2014 CHINA DIGITAL POWER STUDY
Contents
BRANDRANKINGS
INTRODUCTION eTAILERRANKINGS
02 05 13 34
MANUFACTUREReCOMMERCE
STAGE
02
CHINA’S FIRST-EVER ECOMMERCE INDUSTRY BENCHMARKING STUDY
Kantar Retail: Setting the Standard
With this inaugural Digital Power Study, Kantar Retail establishes a competitive baseline for how eTailers are viewed by their trading partners and established the attributes of best in class performance to strive for.
1st 5 201ECOMMERCE
BENCHMARKING STUDY COMPONENTS PARTICIPANTS
Born out of strong client interest in under-standing who is lead-ing in the digital and eCommerce industry
Identifies those eTail-ers who set the stan-dard of performance as rated by their trad-ing partners in the most important areas of the manufacturer / eTailer relationship.
Commercial StrengthStrategic StrengthOperational StrengthMarketing StrengthOrganization & Capability
201 leading manufacturer participators from different eCommerce related func-tions:
eBusiness Development Marketing Digital Marketing KA Management Channel Development Market and Shopper Insight
04
DIGITAL POWER STUDY HELPS MANUFACTURERS WIN BY PROVIDING INSIGHTS
Paint comprehensive picture of FMCG manufacturers’ eCommerce stages
Pinpoint key areasor capabilities that manufacturers
and eTailers can build and improve on
Identify leaders in digital and online retail across different business areas
Highlight areas of focus for future strategic planning and development
1. Big
Picture
2. Leaders
3. F
ocus A
rea
4. Strengths & Weaknesses
MANUFACTURER eCOMMERCE STAGE
06
<1% 2%-5% 5%-10% >10%
Among all major FMCG categories, the Infant Nutrition and Baby Care categories are the most mature online. 59% of IMF and Baby category manufacturers re-ported that more than 10% of their total sales come from online; 33% report that their online business contributes between 5% and 10% of their total respective sales.
The Household, Personal Care, and Cos-metics categories are the next most mature online, with eCommerce already contributing more than 2% of total sales for 61% of HPC manufacturers.
Food and Beverage are the least mature categories online; 58% of manufacturers report that less than 1% of their total sales come from eCommerce.
SIZE OF eCOMMECE IN YOUR BUSINESSSize of eCommerce as a % of Total Sales
Infant Nutrition and Baby Care
Household, Personal Careand Cosmetics
Non-Food GroceryFoods and Beverage
6%11%
25%
58%
14%
43%
29%
14% 39%
39%
19%
3%
8%
33%59%
12
When asked about their expectations from eTailers, manufacturers ranked Size of Business and Branding as the most im-portant factor, followed by eTailer Busi-ness Growth and Profitability.
Digital Marketing and Online Shopper Mar-keting Capability was ranked as the next important business area that Manufactur-ers expected eTailers to support.
Shopper and Category Insights ranks fourth, followed by Logistics and Delivery Capability, Company Strategy and Supply Chain Management, etc.’
WHAT MATTERS MOST TO MANUFACTURERS?What Matter Most to Manufacturers?(Percent of Manufacturers Ranking 3 of 3 in Importance)
eTailers’ Branding,
Sizeof B
usiness
Digital M
arketing
and Online Shopper Marketing Capability Shopper
and Category Insights Logisti
cs
and Delivery Capability
Website Navigation
and Product Disp
lay
Clear Company Stra
tegy
Supply Chain Management
eTailers’ Busin
ess Growth
and Profitability
Rank1
64.7
2
56.6
3
55.6
5
30.3
7
20.2
6
20.2
811.1
4
41.4
ETAILER RANKINGS
14
eTAILERS WERE EVALUATED IN THE ASPECTS OF
TrafficGrowth Opportunity Profitability
Clearest Company eCommerce StrategyBest Strategic PartnershipPower eTailers
Best Buying Team & Category ManagementBest New Product Launch InitiativesBest Logistics & DeliveryBest Online Shopper Data AnalyticsBest Understanding of Digital Path-to-Purchase
Most Innovative Digital Marketing ApproachBest Use of Mobile & Social NetworkingBest Investment in SEO & Online Advertising
Most Mature & Professional Team Efficient & Flexible Organization
1CommercialStrength
2 StrategicStrength
3OperationalStrength
4 MarketingStrength
5 Organization & Capability
15
Based on its aggregate score, JD.com is the highest-ranked, Best of the Best eTailer in this year’ s inaugural 2014 Digital Power Study. JD was recognized for its compre-hensive product assortment, advanced logistics system, and high-level of website traffic.
Tmall debuted at No. 2 in the Top 10, per-forming strongly in platform operation, marketing, mobile, and data analytics.
Yihaodian secured the No. 3 spot and was recognized by manufacturers as the lead-ing eTailer in food & grocery.
THE BEST OF THE BEST2014 Digital Power Study – Best of the Best(Composite score is an aggregate of metric scores across 5 areas: Business Development, Strategy, Operation, Marketing, and Organization & Structure)
“JD has demonstrated great changes in the past few years, it offers shopper with comprehensive product portfolio and pre-mium product delivery services. The website has huge traffic to boost sales and promotion.”
JD 京东 Tmall 天猫 YHD 一号店 Amazon亚马逊
Womai 我买网Wechat 微信
Rank
Jumei 聚美优品
VIP.com唯品会
Yixun 易迅
1
68.7
2
67.7
3
65.7
5
10.0
7
7.0
6
7.0
8
5.1
9
3.0
10
6.0
Dangdang当当
Suning苏宁易购
4
34.0
16
Although JD, Tmall and YHD are undoubt-edly the leading eTailer across all the eCommerce and digital areas, each of them possessed respective merits in differ-ent territories.
JD is more competitive in Commercial and Operation areas while Tmall is more recog-nized by Manufacturers in its Strategy and Marketing strength. YHD is more outstand-ing in Organization Structure and Capabil-ity. JD
京东
Tmall天猫
YHD一号店
BEST OF THE BEST CommercialStrength
StrategicStrength
OperationalStrength
MarketingStrength
Organization& Capability
Percent of Manufacturers Ranking Among Top 3 eTailers
% % % % % %
65.7 41.4 36.4
67.7 83.8 49.5 35.4
65.7 80.8 62.6 50.5 40.4
68.7 85.9 54.6
66.7 42.4
37.4
Although JD, Tmall and YHD were ranked as the Top 3 eTailers across each of the metrics in the 2014 Digital Power Study, each eTailer possessed its own respective strengths.
Manufacturers recognized JD as more competitive in Commercial and Opera-tional areas, Tmall in Strategy and Mar-keting, and YHD in Organization Structure and Capability.
OVERALL RANKING
17
DIFFERENT eTAILERS HAVE ITS OWN CATEGORY PRIORITIES
Category Distribution across eTailers
Apparel, Shoes,Bags, Jewelry
Household Appliance
3C Products
Cosmetics
Personal Care
Foods
Beverage &Wine
Household Cleaning
Baby Products
Books & Audio
0.1%
-
-
-
-
-
-
0.6%
0.1%
0.1%
-
0.0%
-
-
2.0%
-
0.0%
-
-
-
0.5%
2.6%
0.6%
0.1%
1.6%
-
-
0.0%
-
0.1%
1.0%
0.0%
1.9%
4.6%
0.1%
1.2%
-
0.2%
0.2%
0.2%
2.9%
-
-
-
11.8%
-
-
-
-
-
0.5%
0.0%
9.5%
4.1%
0.2%
0.3%
0.0%
0.2%
0.2%
0.8%
2.0%
0.2%
0.5%
7.4%
0.3%
-
17.6%
0.3%
1.7%
0.4%
0.5%
0.0%
0.8%
1.0%
0.6%
0.0%
35.2%
3.3%
1.2%
0.5%
15.4%
0.2%
1.4%
2.6%
0.8%
26.4%
0.0%
12.4%
18.2%
2.0%
25.6%
2.4%
51.9%
54.8%
7.9%
25.1%
14.2%
5.2%
25.3%
13.0%
22.4%
33.5%
13.1%
10.4%
23.4%
22.9%
21.3%
33.1%
26.0%
34.6%
29.1%
61.0%
20.4%
15.0%
51.3%
24.0%
11.6%
44.7%
27.1%
48.3%
BRAND RANKINGS
35
TOP 10 BRAND RANKING IN PERSONAL CARE CATEGORY
Taobao
Personal CareTmall JD YHD
1
2
3
4
5
6
7
8
9
10
KERASTASE / 卡诗
AMWAY / 安利
Shiseido / 资生堂
LUSH / 露诗
CoCo / 可可
L'OREAL / 欧莱雅
Schwarzkopf / 施华蔻
Infinitus / 无限极
Batiste / 碧缇丝
Lion / 狮王
9%
8%
7%
5%
5%
4%
4%
3%
3%
3%
Yunnanbaiyao / 云南白药
VS / 沙宣
Schwarzkopf / 施华蔻
Shiseido / 资生堂
SYOSS / 丝蕴
Head-Shoulders / 海飞丝
Dove / 多芬
Sensodyne / 舒适达
CLEAR / 清扬
Ora2 / 皓乐齿
8%
7%
5%
5%
5%
4%
4%
4%
3%
3%
Head-Shoulders / 海飞丝
VS / 沙宣
Dove / 多芬
PANTENE / 潘婷
Schwarzkopf / 施华蔻
Safeguard / 舒肤佳
AQUAIR / 水之密语
LUX / 力士
Rejoice / 飘柔
L'OREAL / 欧莱雅
12%
9%
7%
6%
6%
5%
4%
4%
3%
3%
Shiseido / 资生堂
Head-Shoulders / 海飞丝
PANTENE / 潘婷
L'OREAL / 欧莱雅
VS / 沙宣
CLEAR / 清扬
Dove / 多芬
Schwarzkopf / 施华蔻
Rejoice / 飘柔
Safeguard / 舒肤佳
15%
10%
6%
6%
6%
5%
5%
5%
4%
3%
*Personal Care category includes Body wash, Shampoo/Conditioner and Toothpaste Data until June, 2014
42
ABOUT KANTAR RETAIL
SHOPPER INSIGHT
How can we motivate shoppers to purchase our brands?
Shopper Dimensions
Shopper Decisions Activator
Purchase Decision Journey
Triggers and Barriers Activators
Shopper Matrix
Shopper Tester
Shopper Activators - Store, Pack, POSM, Assortment
RETAILER & CHANNEL INSIGHTS
How do we capitalise on the evolving retail and channel landscape?
Retail Market and Channel Insight and Intelligence
Syndicated Global Retail Insights Platform - KRiQ
On-site Retail Thought Leadership
Custom and Applied Retail Market Research
Retail Market EducationRetail Market Events, Webinars and Share Groups
eCommerce Intelligence
CATEGORY & SHO
PPER SOLUTIONS
How can we drive long-term growth for categories and brands?
Category Growth Drivers
Shopper Marketing Planning
FIX/BUILD/IMPACT Shopper Choices
Creating a Shopper Centric Organisation
Integrated Business Planning Process
Category Leadership
Perfect Store Definition
Trade Selling Stories
eCommerce Strategy
$$
$
$ $
$ $
ORGANISATION
AL PERFORMANCE
How can we improve the performance of our organisation?
Organisation Develop-ment and Benchmarking
Professional Skills Definition and Assess-ment
Retail and eCommerce Academies
Kantar Academy
HALO - Holistic Learning Platform
Commercial Organisation and Process Design
Capabilities Embedding
GO TO MARKET
How can we optimize oursales strategy?
Revenue Growth Management
Multi-Channel Strategy
eCommerce Channel Strategies
Route to Market Strategy
Customer Business Planning and Collabora-tion
Retail Benchmarking
Trade Terms Design and Optimisation
Field Sales and Distributor Management
RETAIL & PURCGASE DATA ANALYTICS
How do we optimize assortment, promotions and price?
Assortment Optimization - RichMix®
Promotions Optimization – Promo 360°
Category Management
RETAIL VIRTUAL REALITY
How do we make better faster retail decisions?
Retail Environment Design
Virtual Retail content
Virtual Merchandising and Store Planning
Virtual Category Management
Shopper Marketing Program Visualization
eCommerce EnvironmentsRetailer Collaboration and Communication
VR Research and Insights
Kantar Retail is WPP’s retail insights and consulting business. Kantar Retail has been present in China since 2004 and offers retail insights, consulting, retail analytics and capabilities development services to clients. We work with leading FMCG and retailer clients across the below areas:
Contact:[email protected]: +86-21-2321-3239www.kantarretail.com
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