Nenad Cetkovic COO Lengow China is now the largest e-commerce market in the world. By 2018, China's predicted total revenue is set to reach 871 billion euros, accounting for 40% of the total e-commerce market. By 2020, the market is expected to be larger than the USA, Japan, the UK, Germany and France combined. The Chinese market is complex - there are several different business models, whereas in Europe most e-commerce companies act as independent online retailers. We'll be taking a look at how German online retailers can tap into the market in China.

2. S E L L E V E R Y W H E R E

3. MAKING THE
MOST OUT
OF CHINA’S
POTENTIAL
NENAD CETKOVIC
CHIEF OPERATING OFFICER

4. CHARACTERISTICS
OF THE MARKET

5. 1.3 X
EUROPEAN MARKET
10 X
GERMAN MARKET
1.7 X
US MARKET
MARKET SIZE - CHINA
Sources: McKinsey and Company
No.1
ecommerce market
in the world
2017 FORECAST:
$ 857 BILLION

6. IN CHINA
MARKET SIZE - CHINA
720 MILLION
internet users
52%
internet penetration rate
25%
of the Chinese population
shop online
91%
of these Internet users have an
account on the biggest social
media platforms:
WeChat, QQ, Weibo and Youku
Sources: internetlivestats,, Ecommerce Europe

7. BACKGROUND AND IMPACT OF CULTURE
AND POLITICS
The booming economy and political development
means many changes in regulations, taxation and process
structures
Divided by provinces/cities
Culture/languages (mainland China, HK, Taiwan)
Ex of a typical local festival: 40% of Chinese E-commerce turnover
is made on Tmall.com and JD.com for Single’s Day
(11th November, or 11.11)
The censorship in China
Amazon = Tmall, Google = Baidu,
Facebook = Wechat, Twitter = Sina Weibo, Paypal = Alipay
A MUCH DIFFERENT INDUSTRY

8. THE DEVELOPMENT SPEED
STATE OF NETWORK
More than ½ of online transactions
are done through smartphone
(vs 1/3 in the U.S)
FAST TREND EVOLUTION
2014
O2O
Online to offline
2015
Beginning of WEB KOL
Key Opinion Leader
2016
Micro Video
+ Live Video Shows
Different attitude with digital tools:
short time of PC usage, fast transfer
to smartphones, powerful social media
5G is already on its way Fan economy: communication
relies on influencers
> Reputation is the key

9. CHINA B2C CROSS-BORDER E-COMMERCE
$85 BILLION
2016 Turnover
40%
of chinese online
consumers buy foreign goods
$473
annual average spend
on foreign goods
50%
cross-border consumers
in China by 2020
THE BEST SELLING PRODUCT
CATEGORIES EXPORTED FROM CHINA
Fashion
High Tech
Home
THE TOP RESEARCHED PRODUCTS
IMPORTED BY CHINESE CONSUMERS
Fashion
Home
Baby products
Pharmaceutical products
Cosmetics
Food
Source: China Internet Watch, E-marketer, AliResearch

10. In other countries, e-commerce is a way
of doing shopping. In China it’s a way of life.
Jack Ma - CEO OF ALIBABA
ALIBABA’S 11/11: SINGLES DAY
Source: frenchweb
$17.8 BILLION
worth of GMV VS Black Friday
and Cyber Monday: $5.7 billion.
11.000
international brands
657 MILLION
orders
>1 BILLION
transactions
82%
of purchase realised on mobile
+32%
compared to 2015

11. THE KEY
INDUSTRY PLAYERS

12. THE BIG 3 IN CHINA: BAT INSTEAD OF GAFA
THE NO.1
LOCAL SEARCH
ENGINE
B2C B2B
C2C Cross-border
Wechat
Social media
QQ
Messaging

13. A MARKETPLACE KINGDOM
61% 19%
Source: Research Consulting Group (february 2016)

14. Created by Tencent 5 years ago
800 million users
WeChat Wallet features: e-commerce & payment
options
Essential tool for communication between sales &
clients, and for publishing articles
WECHAT

15. WHY CHINA?
The cross-border market is quite new in China
(Tmall Global launched in 2014 and JD WorldWide in 2015)
25% of growth per year VS 11% in France
Middle class: between 7% and 30% of the total population
New generation with more purchase power + big interest in European
brands and high quality products
China is projected to become the largest cross-border B2C market by 2020
Special market in the APAC area

16. HOW
LENGOW HELPS

17. AS THE EUROPEAN LEADER,
LENGOW CAN HELP YOU SELL EVERYWHERE
(Sources: Remarkety, Ecommerce Europe)
1
CHINA
2
USA
3
UK
4
JAPAN
6
GERMANY
5
FRANCE
7
SOUTH
KOREA
8
CANADA
9
RUSSIA
10
AUSTRALIA

18. WE’RE EXPERTS ON CROSS-BORDER ECOMMERCE
AND FRAGMENTED MARKETS
Home
Fashion/Sport
Electronics Beauty/Healthcare
Generalists

19. WE’RE USED TO HANDLING
CHANNELS AND COUNTRIES’ SPECIFICITIES
We can connect you to any platform!

20. CHINESE MARKET SPECIFICITIES
Behaviour
Comparison culture
Window shopping
approach
Detailed product pages
Technique
Adapting product
catalogue
Connecting with
marketplaces’ information
systems
Branding &
digital marketing
Strong competition &
very low price
Regulation barriers
Importance of social media
Logistics
Complex and costly
Specific tax system
Customer
support
Needs to be in Chinese
English is not acceptable
Financial
Payment methods
Alipay is essential

21. OPENING YOUR SHOP ALONE
A LONG AND COMPLEX PROCESS
Open an Alipay account
Admin to do with opening the shop
Create content for the shop
Promotional strategies
Logistics, returning products, customer service
Open the shop
Translate product catalogue
Open the shop
Customer service
Stock
Logistics
Marketing strategy
Adverts
Shooting photos, videos

22. OPENING YOUR SHOP WITH LENGOW
WITH LENGOW :
1 SPOKESPERSON, 1 POINT OF CONTACT
TO-DO:
CREATING A STORE
Open an Alipay account
Admin to do with opening the shop
Create content for the shop
Promotional strategies
Logistics, returning products, customer service
Open the shop
TO-DO:
TMALL PARTNER
Translate product catalogue
Open the shop
Customer service
Stock
Logistics
Marketing strategy
Adverts
Shooting photos, videos

23. W W W . L E N G O W . C O M
nenad@lengow.com
NENAD CETKOVIC
C H I E F O P E R AT I N G O F F I C E R
+33 1 84 79 03 70
@Lengow_DACH
ANY QUESTIONS?

24. W W W . L E N G O W . C O M
Jim.Knopf@lengow.com
JIM KNOPF
M A N AG I N G D I R E C TO R G E R M A N Y
+49 172 7306633
JimKnopf13
MEET US AT STAND A15!

26. WE’RE EXPERTS ON CROSS-BORDER ECOMMERCE
AND FRAGMENTED MARKETS
Home
Fashion/Sport
Electronics Beauty/Healthcare
Generalists

27. A MARKETPLACE KINGDOM
61% 19%
Source: Research Consulting Group (february 2016)