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China market entry through eCommerce
Charles Chan, Managing Director of CLEARgo
The China Digital & Social Media Submit, Sydney - October 2013
By now you have heard the headline

$539 Billion

Online Expenditure
in China by 2015
from $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

1

Develop a China Consumer Strategy

2

Decide on the Right e-Channels

3

Setup a suitable Operations & Organizational Model

4

Build Traffic, Optimize Conversions, Acquire & Grow Customers
1
Demographic of Chinese consumers is diverse
Competition is fierce in most categories

What’s your Brand’s STP in China?
(Segmentation, Targeting & Positioning)
2. Deciding on the Right e-Channel

Different eCommerce Channel Models in China

brand.com

mall-operate branded store

brand-operate marketplace store

authorized online distribution
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

Cosmetics

Consumer
Electronics

Media

Grocery

Private Selling

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 month
after it opened, and shifted to sell in its brand site instead
2. Deciding on the Right e-Channel

Olay sells in almost all platforms
2. Deciding on the Right e-Channel

The luxury divide on brand site and marketplaces
Brand
Site

Official eCommerce presence

No Official eCommerce presence
2. Deciding on the Right e-Channel

So which channel is right for you?

Brand.com

Brand Image
Control
Demand Capturing
CRM/Loyalty Integration
Data Ownership
Setup & Operating Cost
Operations Complexity

Brand
Operate
Store @ Mall

Mall Operate
Store @ Mall

Distribution
Only
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 entities
and sell to Chinese consumers as cross border transactions
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3. Setup a suitable Operations & Organizational Model

Create an eCommerce user experience
for China – Information to help
customers making decisions

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* a typical product detail page in China
3. Setup a suitable Operations & Organizational Model

Payment methods in China

Alipay, China UnionPay, Direct Debit, etc
Most 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 invoice

This is how local Government keeps track of your Value Added Tax (VAT)
3. Setup a suitable Operations & Organizational Model

Customer Service – Live Chat

Hotline & Live Chat for both Pre-Sales & Post-Sales is a must in China
AliWangWang is the standard
Live Chat platform for Tmall & Taobao
3. Setup a suitable Operations & Organizational Model

Warehousing, Fulfillment & Delivery

A range of domestic and international providers
Service quality from domestic providers still varies but improving

Amazon Fulfillment Service
3. Setup a suitable Operations & Organizational Model

In-house vs. Outsource

Outsource some or all aspects of the puzzle

Merchandising
& Inventory Mgmt

Customer
Care

Store Management

Marketing & CRM

Order & Fulfillment
Management

eCommerce
Technology
4. Build Traffic, Optimize Conversions, Acquire & Grow Customers

Grow your eCommerce business under the Chinese ecosystem

Acquisition

Conversion

Retention

Measurement & Optimization

Amplification
4. Build Traffic, Optimize Conversions, Acquire & Grow Customers

Grow your eCommerce business under the Chinese ecosystem

E-DM
Directory
Search

(SEM/SEO)

Display
Ads

Brand.com

CSE
Product
Search
Affiliate
Marketing

Social
Media
4. Build Traffic, Optimize Conversions, Acquire & Grow Customers

Tmall & Taobao have its completely separate ecosystem
聚划算
Group
淘宝客

直通车

Buying

PPC

CPS

Search

钻石展位

站内活动

PPC

Display

Event

Tmall

淘金币

淘帮派

Points

Community
微淘
Social
Shopping

一淘
CSE
4. Build Traffic, Optimize Conversions, Acquire & Grow Customers

The Single’s Day 11.11 has become the Black Friday of China
Brands now get to prepare for this day months ahead

US$3 Billion

Sold at Taobao &
Tmall in 24 hours
on 2012 Single’s
Day
How Chinese sellers are preparing for 11.11
Summary in China Market Entry through eCommerce

1

Develop a China Consumer Strategy

2

Decide on the Right e-Channels

3

Setup a suitable Operations & Organizational Model

4

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

PLAN
E-Business
Strategy

BUILD

Online Branding, User
Experience & Technology

GROW

Performance Marketing,
CRM & Conversion
Optimization
THANK YOU
for your time & attention

For more information, please contact:
Charles Chan
charles@cleargo.com
+852 9470 6088
http://www.cleargo.com

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China Market Entry through eCommerce

  • 1. China market entry through eCommerce Charles Chan, Managing Director of CLEARgo The China Digital & Social Media Submit, Sydney - October 2013
  • 2. By now you have heard the headline $539 Billion Online Expenditure in China by 2015 from $212 Billion in 2013
  • 3. Key Challenges in China market entry Soaring Rent & Distribution Channel Cost
  • 4. 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)
  • 5. Since the melamine milk scandal in 2008, various product safety reports have destroyed consumers’ confidence in domestic products and drive online cross border purchase.
  • 6. Determine if your Brand is Suitable to Sell Online in China
  • 7. Determine if your Brand is Suitable to Sell Online in China
  • 8. You know why & what, But HOW?
  • 9. Key Ingredients to Successful China Entry through eCommerce 1 Develop a China Consumer Strategy 2 Decide on the Right e-Channels 3 Setup a suitable Operations & Organizational Model 4 Build Traffic, Optimize Conversions, Acquire & Grow Customers
  • 10. 1 Demographic of Chinese consumers is diverse Competition is fierce in most categories What’s your Brand’s STP in China? (Segmentation, Targeting & Positioning)
  • 11. 2. Deciding on the Right e-Channel Different eCommerce Channel Models in China brand.com mall-operate branded store brand-operate marketplace store authorized online distribution
  • 12. 2. Deciding on the Right e-Channel In China, eCommerce has been marketplace driven
  • 13. 2. Deciding on the Right e-Channel Tmall and the rest
  • 14. 2. Deciding on the Right e-Channel Horizontal and Vertical eCommerce Platforms Horizontal Platforms Luxury Cosmetics Consumer Electronics Media Grocery Private Selling Fashion
  • 15. 2. Deciding on the Right e-Channel UGG sells in both brand website and Tmall
  • 16. 2. Deciding on the Right e-Channel Coach closed its online flagship store in Tmall only one month after it opened, and shifted to sell in its brand site instead
  • 17. 2. Deciding on the Right e-Channel Olay sells in almost all platforms
  • 18. 2. Deciding on the Right e-Channel The luxury divide on brand site and marketplaces Brand Site Official eCommerce presence No Official eCommerce presence
  • 19. 2. Deciding on the Right e-Channel So which channel is right for you? Brand.com Brand Image Control Demand Capturing CRM/Loyalty Integration Data Ownership Setup & Operating Cost Operations Complexity Brand Operate Store @ Mall Mall Operate Store @ Mall Distribution Only
  • 20. 2. Deciding on the Right e-Channel Wait! Do you have a Chinese entity already? Have you registered and trademarked your brand already?
  • 21. 2. Deciding on the Right e-Channel Tmall now allows foreign brands to setup without local entities and sell to Chinese consumers as cross border transactions
  • 22. 欢迎光临本店 登录 注册 订购热线:400-6615-888 [产品体验] 去黄提亮焕白精华(2) 首⻓ 页 品牌故事 企业文化 草药解说 美丽零⻓险 风 会员权益 留言板 优惠活动 热門搜索 : 痘 祛斑 美白 补水 去黄提亮 薄肌专用 敏感肌肤 去结算 您的购物⻓有商品: 0 件 车 当前位置: 首⻓ > 产品划分 > 面部 理套装 > 正品迪豆大亚洲组合100g+22ml+8ml+22ml+8ml 深层清洁 低碱低泡沫洁面乳 不 水配方洗面奶 控油清爽 预防痘痘反复 抑制油脂 页 护 损 分泌 收细美白 祛黑头紧致毛孔 7天快速祛痘 最有效青草药祛痘淡印套装 正品迪豆大亚洲组合100g+22ml+8ml+22ml+8ml 深层 全部商品分类 清洁 低碱低泡沫洁面乳 不 水配方洗面奶 控油清爽 预 损 产品划分 防痘痘反复 抑制油脂分泌 收细美白 祛黑头紧致毛孔 7 洁面乳 天快速祛痘 最有效青草药祛痘淡印套装 爽肤水 面膜 ¥149元 面部精华 ¥298元 面部 理套装 护 商品货号:dd000197 乳液/面霜 商品库存: 972 套 商品品牌:迪豆 身体 理 护 上架时间:2012-08-06 眼部 理 护 商品点击数:1019 此商品为免运费商品,计算配送金额时将不计入配送费用 男士 理 护 BB霜 卸妆 购买数量 T区 理 护 1 商品总价:¥149元 肤质划分 干性肌肤 中性肌肤 油性肌肤 混合性肌肤 敏感性肌肤 购买过此商品的人还购买过 功能划分 美白去黄 正品迪豆中健肤组合 补水保湿 50g+15ml+15ml 深层... 正品迪豆胶原蛋白紧致隐 正品迪豆中健肤组合 洗面膜60g 青草药独特配 形面膜贴6片/盒 全球首 50g+15ml+15ml 深层... 方... 正品迪豆草药防痘舒缓免 祛斑嫩白 款青... 薄肌生⻓ 长 修复痘印 祛痘套装 祛痘单品 控油清爽 ¥88元 抚 平细纹 ¥98元 立即购买 立即购买 ¥49元 ¥88元 立即购买 立即购买 提拉紧致 丝滑柔嫩 细致毛孔 平复眼袋 商品描述: 消除黑眼圈 商品属性 商品标签 去黄提亮 细致白皙 晒后修复 祛鸡皮肤 去除黑头 瞬间遮瑕 隔离防 护 完美裸妆 深层卸妆 深层清洁 浏览历史 3. Setup a suitable Operations & Organizational Model Create an eCommerce user experience for China – Information to help customers making decisions 用户评论 (共0条评论) 暂时还没有任何用户评论 总计 0 个记录,共 1 ⻓。 第一⻓ 上一⻓ 下一⻓ 最末⻓ 页 页 页 页 页 用户名: 匿名用户 E-mail: 评价等级: 评论内容: 验证码: 提交评论 猜你还喜欢 正品迪豆即时 纹弹力套装 抚 100g+120ml+30... ¥506元 正品迪豆薄肌生⻓韧白精华30g 长 正品迪豆遮瑕亮颜隔离bb霜(曼丝 青草药配方温和亲肤... 紫)60g 全球首... ¥136元 立即购买 新手上路 订购方式 立即购买 配送与支付 支付方式说明 ¥138元 正品迪豆即时 纹弹力套装 抚 100g+120ml+30... ¥506元 立即购买 服务保证 产品质量保证 联系我们 投诉与建议 立即购买 会员中心 我的订单 购物流程 配送支付智能查询 售后服务保证 选机咨询 我的收藏 售后流程 货到付款区域 退 货原则 换 网站故障 告 报 资金管理 © 2005-2012 迪豆官方订购商城 版权所有,并保留所有权利。 Tel: 4006615888 E-mail: kefu@didou.cn ICP备案证书号:闽ICP备07073730号-1 共执行 85 个查询,用时 0.460008 秒,在线 30 人,Gzip 已启用,占用内存 4.920 MB * a typical product detail page in China
  • 23. 3. Setup a suitable Operations & Organizational Model Payment methods in China Alipay, China UnionPay, Direct Debit, etc Most people don’t have credit card and are unable to pay non-RMB transactions
  • 24. 3. Setup a suitable Operations & Organizational Model “Fapiao” – not just an official invoice This is how local Government keeps track of your Value Added Tax (VAT)
  • 25. 3. Setup a suitable Operations & Organizational Model Customer Service – Live Chat Hotline & Live Chat for both Pre-Sales & Post-Sales is a must in China AliWangWang is the standard Live Chat platform for Tmall & Taobao
  • 26. 3. Setup a suitable Operations & Organizational Model Warehousing, Fulfillment & Delivery A range of domestic and international providers Service quality from domestic providers still varies but improving Amazon Fulfillment Service
  • 27. 3. Setup a suitable Operations & Organizational Model In-house vs. Outsource Outsource some or all aspects of the puzzle Merchandising & Inventory Mgmt Customer Care Store Management Marketing & CRM Order & Fulfillment Management eCommerce Technology
  • 28. 4. Build Traffic, Optimize Conversions, Acquire & Grow Customers Grow your eCommerce business under the Chinese ecosystem Acquisition Conversion Retention Measurement & Optimization Amplification
  • 29. 4. Build Traffic, Optimize Conversions, Acquire & Grow Customers Grow your eCommerce business under the Chinese ecosystem E-DM Directory Search (SEM/SEO) Display Ads Brand.com CSE Product Search Affiliate Marketing Social Media
  • 30. 4. Build Traffic, Optimize Conversions, Acquire & Grow Customers Tmall & Taobao have its completely separate ecosystem 聚划算 Group 淘宝客 直通车 Buying PPC CPS Search 钻石展位 站内活动 PPC Display Event Tmall 淘金币 淘帮派 Points Community 微淘 Social Shopping 一淘 CSE
  • 31. 4. Build Traffic, Optimize Conversions, Acquire & Grow Customers The Single’s Day 11.11 has become the Black Friday of China Brands now get to prepare for this day months ahead US$3 Billion Sold at Taobao & Tmall in 24 hours on 2012 Single’s Day
  • 32. How Chinese sellers are preparing for 11.11
  • 33. Summary in China Market Entry through eCommerce 1 Develop a China Consumer Strategy 2 Decide on the Right e-Channels 3 Setup a suitable Operations & Organizational Model 4 Build Traffic, Optimize Conversions, Acquire & Grow Customers
  • 34. About CLEARgo CLEARgo is a Brand eCommerce Agency in HK & China We help brands to grow in the China market through eCommerce PLAN E-Business Strategy BUILD Online Branding, User Experience & Technology GROW Performance Marketing, CRM & Conversion Optimization
  • 35. THANK YOU for your time & attention For more information, please contact: Charles Chan charles@cleargo.com +852 9470 6088 http://www.cleargo.com

Hinweis der Redaktion

  1. Thank you RogerI hope by now you are convinced that you should sell online in China, in my presentation in the next 30 minutes, I will talk about China market entry through eCommerce, and I would focus on some of the key steps and issues that you need to be aware of when you plan to sell online in China.
  2. When you plan for your brand and products to enter the China market, what you will find is that rent or distribution cost is soaring, and even so this may only give you a limited presence to certain cities and regions. In comparison, selling online immediately gives you a national presence, which can be a good alternative option for your China entry, or at the very least, a complimentary option to your offline presence.
  3. There are many reasons why Chinese consumers are shifting to online, pricing and convenience are the two most important factors.At the same time, pollution & traffic jam also help pushing people to buy online.
  4. Olay sells in almost all platforms but it lacks consistency in promotions and pricing
  5. A brief introduction about myself and the company.I’m Charles Chan, the founder and managing director of CLEARgo. We are an eCommerce agency in Hong Kong and China. Broadly speaking, we help our clients to plan, build and grow their eCommerce business.We are a Magento Solution Partner, so we focus very much on the Magento Solutions.Our clients include brands such as Proactiv, Jebsen, Sino United Press, and pure eCommerce business such as Cartridges Direct.