To increase trust, Alibaba created Alipay, an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers.
30% North America 29% Europe
19% Japan/Korea 2% Australia 13% rest of Asia 5% LATM 1% Middle East 1% Africa most of the internet’s users came from developed economies Source: Internet world stats - Internet users by region, 2000, per the IMF deﬁnition of “developed” in 2000)
1. U.S.A. 2. U.S.A. 3.
U.S.A. 4. S. Korea 5. S. Korea 6. S. Korea 7. U.S.A. 8. Japan 9. U.S.A. 10. U.S.A. ...as did all the traﬃc on the Alexa “top 10”. Source: Alexa.com, Sept 2000, via Wayback Machine
5. Baidu (China) 7. QQ
(China) 11. Taobao (China) 13. google.co.in 14. Sina (China) 10. hao123 (China) 17. Weibo (China) 20. Yandex (Russia) ...and traﬃc from fast growing emerging economies such as China, India, and Russia now makes up almost half of the Alexa “top 20”. Source: Alexa.com, April 2014
Source: Age of Man -
interactive map, National Geographic close to 3 billion of us have yet to use the internet...
Xiaomi Hongmi yet thanks to
devices such as this, won’t have to wait much longer to discover it... (...within a year, similar devices will cost half this much) Android platform £83 ($130) built & designed in China
“…if you have an Instagram
account, you can slap a tag on anything, take a picture of it, and sell it...” – Fatima Al Qadiri, Mousse magazine https://www.ﬂickr.com/photos/bombardier/5456285991
you know—hacked products.” She sells
dried fruit. A friend’s cousin is selling weird potted plants...people are creating, – Fatima Al Qadiri, Mousse magazine “...even my grandmother has an Instagram business. https://www.ﬂickr.com/photos/qilin/3923289556
businesses such as these provide
a glimpse informal economy... of a new, digital and mobile-fuelled the last few 1000 years of “informal economy” has looked something like this http://www.ﬂickr.com/photos/dgmckelvey/7053122601
they’re still relatively ad-hoc... no
shopping cart or online form, just contact her using your mobile and a popular social messaging app are a bit diﬀerent...on the one hand these new kinds of “informal” business
and poses a new level
of sophistication... orders shipped daily by courier with tracking number yet they are modern, global,
http://www.ﬂickr.com/photos/57634952@N00/3031070035/ These services don’t oﬀer
“a great experience” but are ”good enough” and oﬀer a good balance of reach, eﬀort, functionality and adaptability to local circumstances. They also ﬁll an important gap... 83% of Thai internet users use Facebook Facebook even works on his crappy old phone she can manage the “site” and respond to inquiries on mobile while sitting here all day the motorcycle taxi around the corner can make quick deliveries if needed
“...most of these pages see
their largest growth out in the countryside, where the population is largely underserved by other e-tailers as well as brick-and-mortar shops” – Thailand’s powerful wave of Facebook commerce http://www.ﬂickr.com/photos/wakxy/5233200705/
Tmall charges an entry fee,
and a commission for each sale, but in return provides a high visibility, high traﬃc, customizable, social- media and mobile optimized e-commerce platform.
For major brands such as
Apple, hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country. apple.tmall.com
Alibaba also oﬀers a C2C
site called Taobao, which enables consumers (and smaller merchants) to sell products online. Taobao is a bit like EBay, but vendors aren’t limited to selling things...
They can also sell services:
This Taobao-based travel agent doesn’t just sell you a trip, they can also arrange a travel visa, sell you a Thai 3G SIM card, a wi-ﬁ dongle, a subway pass, or local transportation.
C2C and B2C commerce on
Taobao T-Mall merchants pay a commission and an entry fee we’ll discuss this bit later...!TaoBao merchants don’t pay to sell stuﬀ, they buy advertising and other services to help them stand out and“A mix of , with a dash of .”
This family of sites enables
consumers to shop for a huge range of products that might otherwise never be available in their region. (And yes...Tmall can sell you a new Peugeot...or a Lamborghini).
“...such is Taobao’s success these
days that running a “Taobao shop” is a national pastime, sort of like a second job or hobby for tens of thousands of Chinese oﬃce workers, housewives, and students”. - Owning a Taobao shop is a new national hobby http://www.ﬂickr.com/photos/mckaysavage/135932500/
For many people however, it’s
far more than a hobby. These sites have enabled millions of new jobs—especially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions. http://www.ﬂickr.com/photos/tuchodi/5642172895
“...most of the people have
phones but there are only 3 malls per 20 million inhabitants... It’s a unique time...the right time to leapfrog over ‘oﬄine’.” - jumia.com co-founder THE BIGGEST ONLINE SHOPPING MALL IN AFRICA Egypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating
opportunities for Western micro-businesses, that can now source materials directly from factories around the world. Julie sources cake decorating supplies direct from China using Alibaba and sells them to customers around the world using Etsy Hi! My name is Julie, I live in the Bay Area and I am the owner of Cakes And Kids. I am wife, mother and entrepreneur and I am forever grateful that I get to do what I love every day!
Small and mid-size companies in
emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products. family business 5 people 1 designer, 2 tailors clothes advertised on Etsy and made to order delivery in 1-2 wks Kelans Art Couture, Foshan, China
Chinese entrepreneurs in Western markets,
or “online shopping agents” in China are also acting as middlemen, shipping hard to ﬁnd (or highly taxed) Western goods to Asia, then re-selling them on sites such as Taobao. “... even if [Western] retailers or consumer product companies haven’t stepped foot in mainland China, their products are already here. Unoﬃcially.” - Think your brand is not for sale in China yet? https://www.ﬂickr.com/photos/johnas/7652202244
This is creating a new
and fast-growing group of highly globalized digital-ﬁrst consumers. Consumers who live in one region, but actively shop or seek out products from another. https://www.ﬂickr.com/photos/ding_zhou/11902149336
“Meet Jing Jing is an
aﬄuent young Chinese girl who started blogging about her life and style while studying abroad in the UK. She is now your competition”. http://jingxujing.blog.163.com/ Source: 青年志 | Open Youthology
“She’s a marketer. Her Weibo
micro-blog now has over 28,000 followers. She blogs about her life, her style and tips for beauty and fashion”. Source: 青年志 | Open Youthology
“She’s a retailer. Her Taobao
shop oﬀers copies of luxury products she wears on her blog. All her products are limited edition and priced low. It usually takes her a couple of hours to sell out”. Source: 青年志 | Open Youthology
Sourrce: Technode and Pando Daily
5-6 million Meilishuo generates clicks for online merchants per day £300 million ...and in 2012 generated an estimated ($500M) in revenue for downstream merchants Similar to an online travel agent, Meilishuo gets a cut for each outbound transaction it generates.... http://www.ﬂickr.com/photos/ducdigital/2892313560
If you think this sounds
kind of boring, because it’s all about girls discussing shoes, imagine translating this model to geeks talking about gadgets, or fans talking about books...
Part of the reason these
services work, is that they feed into the virtuous circle of mobile and social media adoption. Source: The internet economy in the G20 (PDF) Developing markets are going “straight to social” Users adopt social networking quickly as they come online
“Literally every single person I
know, everyone I’ve met in China, is on WeChat. I don’t use email, I don’t use the phone, I don’t use SMS to communicate with anyone – only WeChat.” Hugo Barra, VP Xiaomi Global (ex VP Android Product at Google) Photo: http://www.oezratty.net/, watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat RSS-style subscription
content mobile contact exchange highly customizable API payment platform text chat group text or video chat photo blogging mobile-only, and far more than just a messaging app virtual wallet
WeChat’s API is extensive, enabling
brands to create “mini-sites” containing news, IVR style support or full-blown transactions through with WeChat’s virtual wallet and payment platforms. WeChat subscription channels API integration enables customizations such as sub- sections... download our app ﬁnd nearby stores ...and product or service inquiries using an automated short messaging service here’s the stuﬀ you can ask regarding coﬀee... “cappuccino” tell me about “coﬀee”
5 million this Chinese New
Year, more than people used WeChat to purchase 20 million virtual “Hongbao” (red envelopes containing money) in one 24 hour period Thanks to clever campaigns, WeChat wallet usage is rising fast! Source: TechInAsia
with so much commerce taking
place on giant marketplaces, there is also a natural fear of counterfeits https://www.ﬂickr.com/photos/ornellas/3308925864/sizes/l
To increase trust, Alibaba created
Alipay, an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers.
With more than 800 million
registered users, Alipay is now so common that it can be used to pay for almost anything—including school fees and loans, utility and mobile phone bills and even hospital charges.
T-Money - Korea launched in
2004 Octopus - Hong Kong launched in 1997(!) Some of these “pay for everything” platforms are now decades old... starting with one “mobile” technology, then migrating to progressively more modern (or relevant) ones as they come along. contactless card wristbands keychains NFC/QR enabled apps (PC) dongles SIM integration contactless card keychains NFC/QR enabled apps (PC) dongles AliPay integration SIM integration 20 million cards in circulation (for 7 million people) 71 million cards in circulation (for 50 million people)
Unlike YouTube or Skype— YY
has it’s own virtual currency. Users purchase credits from the site and use these to show aﬀection for their favourite stars by buying them virtual gifts such as roses and lollipops. Gifts range in cost from mere pennies to as much as $50 (£35).
“top Karaoke singers regularly make
$20K (£15K) a month oﬀ of virtual gifts, with one college student reportedly earning an astonishing $188K (£150K) per month using the site to give Photoshop lessons” - The largest social network you’ve never heard of
...meanwhile in Korea, 1000s tune
in to AfreecaTV, a similar service where Choi Ji-hwan earns about 2 million S. Korean won ($1,880) each month eating mountains of noodles and kimchi live each night Source: Iamkorean
WeChat automatically generates a QR
code for each account. To follow a person or brand, simply scan the code (on a device, business card, poster, web site etc.) (WeChat even provide templates enabling personalization of the code to suit your personality or your brand.)
This reliance on QR codes
works, because in China (and many other parts of Asia) almost every app (including locally built web browsers!) has a built in QR code reader. Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even
have QR and WeChat recognition built right into into the camera. (In Japan, where QR codes were invented, manufacturers added this capability close to 10 years ago.) the Xiaomi Mi3 camera
using QR codes to interact
and transact with brands has therefore become common (...one might say mundane) These college students sell fruit on campus...in person, but also through WeChat.
WeChat, AliBaba and other platforms
are also working with department stores and other “oﬄine” goods merchants to extend their reach—enabling customers to purchase goods in store by scanning QR codes on products. ...kind of like this John Lewis and Barclay Card concept... except that 300 million people have a WeChat account, and 800 million have an Alipay account.
“...Lamoda sends sales assistants directly
to shoppers’ homes...uniformed delivery men bring the clothes, wait for [customers] to try them on, oﬀers fashion advice, take returns and process payments on the spot” - Russia: Where the Deliveryman Gives Fashion Advice https://www.ﬂickr.com/photos/41738141@N06/6814977720/
“Why build expensive roads to
remote rural locations when drones can do the job just as well? - Forget Amazon: Drone delivery will take oﬀ in Africa https://www.ﬂickr.com/photos/gabrielgm/9520473233 meanwhile in Africa...