towards an innovative and profitable distribution paradigm in china market

Towards an innovative and profitable distribution paradigm in China market

Steven (Jian) CuiGeneral ManagerLicense Division at PC Starswww.pcstars.com.cnwww.softwarelist.cnwww.baihui.com

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etary

Agenda

2.

4.

3.

1.

5. How to get a creative Win-win

Direct Sales Works in China?

Successful Distribution for Kaspersky

Company overview

Current cooperation between ISVs and partners

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etary

Additional 15% Increase globally?

China; Revenue; 0.15; 15%

Others; Revenue;

0.850000000000001;

85%China Others

Come to China!

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etary

BIG already, bigger in future.

the Ministry of Information Industry reported.   

80.8Billion $

2007 already

Piracy rate: 80%

185Billion $

2010 forecasted

30% CAGR

Piracy rate:?

No 1 internet users, 212 million now

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etary

Investor: the founder of Gemstar-TV Guide (NASDAQ: GMST)

Board of Directors in Hong Kong

7 offices in China Mainland

276 employees

5

Company OverviewLeading online software distributor and SaaS provider in China.

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etary

Our company

SaaSwww.baihui.com

Home&SMBwww.rj100.com

Enterprisewww.softwarelist.cn

PC Stars

Three Platforms

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etary

Microsoft, Symantec, Autodesk, Adobe, those software vendors have already used channel sale, even more rely onchannel.

ChannelSaleChannel

Whether direct sales work in China

PTC, SPSS, Tripos, those vendors used direct sale before, have changed to channel sale.

Direct

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etary

Whether direct sales work in China

Value AddedPartners End Users

SoftwareVendors

Resellers

SIs

VARs

Retailers

Service Providers

Successful publishing model

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etary

Current cooperation between ISVs and partners

VAP or only Distributor

Interacting not smoothly

Bad mutual understanding

Are we understanding

each otherproperly?

Different thinking of China culture

Not localized pricing and product

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etary

Current cooperation between ISVs and partners

What vendor concerns?

Tend to develop various types of partners to maximize the marketing share

Avoid the risk of over depending on partners Partner’s qualification Company’s image and reputation Save time and improve efficiency Take the advantage of cooperating with real players 

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etary

Current cooperation between ISVs and partners

What their Chinese partners care for?

Stand out from the group of partners Pricing competition with the other partners Vendor cutting in and closing the deal Build trust with vendor Commission and support from vendors

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etary

Current cooperation between ISVs and partners

China;

Revenue;

0.15;

15%

Others; Revenue;

0.850000000000001;

85%

ChinaOthers

Kaspersky

China; Global Market;

0.01; 1%

Others; Global Market;

0.99; 99%

ChinaOthers

Most ISVs

Current Partnership Right Partnership

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etary

Right Partner

Find a right partner

Proved Integrated MarketingDistribution Network

Trust-worthy

Technical Support Localized Experience

Solution &Service

24*7 toll-free lineCall CenterOnsite deployment

Chinese versionLocalized pricingCustomer base

Ads, PR, Event, SEO Affiliate marketingEmail marketing

Online/Offline channelLogistic capacityProved performance

Training centerOnline consultancy systemTechnical team

Investor backgroundProved recognitions

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etary

How to get a creative Win-win

Mutual Understanding

Decisionmaker

Both sides’Commitment

win-win

Shared Vision

Mutual Benefit

Long-term Partner-ship

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etary

How to get a creative Win-winService Reseller Distributor Exclusive Publisher distributor

Sales　

Online sales (E-commerce) X X X X

Online consultancy X X X X

Local software downloading 　 　 X X

Call Center telesales 　 X X X

Sales channels 　 X X X System Integrators sales

system 　 X X X

Technical Support

Telephone support X X X X E-mail support X X X X

Online consultancy X X X X

On-site service 　 X X X

Marketing

Search engine advertising 　 X X X

Chinese official website 　 　 X X

Public relations 　 　 X X Website marketing 　 　 X X Media advertising 　 　 X X Market activities 　 X X X Event marketing 　 X X X

Affiliate Marketing 　 X X X Industry seminars 　 　 X X

Training Certification Training Center 　 　 X X

Localization Product localization strategy 　 　 X X

Pricing localization strategy 　 　 X X

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Worry about various evaluation variables?

Easy with one Guaranteed Commitment

VSChannel fit?

Trust-worthy? Technical team?

Customer base?

……

How to get a creative Win-win

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etary

China/Global= 15%?

PC Stars can help you achieve it!

Additional 15% is possible!

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etary

Welcome to contact me

Jian.cui@pcstars.com.cn