50
China Sales Co. Ecommerce in China
China Sales Co.
Ecommerce in China
China Sales Co.
China Sales Co.
China Sales Co.
Local ISPs are responsible for mainland content to maintain “harmonious communications” 50,000+ PLA are active in monitoring, as are Police and internal security divisions. Google and Facebook and Twitter are actively blocked,. “Don’t mention the 4 T’s” e.g.: Tibet/ Tiananmen/ Taiwan / Tits/ + weapons/ politics/ illegally imported products/ live news topics
THE GREAT FIREWALL OF CHINA
China Sales Co.
What are some of the differences between Baidu and Google?
• Free to join: automated signing up
• 1 day to join
• No search Censorship
• ”Not-great” with Chinese language
• Private Company
• Ranked number 1 site globally
• Offers email, personal services
• OK for HK but blocked in China since
2009
• Human Paperwork/ signing up fee
• Can take up to 2 weeks
• Active search Censorship
• Best Chinese language designed SE
• Government controlled/ mostly
Private
• Ranked number 4 website globally
• Baidu Network (controlled content)
• No.1 choice / Preferred by Chinese
China Sales Co.
VS
April 08 2016 New List: Cross Border Approved Goods
China Sales Co.
Updated April 08 2016 New List: New Cross Border-Tarrifs
China Sales Co.
· Import tariff: 0 15% 30% 60% · VAT (17% for most products): 30% discount
· Books, newspapers, magazines and video for education purpose
· Sports ( excluding golf products) and fishing products
· Tobacco and liquor *Wines
· Consumption tax (if applicable): 30% discount
· IT products such as Computers, video cameras, digital cameras
· Textiles and garments · Jewelleries
· Food and Beverage · TV and home appliances · Golf products
For most products, the tax rate is 11.9% now
· Gold and silver · Bicycles
· High-end watches (RMB10,000 and above)
· Furniture · Toys and Entertainment products · Others · Cosmetics
China Sales Co.
Chinese are the world’s top shoppers online. Addicted to mobile screens. Excited about new brands and 99% of e-shoppers will use search info on a brand/product prior to purchasing!!
China Sales Co.
“……Now the Asian mobile internet and mobile phones development is faster than the West, which gives Chinese Internet companies an golden opportunity of a lifetime…” …"Our mission is to make it easy to do business anywhere. …now that Alipay is China's most popular online payment system, it's a natural step for us to expand the service globally." ..”not only can WeChat connect people but also Internet-connected machines. Every (global) WeChat machine will have a QR code as its ID and be controlled through WeChat.”
Jack Ma, CEO Alibaba Group,
Martin Lau CEO of Tencent
Allen Zhang We Chat
China Sales Co.
China Sales Co.
5 things you need to know about
*Incredibly popular in China, most direct B2C for of communication. RJB: “will be bigger than Facebook by 2016” *”Private” & “official” accounts for transactions. *The ”Holy Grail” for B2C marketers. *Not easy to do well. High maintenance required.
China Sales Co.
14 currencies
100M+ daily transactions
500K+ merchants
800M+ Registered users
USD $12.3. Billion Amount handled in just-1 day Nov. 11.2015
China Sales Co.
China’s Online Advertising market has reached 130 billion CNY RMB Approx*USD $4 billion per Q spent on attracting internet viewers and CT’s
China Sales Co.
China Sales Co.
1. Supply of fake products 66% 2. Low seller/ brand credibility 43% 3. Delivery slow or unreliable 25% 4. Customer service sucks 23% 5. Unable to use preferred payment 20% Source: iresearch
What obstacles stop them from buying online?
Other Factors to consider: Lack of Chinese content or web pages: no Chinese = “no chance” of winning their business Payment methods: need to accept Chinese preferred payment platforms Server speed: sites hosted outside of China are slowed by “Great Fire Wall”
SELLER NEGATIVES
China Sales Co.
1. Price is better 52% 2. Convenience of shopping online 19% 3. Variety of products 16% 4. Better product Information 6% 5. Products are not available in store 6% Source: iresearch
What are Chinese Buyers looking for?
Other Factors to consider: Regional locations: Tier 1 cities buy different products to Tiers 2-4 Good China Social Media presence: Used as a 2nd source of information Product information: detailed product specifications and USP’s in Chinese and on home site Friends and word of mouth: “likes” “shares” and recommendations help qualify purchase decision
SELLER POSITIVES
China Sales Co.
Snapshot of Growth Rate Compared with China’s E-Commerce market in 2011 -2015
2012 2013 2014 2015
2014 $350 Billion
2015 $550 Billion
China Sales Co.
2011 $105 Billion
China Sales Co.
E-commerce in China 2016
21
OWN e SHOP.com.cn (B2C DIRECT) BRAND SITE
& E-COMMERCE SITE
BRAND MOBILE E SHOP
Multiple In House (brand controlled) POS & Shopping Cart Management Options Strong ability for CRM and Price Control
DISTRIBUTOR STORE/ POS
DIRECT: SALES/ LIVE CHAT/ and SOCIAL MEDIA ASSISTED Mobile pay, Direct Bank Wire, COD, Pay Pal, courier etc.
MAIN BRAND SITE, LANDING PAGE + SHOPPING CART
MOBILE E SHOP
OFFLINE RETAILOR/ DISTRIBUTOR OR OTHER POS
China Sales Co.
22
3rd Party (supplied) POS : Sales orders and shopping carts are on (other) 3rd party controlled locations: *Management still required, and less control over Pricing and CRM
OWN BRANDED STORE SITTING ON PLATFORM OWNED BY 3rd PARTY SET UP FEES + COMMISSIONS
DISTRIBUTOR STORE/ POS
OFFLINE POS “Traditional” Distributors, Retailors and Offline sales channels. POS not-connected to Online Payment System.
+ other Sales Platforms
OTHER ONLINE SHOPS: PRODUCTS GIVEN TO ONLINE STORES WHOM INLCUDE IN CATAGORIES Eg: YIHAODIAN, 51BUY,
China Sales Co.
OWN BRAND SHOP
OTHER CHINA E-COMM
PLATFORMS
VS.
POSITIVES NEGATIVES
• Total brand and price control • Direct CRM • SEO/SEM on own pages • Maximum profit margins • Can choose what to sell • Long term goal for every brand • Own business
• Need local China partner and offline sales support
• Time to begin selling • High IT and set up costs • Cross border issues/ payment
gateways/ duty and taxes • Little to no brand awareness
• IT requirements covered just “lease, decorate and sell”
• High traffic of shoppers • 80-90%% of purchases are on
marketplace platforms • SEM capabilities, • Raise brand awareness • Connected with major payment
gateways
• Still requires offline sales support • High traffic of shoppers (!) • SEM pricing set by platform (not
market) • Set up costs and paperwork • Pricing “discounting strongly
advised” • Limited flexibility in design and
SEO/SEM
China Sales Co.
China Sales Co.
China Sales Co.
The willingness to spend is not affected by income gap or location.
30% 23% 23% 22%
43%
40% 32% 30%
4% 8% 26% 26%
23% 28% 20% 22%
0%
20%
40%
60%
80%
100%
Regional Differences in the Favor Degree for Homemade and Imported Infant Milk Powder
25% 26% 21% 29% 35%
26% 20%
37% 44% 36%
37% 35%
44% 47%
10% 10%
17% 13% 4% 4% 7%
28% 20% 26% 21% 26% 26% 27%
0%
20%
40%
60%
80%
100%
The Favor Degree for Homemade and Imported Infant Milk Powder in Families with Different Income
Data source: Based on 1000 valid questionnaires
China Sales Co.
46.4%
41.2%
16.0% 15.4%
11.1% 10.8% 10.8% 8.2%
6.9% 6.2% 5.6% 5.2% 4.9% 4.2% 3.9% 3.9% 2.9% 2.6% 1.3% 0.3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
The preferred E-commerce channels For Infant Formula in the Last 3 Months (Feb .2016)
Data source: Based on 306 valid questionnaires which had bought milk powder online in the last 3 months
Official brand site
China Sales Co.
6.7%
16.6%
22.3%
22.5%
33.3%
81.7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
The Consumers’ Tendency towards Infant Milk Powder Purchase Channels
China Sales Co.
Quality assurance, product safety and approved formula are the main causes for domestic consumers’ favor for imported infant milk powder.
6.6%
76.3%
86.4%
94.6%
0% 25% 50% 75% 100%
97.5%
29.8%
2.5%
8.3%
0% 25% 50% 75% 100%
Why buy Original Imported Infant Milk Powder
Why buy Chinese Infant Milk Powder
• Sector: Consumer Goods: Multibrand online store • 5.2+M subscribers • 4,000+ brands of wine • Average: 80K gift bottles of wine sold per day (*about 12 shipping containers)
Example: YESMYWINE.CN
China Sales Co.
• Sector: Direct own brand B2C clothing and apparel • History: since 2007 *online shop only/ no retail stores • Annual sales volume in 2011: US$960M • 2015: estimated US $2 Billion • Daily Traffic: 100K visitors per-day
Example: VANCL.COM
China Sales Co.
• Sector: B2C portal Travel and Tourism booking • History: since 1999 • Est. sales volume in 2014: (US $214 M in 1st quarter) est. annual. US$1 billion • Est. daily traffic: 50K visitors, per day
China Sales Co.
WHAT’S IT ABOUT? RESEARCH BUY! COMPLAIN!!
Generate excitement, engage and manage flow to sales to CRM->
China Sales Co.
33
China’s Top Search Engines by Market Share
67.55%
15.18%
8.48%
3.99% 3.29% 0.70% 0.46% 0.26% 0.09%
百度(Baidu) 360搜索(360 Search)
搜狗(Sougou) 搜搜(Sousou) 谷歌(Google HK)
必应(Bing) 雅虎(Yahoo) 有道(Youdao) 其他(Others)
Source: CNZZ
Sear
ch e
ngin
e m
arke
t sha
re
China Sales Co.
Baidu ranks 4th for daily visitors (globally)
China Sales Co.
China Sales Co.
Baidu searches for “Instant Formula” 2011-2016
China Sales Co.
Baidu searches for “Bellamy’s Formula 贝拉米奶粉” May 2016 “above the fold / Page 1” results
SEM ADVERTISING SEM ADVERTISING
SEO / FREE RESULT
China Sales Co.
Baidu searches for “Bellamy’s Formula 贝拉米奶粉” May 2016 ““below the fold / Page 1” results
SEO / FREE RESULT
SEM/ ADVERTISING
China Sales Co.
Aus. Food Key Words sample
Chinese Key Word
Baidu SV Apr.15-May 15.2016
PPC in $USD
PPC in $AUD
Est.SEM $AUD P/Month
Australian infant formula 澳洲奶粉 780 $2.21 $3.03 $2,361.61 Australian wine 澳洲红酒 120 $1.55 $2.12 $254.82 Australian beef 澳洲牛肉 100 $1.49 $2.04 $204.13 Australian milk 澳洲牛奶 30 $1.51 $2.07 $62.06 Australian fish/seafood 澳洲海鲜 10 $1.59 $2.18 $21.78 Australian cookies/biscuits 澳洲饼干 10
$1.62 $2.22 $22.19
Australian food shop 澳洲食品店 10 $1.58 $2.16 $21.65 Deliver Australian food 快递澳洲食品 10 $1.44 $1.97 $19.73
Selected Key Words CN Key Word Baidu SV Apr.15-May 15.2016
$USD $AUD Est.SEM $AUD p/month
Study in Australia 澳洲留学 1500 $6.44 $8.82 $13,234.20 Bellamys infant formula 贝拉米奶粉 1600 $3.44 $4.71 $7,540.48 Penfolds Wine 奔富红酒 300 $1.85 $2.53 $760.35 Australian beauty product 澳洲美女 30 $3.47 $4.75 $142.62 Visit Australia 澳洲旅游 200 $3.49 $4.78 $956.26
China Sales Co.
Baidu searches for “Australian Wine” 2011-2016
Social CRM
View all of your customer in one
table with demographic info
and engage details.
China Sales Co.
TOURISM & DESTINATIONS
What can Australian businesses sell to Chinese online?
QUALITY FOOD & WINES FINANCIAL SERVICES & INVESTMENTS
LUXURY GOODS EDUCATION
AND… YOUR PRODUCT?
China Sales Co.
China Sales Co.
Chi
na S
ale
s Co.
Expect to grow !
Step 1: How will you achieve market share?
China Sales Co.
China Sales Co.
Step 2: Build your China Face
China Sales Co.
Step 3: Launch your brand in China
China Sales Co.
Step 4. Start to sell sell sell!
China Sales Co.
Step 5: Keep an eye on the competition
China Sales Co.
Step 6: Keep calm. Call China Sales Co.
Thank you China Sales Co.
