Wenli LiaoCEO of Dataotuan

How to leverage consumer insights and marketing

intelligence to build your business in China

Big

Complex

Understanding the

Chinese Market

Rapid growth

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China - Not ONE Market

Big Difference by Region

Huge Difference between Tier 1-4 Cities

Very Different Speed of Growth

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Trend Internet Penetration

Data source: 2012 CNNIC 6

Online Shopping Spending

Data source: McKinsey online shopping survey, 2013 March 7

Opportunity

– Big territory, limited store covering – More rich people in tier 3/4 cities are looking for high quality goods; online is an easy channel to approach them.

Challenge vs = Opportunity

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Challenge– Logistics Big Ecommerce sites and delivery

companies have seen it as an opportunity and took action

– Lower internet penetrationIncreasing steadily in tier 3/4 cities

– Users recognition of EcommerceStimulated by daily deal, flash-sales

sites9

Challenge vs = Opportunity= future opportunity

Trial

Measure

Optimize

Expand

Brand building on the

Chinese Market

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How to Enter the MarketImportant channels to enter a market•Ecommerce site

– Online sales channels– Partnership– SEO/SEM/Social media– ........ but

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.... compared to more developed countries, you need to test even more on this market.

Channels to Try the MarketDaily deal websites

– Fast/still growing– Aggressive– Flexible– Attractive price– Bring E-commerce close to daily life– Educated many non e-shoppers into e-shoppers

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Flash-sales websites– Clear positioning– Exclusive– Create urgency– Aggressive marketing

Trial Results Should Be SMART

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SpecificMeasurableAchievableRealisticTime-bound

• Try out different test markets in China• Display yourself at places where people

go to find a good deal• Measure – be SMART• Get insights directly from the first

buyers and then

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Try...Optimize...Expand

Try...Optimize...Expand