
d a ta , a nd ex tend thei r b u s i nes s r ea c h
a nd c u s to m er b a s e, w hi l e s tr eng theni ng
i nter na l a nd ex ter na l r el a ti o ns hi p s .

3 1
务理
1 5 运营关
和行业
职职
L i nc o l n El ec tr i c AO
和业
业
信工业行业
理工管理运营管理
管理资
K yle H ill
Senior Manager, A dvisory Services
K y l e ha s o v er 1 5 y ea r s c o ns u l ti ng a nd
i nd u s tr y ex p er i enc e i n s u p p l y c ha i n a nd
p r o c u r em ent o p er a ti o ns , i nc l u d i ng ta k i ng the
role of Procurement Officer in USAF and his
1 0 - y ea r s ti nt i n C hi na w i th d eep ex p er i enc e
w i th Em er s o n, L i nc o l n El ec tr i c , AO S m i th a nd
PRTM. Kyle’s functional expertise has been
a p p l i ed a c r o s s v a r i o u s i nd u s tr i es , i nc l u d i ng
electronics, telecom, diversified industrials
a nd p ha r m a c eu ti c a l s . H e ho l d s a n MI T
Certification in Value Chain Management and
APICS CPIM Certified.
务
资业业
和项目管理
1 7
和
通信
业务
B enson N g
Partner, A dvisory Services, G reater China
Bens o n i s a s ea s o ned b u s i nes s c o ns u l ti ng
p r o f es s i o na l w i th m o r e 1 7 y ea r s o f g l o b a l
ex p er i enc e i n s tr a teg y , s a l es ef f ec ti v enes s ,
d i g i ta l , p eo p l e a nd o r g a ni z a ti o n a nd c o m p l ex
p r o g r a m m a na g em ent.
H e ha s a d v i s ed tec hno l o g y , c o m m u ni c a ti o ns ,
m ed i a a nd enter ta i nm ent a nd m u l ti na ti o na l
c o m p a ni es i n G r ea ter C hi na , J a p a n, S o u th
Ea s t As i a , Eu r o p e a nd T he Mi d d l e Ea s t.
A uthors 者
W i th d i g i ta l i z a ti o n, b u s i nes s w i l l b e m o r e
c u s to m er - f o c u s ed a nd s u p p l y c ha i ns
m o r e v i s i b l e. Af ter s a l es s u p p o r t w i l l
b e c l o s er tha n ev er p o s s i b l e, b u i l d i ng
s tr o ng er c u s to m er r el a ti o ns hi p s .
C u s to m i z ed p r o d u c ts w i l l b e m o r e
p r ev a l ent a nd c o s t ef f ec ti v e.
C o m p a ni es w ho r es i s t m o v i ng f o r w a r d
with the digital age may find themselves
f a l l i ng b ehi nd thei r c o m p eti to r s .
H o w ev er , i nv es ti ng ha s ti l y i n I T s o l u ti o ns
w i tho u t a c l ea r eC o m m er c e s tr a teg y
o r d i g i ta l v a l u e c a p tu r e c a p a b i l i ty c o u l d
ea s i l y end i n a m es s y q u a g m i r e. T her e
need s to b e a tho u g htf u l a nd m etho d i c a l
a p p r o a c h w i th d i g i ta l d a ta .
In general, five phases are proposed for
a s u c c es s f u l d i g i ta l tr a ns f o r m a ti o n.
1 . D igital strategy: D evelop a digital
strategy and b usiness model
• D ev el o p a d i g i ta l v i s i o n a nd
consider the expected ROI
and current process flow
i m p r o v em ent
• Ens u r e s eni o r m a na g em ent
c o m m i t to the d i g i ta l
tr a ns f o r m a ti o n
2 . D igital performance management
• Es ta b l i s h d i g i ta l p er f o r m a nc e
m a na g em ent m ec ha ni s m a nd
m o ni to r d i g i ta l v a l u es
• Es ta b l i s h o p er a ti ng m o d el s f o r
r ea l i z a ti o n o f d i g i ta l v a l u es
• D eter m i ne r ea l i s ti c a nd
quantifiable KPI settings
3 . O rganiz ational transformation:
Implement organiz ational change
to meet the needs of the digital
strategy
• Ob ta i n c r o s s - d i v i s i o na l
c o l l a b o r a ti o n w i thi n the
c o m p a ny a nd es ta b l i s h the r o l es
s eni o r m a na g em ent to b u s i nes s
p r a c ti ti o ner s need to p er f o r m
• C l a r i f y the o r g a ni z a ti o na l
c ha ng es need ed f o r d i g i ta l
tr a ns f o r m a ti o n.
• Understand the impact that
d i g i ta l tr a ns f o r m a ti o n w i l l ha v e
o n the enti r e o r g a ni z a ti o n
4 . D igital processes
• Reframe the corporate
o p er a ti o na l a nd m a na g er i a l
process flow around the digital
s tr a teg y
• P r o m o te a d a ta a na l y ti c s - l ed
d ec i s i o n- m a k i ng m ec ha ni s m a nd
the u s e o f d i g i ta l to o l s
• Ma na g e the d i g i ta l p r o c es s
c a r ef u l l y a nd ens u r e d i g i ta l
p r o c es s c o ntr o l a nd c o m p l i a nc e
5 . R oad map for digital transformation
and digital capab ility
• Recruit the right people with the
r i g ht c a p a b i l i ti es
• I nv es ti g a te w hi c h d i g i ta l
c a p a b i l i ti es a r e need ed
to i m p l em ent the d i g i ta l
tr a ns f o r m a ti o n
• Ens u r e the c o l l ec ti o n a nd
a na l y s i s o f hi g h q u a l i ty d a ta EY

33
风
向
中国移动电子商务战略及
其必需具备的战略
M-commerce strategies and
“must-haves” in China
精通数字化规律是制胜中国大陆市场的关键因素之一。而在中
国大陆市场，当前的选择就是智能手机，这使得投身移动商
务大潮成为大势所趋，成为全渠道营销模式的关键动因。当今时代，
成功移动商务的定义不仅仅局限于利润率，还包括在线客户流量、浏
览量等因素，以及将这些因素转化为实际销售的效果和速度。

3 4
OntheBEAM
运营 Op er a ti ng Mo d el Ef f ec ti v enes s 务
2 5 业行
事和业
务
务目
营业统
运营行
收入 6 % 业目
运营业 3 0 %
业关和
行业
务程
目
2 7 %
2 1 %
2 7 %
2 5 %
2 8 %
1 8 %
2 8 %
2 6 %
2 9 %
2 1 %
2 1 %
3 0 %
2 2 %
2 5 %
2 5 %
2 7 %
3 3 %
3 3 %
3 3 %
1 6 %
2 5 %
3 1 %
2 8 %
1 0 0 %
9 0 %
8 0 %
7 0 %
6 0 %
5 0 %
4 0 %
3 0 %
2 0 %
1 0 %
0 %
收入

3 5
行业关目影响程 1 5
行业
行业务
1 . 者
者
者
2 . 者业
者
3 . 者业
者
4 . 者业
行
影响运营
务
将业
业
业
业业
5
4
3
2
1
程
者者
者者
务

3 6
OntheBEAM
1 > > 者流
务者目
和务
目和
收业
务流
运营
• 业营者
行流和
将者
• 营和务
管理划务
和收
2 > > 者
流
者和业通
将流营和
者将业务
务目关
沟通和务管理
业入控制制
运营
• 管理业关制
和业务关系行和
控者
• 流程和程行务
培训
• D C s
行
•
• 流行流和
流 3 P L
3 > > 者通系统
行 O2 O
统务和
和务和流
者务营
I T 和流行务工
和
运营
• 流和影响行业
系统
系统
• 关
行营
• 管理
• 工将
投资流

3 7
•
营
行
流
• 和
确工
4 > > 者通 O2 O
和关
通流
行
系统
运营
• 务
营业
务 G P S 系统
管理和划
• 通通行
务入信
业
行项工关和
者
• 业通行
务行
• 境务和税
行
• 管制信
行控
•
务业
业
• 务入
职务行
• 业控制和制
将
• 统务程
行
• 流行行行业
• 控制和
• 关
税
行
• 流行目
行和营
• I T 营 7 3 % 业

38
OntheBEAM
M
astering the digital game is one of the keys to success
in mainland China. The screen of choice in the mainland
is now the smartphone, and this makes involvement in
mobile commerce (m-commerce) imperative and a key driver of
omni-channel orchestration. Nowadays, success is defined not
only by profit margins but also by online customer traffic, views
and likes, and the effectiveness and pace at which these can be
converted into actual sales.

3 9
EY ’ s Op er a ti ng Mo d el Ef f ec ti v enes s g r o u p i nter v i ew ed 2 5
companies in the mainland and investigated the strategic m&e-
c o m m er c e r o a d m a p f o r the r eta i l , a p p a r el , l u x u r y , s u p er - a nd
hy p er - m a r k et a nd r es ta u r a nt i nd u s tr i es .
Es ta b l i s hi ng a n e- c o m m er c e c ha nnel i s c ha l l eng i ng a nd
the m a r g i ns r em a i n l o w ; ther ef o r e, r ep l a c i ng the o p er a ti ng
model with an unified omni-channel is an imperative for
m o s t c o m p a ni es o p er a ti ng i n m a i nl a nd C hi na . Onl i ne s to r es
c o ns ti tu te u p to 6 % o f to ta l r ev enu e i n As i a a nd c o m p a ni es i n
the m a i nl a nd a r e m a s s i v el y r ed es i g ni ng thei r f u tu r e o p er a ti ng
m o d el . H o w ev er , o f the c o m p a ni es i nter v i ew ed , 3 0 % ha d
c l o s ed a nd r eo p ened a n o nl i ne s ho p d u e to thei r l a c k o f
ex p er i enc e.
I n the g r a p h b el o w , w e ha v e c o l l a ted the c o m p a ni es ’ r es p o ns es
o n thei r p er c ep ti o n o f thei r o nl i ne s u c c es s .
The following graph uses a five-point Likert-scale to get an idea
o f thei r k ey o b j ec ti v es . T he a v er a g e i m p r es s i o n o f ea c h s ec to r
i s s ho w n, w her e 1 s ta nd s f o r “ no t i m p o r ta nt” a nd 5 f o r “ v er y
i m p o r ta nt” . ‘ Ex p a nd c u s to m er r ea c h’ , ‘ C u s to m er eng a g em ent’
a nd ‘ I nc r ea s e v i s i b i l i ty a nd i nter net p r es enc e’ s eem to b e
o f ten to p - r a nk ed a s the m a i n r ea s o ns to s ta r t a n o nl i ne s a l es
c ha nnel .
E- c o m m er c e i n thes e i nd u s tr i es c a n b e d i v i d ed i nto f o u r
g r o u p s :
1 . Early movers r ef er s to the thi r d p a r ty p l a tf o r m s s u c h a s
Al i b a b a o r J D . c o m , d ep i c ted i n the u p p er r i g ht q u a d r a nt i n
the g r a p h b el o w , a nd f u r ther d es c r i b ed u nd er 1 .
2 . F ast movers refers to the industries, i . e. s c a l a b l e r eta i l er s
a nd a p p a r el c o m p a ni es , i n the u p p er l ef t q u a d r a nt i n the
g r a p h b el o w , a nd f u r ther d es c r i b ed u nd er 2 .
3 . Slow movers refers to the industries, i . e. s u p er - / hy p er -
m a r k ets a nd l a r g e r eta i l er s , i n the l o w er r i g ht q u a d r a nt
b el o w , a nd f u r ther d es c r i b ed u nd er 3 .
4 . Innovative movers refers to the industries, i . e. f o o d c ha i ns
a nd l u x u r y b r a nd s , i n the l o w er l ef t q u a d r a nt i n the g r a p h
b el o w , a nd f u r ther d es c r i b ed u nd er 4 .
I n the f o l l o w i ng g r a p hs , the v er ti c a l a x i s d es c r i b es the o nl i ne
m a r k et s ha r e a nd the ho r i z o nta l a x i s d es c r i b es the c u s to m er
b a s e. T he i nd u s tr i es ha v e b een p l o tted i n the g r a p h b a s ed o n
the i nter v i ew r es u l ts .
D egree of success
2 7 %
2 1 %
2 7 %
2 5 %
2 8 %
1 8 %
2 8 %
2 6 %
2 9 %
2 1 %
2 1 %
3 0 %
2 2 %
2 5 %
2 5 %
2 7 %
3 3 %
3 3 %
3 3 %
1 6 %
2 5 %
3 1 %
2 8 %
1 0 0 %
9 0 %
8 0 %
7 0 %
6 0 %
5 0 %
4 0 %
3 0 %
2 0 %
1 0 %
0 %
S u r p a s i ng
the o r i g i na l
b u s i nes s
c a s e
I m p r o v i ng
m a r g i ns
G ener a ti ng
a d d i ti o na l
r ev enu e
Ov er a l l s u c c es s
Retail Ap p a r el L u x u r y Restaurants S u p er - /
hy p er - m a r k ets
Other s

4 0
OntheBEAM
5
4
3
2
1
New
m
arket
Expand
custom
erreach
M
ore
sales
channelsBrand
recognition
Custom
er
engagem
ent
Increase
visibility
and
internetpresence
New
custom
er
experience
Save
costs
Data
analysis
Follow
digitalNorm
T he q u a d r a nts o n the l ef t c o ns i s t o f i nd u s tr i es tha t a r e m a i nl y
o n thi r d p a r ty p l a tf o r m s , a nd s m a l l er . T he i nd u s tr i es o n the
r i g ht c o ns i s t o f i nd u s tr i es tha t ha v e thei r o w n p l a tf o r m s , a nd
the c o m p a ni es i n thes e i nd u s tr i es a r e l a r g er .
I n thes e f o u r g r o u p s , hy b r i d v er s i o ns ex i s t d ep end i ng o n thei r
p r o d u c t m i x . N ev er thel es s , ev er y o r g a ni z a ti o na l d ec i s i o n
i m p a c ts thei r o p er a ti ng m o d el .
3 r d p a r ty p l a tf o r m
Fast-movers
S c a l a b l e
r eta i l er s
Ap p a r el
F o o d
c ha i ns
L u x u r y
b r a nd s
L a r g e
r eta i l er s
S u p er / H y p er
m a r k ets
P l a tf o r m
g i a nts
Pioneers
Non-movers Slow-movers
L o w
LowHighE-commercemarketshare
Onl i ne c u s to m er b a s e
Ow n p l a tf o r m
H i g h
1 > > Early movers’ strategy: Maximize traffic and
explore new mark ets
T he p l a tf o r m g i a nts w er e the ea r l y m o v er s i n the C hi nes e
e- c o m m er c e m a r k et. T hey no w a r e u s ed l i k e s ea r c h eng i nes
a nd p r o v i d e c o nv eni enc e, l o w - p r i c ed c o m m o d i ti es a nd f a s t
d el i v er y s er v i c es .
T hei r c u r r ent c ha l l eng es a r e to i nc r ea s e g l o b a l a nd r u r a l
c o v er a g e i n m a i nl a nd C hi na , a c q u i r e new i nno v a ti o ns f a s ter
tha n thei r c o m p eti to r s , i nteg r a te thei r a c q u i r ed b u s i nes s es
quickly and multiply online customer traffic.
K ey c ha ng es i n the o p er a ti ng m o d el :
• W hi l e m o s t c o m p a ni es tr a ns f o r m f r o m “ b r i c k s a nd m o r ta r ”
to “ c l i c k a nd enter , ” ea r l y m o v er s a r e ev o l v i ng the o ther
w a y a r o u nd - they a r e p a r tner i ng w i th l o c a l l o g i s ti c s
p r o v i d er s a nd m er c ha nts i n l o w er - ti er c i ti es f o r l a s t- m i l e
d el i v er y to r u r a l c u s to m er s .
• T hey m a i nl y p r o v i d e s u p p o r t s er v i c es to thei r m er c ha nts
in marketing and promotion, e-fulfillment, inventory
m a na g em ent ( e. g . , r ep l eni s hm ent p l a nni ng ) a nd a f ter - s a l es
s er v i c es to thei r m er c ha nts . I n ex c ha ng e, they c ha r g e a
f ee f o r m er c ha nt r eg i s tr a ti o ns a nd p r o m o ti o na l s p a c e, a nd
ea r n a b u y - s el l c o m m i s s i o n.

4 1
2 > > F ast movers’ strategy: Create a b rand- presence
on a third-party platform and attract traffic
F a s t m o v er s a r e the s m a l l er r eta i l er s a nd a p p a r el c o m p a ni es
tha t s el l p r o d u c ts thr o u g h p l a tf o r m s c r ea ted b y the p l a tf o r m
giants and which may also divert customer traffic to their own
o nl i ne s ho p a nd p hy s i c a l s to r es , i f a ny .
F a s t m o v er s i n m a i nl a nd C hi na a r e tr a ns f o r m i ng thei r b u s i nes s
m o d el s i nto a r o b u s t e- c o m m er c e s tr a teg y . T he c ha l l eng e
i s tha t k ey p a r ts o f the v a l u e c ha i n, the c l i ent- f a c i ng “ f r o nt
office,” the brand communication and the customer service,
a r e m a na g ed b y a thi r d p a r ty . As a r es u l t, c o m p a ni es a r e
r eq u i r ed to i ns ta l l a c o ntr o l m ec ha ni s m o n the to u c h p o i nts
w i th c u s to m er s .
• Br a nd m a na g em ent i s a k ey v a l u e d r i v er f o r c o m p a ni es .
Using third-party platforms is not sustainable as they
l i m i t the b a r g a i ni ng p o w er o f m er c ha nts . I t i s i m p o r ta nt
to b a l a nc e c l o s e c o l l a b o r a ti o n a nd r el a ti o ns hi p b u i l d i ng
w i th s tr i c t g u i d a nc e a nd m o ni to r i ng o n thes e thi r d - p a r ty
p l a tf o r m s .
• P r o c es s es a nd p r o c ed u r es i n s to r es ha v e to b e r enew ed to
cater to e-fulfillment needs since store employees are not
tr a i ned to s u p p o r t o nl i ne p u r c ha s es .
• I nv ento r y p r ev i o u s l y s to r ed i n d i s tr i b u ti o n c enter s ( D C s ) ,
p a r ti c u l a r l y i n f r ee- tr a d e z o nes , i s u r g ed to b e i m p o r ted
and stored in the flagship store or local shops in order to
fulfill the timely delivery promised to the customer.
• T hi r d - p a r ty p a y m ent m o d el s ha v e to b e a l i g ned w i th
i nter na l c u s to m er p a y m ent p o l i c i es .
• L o g i s ti c s i s m o s tl y ta k en c a r e o f b y the m er c ha nt’ s c u r r ent
l o g i s ti c s a r r a ng em ents a nd b y thi r d - p a r ty l o g i s ti c s ( 3 P L )
p r o v i d er s tha t c o v er the l o w er - ti er c i ti es .
3 > > Slow movers’ strategy: A ctivate existing clients
through online-to-offline (O2O) collaboration with
ecosystem- complementary partners
T hi s g r o u p c o ns i s ts o f tr a d i ti o na l l a r g e r eta i l er s , i ns ti tu ti o ns ,
s er v i c e p r o v i d er s a nd s u p er - a nd hy p er - m a r k ets .
T hey ha v e w eb s i tes p r es enti ng thei r p r o d u c ts a nd s er v i c es a s
they g r a d u a l l y b u i l d new d el i v er y o p ti o ns .
T he D C s a nd l o g i s ti c s netw o r k a r e i n p l a c e a nd , s o m eti m es ,
they a l s o s el l thei r c o m p a ny - b r a nd ed p r o d u c ts .
S l o w m o v er s i n m a i nl a nd C hi na a r e r enew i ng thei r e- c o m m er c e
s tr a teg i es ; i nc r ea s i ng thei r c a p a b i l i ti es i n m a r k eti ng , I T a nd
l o g i s ti c s ; a nd u p g r a d i ng thei r ex i s ti ng e- c o m m er c e p l a tf o r m s .
T he nex t s tep i s to p r o v i d e thei r o nl i ne s ho p w i th m o r e d el i v er y
o p ti o ns s u c h a s ho m e d el i v er y , s to r e a nd D C p i c k u p .
• In order to increase customer traffic and influence
b u y i ng b eha v i o r , l a r g e c o m p a ni es l o o k f o r ec o s y s tem -
c o m p l em enta r y c o l l a b o r a ti o n p a r tner s to i nc r ea s e
thei r p r o d u c t p o r tf o l i o . T hey f o r m a l l i a nc es w i th l a r g e
m er c ha nts , i nteg r a te thei r s y s tem s a nd b u i l d c o ns i s tenc y
a c r o s s the d i f f er ent s a l es c ha nnel s .
• T hey f o c u s o n thei r c u s to m er d a ta b a s e a nd b u i l d i nter na l
c a p a b i l i ti es f o r d a ta a na l y ti c s to p r ed i c t c u s to m er b eha v i o r
a nd p er s o na l i z e thei r o m ni - c ha nnel .
• Unlike in the case of smaller retailers, brand management
i s o f ten o u ts o u r c ed .
• T hei r s u p p l y c ha i n m a i nl y c o ns i s ts o f i n- ho u s e a c ti v i ti es .
T hey a l r ea d y ha v e m u l ti p l e D C s o r w a r eho u s es i n l a r g e
c i ti es , b u t ther e i s a need to i nv es t i n l o g i s ti c s c a p a b i l i ti es
f o r d em a nd i n l o w er - ti er c i ti es .
• T hey ha v e m o r e b a r g a i ni ng p o w er o n thi r d - p a r ty p l a tf o r m s
tha t p r o v i d e o p ti o ns f r o m c o ns i g ned s to c k to s el f - r u n
D C s . D ec entr a l i z ed w a r eho u s i ng i s p o p u l a r i n c i ti es w her e
i nv ento r y hu b s a r e m u l ti p l y i ng . I n l o w er - ti er c i ti es , r eg i o na l
D C s a r e c o m b i ned w i th 3 P L p r o v i d er s to c o v er the enti r e
C hi nes e m a r k et.
• T hey o f ten ha v e a hy b r i d m o d el ( i . e. , p hy s i c a l s to r e,
o nl i ne s to r e a nd thi r d - p a r ty p l a tf o r m ) a s they ha v e no t
y et c ha ng ed the o r i g i na l w a y o f w o r k i ng b ec a u s e o f
u nc er ta i nty i n o nl i ne g r o w th s o they s tr i v e to m a i nta i n hi g h
s to c k l ev el s i n c i ti es .

4 2
OntheBEAM
4 > > Innovative movers’ strategy: N avigate memb ers
through O 2 O experience
T hi s g r o u p c o ns i s ts o f l u x u r y b r a nd s a nd f o o d c ha i ns , a nd the
c u s to m er ex p er i enc e i s the m a i n f o c u s .
T hey s eem to u s e “ tr i a l a nd er r o r ” to c r ea te a “ b u z z ” d er i v ed
from an “innovative” move; and a flawless online-offline
ex p er i enc e i s a n i m p o r ta nt p a r t o f enti c i ng a c u s to m er to
m a k e a n i m p u l s i v e b u y . F o r ex a m p l e, s o m e b r a nd s c o l l a b o r a te
w i th u nex p ec ted p a r tner s i n the v a l u e c ha i n to c o m p l ete thei r
c u s to m er - c entr i c ec o s y s tem .
F ood ch ains
• Restaurants with a home-delivery services have innovative
w a y s o f a ttr a c ti ng c u s to m er s to c r ea te a “ ta l k o f the to w n”
ex p er i enc e a nd , i n m o s t c a s es , thi s ha s l ed to i nc r ea s ed
tu r no v er . I f the d el i v er y ha p p ens i n- ho u s e, G P S s y s tem s
a r e u s ed to i ns tr u c t the d el i v er y p er s o n w her e to c o l l ec t
the i tem s w hi l e they a r e o n the d el i v er y r o u te; thi s r eq u i r es
hi g hl y a d v a nc ed i nv ento r y m a na g em ent a nd p l a nni ng .
L u x u ry b rand s
• An o nl i ne s a l e i s ty p i c a l l y ha nd l ed thr o u g h s o c i a l m ed i a
eng a g em ent o r s o c i a l c o m m er c e. Ma ny b r a nd s ha v e
a l r ea d y s ta r ted to s tu d y a nd i m p l em ent W eC ha t f ea tu r es
o n thei r e- c o m m er c e w eb s i tes . I n o r d er to l ev er a g e the
full benefits of Chinese media platforms, companies
s ho u l d f o l l o w tw o s tep s : l i s ten a c ti v el y ( w ha t i s b ei ng s a i d
a b o u t the b r a nd a nd p r o d u c ts ) a nd eng a g e the c o ns u m er
( p u b l i s hi ng a nd f a n i nter a c ti o n) .
• Ma ny m a y a l r ea d y b e s el l i ng o nl i ne thr o u g h “ d a i g o u ” , o r
o v er s ea s p u r c ha s er s . F i r s tl y , a b r a nd s ho u l d c hec k ho w
m a ny o f i ts p r o d u c ts a r e a l r ea d y a v a i l a b l e thr o u g h d a i g o u
e- c o m m er c e p l a tf o r m s i n m a i nl a nd C hi na .
• C r o s s - b o r d er c o m m er c e i s p o tenti a l l y i nter es ti ng f o r
l u x u r y b r a nd s . Mo d el s s u c h a s “ d i r ec t p u r c ha s e i m p o r t a nd
b o nd ed i m p o r t” ha v e to b e s tu d i ed c a r ef u l l y .
• D u e to the i nter net o v er s i g ht s y s tem s , a nd the hi c c u p s
i n C hi nes e tel ec o m i nf r a s tr u c tu r e, the o nl i ne s ho p p i ng
ex p er i enc e o f c u s to m er s ha s to b e m o ni to r ed c l o s el y .
• Legal action is an important way of fighting counterfeiting.
H o w ev er , b ei ng a c ti v e i n the m a r k et a nd o f f er i ng c l ea n a nd
r el i a b l e s ho p p i ng c ha nnel s i s a n i nter es ti ng a l ter na ti v e.
E- commerce companies’ must- haves
I n s u m m a r y , c o m p a ni es i n m a i nl a nd C hi na m u s t c o ns i d er the
f o l l o w i ng i f w i s hi ng to i nc r ea s e m a r k et s ha r e:
• D igital organiz ation: T he e- c o m m er c e s tr a teg y ha s to b e
em b ed d ed i n the enti r e o r g a ni z a ti o n, d es i g ned l o c a l l y ,
a p p r o v ed g l o b a l l y a nd ex ec u ted b y d ed i c a ted c r o s s -
f u nc ti o na l e- c o m m er c e tea m s .
• L imited distrib ution channels: G l o b a l c o m p a ni es w i th
ex i s ti ng d i s tr i b u ti o n c ha nnel s ha v e to c o ntr o l a nd l i m i t
the nu m b er o f d i s tr i b u to r s tha t p r es ent thei r p r o d u c ts
o nl i ne. D i f f er ent p r i c i ng s tr a teg i es c a n l ea d to c ha nnel
c a nni b a l i z a ti o n.
• Unified commerce experience: T he c u s to m er need s to
ha v e a c o ns i s tent ex p er i enc e thr o u g h the b u y i ng p r o c es s .
This requires the full integration of the back office and
c l o s e c o l l a b o r a ti o n w i th the o u ts o u r c i ng p a r tner s .
• “ B uz z ” – call for action: C o m p a ni es tha t a r e a b l e to
i nno v a te c r ea te a “ ta l k o f the to w n, ” p l a y o n em o ti o ns a nd
g ener a te b r a nd a w a r enes s .
▪• Control merchandiz ing and pricing: T hes e f a c to r s a r e s een
a s the m o s t i m p o r ta nt o n a thi r d - p a r ty p l a tf o r m .
• O ne view of truth in inventory availab ility: T he s to c k i n the
city for ad hoc e-fulfillment needs to be balanced with the
s to c k o u ts i d e the c i ty , i n p a r ti c u l a r , i n b o nd ed w a r eho u s es
i n f r ee- tr a d e z o nes .
• O nline selection: I tem s s o l d o nl i ne s ho u l d i n p r i nc i p l e b e
s ta nd a r d o r b e ex c l u s i v el y s o l d o nl i ne f o r “ b u z z ” p u r p o s es .
C u s to m er d a ta f r o m thi r d - p a r ty p l a tf o r m s c a n b e r etr i ev ed
a nd a na l y z ed to p er s o na l i z e y o u r a p p r o a c h.
• IT and e- mark eting capab ilities: S ev enty - thr ee p er c ent
o f the c o m p a ni es i nter v i ew ed s a y tha t thes e c a p a b i l i ti es
s ho u l d b e d ev el o p ed i n- ho u s e. EY

43
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向
43
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向
艾瓦德
亚太税务中心运营能效优化服务主管合伙人
主要服务领域为生命科学、高科技和消费品的运营模式优化。
Edvard有着超过20年的工作经验，共为超过130个运营能效优化服务
项目担任过业务领导、项目经理或项目领导角色。他可以对区域性或
全球性的供应链管理结构的建立提供咨询意见，例如：亚洲集中采购
项目和中国及亚洲销售渠道围绕不同总部基地的重组项目。
Edvard Rinck
Lead Partner, APAC Tax Center Operating Model Effectiveness
(OME)
Industry focus on operating models with life sciences, high tech and
consumer goods.
Edvard, with his 20 years’ professional experience, has worked
on more than 130 OME engagements as workstream leader,
project manager and engagement leader. He now advises on the
establishment of regional and global supply chain management
structures, e.g., Asia-centered procurement projects and the
structuring of Chinese and Asian distribution networks in key
locations.
马家駉
业绩改善–供应链与运营管理咨询服务合伙人
有着超过20年的商业及公共领域的专业服务经验。他主要向香港及中
国大陆的零售、物流、物业管理及政府组织提供供应链、运营、电子
商务、IT战略以及系统执行方面的咨询服务。
Michael KK Ma
Partner, Advisory Performance Improvement Supply Chain &
Logistics
Michael has over 20 years’ professional experience in the commercial
and public sectors. He now specializes in providing supply chain,
eCommerce, IT strategy and system implementation consulting
services to retail, logistics, property development and government
organizations in Hong Kong and mainland China.
张莉莉
运营能效优化服务高级经理
主要服务领域为零售及奢侈品品牌在中国的电子商务策略及运营模式
优化。
拥有超过十年的国际战略、管理策略、全球改组（并购、分离及整
合）、运营模式设计、方案执行、品牌及业务拓展、销售增长等领域
的经验，在亚洲和欧洲管理许多项目，特别是在中国大陆、台湾以及
新加坡。
Lilly Cheung
Senior Manager, APAC Operating Model Effectiveness
Industry focus on digital strategy and eCommerce operating models
for retail and luxury brands in China.
Ten years’ professional experience focused on defining strategy,
managing complex global business transformations (M&A, carve-outs
and integrations), designing operating models, implementing brand
and business development strategies, driving sales, and leading
projects across Europe and Asia, in particular mainland China, Taiwan
and Singapore.
Authors 作者介绍
43
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Patrice Nordey
VELVET创始人和首席执行官
Patrice Nordey驰骋电子商务领域、从事数码产品业务已有15年之
久，业务遍布欧洲和北亚。
作为上海VELVET的创始人和首席执行官，他向跨国公司提供在中国
进行数字营销和传播，以及有关社交媒体和电子商务活动的意见。
Patrice Nordey
Founder & CEO, VELVET
Patrice Nordey, a digital veteran, has over 15 years of e-business
experience across Europe and northeast Asia.
As founder and CEO of the Shanghai-based company VELVET,
he advises international companies on digital marketing and
communications, social media and e-commerce in China.

4 4
OntheBEAM
业
?
A s a start- u p,
w h e re d o y ou w ant
to e nd u p?
务业
务和
EY’s global financial services team can help FinTech companies
flourish, grow and succeed.
ey.com/financial #BetterQuestions
业

4 7
行
Strategy leads the w ay
in overseas mergers
and acq uisitions
业
投资
投资业
制者投资者业
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资统务 2 0 0 6 投资
*2 0 1 5 管理
2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 *
1 2 3
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> 1 0投资
收资

4 8
OntheBEAM
和
业将资将
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7 0 % 1
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49
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向
完善的海外并购战略可以指导
企业开展有效的海外并购，提
升企业在国际经济环境中对机
遇的捕捉以及对挑战的应变能
力，避免企业偏离战略方向而
导致并购活动失败。
49
风
向
49
风
向

5 0
OntheBEAM
将通业制
工程投资
者和制
通业
业务
业和
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• 行业程
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5 1
• 行业通行业行
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资
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5 2
OntheBEAM
O n a glob al b uying spree: w ave after w ave of overseas M& A s b y
Chinese corporations
Ov er the l a s t 1 0 y ea r s , C hi nes e d i r ec t f o r ei g n i nv es tm ent ha s g r o w n c o ns i d er a b l y .
T o d a y , C hi na i s the w o r l d ’ s thi r d l a r g es t i nv es to r . An i nc r ea s i ng nu m b er o f C hi nes e
c o m p a ni es a r e tr a ns i ti o ni ng f r o m g l o b a l m a nu f a c tu r er s i nto g l o b a l i nv es to r s a nd
overseas merger and acquisition activity (M&As) by Chinese companies is increasing.
And i t’ s u ns to p p a b l e.
C h ina’ s d ire ct f ore ign inv e stme nt and f ore ign d ire ct inv e stme nt into
C h ina 2 0 0 5 - 2 0 1 5 ( in U S $ 1 0 0 m)
2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 *
1 2 3
1 , 2 7 6
> 1 0 ti m es
C hi na ’ s d i r ec t f o r ei g n i nv es tm ent
F o r ei g n I nv es tm ent
Source: Statistics Department, Ministry of Commerce. Data in 2006 and prior to it does not include financial
i nv es tm ent. D a ta o n 2 0 1 5 a r e f o r ec a s t b y EY I ntel l ec tu a l Ma na g em ent C enter .

5 3
In the next five years, benefiting from the reforms and
ec o no m i c tr a ns f o r m a ti o n o f the c o u ntr y , C hi nes e c o m p a ni es
are expected to continue their overseas M&A activities.
I nc r ea s i ng l y , C hi nes e c a p i ta l i s a f o r c e to b e r ec k o ned w i th
i n the w o r l d m a r k et. C hi nes e c a p i ta l ha s d ev el o p ed a nd i s
m a tu r i ng , a nd i t i s no w s eek i ng i nv es tm ent o p p o r tu ni ti es .
H o w ev er , w e ha v e f o u nd tha t a b o u t 7 0 % 1
of the M&A deals
w er e no t s u c c es s f u l a s they d i d no t g i v e the ex p ec ted v a l u e.
In pursuing overseas M&As, Chinese enterprises’ a rationale
a nd ex ec u ti o n p l a n ha v e no t b een i n l i ne w i th thei r v i s i o ns . F o r
ex a m p l e, s o m e enter p r i s es w er e ea g er to ex p a nd a nd b eg a n
M&A activities in areas they were not familiar with. Some
enter ed a d ea l w i tho u t a r ea s o na b l e a s s es s m ent o f thei r o w n
r es o u r c es a nd a b i l i ti es a nd f o u nd them s el v es s ho r t o f the
nec es s a r y c o r e r es o u r c es a nd ex ec u ti o n p o w er to c o m p l ete the
o v er s ea s d ea l s . S o m e d i d no t ha v e a n o r d er l y ex ec u ti o n p l a n
a nd s o thei r “ g o i ng o v er s ea s ” s tr a teg i es w er e no t g i v en the
r eq u i r ed s u p p o r t.
T o a d d r es s thes e c ha l l eng es a nd s u c c es s f u l l y c o m p l ete a n
overseas M&A deal, we believe that Chinese enterprises should
formulate an M&A strategy in line with their overall strategy
a nd o ne tha t’ s p r o v ed to b e ef f ec ti v e. T hey s ho u l d ha v e a p l a n
b ef o r e they m a k e a m o v e.
Plan b efore action – Strategy leads the w ay in
overseas M& A s
An overseas M&A includes five major steps: Formulation of an
o v er s ea s i nv es tm ent s tr a teg y , s c r een a nd l o c k i n a n i nv es tm ent
target, transaction and execution, post-M&A integration
a nd p o s t- i nv es tm ent m a na g em ent a nd i nv es tm ent p o r tf o l i o
a s s es s m ent.
A sound overseas M&A strategy should guide the company
when launching an overseas M&A, enhance its ability to capture
o p p o r tu ni ti es i n the i nter na ti o na l ec o no m i c env i r o nm ent,
r es p o nd to c ha l l eng es a nd hel p a v o i d d ev i a ti o ns f r o m the
es ta b l i s hed s tr a teg i c l i ne a nd f a i l u r e a s a r es u l t.
To formulate an overseas M&A strategy, a company first
need s to r ev i ew i ts v i s i o n a nd o v er a l l s tr a teg i c o b j ec ti v e; thi s
is done to ascertain the objective of its overseas M&A activity.
S ec o nd , i t m u s t a na l y z e the ta r g eted r eg i o n a nd i nd u s tr y a nd
the i nv es tm ent i n ter m s o f m a r k et a ttr a c ti o n a nd i nv es tm ent
f ea s i b i l i ty . T hi s i s to i d enti f y the k ey r eg i o n a nd i nd u s tr y f o r
i ts i nv es tm ent i n l i g ht o f the c o m p a ny ’ s o w n s tr a teg y a nd
r es o u r c e a l l o c a ti o n. T hi r d , the c o m p a ny s ho u l d l o o k a t the
i nter na l r es o u r c es o f the c o m p a ny a nd a s s es s the r es o u r c es
available for overseas M&As, and analyze the potential
synergies of an overseas M&A target. Having formulated an
overseas M&A strategy, the company should also lay down a
d eta i l ed ex ec u ti o n r o a d m a p , b u i l d the s u p p o r ti ng p l a tf o r m , a nd
enha nc e i ts o w n i nter na l a b i l i ti es to ens u r e they c a n s u p p o r t
the implementation of its overseas M&A strategy.
The essay here discusses only the formulation of
an overseas M& A strategy
• P r i nc i p l e f o r s c r eeni ng
i nv es ti ng ta r g ets
• L o ng - a nd s ho r t- l i s t o f
i nv es tm ent ta r g ets
• I ni ti a l c o nta c ts w i th
i nv es tm ent ta r g ets
• I d enti f y c ha l l eng es to
m a na g em ent i nteg r a ti o n
• S p ec i f y m a j o r a r ea s o f
i nteg r a ti o n a nd m etho d s
• Mo ni to r a nd o p ti m i z e
i nteg r a ti o n p l a n
• C o m p a ny v i s i o n a nd
s tr a teg i c o b j ec ti v e
• An o v er s ea s i nv es tm ent
s tr a teg y p l a n
• I d enti f y k ey s tep s i n
a s s es s i ng the i nv es tm ent
p o r tf o l i o
• F i na l i z e ex ec u ti o n
m etho d s f o r a s s es s i ng
i nv es tm ent p o r tf o l i o s
• T r a ns a c ti o n d o c u m enta ti o n
• D eta i l ed d u e d i l i g enc e
• Risk analysis
• Valuation
• D ea l neg o ti a ti o ns
• S ettl em ent
Ov e rse as inv e sting
strate gy
S cre e n and
lock in on an
inv e stme nt
targe t
T ransaction and
e x e cu tion
P ost- acq u isition
inte gration
1
2
34
5
P ost- inv e stme nt
manage me nt and
inv e stme nt portf olio
asse ssme nt
1 S o u r c e: EY Ana l y s i s

5 4
OntheBEAM
T he f o l l o w i ng i s a c a s e s tu d y i l l u s tr a ti ng the f o r m u l a ti o n o f
an effective overseas M&A strategy.
A l a r g e, l i s ted eng i neer i ng c o r p o r a ti o n ( “ the C o m p a ny ” )
w a s u nd er p r es s u r e d u e to i ts i nv es to r s ’ ex p ec ta ti o ns a nd
i ts c o m p eti to r s . T o r es o l v e thes e s tr es s es , the C o r p o r a ti o n
r ev i ew ed the s i tu a ti o n a nd d ec i d ed to d i v er s i f y thr o u g h
pursuing overseas M&As.
R e v ie w and asse ss th e corporate strate gy and v ision
A c o m p a ny c a n a s c er ta i n i ts d ev el o p m ent o b j ec ti v e a nd
d i r ec ti o n thr o u g h r ev i ew i ng i ts v i s i o n a nd s tr a teg y .
During the early stages of the formulation of its M&A
s tr a teg y , the C o m p a ny i nv i ted c o ns u l ta nts to a s s i s t i t i n
s c r u ti ni z i ng i ts s tr a teg i c d ev el o p m ent o b j ec ti v e. T hr ee k ey
d i r ec ti o ns w er e es ta b l i s hed : to s tr eng then the i nd u s tr y
c ha i n, d ev el o p a nd i nv es t i n i nno v a ti v e b u s i nes s es a nd
b r ea k i nto new m a r k ets .
P lan an M & A strate gy
Ar m ed w i th a f u l l u nd er s ta nd i ng o f ex ter na l m a r k ets ,
a s c er ta i n the ta r g eted i nd u s tr y a nd r eg i o na l m a r k et b a s ed
o n m a r k et a ttr a c ti o n a nd m a tc hi ng i nter na l r es o u r c es .
Differentiate overseas M&A markets into the categories of
k ey f o c u s es , to - b e- d ev el o p ed , m a i ntena nc e a nd tem p o r a r y
o f f - c o ns i d er a ti o n.
A naly ze e x te rnal mark e ts and asce rtain k e y inv e sting
re gion and ind u stry
A c o m p a ny c a n s tu d y g l o b a l i nf r a s tr u c tu r e c o ns tr u c ti o n
i nd u s tr i es , es p ec i a l l y the s ta g e o f d ev el o p m ent o f the ni c he
i nd u s tr y to w hi c h the c o m p a ny b el o ng s , i nc l u d i ng i nd u s tr y
s c a l e, g r o w th p r o s p ec ts , d ev el o p m ent tr end s , d r i v er s , i nd u s tr y
c o m p eti ti o n a nd d i f f er enc es a nd s i m i l a r i ti es i n d o w ns tr ea m
c o ns u m er d em a nd i n the ta r g eted i nd u s tr y i n d i f f er ent r eg i o ns
a nd c o u ntr i es :
• Industry scale, grow th prospective and the overall trend
of the industry development: Ba s ed o n the s tu d y o f l ev el s
of assets, income and profits of the niche industry of the
c o m p a ny , a nd the p r o j ec ted g r o w th r a tes o f thes e i nd i c es
i n the nex t f ew y ea r s , a c o m p a ny c a n a s s es s the g r o w th
p o tenti a l a nd ex p ec ted r etu r ns o f the ni c he i nd u s tr y
a nd o ther ni c he i nd u s tr i es o n the s a m e i nd u s tr y c ha i n
in the specified country market. And evaluate the future
d i r ec ti o n o f g r o w th o f the i nd u s tr y a nd c a p tu r e p o tenti a l
o p p o r tu ni ti es b a s ed o n the ty p i c a l c ha r a c ter i s ti c s o f
i nd u s tr y g r o w th c y c l e.
• D ifferences and similarities of dow nstream consumers’
demand in the targeted industry in different regions and
countries: D u e to c u l tu r a l d i f f er enc es a nd the d i f f er ent
ex tents o f i nd u s tr i a l d ev el o p m ent, c o u ntr i es d i f f er i n
R e gion
S o u thea s t
As i a
S o u th As i a
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P r o p er ty a nd
r ea l es ta te
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M ark e t attraction
E x te nts to w h ich strate gie s and
re sou rce s are match e d
• Regional/industry scale and growth
p r o s p ec ts
• W hether ther e a r e eno r m o u s
i nv es tm ent o p p o r tu ni ti es i n the
r eg i o n/ i nd u s tr y
• C o m p eti ti v enes s f o r i nv es ti ng i n the
r eg i o n/ i nd u s tr y
• Risks for investing in the region/
i nd u s tr y
• W hether the r eg i o n/ i nd u s tr y ha s b een
i nv es ted i n o r d ev el o p ed b ef o r e
• W hether ther e a r e s y ner g i es b etw een the
EP C b u s i nes s a nd the i nd u s tr y a nd r eg i o n
• T he d eg r ee o f u nd er s ta nd i ng o f i nter na l
s ta f f to w a r d the i nd u s tr y / r eg i o n
• W hether i nter na l s ta f f ha v e the
i nv es tm ent ex p er i enc e i n the r el ev a nt
i nd u s tr y / r eg i o n
H i g h
L o w
H i g hL o w Ex tent to w hi c h
s tr a teg y a nd r es o u r c es
a r e m a tc hed
Region/industry
to b e d ev el o p ed
Region/industry
tha t i s tem p o r a r i l y
no t u nd er
c o ns i d er a ti o n
K ey r eg i o n/
i nd u s tr y
Region/
i nd u s tr y b ei ng
m a i nta i ned
Marketattraction

5 5
their final consumers’ demands. Through the analysis
o f thes e d i f f er enc es , a j u d g m ent c a n b e m a d e o n the
p r o d u c t, s er v i c es a nd s o l u ti o ns o f the c o m p a ny a s to thei r
c o m p a ti b i l i ty w i th the c o ns u m er d em a nd i n the ta r g eted
c o u ntr y a nd w hether thes e d i f f er enc es c a n b e o v er c o m e
thr o u g h a c q u i s i ti o ns o r a d j u s tm ents i n s er v i c es .
• Competition w ithin the industry: T hr o u g h a na l y z i ng
the c o m p eti ti o n i n the i nd u s tr y , i d enti f y the o v er a l l
c o m p eti ti v enes s o f the i nd u s tr y . F o r m a c o nc l u s i o n o n the
f u tu r e d ev el o p m ent s u s ta i na b i l i ty a nd the p o s i ti o ni ng o f
the i nv es ted c o m p a ny . Mea nw hi l e, g a i n a n u nd er s ta nd i ng
o f the i nd u s tr y ’ s m a j o r c o m p eti to r s i n ter m s o f i nc o m e
scale, profitability, company backgrounds/nature, product
o r s er v i c e c ha r a c ter i s ti c s ( f o r ex a m p l e p r o d u c t g r a d e,
p r i c i ng , a nd s c o p e o f s er v i c e) . As s es s the r el a ti v e s tr eng ths
a nd w ea k nes s es o f r el ev a nt p l a y er s i n ter m s o f p r o d u c ti o n/
s er v i c e a b i l i ti es , ex tents o f r eg i o na l / i nd u s tr y c o v er a g e,
c ha nnel s , a nd s a l es f o r c e f o r m a ti o n. T hi s w i l l p r o v i d e
r ef er enc es f o r m a r k et entr y a nd s c r eeni ng o f ta r g eted
c o m p a ni es .
A sse ss inte rnal ab ilitie s and analy ze re sou rce ad v antage s
and pote ntial sy ne rgie s
T hen c o m e the a na l y s i s o f the w i l l i ng nes s a nd s tr a teg i c
i ntenti o ns o f m a na g em ent, a c o m p r ehens i v e ev a l u a ti o n o f the
supporting resources for overseas M&As, including industry
investment, management experience, and the financial
capabilities for overseas M&As. After that an analysis of the
p o tenti a l s y ner g i es b etw een the i nd u s tr y / r eg i o n a nd the
o v er s ea s s tr a teg y o f the C o m p a ny ’ s c o r r es p o nd i ng b u s i nes s es .
H a v i ng d o ne the i nter na l a nd ex ter na l c o ns o l i d a ted a na l y s i s
a nd a l i g ned i t w i th the C o m p a ny ’ s o w n s tr a teg y , the g r o w th
p o tenti a l o f c o r e c a p a b i l i ti es , ho w r el ev a nt the b u s i nes s
was to the Company’s, the Company finally identified three
types of potential M&A target: one, specialized engineering
m a na g em ent c o m p a ni es , w hi c h c a n i nc r ea s e the C o m p a ny ’ s
p enetr a ti o n i nto the f r o ntend i nd u s tr y c ha i n a nd s tr eng then
i ts eng i neer i ng k no w - ho w o r ex ec u ti o n m a na g em ent p o w er f o r
o v er s ea s p r o j ec ts . T w o , m a tu r e o v er s ea s l i c ens ed o p er a ti o n
c o m p a ni es , w hi c h c a n hel p the C o m p a ny g a i n r a p i d l y a b i l i ti es
f o r o p er a ti ng p r o j ec ts a nd enter i nto the l i c ens ed m a r k et.
T hr ee, c o m p a ni es s i m i l a r to the C o m p a ny i n q u a s i - d ev el o p ed
Conclusion
T he i nc r ea s i ng l y s tr o ng d es i r e o f C hi nes e enter p r i s es
to “ g o o v er s ea s ” w i l l l ea d to a new r o u nd o f C hi nes e
c a p i ta l s eek i ng i nv es tm ent a b r o a d . I f C hi nes e enter p r i s es
f o r m u l a te a s tr o ng p l a n b ef o r e ta k i ng a c ti o n a nd ha v e
strategy-led investment and M&A tactics, their journey
a r o u nd the w o r l d w i l l b e a s s u r ed a nd p r o tec ted . T hes e
enterprises will steer clear of hidden reefs, and find safe
p a s s a g e a r o u nd the w o r l d .
m a r k ets , w hi c h c a n hel p the C o m p a ny o b ta i n r el ev a nt
r es o u r c es to b r ea k thr o u g h m a r k et b a r r i er s .
A n M & A imple me ntation road map and th e b u ild ing of
su pport platf orms
H a v i ng f o r m u l a ted a d eta i l ed r o a d m a p to s er v e a s a
guidance for the M&A, the Company built a platform to
support the implementation of their M&A strategy. The
roadmap broke down the M&A objective into different
s ta g es tha t o u tl i ned the c o r r es p o nd i ng m a np o w er p l a n,
r i s k c o ntr o l p l a n a nd the nec es s a r y k no w l ed g e s u p p o r t. At
the same time, a diversified financing platform provided
sufficient funding to the Company during the M&A
p r o c es s . I n a d d i ti o n, the C o m p a ny r el i ed o n a n ex p er i enc ed
third-party consultant to provide assurance for the M&A
process, such as investment studies, identification of
o p p o r tu ni ti es , d ec i s i o n- m a k i ng , p r o p o s ed neg o ti a ti o ns a nd
o p er a ti o n m a na g em ent to s u p p o r t the i m p l em enta ti o n o f
the overseas M&A strategy and maximize overseas M&A
benefits.
Guided by the established M&A strategy, the Company
achieved one breakthrough after another in overseas M&A
d ea l s a nd s u c c es s f u l l y a c q u i r ed m a ny o v er s ea s c o m p a ni es .
T he C o m p a ny w a s a b l e to d i v er s i f y i ts b u s i nes s es , o b ta i n
new ea r ni ng g r o w th p o i nts , a c hi ev e i nno v a ti o n i n i ts
b u s i nes s m o d el , ex p a nd i ts i nd u s tr y c ha i n a nd w i n the f a v o r
o f c a p i ta l m a r k ets .
EY

5 6
OntheBEAM
务管
投资务管
2 0 管理和业管理
1 2 业事
职项业
划和理
收和资项目项目
投资业和业
Y ew - Poh Mak
China N orth TA S L eader
G reater China Corporate F inance Strategy L eader
Y ew - P o h ha s o v er 2 0 y ea r s o f m a na g em ent c o ns u l ti ng a nd
c o r p o r a te m a na g em ent ex p er i enc e i n As i a , w i th the l a s t 1 2
years in China. Specializing in M&A strategy development, due
d i l i g enc e a nd p o s t- m er g er i nteg r a ti o n, Y ew - P o h ha s l ed a nd
p a r ti c i p a ted i n o v er 5 0 0 a c q u i s i ti o ns a nd d i v es ti tu r es , w o r k i ng
extensively with multinationals, PE firms, Chinese state-owned
enter p r i s es a nd l a r g e As i a n c o ng l o m er a tes .
A uthors 者
投资务
1 2 和事管理和务
投资
投资投资行入业务和
5 0 投资和项目行
业关务
务
J erry B ao
Partner, Corporate F inance Strategy
J er r y ha s o v er 1 2 y ea r s o f ex p er i enc e i n m a na g em ent
c o ns u l ta nc y a nd tr a ns a c ti o n c o ns u l ta nc y i n As i a a nd C hi na .
He specializes in investment and financing strategies, M&A
strategies, overseas M&A investment, investment feasibility
a na l y s i s a nd m a r k et entr y . H e ha s l ed o r b een i nv o l v ed i n o v er
50 domestic and overseas investment or financing strategy
a nd m a r k et entr y p r o j ec ts a c r o s s v a r i o u s i nd u s tr i es i nc l u d i ng
infrastructure, consumer goods, life sciences, financial and
r el a ted s er v i c es , e- c o m m er c e a nd a u to a nd a u to p a r ts .

5 7
业
?
C an compliance
h e lp y ou compe te ?
务管
业务
EY’s global financial services team can help you navigate
regulation and create competitive advantage.
ey.com/financial #BetterQuestions

59
风
向
中国的医疗
渐入佳境
China’s health care
Getting well soon
中国大陆的医疗市场是全球增长最快的市场之一。
尽管监管变革与不断变化的环境给市场参与者带
来独特的挑战，但同时也带来机遇。并购以及形成战略
联盟可以使得医疗企业抓住先机并且获得市场份额；对
于这样一个巨大而动态的市场，不能被动等待。

6 0
OntheBEAM
制
管将
系关制业
系统
将关
职将制
目
业目收入 4 0 %
收入项
目制 2 0 1 5
将制
业制业和
沟通将将
业
制业通业行
业业资
业将
目业将
业
制业影响制业
目和
业关
业
业将
将
务
业者
业入
者制业
将业业关
系通收将
制业将业目
制将通
将收
管将
2 0 1 0 2 0 1 4 1 6 . 9 %
CAGR 2 0 1 4 3 7 3 3 1
2 0 1 8 6 4 , 1 6 9 1
2
• 2 0 5 0 将 6 0
2 0 1 0 2 4 %
将目 2 . 6 和
3
• 收入 2 0 2 0 6 0 %
2 0 1 2 5 2 . 6 % 4
2 0 1 3 2 0 1 4 收入
1 0 . 1 % 4
将
将
目目务
关 2 0 1 5 将通
系
业投资
管控
制
投资者
管将
将
者
2 0 1 1 - 2 0 1 8 1 0
BMI
7 0 0 0
6 0 0 0
5 0 0 0
4 0 0 0
3 0 0 0
2 0 0 0
1 0 0 0
0
2 0 1 0 2 0 1 4 2 0 1 8
1 , 9 8 8
CAGR: 16.9%
CAGR: 14.5%
3 , 7 3 3
6 , 4 1 6

6 1
投资者投资
资者 2 0 1 4
8 项资资
运营
资 7 0 %
投资 1 2
关 1 1 1 6
6
业投
资
入
确制者
者项通资业者收
关系入者
2 0 1 4 环境
将
者业
制
务业
通收
投资
业关
收
1 0 投资
2 0 1 4
2 5 5 6 5
将 2 0 %
2 0 1 7
1 资 BMI 2 0 1 5 1 制
2 资
3 工划 2 0 1 2 - 2 0 1 5
4 资统
5 资 2 0 1 4 C hi na
Pharmaceutical Resource Society 2 0 1 5 3 1 0
6 资 Mer g er m a r k et
2 0 1 1 - 2 0 1 7 1 0
Ep s i c o m
5 0 0
4 5 0
4 0 0
3 5 0
3 0 0
2 5 0
1 5 0
1 0 0
5 0
0
2 0 1 0 2 0 1 4 2 0 1 8
1 7 6 . 6
CAGR: 13.1%
CAGR: 20%
2 5 5 . 6
4 4 1 . 7

62
OntheBEAM
T
he health care market in mainland China is
amongst the fastest growing in the World.
Although regulatory changes and an ever-
evolving landscape present unique challenges
to market players, these also bring about
opportunities. Mergers and acquisitions (M&A)
and forming strategic alliances could allow
healthcare players to seize the initiative and
gain market share, in a market which is too large
and dynamic to remain passive in.
62
OntheBEAM

ey-on-the-beam-issue-6

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