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E-Commerce in ChinaDealers Comparison & Sales Plan
Simulation situation
Prepared by Charlotte Lee2013 Nov
Agenda
China Market and Platform comparison
Appendix
Chinese Digital Landscape
E-Shop Set up and Hosting Package in China
Platform Ecosystem and ROI Analysis
2014 Sales Checklist
Conclusion
7
6
5
4
3
2
1
Business Background: E-Commerce in China
China rapidly expand e-commerce market rapidly in New Internet users because:-
limited reach of brick & mortar: geography hampers the sales of retail store
wider product selection better bargain power high trust on some e-
commerce
E-Commerce Ecosystem
There are 5 type of e-commerce in China. This presentation will focus on 4 main platforms
E-Commerce Rank in China
The top e-commerce channel rank in China is always B2C
1st : Taobao 2nd: Tmall 3rd: Amazon China
2171th : Glamour Sales
Source: http://www.ectop.com.cn
4 Platforms Frontpage Analysis
Help to evaluate:
the image of platform match with brand
the brand & product controlability
marketing and event ads
C2C E-commerce – Platform analysis
ProductCategory
TmallAdvertisements
EventWeekly or Monthly
Theme Sales
• Shops are private
• Cheaper Price
• Fake product
• Aesthetic photo
B2C E-commerce – Platform analysis
ProductCategory Event
Weekly or Monthly
Theme Sales
• Normal Mall
• Guarantee of quality
• Comparative higher price
• Better aesthetic photo
• Brand products including multi-national and Chinese local
B2C E-commerce – Platform analysis
Product Promotion
On SalesEvent
• Shops are shown under Amazon• Emphasis Product diversification• Brand-focus• Standard photo picture
B2C E-commerce – Platform analysis
ProductPromotion by BRAND • Shops are under
GLS
• Membership customer segment – Private Club
• Luxury brand product
• Big discount
• Vendor offered picture
• GLS marketing campaign
4 Platform Service Analysis
Help to evaluate:
the amount of company resource spent
worth of mouth in chinese communities
Platform Service + Word of Mouth
Consumer Service Policy
VAT Invoice provided Credibility of Shop 7 days return & exchange service Refund triple if fake products Delivery within 24 hours 30 days free-of-charge repair & maintain 3rd party quality checking service
Feedback from customers
Detail understanding of shop Leave inquiry messages Product quality (Word of Mouth)
Forums & communities
• Exposure of fake products• The ways to discern the fake
Chinese is social during the shopping process
More than 40% will read and post reviews online.
Platform Service + Word of Mouth
Platform Service + Word of Mouth
Consumer Service Policy
VAT Invoice provided Credibility of Shop 7 days return & exchange service
Word of Mouth
Focus the user’s private forum or bloggers.
Platform Service + Word of Mouth
Consumer Service Policy
7 days return & exchange service Brand guarantee Free Delivery if sales amount > 688 On-line Q&A
Platform Service + Word of Mouth
University student and Young professional are the most Active in both on-line and E-commerce
Since university student has lower purchasing power, Young professional will be our Target customers
** Each internet user segment details shown in Appendix
4 Platform Comparsion
Help to evaluate:
Financial and Company resource needed
Difference customers segment
ROI self-evaluation
E-Commerce Ecosystem – dealer operation
comparison
Sourcing
Online
platform
Payment
DeliverySuppliers Customers
Suppliers Business model
Selling format + deposit
Final Payment Charges to platform Customers
Amazon B2C Consignment BasedZero (0) deposit
fr Amazon.
2 per month
Monthly Fixed rebate: 5%Annual Volume rebate: 1-5%Annual Marketing: 25K – 80K
General public
TMALL B2C Zero (0) deposit fr customer after receipt goods14 days after deliver
Security deposit 100-150KIT service charge 30-60KMarketing: 10K – 100K
General public(higher salary)
Taobao C2C Zero (0) deposit Ditto Marketing: 10K – 100K General public
Glamour Sales
B2C Consignment Based20% Deposit
Fr GLS. 99 days after deliver
GLS commission: 35% Marketing: Zero (0)
Membership affluence
CMSDC B2C Consignment Based20% Deposit
Fr CMSDC. ?? payment period
Commission: ??% Marketing: Zero (0)
Grass-roots
Details shown in previous 5 presentation
E-Commerce Ecosystem – Objective, Resource, Customers
comparison
Factors Amazon TMALL Taobao Glamour Sales
Brand Image Middle Middle Low High
Sales Middle High High Low(Flash sales)
Financial Invested
Middle High Low Middle
Photos workload
Middle Very High High Low
Marketing High Middle Middle Low
Customer service
Low(Amazon offer)
High Very High Low(GLS offer)
Target group • Young professionals• students• Active mid-agers
• Young professionals• mid-agers
All • Young professionals• Active mid-agers
Bu
sin
es
s
Ob
jec
tiv
eC
om
pa
ny
Re
so
urc
eC
us
tom
er
Chinese in China: E-commerce behavior
Help to evaluate:
what media we can use for entre China
market
how to implement sales + marketing program
1 Year action plan
Digital Landscape – Chinese vs.
Western
China’s digital landscape is more complicate than western. The Chinese internet users exhibit distinctive online
- Communication (instant messaging) - Entertainment (music, game, news-reading)
Chinese Distinctive Online Behavior
U$10B
U$2B
U$24B
Only 19% of consumer in China go official brand or manufacturer websites (Japan 41-60%)
Chinese is social during the shopping process – word of mouth
Shoppers develop the habit of not rely Search Engineer to find product online – but taobao
Fragmented Social network • Kaixin001 for white collar,• Renren for student• Douban for artistic, • Qzone for young & active. • Sina weibo for general public
How Lead to Sale in 3 E-commerce
• Taobao 92%
• Tmall 88%• Amazon
67% Awareness Rate
• Taobao 89%
• Tmall 69%• Amazon
44%
Trial Rate
• Taobao 91%
• Tmall 82%• Amazon
70% Frequency of
usage
• Taobao 74%
• Tmall 50%• Amazon
21%
Frequency of
usage
(% of total e-shoppers)
(% of trial rate)
(% of total e-shoppers)
(% of awareness rate)
1. Do a brand search on Baidu (China’s Google):
Even brand is not in China yet, it do create buzzle - try to find out what people already know and what they’re saying.
2. Set up a Sina Weibo account (China’s Twitter):
Talk about what’s going on with your brand at home, not just in China, so customers can experience your brand’s personality. Make sure to offer incentives to shoppers visiting from China. (A solution to stagnant retail sales at home?)
3. Sell with high-end e-tailers like OMEI.com or Glamour Sales:
See this as a lower-risk way to test product, price and positioning in the cut-throat China market.
Marketing Checklist
Marketing Checklist
4. Set up a Tmall “store”
> 450M Chinese customers shopped online, with 370 million of them using Taobao.com. Don’t try to change the buying habits of the Chinese.
5. Build presentable site:
Website is where customers can experience your brand’s unique personality — even if they prefer to purchase elsewhere. Also, list the addresses of your overseas stores, so potential Chinese customers know where to find you when they travel.
6. Get socializing:
None of this matters if you’re not out there socializing. Hong Huang (often called “China’s Oprah”) cited DVF as the best social media brand in China.
Timeline
Q1 – Q2 JAN FEB MAR APR MAY JUN
FestivalNew Year
1/1CNY
ValentineBoy / Girl Festival
EasternWorker’s
DaySummer
Collection Gent WatchGent
LadiesLadies Ladies
GentLadies
Function – Brand Viral like Invicta
How Invicta brand viral – refer to previous slides Marketing Plan 2014 in HK will match for China market – refer previous slides
Timeline
Q3 - Q4 JUL AUG SEP OCT NOV DEC
Festival SummerFather Day
8/8Autumn Festival
Nation Day10/1
Single Day 11/11
X’Mas12/24
CollectionGent
LadiesGent
GentLadies
LadiesGent
LadiesGent
Ladies
Function – Brand Viral like Invicta
E-shop Hosting Package
How Invicta brand viral – refer to previous slides E-shop hosting package details – shown in this last part of slides
What we need to consider ? Multi-Channel advantage
Increase customer’s desire Get confident on brand
Media Utilization Glamour Sales as test. Taobao create awareness. Tmall generate traffic
Risk and Challenges Stock-keeping units Logistic Marketing invested Grey Market Fake brand
E-Shop Opening2 Options
1. Self-control : Self ownership
2. Sub-contract : Hosting
Pls refer to previous slides
Prepared by Charlotte Lee
2013 Nov
THANK YOU
I seek a long-term association with a well established organization where I would get a chance to lead, exercise the skills that I have developed, build lasting relationships in the field of Marketing and in turn benefit the organization and progress with it.
Appendix - E-shop Design Template
Standard Premium
Appendix -
Appendix -
Appendix -
• Select potential product to prepare as next Star product
• Stock Clearance
• UPS, high inventory product, raise marketing budget
• Low cost generate traffic
All produ
ct Promo
te
Star Produ
ct
Potential
Product
Stock Cleara
nce