china digital 16 septiembre 2015 final

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1 Steven Hope Senior Digital Trade Adviser Edinburgh 16 th September 2015 Meet your Customers Online The world is shrinking by the day – borders are no longer a hindrance to shopping – smart phones are the great enabler Online cross-border trade has passed a tipping point – it is a natural part of consumer buying China's cross-border e-commerce industry has entered a high speed growth period as the market continues to expand. It opens up vast opportunities for foreign retailers and brands that wish to sell products to China. Authentic- Good-quality - Foreign products 2

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Page 1: China digital 16 septiembre 2015 final

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Steven Hope Senior Digital Trade Adviser

Edinburgh 16th September 2015

Meet your Customers Online

• The world is shrinking by the day – borders are no longer a hindrance to shopping – smart phones are the great enabler

• Online cross-border trade has passed a tipping point – it is a natural part of consumer buying

• China's cross-border e-commerce industry has entered a high speed growth period as the market continues to expand. It opens up vast opportunities for foreign retailers and brands that wish to sell products to China.

Authentic- Good-quality - Foreign products

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The e-Exporting Programme

To encourage and empower companies to

expand international online sales.

• Own Websites

• B2C e-marketplaces. Newegg, Xiu.com, LASO,

Tmall (Global), Vip.com, Mercado Libre,

Spree, La Redoute, Amazon Japan and more.

• B2B e-marketplaces

• Flash/Private sale sites

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Short Stat Attack

• 630m people in China have access to the internet (48% of the population). More than 315 million Chinese shop on the Internet. That is 5 times the population of the UK.

• In 2013, 7% of Chinese online shoppers made cross-border purchases ($12.3bn in 2013) UK had 6% of those purchases

• Global B2C cross-border e-commerce market will balloon in size to $1 trillion in 2020 from $235 billion in 2014. China will become the largest cross-border B2C market by 2020, with the transaction volume of imported goods purchased online reaching $245 billion, according to Accenture-Ali Research*.

* http://www.alizila.com/report-cross-border-e-commerce-reach-1-trillion-2020-charts#sthash.gEgswf8n.dpuf

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Are you right for China?

Do you know what type of Chinese

consumers you’ll be targeting and how to

reach them?

Is there a demand for products like yours which you can fill?

Are you prepared for

all the associated costs and logistics?

5

Potential

• According to a recent Alibaba report*, China is expected to drive the growth of cross-border e-commerce in coming years.

• China’s middle class today is equal in size to the entire U.S. population and is expected to reach 630 million by 2022 according to management consultancy McKinsey**

* http://www.alizila.com/report-cross-border-e-commerce-reach-1-trillion-2020-charts#sthash.gEgswf8n.dpuf

** http://www.mckinsey.com/insights/consumer_and_retail/mapping_chinas_middle_class

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What is Your USP

• Chinese cross border shoppers have a strong desire for foreign, luxury items, which are currently only available in big cities. Hence, the turn to ecommerce. There’s a big focus on authenticity too, which drives the demand.

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Low prices are low in China. Even Wal-Mart struggles to compete on price, so it might be best to consider other selling tactics, focusing instead on quality, authenticity and building loyalty and trust.

Why Emarketplaces

• They make up a 90% share of the e-commerce sector in China, with TMall & Taobao (both divisions of Alibaba) accounting for 80% of all online transactions.

• Selling through emarketplaces is a cost effective way to export to China.

• Given the high barriers to enter the country, Alibaba created TMallGlobal as a way for international retailers to sell products in China from a business based outside the mainland.

• You can focus on just a few of your best selling products.

• You can ship directly from the UK (or you can ship in bulk to a bonded warehouse, from which orders will then be fulfilled).

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Why eMartketplaces ( general)

• Access to customers in a trusted environment

• You keep control of the brand and brand image

• Fully integrated IT and stock control management systems with full reporting already set up

• You keep control of pricing

• Full retail price less listing and transaction fees (which vary eM to eM).

• Excellent way to test the local demand for your products

• Build valuable research into customer behaviour

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Choices

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What are the Chinese Shopping Online

Online sales in 2014 were $354bn

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Beauty25%

Babycare32%

Healthy products/fo

od24%

Apparel13%

Others6%

Sales

Source: Tmall Global 2014

China’s Pilot Free Trade Zones12

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Pilot Free Trade Zones

Shanghai

kuajingtong.com

YHD.com

Ningbo

ccigmall.com

kjb2c.com

Zhengzhou

wgyp.com

zhingdamen.com

emaoe.com

Hangzhou

tmall.com.hk

Chongqing

osell.com

cqkjs.com

Guangzhou

wtdex.com

ggtdc.com

Shenzhen

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Also pilot cities Changsha, Shenzhen, Suzhou, Qingdao, Guangzhou, Pingtan, Yinchuan, Mudanjiang, Harbin, Yantai, Xi'an and Changchun

Some Operating Models

• Tmall Global

• JD.com Global

• VIP.com

• CCIGMall

• YHD

• XIU.com

• YDX

• HiChao

• Wechat commerce

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Sell to China with XIU Fashion and Lifestyle site

Marketplace detail

Logistics

Legal

Costs

Sales metrics

Pricing

Next Steps

XIU has 5m registered users and gets 10m unique visitors per month. Brands can utilise different sales methods including Flash sale, Daily sale and Brand shop

XIU.com sells luxury to mid-to-high range fashion products focusing on Apparel (30%), Shoes (20%) , Bags (20%), Beauty (10%), Accessories (10%)

Brands agree Retail price (similar to UK) and wholesale price with XIU who then cover marketing, translation, imports, duty, delivery, handling cost and returns

UK brands despatch orders to XIU’s UK logistic hub and XIU fulfil to the end customer. Despatch must occur within 24 hours. API integration required with XIU

Recommended that companies have at least started the Trademark registration process with the SAIC

No upfront costs - XIU translate, list and market product lines. Additional marketing (email, search, banner) is available at additional rates

To register interest please email Melissa Li, Director of UK Business Development based in London, [email protected]

UKTI TermsUKTI have negotiated i.) No upfront costs to list for brands on-boarded and ii.) Improved margin (either wholesale price model (preferred) or commission based)

Cust Service / Returns

Handled by XIU in local language - XIU hold returns for re-sale except faulty goods which are charged back to the brand

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Sell to 100m VIP.com Flash Sale Site Users China

Marketplace detail

Logistics

Legal

Costs

Sales metrics

Pricing

Next Steps

VIP.com has >100m registered users and gets 12m+ unique visitors per day. In 2013 they fulfilled 107m orders with revenues of $3.8Bn (Listed on NYSE)

VIP.com is the largest flash sale site in the world focusing on Apparel (42%), Shoes & Bags (14%), Household (12%), Cosmetics (9%), Baby(8%)

Brands agree retail & wholesale price and virtual consignment of stock that will form the sale. VIP plan and execute a 3-5 day campaign using search, email, etc

On completion of the 3 day campaign all sold stock is either 1. Sent to VIP freight agent in the UK and fulfilled to China or 2. VIP can pick up from UK Warehouse

Recommended that companies have at least started the Trademark registration process with the SAIC

No upfront costs. Brands are paid the wholesale price on goods sold and then only need to pay for shipping goods to the VIP UK warehouse

To register interest please email Lu Han, Merchandising Director UK who is based in London, [email protected]

UKTI TermsUKTI have negotiated improved payment terms. Standard is 20 days after collection. Offer is 60% at 7 days and 40% at 20 days in either $ or £

Cust Service / Returns

Handled by VIP in local language. VIP.com covers cost of returns due to NON-product quality issue, brands need to cover cost for return due to product quality

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Pricing Models

Ranges of e-commerce platform fees

Refundable deposit $25,000 - $40,000

Annual rental fee $5,000 - $10,000

Commission fee 0.5% - 5% based on product categories

Logistic/warehouse charge 5–20% depends on product

Banking fee 1% -1.5%

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A Strategy Check List

Trademark registration

in China

Define your China

strategy including

Social Media

Payment/

logistics/

customs

Cost Structure and competition

Marketing and Customer

Service

Management

Cultural considerations

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China’s e-Commerce

Over the past ten years, the Chinese government has actively promoted and guided the development of e-commerce and continues to encourage and support the development of Internet transactions for goods and related services. On 19 June 2015, China's Ministry of Industry and Information Technology ("MIIT") announced that it was lifting its foreign participation restriction in e-commerce companies. As a result, foreign investors can now wholly own an e-commerce company in China.

These changes represent an exciting opportunity for foreign e-commerce companies, even if the sector is currently dominated by home-grown giants such as Alibaba, JD.com and others. Foreign retailers or brands now have more choice on e-commerce platforms when selling their products to Chinese consumers. To facilitate entry into this ever-growing marketplace, it is vital to keep up to date with the intricacies of the Chinese legal system and, more specifically, the recently-enacted E-commerce regulations.

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Your Prize Awaits You

If the UK can move from 6% to 10% of Chinese B2C cross border purchases of the predicted $235bn, that represents about £15.5bn.To put that is context. Total exports of all goods to China in 2014 was £15.9bn , up from £11.9bn in 2013

In 2014, 21 million Chinese purchased goods through cross-border e-commerce platforms, and overseas shopping spending was up to 350 billion Yuan. Recent forecasts for 2018, estimate that this number will increase to over 1 trillion Yuan. (Source: PayPal)

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They could be your next customer

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Get in Touch

[email protected]

[email protected]

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1

Meet China’s Digital Consumer

www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

16th September, 2015

Mark HedleyChina‐Britain Business Council

www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

C2C Vs B2C E‐commerce

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Mapping 668 Million Internet Users 

5% of population

95% of population

Urbanization & E‐Commerce

54.7% of China’s population currently live in urban areas.60% urbanization rate  by 2025  and 70% by 2030

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Tier City Structure 

www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

C2C Vs B2C E‐commerce

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www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Digital Demographics (Age)

www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Digital Demographics (Gender)

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www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Income Structure of Internet Users

£200 ‐ £400

<£100

>£800

www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Online Spending Behaviour

Alipay data indicates that in 2014 the national average spent online 

exceeds £1,000 per annum

With average annual incomes for internet users much less than £4,000 per 

annum, this represents as much as 1/4th of income being spent online

KPMG survey found that average amount spent on their last online 

transaction was approximately £140 per transaction

Chinese consumers’ online shopping frequency is 4 times that of European consumers at 8.4 items per month (compared to 4.3 in 

the UK)

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www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Regional Trends in Online Spending

Guangdong

Zhejiang

Shanghai

Jiangsu

Beijing

Inner Mongolia

Tibet

Qinghai

Henan

Guangxi

Highest level of online spending

Fastest growth of online spendingSources: Alipay Annual Spending Report & KPMG (2014)

www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Online Purchasing Trends

22

34

18

19

25

18

7

25

4

1

23

32

2

1

24

Average # of purchases per year

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www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Online Shopper Types/Segments

Types of Online Shopper (% of total) Total % of spending

Source: Nielsen

www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Insights / Market Intelligence

• Free reports• CBBC/UKTI Etc.• KPMG, MckInsey, iresearch Etc.• Partner data/insights• In‐house research

• Bespoke research (OMIS )• Off‐the‐shelf reports• Survey /Focus groups

• Taobao Cube• Baidu Tongji

Free / Open Source

Paid Research

Analytics

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www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Final thoughts…

• Market extremely competitive. Thousands of platforms, vendors, websites, stores.

• Increasingly sophisticated consumer that research purchases in considerable detail

• Define your target segment as early as possible

• Don’t assume your offering has universal appeal across regional and demographic sub‐segments

• Localization of product/messaging may be necessary 

• Perceived reliability, quality (incl. safety) and value for money may be more impactful for a Chinese audience

www.cbbc.org 建议 Advice   Ι  支持 Support   Ι 网络 Networking 

Thank You!

Mark HedleyChina‐Britain Business CouncilE: [email protected]

T: (0) 20 7802 2018

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Introduction to 1688.com and Alibaba.com

Wei Duan, Director of Alibaba.com, EMEA

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Leading B2B platform in the world

with more than 120 M registered users

operating in a diversity of 49 main categories

and a total of 1709 sub-categories

1688.com

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1688.com has been maintaining the B2B’s leader position in China for 14 years

43.1%

7.9%

4.2%3.5%2.7%

1.3%

1.0% 0.8%

35.5% 1688 Global Sources

Hc360 DH Gate

Made in CHN GMC

My Steel Toocle

Others

* Data as of 2014.

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1688.com in numbers

* Data as of 2014.

Click to see the video

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The China OpportunityWith 1688.com

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Leading China’s International Trade and E-Commerce Development

¥3.75 Trillion (approx. US$ 604 B)

Transaction Volume of China’s E-Commerce Import-Export in 2014* 20.2

23.6 24.325.8 27.1

29.532

34.6

1.3 1.8 2.3 3.1 4 5.2 6.58

0

5

10

15

20

25

30

35

40

2010 2011 2012 2013 2014** 2015** 2016** 2017**

Total Import-Export Volume (Trillion RMB) Cross-border E-commerce Volume (Trillion RMB)* Source: http://www.100ec.cn/detail--6253574.html

** Projected data.

¥476 Billion (approx. US$ 76 B)

Transaction Volume of China’s E-Commerce Imports in 2014* (B2B + B2C)

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+ 100 MillionNumber of Chinese Travelers

to Overseas in 2014

+ ¥1 Trillion (approx. US$161 B)

Total amount spent overseas in 2014 by Chinese consumers

China’s Consumption of Foreign Products in the Overseas markets

+ £1,450In the UK, the average spend for Chinese travellers per trip is £1,450, according to Global Blue

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Most selling UK Product Categories in China

China offers huge opportunities for British companies, particularly in sectors such as food and drink, renewable energy and financial services.

*Data from Export Britain, British Chambers of Commerce

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Bring British quality and authenticity to China

Join us on 1688.com

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Made in UK“Brands which leverage British heritage work the best”

Industry we highly required and recommend:

1. Food beverage2. Wine3. Beauty and personal care

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Exporting to China is Great

Join us before 23rd October

From 23rd October, there will be a 7

days large online marketing

campaigns and promotions to

provide more visibility in the

platform and highlight imported

products

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More traffic directed to the stores via specific product keywords

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Priority product placement to increase traffic

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Priority labels to stand out from the crowd

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Enhanced online shop’s design

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Detailed company information to promote buyers’ confidence

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ALIBABA.COM

What is Alibaba.com

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ALIBABA.COM

Sell to more than 240+ countries

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ALIBABA.COM

Platform features and value-added services for facilitating a holistic sourcing experience

Inspection

Trade Assurance Search & Match

ABC

Logistics

Financing

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ALIBABA.COM

Trade Assurance

Trade Assurance to enabale safe & hassle free trade

100% Payment Protection Complete Transparency Supplier Ratings

Click to see the video

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ALIBABA.COM

Trade Assurance

Trade Assurance to enabale safe & hassle free trade

100% Payment Protection Complete Transparency Supplier Ratings

Click to see the video

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ALIBABA.COM

E-credit Line: Buy Now, Pay Later

e-Credit Line is a line of credit from regulated financial service providers in certain countries. It is designed to help finance your purchases on Alibaba.com with Chinese suppliers.

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ALIBABA.COM

Global Footprints

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Our Inspiration

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Thank You!

Please contact Michelle Chen: [email protected] more information

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Social Media in China

• How can brands use social media for their benefit.

• Why is social media is important when trying to sell to Chinese customers.

• What makes Chinese social media unique.

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Source: China Internet Network Information Centre (2015)

CHINA AT A GLANCE.

• 668 Million Internet Users

• 594 Smartphone Users

• 88.9% access Internet via Smartphone

• Influences – Ads are not as trustworthy in China, they need word of mouth

• Large demographic so Social Media is the fastest and easiest way to reach audience

• As Chinese consumers spend more time online, foreign companies should deepen their knowledge of domestic social media platform.

Why is Social Media Important?

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1Access services /

products and make purchases

2Interpersonal connection

3Self-expression

The key motivations for Asian consumers to be continuously connected are:

69.5%HOT TOPIC

70.1%

SHARE MESSAGES

64.6%SEND POSTS

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Weibo users from 190+ countries worldwide

176Million+Monthly Active Users

aaaaaaOfficially launched inQ3 2009

Open platformlaunched inQ3 2010

Startedmonetization inQ2 2012

Promoted feedslaunched inQ2 2013

Alibaba strategicalliance inQ2 2013

Weibo IPOApr 2014

Source: Weibo 2014 Earnings

65.566.476.4

120.5172.6

381.6

Mill

ions

of u

sers

China has the World’s largest population of social media users…

…and Sina Weibo is China’s most popular micro-blogging platform.

SINA WEIBO 2015Stat Sheet for Digital Marketing

Source: Weibo Data Centre

167 Million 63 Million

Weibo Active Monthly Users

Population of United Kingdom

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Usage of Weibo by China’s netizens in 2013

91.8%TEXT CHAT

90.4%

VOICECHAT

74.5%USE MOMENT

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Usage of WeChat in China in 2013

WECHAT.

468 millionMonthly active usersMostly in China

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5 Reasons Why WeChat MakesA Good Marketing Tool

1. Power of Social Marketing

2. Function

3. Online Sales

4. O2O business model friendly

5. Games

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China’s Digital Marketing Landscape

2Introduction / Key Markets in The Far East

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3Introduction / China Market Overview

54,03%29,24%

14,71%

0,34% 0,95% 0,73%

Baidu

Haosou

Sougou

Google

Bing

Other

China – Overview

Market Size: 618 mln internet users (45% internet penetration), largest internet audience in APAC markets

Language: Simplified Chinese

Engines: Baidu, HaoSou, Sogou, Google

Social: Sina Weibo, Tecent WeChat

Our Learnings

⁄ Google market share is very low, but effective at targeting international Chinese users, and those using VPNs

⁄ PPC products differ, brandzone and other ad formats are key

⁄ Social is a key channel with significant reach (Organic & Biddable)

4Introduction / SERP Landscape / Baidu

Mobile SERPDesktop SERP

Up to 10 ads

Up to 8 ads

Up to 3 ads

Up to 4 ads

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5Introduction / SERP Landscape / Haosou

Mobile SERPDesktop SERP

Up to 8 ads

Up to 8 ads

Up to 3 ads

Up to 3 ads

PPC Ad Formats

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7Basic PPC Ad Formats

⁄ Cover brand & generic keywords

⁄ Allows for more control than organic sections

⁄ Grow brand awareness via generics

⁄ Perform A/B testing & keyword research

⁄ Tailored content for each keyword theme

Why ?

⁄ Any brand that wants to test and grow the Chinese market

Who For ?

What ?

⁄ User-driven search marketing, paid per click

Baidu

Haosou

Google

8Shantou PPC Ad Formats & RLSA

⁄ Much more ad space, occupying more SERP real estate and pushing down competitors

⁄ Build your brand presence

⁄ Support customer navigation before they hit the site, ensuring they access relevant content in as few clicks as possible

Why ?

Who For ?

What ? Shantou image ad (图片凤巢)

Shantou list ad (闪投列表)

Listing ad (闪投导航)

Shantou Toutiao ad (凤巢头条)

⁄ PPC ads showing logos, images, videos and links to specific pages

⁄ Increase CTR on generics

⁄ Wide variety of formats means this can be useful for all brands/ sectors

⁄ Lots of options for brands with strong creative assets

⁄ Works well for ecommerce

⁄ Improve ad relevancy to refine existing traffic and maximise returning customer engagement

⁄ Helps push customers along the notoriously long and complex Chinese purchase journey

⁄ Focuses investment on users who have already indicated interest or purchasing intention

⁄ Grows generic keyword base with new keywords

Why ?

Who For ?

What ?

⁄ Cookie users who have been on your site, tailor ads and adjust bidding strategies when they are searching on Baidu (similar to Google RLSA)

⁄ Brands already operating in China

⁄ Brands looking to increase conversion

Why ?

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Mobile PPC Formats

Mobile Golden Display ad (无线黄金展位)

App promotion ad (APP推广)

⁄ Push down competitors

⁄ Demonstrate brand ownership and engage with rich media and deep links

⁄ Promote official app

Why ?

Who For ?

What ? ⁄ Large scale ad format for position 1 on mobile,

brought through a CPC model

⁄ Brands looking to increase brand awareness

⁄ Brands wanting to drive app downloads

New Formats in Beta

Desktop Multi-image ad(凤巢巨幕)

Mobile Multi-image ad(凤巢巨幕)

⁄ Push down competitors

⁄ Drive engagement with eye-catching visuals

Why ?

Who For ?

What ? ⁄ Multi-image and text-based ads, brought

through a CPC model

⁄ Currently in beta

⁄ Offered to certain accounts chosen by Baidu

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Fixed Cost Ad Formats

Brand Zone 百度品牌专区

⁄ High recognition as an official website with

premium display to show superiority

⁄ CTR enhanced significantly – covers 70%+

of the visitors

⁄ Blocks unwanted SEM results

Why ?

⁄ Brands seeking to ensure ownership of their brand in China

⁄ Any brand with at least 1000 brand impressions per month

Who For ?

What ? ⁄ Display Search Product for brand only

keywords with images, links & text

⁄ Fixed costs, bought as a package amount

⁄ Can be updated monthly

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Mini Brand Zone 百度品牌专区

⁄ Similar benefits to full Brandzone

⁄ More cost-effective

⁄ Highly controllable: weekly updates available

Why ?

⁄ Brands seeking to ensure ownership of their brand in China, grow awareness and conversions, but not wanting to spend as much

⁄ Any brand with at least 1000 brand impressions per month

Who For ?

What ?

⁄ Display Search Product for brand only keywords with images, links & text

⁄ Can be updated monthly

14Landmark (品牌华表)

⁄ Supports brand awareness through generic

keywords

⁄ Helps build funnel and lists for RLSA

⁄ Fixed cost per week allows for tighter budget

management

Why ?

⁄ Brands looking to drive awareness, with less of a focus on conversions

⁄ Brands with lots of visual assets

Who For ?

What ?

⁄ Large desktop-only format supporting multiple images and text

⁄ Guarantees top right-hand position, but relatively low CTR

⁄ Auction model: highest bidder displayed

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Agile Market Entry

16China / Digital Market Entry Strategy

Approach: China Market Scoping Test

Stage 1: Set up originated PPC (including mobile) to establish brand authority and gauge awareness

Stage 2: Expand keyword base (use RLSA)

Stage 3: Analyse performance & define optimisation strategy

Stage 4: Expand into Brandzone other channels (e.g. Social, Display, SEO)

Run Market Scoping Tests

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Thank You.

For more information or if you have any questions, please contact us.

Contact

[email protected] @forward3d

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Chinese online payments landscape

Pete Casale

Managing Director (UK)

• UK is an aspirational market to the Chinese consumer

• Want to come here

• Want UK brands

• Want to tell everyone about it

• The Chinese are big consumers of social media and e‐commerce

Key points

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• UK is an aspirational market to the Chinese consumer

• Chinese visitors to the UK in 2014 was almost 200,000* looking to grow 

with simplified visa entry process

• Total spend whilst in the UK was £497 million*

• Change in profile of visitors from tours to FIT…they are branching 

out…whisky tours, Gretna Green, Cambridge punting

Chinese interest in UK market

* VisitBritain

• Approximately 90% of visitors know to research online

• Extensive use of social media gets friends and family at home interested

• Referrals are vitally important

• Brands are shared via social media

• Will drive e‐commerce interest from visitors who ‘want more’…

• Will drive e‐commerce interest from others who ‘want some’…

Chinese interest in UK market cont’d

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55% of China’s interneusers have made a mobile payment, versuonly 19% in the US

Recent and rapid growth in online payments

• Chinese consumers are increasingly interacting online; visiting web forums and 

discussing and researching brands via social media with 270 million online users

• Chinese spent $865 billion dollars online in China in 2014, aiming to achieve $2.8 

trillion this year 

• According to KPMG, key drivers for e‐commerce growth in China are e‐commerce and 

social media platforms, digital payments and mobile devices

• Development of home grown platforms underpinning the rise of online transactions

• Digital consumer is price sensitive however convenience and accessibility is a key driver

• Key players are Tenpay, Alipay and UnionPay

1. Traditional cards

2. e‐wallet

• Alipay‐ 300 million verified users (almost twice that of PayPal) 

• Tenpay wallet via QQ and WeChat – 650 million users

• UnionPay‐ 5 billion UnionPay cards in circulation (average Chinese visitor 

to the UK has 2 in their wallet)

Payment options for Chinese users 

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Online payment consumer demographics

Tenpay• Users of WeChat and QQ the social media apps can use 

Tenpay wallet to send money and make payments

Alipay• Most popular third party payments option

Facilitates the e‐banking service of major domestic banks

Payment options: eWallet

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Payment options: cards

• UnionPay is China’s only bankcard network with over 5 billion cardholders 

• No limits on spend*

• 100% brand recognition in China 

• High level technological security e.g.. SMS code

* Subject to conditions

Comparison

• Alipay and Tenpay considered less secure and more expensive for merchants.  However, used more widely than cards and popular with the younger generation

• Government controls online spend via eWallets compared with cards due to security concerns. 5,000 RMB spend limit if consumer pays via 3rd party payment companies

• UnionPay, more secure, no limits on consumer spending, trusted and recognised throughout China and more cost effective for the merchant with lower transaction costs and faster settlement

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Questions?...

www.moneyswap.co.uk@MoneyswapPLC

Pete Casale

Managing Director (UK)