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1 Lecture 11 The Rise of e-commerce and e-marketing in China Development of Internet in China 1987: 1 st email 1994: allowed to enter Internet 1995: Chinese people began to use Internet 2017: Internet users: 751 million

Lecture 11 The Rise of e-commerce and e …5 China eCommerce Market • $ 1.7 trillion market by 2020 • 75% of 467 million online shoppers are millennials • 200 million more online

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Lecture 11The Rise of e-commerce and e-marketing in China

Development of Internet in China

• 1987: 1st email

• 1994: allowed to enter Internet

• 1995: Chinese people began to use Internet

• 2017: Internet users: 751 million

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China vs. US Internet Market Size

• China is the world’s largest internet market with:– 1.397billion population

– 71% own a smartphone

– 751 million internet users (54.3% of population)

– 889 million Wechat users

– 500 million mobile payment users

– 72% internet users are between 10-39 years old

• US is the world’s second largest internet market with:– 323 million population

– 77% own a smartphone

– 287 million internet users (78.2% of population)

– 207 million Facebook users

– 48 million mobile payment users

– 90% + internet users are between 10-39 years old

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E-commercein China

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China eCommerce Market

• $ 1.7 trillion market by 2020

• 75% of 467 million online shoppers are millennials

• 200 million more online shoppers coming from lower tier cities and rural China

• Average spending 12,198 RMB in 2017

• Over 200 cities in China have same-day or next-day delivery coverage by Cainiao and JD

• US: $ 531billon market by 2020

• Average spending $ 1819 USD in 2017

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Types of EC Products & Services

• Products:– books, music and video products, – gifts and toys, – telecom products, – sporting goods, – office supplies, – apparel, & cosmetics. – consumer electronics, – food & health products.

• Services:-Online traveling services-Employment placement & job market-Real estate, insurance & stock

trading online-Banking & personal finance online-Online delivery of digital products,

entertainment, & media -E-knowledge-Online intermediary agency -E-government

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Types of EC Products & Services

Everything

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Tmall and Amazon

• Tmall platform deminates B2C eCommerce in China with a 53% market share and 97% of the online shoppers use the platform

• But many international retailers and brands, new entrants, often make the mistake of assuming the Tmall is just China version Amazon.

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Mobile Commerce

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Annual Spend per Mobile Internet user

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FinTech in China

• The nation is emerging as the world’s FinTech market leader. For the period July 2015 to June 2016, Chinese FinTech investments in the market surged to US$8.8 billion, commanding the largest share of global investment in this sector– FinTech firms are leveraging big data from e-commerce, messaging, search,

social media and other internet-based services to personalise the customer experience, provide new services, and leverage operational efficiencies.

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China is the World’s First Cashless Society

• Mobile payment users is expect to reach 630 million by 2020.

• Alipay takes 54% market share

• Wechat pay had 37% market share in Q4 2016

• 463 million people use mobile payment even when they are shopping offline

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Consumer

• Consumers have new forms of demands

• Digitalized channel and socialized online shopping

• Quality-oriented purchase and experience-based consumption

• Personalized consumption and mobile payment

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E-marketingin China

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China Internet Online Marketing

• E-commerce websites• Pop-up advertising, click-thru (conversion)• Search Engine Marketing• Email • Product reviews and ratings• Recommendation agents• Social media: blogs• Broadcasting…

相亲类网站

订阅

消费点评

电商

问答

论坛

视频分享

轻博客

微博

音乐/图片分享

商务社交

社交游戏

签到服务

即时通讯

博客社交网络

团购

社会化书签

百科

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Spending by Media Type

eMarketing Keynotes

• CONTENT IS not IMPORTANT, it’s VITAL

• VIDEO IS THE FUTURE

• WECHAT is KING OF MOBILE

• O2O

• Enhance USER EXPERIENCE

• Focus on local

• multiple SCREEN INTEGRATION

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The Evolving process

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KOL (Key Opinion Leaders) in China:

“More than any other country, [KOLs] have taken the lead to be a true media vehicle,” “Much like you would use a TV campaign or other promotion, most

marketers in China have a KOL strategy.”

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China KOLs

• Most key opinion leaders are either Chinese celebrities or popular social media users who have created viral content and developed a large following on various social media websites. They are columnists, socialites, fashionistas, and bloggers that have developed massive digital audiences.

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KOL Campaigns

• SPONSORED POSTS

• GIFT

• PRODUCT REVIEWS

• INFLUENCERS CONTEST/GAME

• But Is KOL marketing worth the money in China?

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The live-streaming booming and issue

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• A rising content marketing form or a big question mark?

Ethics and Regulatory Issues

• Internet has a become a powerful for consumers: instant success or destroyed overnight, bad news travel fast

• Privacy and political sensitivity

• Security

• Censorship and filtering is common

• Impropriate content

• Restrictions in certain areas after political unrest

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How New Technology is Shaping the Marketing Practice

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“Big Data”� adopting the technologies required to generate, collect and store

these new forms of data

� using advanced data processing and sophisticated analytical techniques such as predictive analytics

� applying this data knowledge in business decisions and activities

Pioneers in the practicing

• P&G Examines its business program success and react more quickly to changing market conditions,

• UBER’s business is built on Big Data, with user data on both drivers and passengers fed into algorithms to find suitable and cost-effective matches, and set fare rates

• WAL-MART Relies on text analysis, machine learning and even synonym mining to produce relevant search results.

• NETFLIX: Having drawn in millions of users with its high-quality original programming, is now using its trove of data and analytics about international viewing habits to create and buy programming that it knows will be embraced by large, ready-made audiences.

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• Differentiating pricing strategies at the customer-product level

• Gain greater customer insights

• Customer Analytics (48%), Operational Analytics (21%), Fraud and Compliance (12%) New Product & Service Innovation (10%) and Enterprise Data Warehouse Optimization (10%) are among the most popular big data use cases in sales and marketing.

• Supported by Big Data and its affiliated technologies, it’s now possible to embed intelligence into contextual marketing.

• Optimizing selling strategies and go-to-market plans using geoanalytics

• Break of the limits of time and space

• Precise audience targeting

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How New Technologies Shape eMarketing Strategy

E-marketing Strategy in an New Era

• Identify trends– Market trends, demographic trends, performance trends

• Segment data– Customer data, sales data, competitors data

• Understand target audience– Be customized

• Arrange the correct assortments– (product/service/experience) and pricing

• Send the right message– understand which messages have the greatest impact on customers, so each

advertisement is designed around their specific interests

• Contextualize your communication– Use location and timely event smartly

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