eCommerce and Social Media are like rainy days and classical music. They were made for each other. How do you drive sales through social? How do you tell a story and sell your product…through social? Recently, Nicky Szmala, Digital Director, and colleague Rachel Guo, of Geometry Global Beijing (our sister company), shared their perspective on the most recent and best examples of eCommerce from China that Social@Ogilvy – and now you! – can apply to the rest of the world.They included case studies and analysis of brands such as RoseOnly, Hey Juice, Taobao and Xiaomi. Case studies and analysis of brands such as RoseOnly, Hey Juice, Taobao and Xiaomi.

1. 1
eCommerce on Steroids:
An introduction to China’s social eCommerce brands and
what we can learn from them.
Nicky Szmala & Rachel Guo
June 2014 | Beijing

2. 2
OUR AGENDA
Quick snapshot of China’s eCommerce landscape
What we can learn from them
Intro to social eCommerce-only brands

3. 3
China’s Giant
eCommerce Industry
Photo Credit: https://www.flickr.com/photos/23860276@N05/3887510836/

4. In 2013 China’s Gross Merchant Value
reached USD 1.63 trillion
Source: iResearch, Jan. 2014

5. 1.000.000.000.000
(12 zeros)

6. Source: iResearch, Jan. 2014

7. 269.4 million
eCommerce users
Source: iResearch, Jan. 2014

8. YoY Growth of
Mobile eCommerce:
165.4%
Source: iResearch, Jan. 2014

9. eCommerce in China
huge
fast growing
more and more mobile

10. 10
China’s eCommerce Ecosystem
Photo credit: https://www.flickr.com/photos/15562978@N08/10149082793/

11. ‹#›
Taobao
Tmall
Jingdong
Horizontal
eCommerce Platforms
Electronic Products
Gome,Suning
Apparel
vip.com, Vancl
Grocery & Daily Necessity
SF-Best, 1haodian
Cosmetic
Jumei, Lefeng
Books
Dangdang, Amazon
Offline Service
Meituan, Nuomi, Dianping
Vertical
eCommerce Websites
eCommerce
Brands
Xiaomi Smartisan
Liebo Crucco
Three
Squirrels
Chu Orange
AFU Roseonly
Tangcha
Diaoye
Brisket
Duokan
Huangtaiji
Pancake

12. Taobao is replacing
Baidu for product search

13. eCommerce is tightly
integrated into
social channel
Jingdong-WeChat1 Dianping-QQ2 Taobao-Weibo3
600 Million Users 800 Million Users 500 Million Users
Data Source:We are Social, China Digital Landscape 2014

14. Shopping festival
In 2013, sales volume reached 4.8 billion USD
on Taobao Double 11 Festival

15. Express delivery
infrastructure

16. Community based
eCommerce stores

17. “Internet users in select countries who would buy a brand because
of a friend ‘Likes’ or follows it on a social networks”
Data Source: IPSOS OXT and Ipsos Global, 2012
CHINA
54%INDIA
44%
INDONESIA
39%
USA
15%AUSTRALIA
15%
SOUTH
KOREA
14%
JAPAN
6%

18. WOM
Social Media
Data Source: Accenture, Winning the Heart of Chinese Consumers, 2012
77.4%
92.7%

20. Emotional Story
Niche Target Audience
Communication is 100% Social
Experience
Functional Story
Sales Mechanics
Partnerships

22. Lei Jun – The Steve Jobs of China
Emotional Story

23. Functional Story

24. Experience

25. Sales Mechanics

26. Communication is 100% Social

27. Partnerships
Partnerships with Chinese telecom operators

28. Niche Target Audience
Electronic device fans, who are
passionate about being involved
in product development
College students, who are tech savvy but
have limited budget for smartphones

30. A gift for the only one in your life
Emotional Story

31. Functional Story
Roses are imported from exclusive gardens
high in the mountains of Ecuador
Chocolate is imported from Belgium and
made by Jean George, a three-star Michelin
restaurant in NYC

32. Experience
• Products are delivered in exquisite
packages by well dressed male
models
• Guaranteed to be delivered within
24 hours

33. Sales Mechanics
For the lifetime of each customer account, only a single recipient can be registered

34. Communication is 100% Social
109 comments
573 retweets

35. Partnerships
• Trendgroup Media: gains media and
celebrity resources
• Jean George Restaurant :
establishes a light-luxury image

36. Niche Target Audience
Urban, upper middle class males with
high demand for luxury experiences
and quality products
Well educated females with appreciation for
exclusive products and high expectation
around relationships

38. Emotional Story

39. Functional Story
Organic Fruit/Vegetable + Nutrition Recipe

40. Experience
Just-in-Time
Production
Kept Fresh On-Time Delivery

41. Sales Mechanics
Subscription Model

42. Communication is 100% Social

43. Partnerships
Shiyi Pan, as angel investor of HeyJuice, helped recruit celebrities
and business elites as early adopters

44. Niche Target Audience
The young, professional, LOHAS
females who have above
average income and invest in
their well being

45. 3 Squirrels | 三只松鼠

46. Emotional Story
A cartoon story about three squirrels with story lines and
merchandise crowdsourced by the brand fan base

47. Sourcing of the best nuts and
building a distribution system to ensure freshness and high quality
Beijing
Functional Story
Wuhu
GZ

48. Experience
Shell Bag
Wet
Tissue
Clip
Customer
Feedback
Card
Card Case

49. Sales Mechanics

50. Niche Target Audience
Young people with tight budgets but willing to pay a little more
to enjoy better quality products and services

51. What is missing here?
Photo Credit: :https://www.flickr.com/photos/10687935@N04/3552576743/

53. Instead invest in:
KOLs
Social Ideas
Social Care
SEO
Product & Customer Experience

54. Social works.
For product launches.
And beyond.
What we can learn from eCommerce on Steroids:

55. 55
Thank you!
谢谢！
We’re happy to answer your questions:
nicky.szmala@geometry.com

56. Image Sources
Slide1: http://1.bp.blogspot.com
Slide 3:http://www.winnipegfilmgroup.com
Slide 9:http://www.liveforthepump.de
Slide 12: http://taobao.com
Slide 13: WeChat App, QQ App, Weibo web page
Slide 14，47:http://www.nipic.com/
Slide 16: http://www.ebrun.com
Slide 21,23,24,25,27:Xiaomi official website
Slide 22:http://coffeeticks.my
Slide26: http://bbs.xiaomi.cn/
Slide 28,36,50:http:www.gettyimages.cn/
Slide 29,30,31,33:http://www.roseonly.com.cn/
Slide 34: Roseonly Weibo and WeChat account
Slide 35: http://news.cecb2b.com
Slide 37,38,39,40,41,42,44: http://www.heyjuice.cn/
Slide 43: scity.weibo.10086.cn
Slide 45,46，49: http://www.3songshu.com/
Slide 51: http://architecturebehindmovies.wordpress.com

57. Thanks!
We’ll send you the deck!
Ian Sohn
ian.sohn@ogilvy.com