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| Date post: | 14-May-2015 |
| Category: |
Business |
| Upload: | asia-pacific-digital |
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Chinese consumers are starting to
spend & will create one of the
world’s largest retail markets
China’s consumer economy has
been likened to that of the USA,
developing from the 1970s where
many consumer brands started
from this time to dominating the US
market by building their brands &
distribution through this consumer
growth cycle
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There are over 650 cities in China with considerable growth in the secondary
& third tier cities with over 120 cities with a population of over 1 million
people. China has several different economic cycles developing at different
stages & paces.
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The Chinese are transforming from
savers to spenders in this generation.
They have adopted the approach
what about me
They are gaining assess to credit
cards and facilities.
They are very aware of brands and
what they want
The evolving Chinese consumer is
growing is maturing in an online
environment.
Why E-Commerce to Enter China?
Only way to reach consumers
across China
Effective way to operate on a low
cost model
More effective stock controls
Removes risks of dealing with:
Property leases
Staff training & issues
Fakes
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For the cost of a Shop Fit-Out, a Retailer can set up an e-
commerce response that can service 500 cities in China
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Source: alibaba.com
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Know where your customers are across China
Access to sales channels that can touch your
customer
Access to distribution that reaches your customers
Access to payment gateways that link to your targeted customers that
reach these clients
Retail Success
Awareness of where the current market is & how fast changes take place is crucial for
Retailers entering China, as this could be very different from international trends. You
don’t have to be the largest international brand to succeed, though you have to be smart
on how you enter & service China.
Today’s E-Commerce in
China is dominated by
the Alibaba Group.
There is a shift with
consumer towards more
specially websites that
focus on market sectors.
Sales are also starting to
increase in stand alone
websites that have
effective social media
support
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For Retailers entering China,
they must first:
1) Decide who and where their
customers are
2) Decided what products are
really suitable and the
range accordingly
3) Retailer needs to decide if
they want to establish their
own operation or use an
integrated agent 18
Retailers must then decide what
channels best suit their products &
services. CRG recommends:
Start with a Tmall managed shop
as a product response whilst the
retailer builds its own e-commerce
website & thereafter bolt-on
specialist channels.
This can be done as a stand-alone
arrangement by the retailer setting
up in China or using an end-to-end
service provider/agent
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Look at the most efficient brand
building strategies.
Keep up on ongoing product
development to keep up the
incredibly fast changing market.
Best to remember to think
INTERNATIONAL, though act
LOCAL
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CRG can provide consulting to a standalone e-commerce sales & support
solution that can also include full back-end fulfillment and an end-to-end
solution
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“The Question is:
Can you ignore what is evolving in the retail sector
China & can you ignore what your competitors might do in China”
E-commerce is one of the
only ways that a retailer
can reach and connect to
its targeted consumers
across China on a low
cost operating model.
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CRG is a multi-channel retail services company that has the ability
to assist retailers enter China through a multi-channel & network
approach
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“CRG’s operating model is to use its sales and distribution channels to partner with retailers and
brands to link them to consumers in China through a multi-channel approach.”
Through its sales, marketing and logistics channels, CRG can offer
international retailers both a stand-alone or a broader multi-channel
approach for end-to-end retail e-commerce, sales & distribution services to
facilitate or support their growth in China.
Our E-Commerce division provides combined services allowing retailers
who are not present in China to have a full stand-alone sales and
distribution response to enter China without the need to build a full service
operation in China.
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To maximise Sales selecting the right partner to work with that has, the local knowledge,
relationships, connections, and local expertise are the primary ingredients for success.
Given the bureaucratic nature and ever changing picture in China, anything else will lead
to significant problems. CRG are the right partner.
CRG prides itself with the following capabilities:
Multi-channel capability
Unique E-Commerce capability
National licence for fulfilment
Different solutions tailored to customers to maximise sales
Ability to collect payment using various methods for Chinese consumers
Local Marketing expertise
Flexible approach to the commercials
The logistics infrastructure
A Customer Portfolio
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Andrew Wyles Waters, Chairman CRG China Retail Group
Investments & Strategic Partnerships T: +852 6117-8852
Wing-Yun Wong, Hong Kong E: [email protected]
Mike Woodall, London
China Retail Logistics Limited E: [email protected]
Sunny Yu, China
E-Commerce Sales Solutions E: [email protected]
1901, 19/F, The Centrium
60 Wyndham Street Central, Hong Kong
W: www.chinaretailgroup.com
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For more information on retailing in China, visit: www.chinaretailgroup.com where briefing papers and presentations are available for download
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THE END
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