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.
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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

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