Created for UOB-NUS case competition, based on the case question on how Inverted Edge, a Singapore e-commerce entity can penetrate the competitive China market.

1. INVERTED EDGE
CHINAContemporary Fashion Designers from Asia, the Pacific and beyond
| Edison Lim Jun Hao | Lim Jun Hao | Ong Jun Hao | Wayne Kaiends Kang
|
Team Friends

2. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Maintaining Conclusion
Executive Summary
Vision
Challenges Goals
Premier
Intimate
We promise an intimate experience, underscored by services tailored to the individual, designed
to maximise customer shopping enjoyment and convenience, furthering our goal of being a
premier destination to uncover a new Asian shopping horizon.
‣ High Barriers-to-Entry
‣ Overly saturated C2C competition
‣ E-commerce Conundrum
‣ Poor Infrastructure
Model (Business)
Acquire Market Share
Deliver Consumer Value
Strategy
Branding Conversion
Platform Payment
Logistics
Retain
using
to
and

3. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Maintaining Conclusion
Branding
To provide a niche Boutique experience online
Paradigm shift in
consumer demand
towards unbranded
luxury goods
High Barriers-To-Entry
‣ Dominant players in C2C Market.
(Eg. Taobao, Tmall, Alibaba)
‣ Emergence of other B2C luxury
brands online (Eg. Shopbop)
E-commerce
Conundrum
‣ Why pay for uncertainty?
‣ Competition from traditional
Brick-and-Motar Stores
Multi-Channel
Integration with a
Mobile focus
Offline Expansion
Dilemma
‣ Huge unmet demand
from low-tiered China
cities
Issues
Curated B2C Luxury
Designer Goods
Intimate Customer
Experience using
Innovative
Technology
Solutions
Small Quantities of
High Quality
Designer Goods
External
Internal
Premier Intimate
Product Leadership
Operational Excellence
Customer Intimacy
Brand Positioning Statement

4. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
Platform
Offline Expansion
Dilemma
Consumer Trends in China
Shift in demand for
unique apparels
‣ Disconnect between young
affluent consumers and traditional
Brick-and-Mortar stores
‣ Huge untapped market potentials
in lower-tier cities
Increase in Mobile
Internet Usage
Multi-Channel Online Integration with a Mobile Focus
‣ Affluent consumers are
becoming increasingly
sophisticated in their fashion
tastes
‣ Increase demand for expression
of individuality
High focus on targeted advertisements on desired customers
‣ 617 million internet users
‣ 80% of which are Smartphone
users
‣ 55% of which have made online
purchases

5. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
‣ Launch a user-friendly Chinese language based shopping
site
‣ Focus marketing efforts via Qzone and Weibo - 2 largest
and most influential social media site in China
‣ Get opinion leaders on board to market Inverted Edge
Platform
Multi-Channel Online Integration with a Mobile Focus
High Focus on Targeted Advertisements on Desired Customers
Online
‣ Increasing number of Chinese consumers prefer to shop
via smartphones due to convenience
‣ Focus marketing efforts on WeChat - top social messaging
application
‣ WeChat is the fastest growing mobile social network in the
world
‣ Provides easy platform for geo-targeted advertising
Mobile
Platform Plan

6. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
Consumer Priming
‣ Use of analytics technology to build up a portfolio of desired customers
‣ Couple with targeted advertisements on primed target group
Platform
Multi-Channel Online Integration with a Mobile Focus
High Focus on Targeted Advertisements on Desired Customers
Desired
Geo-fencing Technology
‣ Create virtual fences around a desired geographical location
‣ Inverted Edge can specify the location as streets with high-end boutiques, where
one is more inclined to purchase similar products online
‣ Creates higher click-through rate
Flash-sale
‣ Once a programmed smartphone crosses the fence, a flash-sale deal can be sent
directly to the customer
‣ Flash-sale deals will only be sent to desired customer selected through analytics
algorithm
Targeted
Platform Plan

7. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
PlatformIssues
Insufficient exposure to the consumer market in China
Presence of established players
Inverted Edge to engage popular Opinion Leaders
Chinese heavily rely on
unofficial channels of
information for product
purchases
(Data extracted from Source : Survey Analysis,
China’s Connected Consumers, February 2014)
It is a cost effective way
to spread awareness
“They help to trigger interest in the
products”
17% of Chinese Consumers
rely on key opinion leaders for
fashion guidance
Identify Opinion Leaders
that can embodies their
target female consumer
group (25-45 years in
age)

8. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
Conversion
A Tailored Customer Experience is Key to Customer Intimacy
Unable to make informed fashion choices due to inconsistent sizing conventions
Online Fit Problem
Targeted Segment
Luxury Designer Apparels: Less likely to compromise on having to return products
Require Second Opinion
Issues
Fits.me On-site Recommendations
Increase Clicks to Sales %
E-commerce removes the ability for customers to mix-and-match
Solution
Goal

9. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
‣ Increases customer intimacy
‣ Increases customer satisfaction
‣ Prevent customer disengagement
‣ Promotes customer stickiness
‣ Reduces cost incurred with returns
‣ Virtual wardrobe to fit clothing to customer
sizing
‣ Unique tailoring experience for every
customer
‣ Brings the whole shopping experience
closer to that of Brick-and-Mortar store
Conversion
Using technology to empower customers to find their fit,
preventing customer disengagement.
Solution 1:
reduce returns by
70%
50% conversion of
first-time buyers
Fits.me
Value
Online Fit Problem
Targeted Segment
Problem

10. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
‣ Increases customer intimacy
‣ Increases customer satisfaction
‣ Increases customer loyalty
‣ Promotes customer stickiness
‣ On-Site Recommendations to track
customers purchase history and recommend
apparels with similar styles
‣ Brings the whole shopping experience
closer and more personal to that of Brick-and-
Mortar store
Conversion
Using Analytics to empower customers to find what they want
Solution 2:
On-Site Recommendations
Value
Online Fit Problem
Targeted Segment
Problem
Source: http://www.marketingcharts.com

11. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
Inverted Edge has to partner a major e-payment system
Current Payment Partners
Not Available in ChinaIssue
Recommendation
Focus efforts on Alipay before adopting other systems
like Tenpay and Unionpay
‣ Market Leader
‣ Focus on Buyer’s
Protection
‣ Availability of Mobile
Payment
Advantages for the
Consumer
‣ Trustable and Reliable
‣ Contributes to user
experience
‣ Low cost and efficient
way to access Chinese
Market
Advantages for
Inverted Edge
Payment

12. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
Logistics
Issue
Inverted Edge has to outsource its operational and logistical
needs to a trustworthy third-party, to maintain cost viability.
Sheer size of China Lack of global players Need for a reliable courier service
Recommendation Shun Feng Express
Fast and Reliable
1 - 2 Days Delivery Period
Safe Transportation Service
High National Coverage
Over 7800 Service Centers in
Flexible
Ability to pool shipments with other
online retailers to enjoy cost-savings
31 provinces
300 cities
1900 counties

13. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
Retain
EDGEReward System to Retain Customers
Reward System to fine-tune value proposition and enhance
customer retention.
Loyalty
Discounts
Access to
prelaunch
collections
Private and
exclusive
styling
sessions
Gold ✓ ✓ ✓
Silver ✓ ✓
Bronze ✓
Private and exclusive styling
‣ Highest tiered membership gives customer exclusive visits for
styling sessions
Reward driven system incentivises customers and promotes customer intimacy
Access to prelaunch collections
‣ Grants exclusive visits to prelaunch collections
‣ Provides a valuable experience for fashionista who wants to
be ahead of the fashion movement.
Loyalty Discounts
‣ Upfront discounts for loyal customers to enjoy cost
savings

14. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
ConclusionRisk Mitigation
Concerns Mitigations Actions
Aggressive advertising
may adversely affect
branding of Inverse Edge
Introduce system to
sieve out intended
recipients of
advertisement
Integration of new
payment system may
result in uncertainty
Conduct audits on
financial accounts every
three months
Data collected for on-site
recommendation might
be compromised
Ensure top-of-line
security protocol
Engage vendor to
implement robust and
secure IT systems
Implementing measures
for enhance financial
security
Using analytics to access
demographics for
accurate targeted
marketing

15. INVERTED EDGE CHINA
Branding Platform Conversion Payment Logistics Retain Conclusion
Conclusion
Long-Term Prospect
Fashion retail market in China is projected to enjoy growths of 11% year on year. The bulk of growth
is likely to be from younger generations who are more affluent and fashion savvy. Moreover,
there is a large and relatively untapped market potential within the tier 2 and 3 cities, where young
consumers are more willing to spend on luxury apparel.
Additionally, trends have also shown that Chinese men constitute 55% of total luxury good sales,
Inverted Edge can diversify their portfolio to include men’s collection catered to the Chinese market.