china market entry through ecommerce
DESCRIPTION
What you need to know on entering the Chinese market through eCommerce. Presented at the China Digital Marketing & Social Media Submit 2013 in Sydney, Australia.TRANSCRIPT
China market entry through eCommerceCharles Chan, Managing Director of CLEARgoThe China Digital & Social Media Submit, Sydney - October 2013
By now you have heard the headline
$539 BillionOnline Expenditure
in China by 2015from $212 Billion in
2013
Key Challenges in China market entry
Soaring Rent & Distribution Channel Cost
Variety of products, Convenience, Lower Prices are the key factors for Chinese consumers to buy online. Pollution & traffic jam also keeps shoppers from going out.
* Apple Store at Sanlitun (https://twitter.com/shannonfagan/status/290014772420829185)
Since the melamine milk scandal in 2008, various product safety reports have destroyed consumers’ confidence in domestic products and drive online cross border purchase.
Determine if your Brand is Suitable to Sell Online in China
Determine if your Brand is Suitable to Sell Online in China
You know why & what,
But HOW?
Key Ingredients to Successful China Entry through eCommerce
Develop a China Consumer Strategy1
2
3
4
Decide on the Right e-Channels
Setup a suitable Operations & Organizational Model
Build Traffic, Optimize Conversions, Acquire & Grow Customers
Demographic of Chinese consumers is diverseCompetition is fierce in most categories
What’s your Brand’s STP in China?(Segmentation, Targeting & Positioning)
1
2. Deciding on the Right e-Channel
Different eCommerce Channel Models in China
brand.com mall-operate branded store
authorized online distributionbrand-operate marketplace store
2. Deciding on the Right e-Channel
In China, eCommerce has been marketplace driven
2. Deciding on the Right e-Channel
Tmall and the rest
2. Deciding on the Right e-Channel
Horizontal and Vertical eCommerce Platforms
Horizontal Platforms
Luxury
Private Selling
Cosmetics Consumer Electronics
Media
Grocery
Fashion
2. Deciding on the Right e-Channel
UGG sells in both brand website and Tmall
2. Deciding on the Right e-Channel
Coach closed its online flagship store in Tmall only one monthafter it opened, and shifted to sell in its brand site instead
2. Deciding on the Right e-Channel
Olay sells in almost all platforms
Brand Site
2. Deciding on the Right e-Channel
The luxury divide on brand site and marketplaces
Official eCommerce presence No Official eCommerce presence
2. Deciding on the Right e-Channel
So which channel is right for you?
Brand.com
Brand Operate
Store @ MallMall OperateStore @ Mall
DistributionOnly
Brand Image
Control
Demand Capturing
CRM/Loyalty Integration
Data Ownership
Setup & Operating Cost
Operations Complexity
2. Deciding on the Right e-Channel
Wait! Do you have a Chinese entity already?Have you registered and trademarked your brand already?
2. Deciding on the Right e-Channel
Tmall now allows foreign brands to setup without local entitiesand sell to Chinese consumers as cross border transactions
3. Setup a suitable Operations & Organizational Model
Create an eCommerce user experience for China – Information to help customers making decisions
* a typical product detail page in China
3. Setup a suitable Operations & Organizational Model
Payment methods in ChinaAlipay, China UnionPay, Direct Debit, etcMost people don’t have credit card and are unable to pay non-RMB transactions
3. Setup a suitable Operations & Organizational Model
“Fapiao” – not just an official invoiceThis is how local Government keeps track of your Value Added Tax (VAT)
3. Setup a suitable Operations & Organizational Model
Customer Service – Live ChatHotline & Live Chat for both Pre-Sales & Post-Sales is a must in China
AliWangWang is the standardLive Chat platform for Tmall & Taobao
3. Setup a suitable Operations & Organizational Model
Warehousing, Fulfillment & Delivery A range of domestic and international providersService quality from domestic providers still varies but improving
Amazon Fulfillment Service
3. Setup a suitable Operations & Organizational Model
In-house vs. OutsourceOutsource some or all aspects of the puzzle
Order & FulfillmentManagement
Merchandising& Inventory Mgmt
CustomerCare
Store Management Marketing & CRM
eCommerceTechnology
4. Build Traffic, Optimize Conversions, Acquire & Grow Customers
Grow your eCommerce business under the Chinese ecosystem
Acquisition Conversion Retention Amplification
Measurement & Optimization
4. Build Traffic, Optimize Conversions, Acquire & Grow Customers
Grow your eCommerce business under the Chinese ecosystem
Brand.com
Directory
Search(SEM/SEO)
DisplayAds
CSEProductSearch
AffiliateMarketing
E-DM
SocialMedia
4. Build Traffic, Optimize Conversions, Acquire & Grow Customers
Tmall & Taobao have its completely separate ecosystem
Tmall
聚划算GroupBuying 直通车
PPC Search
站内活动Event
淘金币Points
一淘CSE
微淘Social
Shopping
淘帮派Communi
ty
钻石展位PPC
Display
淘宝客CPS
4. Build Traffic, Optimize Conversions, Acquire & Grow Customers
The Single’s Day 11.11 has become the Black Friday of ChinaBrands now get to prepare for this day months ahead
US$3 Billion Sold at Taobao & Tmall in 24 hourson 2012 Single’s
Day
How Chinese sellers are preparing for 11.11
Summary in China Market Entry through eCommerce
Develop a China Consumer Strategy1
2
3
4
Decide on the Right e-Channels
Setup a suitable Operations & Organizational Model
Build Traffic, Optimize Conversions, Acquire & Grow Customers
About CLEARgo
CLEARgo is a Brand eCommerce Agency in HK & China
We help brands to grow in the China market through eCommerce
PLANE-Business Strategy
BUILDOnline Branding, User
Experience & Technology
GROWPerformance Marketing,
CRM & Conversion Optimization
THANK YOUfor your time & attention
For more information, please contact:
Charles [email protected]
+852 9470 6088
http://www.cleargo.com