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Why can’t successful western e-commerce
websites simply replicate their success in
China?
Bill Kohnen Pacific Rim E Commer...
 China is the biggest e-Commerce market in the world
 Successful western e-Commerce as well as investors
players despera...
Product Presentation
Shopping Experience
Merchants
Logistics
Infrastructure
Bill Kohnen Pacific Rim E Commerce Confer...
More vibrant
People important modeling product
Often includes context
See following examples of differences
between We...
Western China
Bill Kohnen Pacific Rim E Commerce Conference
COMPARISON - CLOTHING
Western China
Bill Kohnen Pacific Rim E Commerce Conference
COMPARISON – COMPUTER ACCESSORIES
Western China
Bill Kohnen Pacific Rim E Commerce Conference
COMPARISON – OFFICE SUPPLY
 Immediately presents interesting content (see following
example)
 Access to new and unique products
 Detailed informat...
Western China
Comparison – Starting Page
Bill Kohnen Pacific Rim E
Commerce Conference
 Expectation that the e commerce site manages the merchants
 Authenticity Guaranty
 Fulfillment Quality
 Support
 Qua...
 Timely order processing
 Return and exchange process
Expectations really not that much different than western but it
ha...
 Must have data center inside China Fire Wall
 Western companies need strong partners in China but should
not just hand ...
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E Commerce Success in China

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To be successful in the China e-Commerce market western companies must consider the unique requirements for: Product Presentation, Shopping Experience, Merchant Management, Logistics and Infrastructure.

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E Commerce Success in China

  1. 1. Why can’t successful western e-commerce websites simply replicate their success in China? Bill Kohnen Pacific Rim E Commerce Conference E COMMERCE SUCCESS IN CHINA
  2. 2.  China is the biggest e-Commerce market in the world  Successful western e-Commerce as well as investors players desperately want to develop business in China  Notable failures because western companies did not address fundamental differences in expectations by customers in China Bill Kohnen Pacific Rim E Commerce Conference SUMMARY
  3. 3. Product Presentation Shopping Experience Merchants Logistics Infrastructure Bill Kohnen Pacific Rim E Commerce Conference AREAS WHERE CHINA AND WESTERN E-COMMERCE ARE DIFFERENT
  4. 4. More vibrant People important modeling product Often includes context See following examples of differences between Western and Chinese e-Commerce presentation Clothing Computer Accessories Office Products Bill Kohnen Pacific Rim E Commerce Conference PRODUCT PRESENTATION
  5. 5. Western China Bill Kohnen Pacific Rim E Commerce Conference COMPARISON - CLOTHING
  6. 6. Western China Bill Kohnen Pacific Rim E Commerce Conference COMPARISON – COMPUTER ACCESSORIES
  7. 7. Western China Bill Kohnen Pacific Rim E Commerce Conference COMPARISON – OFFICE SUPPLY
  8. 8.  Immediately presents interesting content (see following example)  Access to new and unique products  Detailed information of features for comparison price and features  Relevant product descriptions  Total site localization (not just translation)  Multiple and interesting views of product (5 +)  Reassurance of trusted Payment process  Always some presentation of some gender specific items with more focus on female interest items (examples: Hello Kitty, stuffed animal, pop culture phone covers etc..) Bill Kohnen Pacific Rim E Commerce Conference SHOPPING EXPERIENCE
  9. 9. Western China Comparison – Starting Page Bill Kohnen Pacific Rim E Commerce Conference
  10. 10.  Expectation that the e commerce site manages the merchants  Authenticity Guaranty  Fulfillment Quality  Support  Quality  New entrants overwhelmingly underestimate the importance of managing merchants and therefore do not allocate the right resources to do this:  Supplier Management experts  Quality Control  Financial Auditors  Logistics Professionals Managing Merchant Performance is Vital To Develop Customer Trust Bill Kohnen Pacific Rim E Commerce Conference MERCHANTS
  11. 11.  Timely order processing  Return and exchange process Expectations really not that much different than western but it has been harder to meet expectations in China as logistics providers and process are not as developed as in Western countries. In China companies can not simply turn over logistics responsibilities to “Fed Ex” or other third partes and expect customer expectations to be met. Bill Kohnen Pacific Rim E Commerce Conference LOGISTICS
  12. 12.  Must have data center inside China Fire Wall  Western companies need strong partners in China but should not just hand over operational responsibility  Requires mutual long term commitment to develop robust reliable infrastructure Bill Kohnen Pacific Rim E Commerce Conference INFRASTRUCTURE

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