eCommerce in China_Dieter Georg Herbst
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Presentation held in China in May 2013
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eCommerce in China_Dieter Georg Herbst
- 1. Private Brand Executive Program: e-Commerce in China Prof. Dr. Dieter Georg Herbst Shanghai, 18 April, 2013 Prof. Dr. Dieter Georg Herbst
- 2. e-Commerce “Economic system where firms and consumers are aided by computers and networking technologies that enable an entirely new market” Choi et al (1995)Choi et al (1995) “Electronic commerce is about doing business electronically” Timmers, P.(2000) Prof. Dr. Dieter Georg Herbst
- 3. Is it necessary for the retailer to launch e-commerce business? Prof. Dr. Dieter Georg Herbst
- 4. Over 1.5 billion potential customers are currently connected to the internet and that number is growing on a daily basis Prof. Dr. Dieter Georg Herbst
- 5. Internet users in the world by region, 2012 Q2 Prof. Dr. Dieter Georg Herbst
- 6. Number of internet users by region 2012 Q2Prof. Dr. Dieter Georg Herbst
- 7. Top 10 countries of users June 30,2012Prof. Dr. Dieter Georg Herbst
- 8. By 2015, China will have nearly twice the number of internet users as the US and Japan combined Prof. Dr. Dieter Georg Herbst
- 9. Most brands are online Prof. Dr. Dieter Georg Herbst
- 10. Shifting of marketing spend – US interactive marketing spend 2011 to 2016 Source: Forrester Research Prof. Dr. Dieter Georg Herbst
- 11. Online shopping has become commonplace Prof. Dr. Dieter Georg Herbst
- 12. Global e-commerce sales are growing at more than 19 percent a year Worldwide retail web sales will reach nearly $1 trillion by 2013 e-commerce is growing at 19,4 percent Source: Goldman Sachs, Sales in billions dollars Prof. Dr. Dieter Georg Herbst
- 13. Top 10 countries by online byers Prof. Dr. Dieter Georg Herbst
- 14. Forecast: growing industry e-Commerce revenue by country Source: IDATE, World Internet Markets, edition July 2012 Prof. Dr. Dieter Georg Herbst
- 15. E–Commerce sales in China • 2011 Online retail generated $121 billion in sales in China (up 66% from 2010) • Chinas e-Commerce market will be reaching $ 420 billion in sales by 2015$ 420 billion in sales by 2015 • China has an estimated 193 million online shoppers • By 2015 those consumers will each be spending $ 1,000 per year online Prof. Dr. Dieter Georg Herbst
- 16. More and more retailers online Prof. Dr. Dieter Georg Herbst
- 17. Online retail sales growth for top 5 markets Source: Euromonitor Prof. Dr. Dieter Georg Herbst
- 18. Online share of retail by category Source: U.S. Census Bureau, Annual Retail Trade Survey Prof. Dr. Dieter Georg Herbst
- 19. Forecast: explosive growth in online retail in China “The recent explosive growth in online retail is set to continue in 2012-16. The US-based Boston Consulting Group has estimated that e- commerce sales will amount to more than Rmb2trn (US$334.4bn) in 2015, equivalent to around 7.4% of total retail sales.” Prof. Dr. Dieter Georg Herbst
- 20. Top 10 online retailers in China by total turnover (RMB, million) in 2010 Source: iResearch, China Internet Watch Prof. Dr. Dieter Georg Herbst
- 21. Forecast: e-commerce in China is likely to reach 8 percent of retail sales by 2015 Prof. Dr. Dieter Georg Herbst
- 22. Second largest mail order company in Germany Increased its turnover by 1.7 percent from 11.6 billion to 11.8 billion Euros Retailer generates more sales online than offline (example: OTTO) 53 percent of sales from online shopping Prof. Dr. Dieter Georg Herbst
- 23. Already many private brands online in China Prof. Dr. Dieter Georg Herbst
- 24. Number of employees: 2010: 100, 2011: 500 „Private brands have a prominent place on our website... The private brands account for the majority of our sales. We have very close relationship with the manufacturers, and that is why we can react very quickly to new trends.” Prof. Dr. Dieter Georg Herbst
- 25. e-Commerce: Why? • Selling products and services to a global market » E-tailing or „virtual storefronts“ on websites with online catalogues, sometime gathering into a „virtual mall“ • Providing customer service • Collaborating with others (combination of value chains) • Gathering information about customers • Providing seller support • Publishing and distributing information Prof. Dr. Dieter Georg Herbst
- 26. Targeting Prof. Dr. Dieter Georg Herbst
- 27. Cooperation of manufacturer and dealer Prof. Dr. Dieter Georg Herbst
- 28. Cooperation of manufacturer and dealer: Amazon KindleProf. Dr. Dieter Georg Herbst