E-commerce in Cina: settore food e cosmetica.
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Cosmetics & Food China Entry Strategy.
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E-commerce in Cina: settore food e cosmetica.
- 1. Cosmetics & Food China Entry Strategy Dan Li 08.02.2017
- 2. dli@strategiaesviluppo.comDan Li Traditionally….. Find an agent in China. Supermarket Restaurant Hotel Consumer Food Seller Oversea markup 2/17 markup markup *N
- 3. dli@strategiaesviluppo.comDan Li ConsumerCross Border E-Commerce Food Seller Oversea 3/17 markupmarkup
- 5. dli@strategiaesviluppo.comDan Li The China E-Commerce Research Center (CECRC) predicted the number of China’s haitao shoppers to increase from 18 million in 2014 to 35.6 million by 2018. 1 2 CHINA E-COMMERCE STATISTICS In 2015, 45% of Chinese respondents purchase most of their luxury goods online according to a research conducted by KPMG. 61% will buy high-end outbound travel products online and 28% will buy cross- border luxury goods. Nielsen found that the majority of cross-border online shoppers in China are “affluent and well-educated young people.” Men aged 26-35 and women aged 26-40 are the age groups most interested in ordering from abroad. 4 3 China’s biggest e-commerce company Alibaba and consultancy Accenture predicted that the amount spent overseas would grow from RMB 55.9 billion in 2014 to RMB 526 billion in 2018, which is tenfold around. 5/17
- 7. dli@strategiaesviluppo.comDan Li WHAT CHINESE ARE BUYING THROUGH CROSS BORDER? Standardized goods with no size, low return rate are good ones for cross border. Cosmetics 25% 7/17
- 8. CROSS-BORDER E-COMMERCE BUSINESS MODELS Export Through China Free Trade Zone ( Warehouse in FTZ) China Customer Cross Border E-Commerce China Customs Warehouse in FTZ China Express Product Release Order, Payment and Delivery Address Order, Payment and Logistics info. Delivery Notification Product Stocking Product Record Seller Flow Consumer Order Flow Oversea Seller 8/17
- 9. CROSS-BORDER E-COMMERCE BUSINESS MODELS China Customer Cross Border E-Commerce China CustomsOversea Warehouse International Express Product Release Order, Payment and Delivery Address Order, Payment and Logistics info. Delivery Notification Product Stocking Product Record Seller Flow Consumer Order Flow Oversea Seller Export Through Direct Sale ( Warehouse Not in China) 9/17
- 10. dli@strategiaesviluppo.comDan Li Sales Customs Cargo arrive at the port Delivery Time Logistics Cost Sales Platform Website User Friendly Through China Free Trade Zone No customer order before products arrive at the portal CIQ (China Inspection&Quarantine Services) is required. But, Shanghai FTZ is working on establishing a Public CIQ platform inside the zone to fasten the CIQ process. in bulk 1-7days (normally 1-3days) Delivery in Bulk,normally by shipping, in unit cost much lower China Cross- Border E- Commerce High for Chinese Consumers (Chinese language, Chinese Currency payment, quick after sale service) Through Direct order Sales oder already exists before products arrive at the portal CIQ is not required as personal parcel, pre- addressed& packaged. At least 1- 2 weeks Delivery as personal parcel, most of time by air,unit cost much higher Oversea Seller Self Brand Website/ Oversea E- commerce Low for Chinese Consumers CROSS-BORDER E-COMMERCE BUSINESS MODELS COMPARISON 10/17
- 11. dli@strategiaesviluppo.comDan Li CHINESE CITIES ALLOWED FOR CROSS-BORDER E-COMMERCE We Start…. 11/17
- 12. dli@strategiaesviluppo.comDan Li SHANGHAI PILOT FREE TRADE ZONE (FTZ) China (Shanghai) Pilot Free Trade Zone (FTZ) Since it was established on September 29, 2013, the China (Shanghai) Pilot Free Trade Zone (FTZ) has carried out institutional reform and innovation in areas of investment, foreign trade, finance and post-filing supervision to form a legal framework for investment and trade within the zone. Almost all the cross border e-commerce prefer to have their own warehouse in FTZ. The business mode is mainly B2C or B2B2C. 12/17
- 14. dli@strategiaesviluppo.comDan Li Product Price Place Promotion • to dig product Competitive Advantage • to study product life cycle • to identify appropriate brand image to convey WHAT WE CAN DO FOR YOU • to research on the competitors’ pricing strategy • to understand the target market segmentation consumption level • to label competitive price • to find, select, establish and manage distribution channel • to find appropriate storage and logistics cooperator • to do brand marketing with lowest cost • to organize marketing events for the distribution channel And More…… 14/17
- 15. dli@strategiaesviluppo.comDan Li We have offices worldwide: • Milan (Italy) • Shanghai (China) • Kiev (Ukraine) • Belgrade (Serbia) • Istanbul (Turkey) • Fortaleza (Brazil) • Moscow (Russia) • Saint-Petersburg (Russia) • Philadelphia (USA) 15/17
- 16. dli@strategiaesviluppo.comDan Li Come with us, we will help you WIN! Fabrizio Zucca Strategy Francesco Sacchi Bank&Local Policy Antonio Battaglia Accounting&Tax Luca Fornaroli Operation&HR Marco Bello Real Estate&Brazil Market Maurizio Poli Finance Jelena Corsovic Serbia Market Liudmylla Tymoshenko Russia&Ukraine Market Marina Anikieiva Russia&Ukraine Market Dan Li China Market Grace Hou China Market 16/17