e-commerce berlin expo 2017 - cross border ecommerce: making the most of china’s potential
TRANSCRIPT
1.3 X EUROPEAN MARKET
10 X GERMAN MARKET
1.7 X US MARKET
MARKET SIZE - CHINA
Sources: McKinsey and Company
No.1
ecommerce market
in the world
2017 FORECAST: $ 857 BILLION
IN CHINA
MARKET SIZE - CHINA
720 MILLION internet users
52% internet penetration rate
25% of the Chinese population shop online
91% of these Internet users have an account on the biggest social media platforms: WeChat, QQ, Weibo and Youku
Sources: internetlivestats,, Ecommerce Europe
BACKGROUND AND IMPACT OF CULTURE AND POLITICS The booming economy and political development means many changes in regulations, taxation and process structures Divided by provinces/cities Culture/languages (mainland China, HK, Taiwan) Ex of a typical local festival: 40% of Chinese E-commerce turnover is made on Tmall.com and JD.com for Single’s Day (11th November, or 11.11)
The censorship in China Amazon = Tmall, Google = Baidu, Facebook = Wechat, Twitter = Sina Weibo, Paypal = Alipay
A MUCH DIFFERENT INDUSTRY
THE DEVELOPMENT SPEED
STATE OF NETWORK
More than ½ of online transactions are done through smartphone (vs 1/3 in the U.S)
FAST TREND EVOLUTION 2014
O2O Online to offline
2015
Beginning of WEB KOL Key Opinion Leader
2016
Micro Video + Live Video Shows
Different attitude with digital tools: short time of PC usage, fast transfer to smartphones, powerful social media
5G is already on its way Fan economy: communication relies on influencers
> Reputation is the key
CHINA B2C CROSS-BORDER E-COMMERCE
$85 BILLION 2016 Turnover
40% of chinese online consumers buy foreign goods
$473 annual average spend on foreign goods
50% cross-border consumers
in China by 2020
THE BEST SELLING PRODUCT CATEGORIES EXPORTED FROM CHINA
Fashion
High Tech
Home
THE TOP RESEARCHED PRODUCTS IMPORTED BY CHINESE CONSUMERS Fashion
Home
Baby products
Pharmaceutical products
Cosmetics
Food
Source: China Internet Watch, E-marketer, AliResearch
In other countries, e-commerce is a way of doing shopping. In China it’s a way of life.
Jack Ma - CEO OF ALIBABA
ALIBABA’S 11/11: SINGLES DAY
Source: frenchweb
$17.8 BILLION worth of GMV VS Black Friday and Cyber Monday: $5.7 billion.
11.000 international brands
657 MILLION orders
>1 BILLION transactions
82% of purchase realised on mobile
+32% compared to 2015
THE BIG 3 IN CHINA: BAT INSTEAD OF GAFA
THE NO.1 LOCAL SEARCH ENGINE
B2C B2B
C2C Cross-border
Social media
Messaging
Created by Tencent 5 years ago
800 million users
WeChat Wallet features: e-commerce & payment options
Essential tool for communication between sales & clients, and for publishing articles
WHY CHINA?
The cross-border market is quite new in China (Tmall Global launched in 2014 and JD WorldWide in 2015)
25% of growth per year VS 11% in France
Middle class: between 7% and 30% of the total population
New generation with more purchase power + big interest in European
brands and high quality products
China is projected to become the largest cross-border B2C market by 2020
Special market in the APAC area
AS THE EUROPEAN LEADER, LENGOW CAN HELP YOU SELL EVERYWHERE
(Sources: Remarkety, Ecommerce Europe)
1
CHINA
2
USA
3
UK
4
JAPAN
6
GERMANY
5
FRANCE
7
SOUTH KOREA
8
CANADA
9
RUSSIA
10
AUSTRALIA
WE’RE EXPERTS ON CROSS-BORDER ECOMMERCE AND FRAGMENTED MARKETS
Home
Fashion/Sport
Electronics Beauty/Healthcare
Generalists
CHINESE MARKET SPECIFICITIES
Behaviour Comparison culture Window shopping approach Detailed product pages
Technique Adapting product catalogue Connecting with marketplaces’ information systems
Branding & digital marketing Strong competition & very low price Regulation barriers Importance of social media
Logistics Complex and costly Specific tax system
Customer support Needs to be in Chinese English is not acceptable
Financial Payment methods Alipay is essential
OPENING YOUR SHOP ALONE
A LONG AND COMPLEX PROCESS
Open an Alipay account Admin to do with opening the shop Create content for the shop Promotional strategies Logistics, returning products, customer service Open the shop
Translate product catalogue Open the shop Customer service Stock Logistics Marketing strategy Adverts Shooting photos, videos
OPENING YOUR SHOP WITH LENGOW
WITH LENGOW :
1 SPOKESPERSON, 1 POINT OF CONTACT TO-DO: CREATING A STORE
Open an Alipay account Admin to do with opening the shop Create content for the shop Promotional strategies Logistics, returning products, customer service Open the shop
TO-DO: TMALL PARTNER
Translate product catalogue Open the shop Customer service Stock Logistics Marketing strategy Adverts Shooting photos, videos
W W W . L E N G O W . C O M
NENAD CETKOVIC C H I E F O P E R AT I N G O F F I C E R
+33 1 84 79 03 70
@Lengow_DACH
ANY QUESTIONS?
W W W . L E N G O W . C O M
JIM KNOPF M A N A G I N G D I R E C T O R G E R M A N Y
+49 172 7306633
JimKnopf13
MEET US AT STAND A15!
WE’RE EXPERTS ON CROSS-BORDER ECOMMERCE AND FRAGMENTED MARKETS
Home
Fashion/Sport
Electronics Beauty/Healthcare
Generalists