e-commerce in cina: settore food e cosmetica
TRANSCRIPT
Cosmetics & Food China Entry Strategy
Dan Li 08.02.2017
Traditionally…..
Find an agent in China.
Supermarket
Restaurant
Hotel
ConsumerFood Seller
Oversea
markup
2/17
markup markup *N
[email protected] Li4/17
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.
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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.
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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.
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WHAT CHINESE ARE BUYING THROUGH CROSS BORDER?
Standardized goods with no size, low return rate are good ones for cross border.
Cosmetics 25%
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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 Seller8/17
CROSS-BORDER E-COMMERCE BUSINESS MODELS
China Customer
Cross Border E-Commerce
China CustomsOversea Warehouse
InternationalExpress
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)
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Sales CustomsCargo arrive at the port
Delivery Time Logistics Cost Sales
PlatformWebsite 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
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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.
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[email protected] Li13/17
[email protected] LiProduct
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
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16/17
