2. Introductions
John
China-based
16 years within International
eCommerce
Microsoft, Compaq, MRM Worldwide, Lbi
8 years in fashion retail
Ted Baker, Reiss, Gant, Bench, French
Connection
International logistics and warehousing
- core focus on China
Enabling regional and global brands to
access China’s e-commerce boom and
develop International trading
Full end to end outsource offering
Ken
Consumer Goods manufacturing
companies channelling B2B2C
internationally
Unilever, Mars, Kodak, Remington, Electrolux
Ex-eBay
Cross Border Trade = £6 billion
Ex-Alibaba (worked in China)
Through Tmall and Taobao B2C & C2C in China
= £100 billion
Opportunity to improve international
fulfilment for ecommerce
Grand eBazaar is working with UK
brands to enter China
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3. AllPort Cargo Services Group
3
Founded in 1962
Leading integrated global logistics solutions
provider based in Hong Kong and China.
Over 7,500 staff and workers in China, the
U.K., Australia, South Africa, Singapore and
South-East Asia.
Global network of agents covering 80
countries.
Storage facilities of over 4 million square
feet and fleet of more than 1,000 trucks.
In December 2010, acquired Allport Limited,
the biggest independent logistics operator
and international freight-forwarder in the
U.K.
HSBC Principal Investments is a strategic
investor of the company.
Annual turnover is over US$1 billion.
5. Why China?
50,000
Of these buildings could be
skyscrapers - equal to 10 cities the
size of New York
5 times
The number by which GDP will have
multiplied by 2025
40 billion
square metres of floor space will be
built – in five million buildings
170
Mass transit systems will be built
500 million
Netizens, the largest Internet
population in the world
5 billion
Square metres of road will be paved
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6. More facts about China
China retail sales £1.3 trillion & growing 15% per year
Luxury goods by 35%
Growth is being fuelled by mid-tier cities
20 cities with populations more than 7 million China vs other countries
Average age 34 years
Discretionary spending growing fast and a young and emerging middle-
class want to show off their success
Quality, foreign brands are desirable and demand is growing
China online
242 million shoppers online – 6 x UK
Spending £700 per year – on average 8 purchases per month
Shoppers sophisticated – buying process interactive
Social media plays a stronger role – 44% use it to make purchase
decisions
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8. Local Chinese site preferred for foreign brands
In H2 2012:
Nearly 12 million Chinese bought overseas goods online
Chinese shoppers purchasing goods overseas made an average of
four purchases totalling £170.
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10. 3 Top eCommerce channels in China
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Tmall - B2C online retail since 2008, currently features more
than 70,000 international and Chinese brands from more than
50,000 merchants and serves more than 400 million buyers.
Taobao - C2C online retail since 2003, under the same corporate
of Tmall. On Nov 30th 2012, the sales amount of both Taobao
and Tmall reached 1 trillion RMB.
360Buy – one of the largest B2C online retailers in China. With
35 million registered users, 360Buy processes 300 thousand
orders daily. The website has a daily page view of over 80
million. Sales amount at 2011 was over 30 billion RMB.
11. Consider using Tmall as launch platform
Alibaba’s flagship B2C portal
Now, 55% of China’s B2C
Every minute
52 mobile phones
2,950 pairs of women’s shoes
14,368 items of clothing
880 items of cosmetics
Once offline preparations are complete, an
international brand can be on-boarded in less
than a month
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12. 12
Chinese consumers see Tmall as destination for:
Following the latest fashion trends
Accessing the widest variety of products
Purchasing high-quality, brand-name products
Asia’s Largest Shopping Platform
B2C Market Share in China
Registered Users
Daily Unique Visitors
GMV in 2012
#1
>56%
>500 million
>40,000,000
>200 billion RMB
KEY STATS
26%
37%
18%
9%
10%
Tmall Demographic
18-25
25-31
31-36
36-41
>41
Tmall: China’s Premier Online Shopping Destination
14. 1.
Entry plan
Scope
•Assessment of client
brand, assortment and
operation for CN
•Analysis of demand in
CN market for above
Requirement
•1 month consultation
working with client & in
CN
Output
•Report, presentation and
recommendation to
client leading to 2, 3 and
4
2.
Logistics
Scope
•Define order to delivery
journey for buyer
•Set-up logistics for
operation
Requirement
•Define stock and
replenishment policy
•Agree SLA’s and
commercials with 3PL
Output
End to end logistics cost
profile
Contingencies, including
peak plan
3.
eCommerce
Scope
•Based on 1 and
2, launching on relevant
transactional platforms
Requirement
•Prepare client for
platform integration
•Build stores
Output
•Functional, brand and
entry plan-compliant
properties
4.
Marketing
Scope
•Positioning and target
segments
•Launch program
•Ongoing marketing
platform
Requirement
•Local client budget and
resource allocation for
CN market entry
Output
•Marketing plan for
launch & to Year 3
•Commitment to launch
Chinese ecommerce recommendation
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15. Marketing your product/brand in China
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Shopping guide
Weibo
Social
network Video site
1. KOL's content links to
store directly.
2. Bring fans and traffic
to Tmall.
Through the win-win
cooperation, KOL features
your product and shares
their experience, pictures
and text on their shopping
guide website.
1. Promotion on brand and
product
2. Place advertisements on
social sites and share with
fans to increase traffic.
1. Arrange some
activities with social sites
(online or offline) 2. Build
long term interaction with
active fans to strengthen
the influence of brand.
1. Buying experience shares
between consumers
2. The topic brings new fans to
weibo, while increasing both the
store’s reputation and traffic.
1. Increase the interaction between
consumers and store
2. Spread the reputation of your brand
3. Pay attention to the comments from
weibo fans
4. Lead them positively into your brand
and service.
5. Spread marketing news, promotion
and activities
6. Maintain existing customers while
developing new customers
7. Increase product popularity and
traffic into sales channels
1. Promotion through
embedded advertising
2. Increase the brand
within a short period.
As well as the sales
channel, it will also apply
to the brand site.
16. Thank you!
Ken Ardali
Grand eBazaar
kenan@ardali.co.uk
+44 7952 487258
John Muir
eCargo
johnmuir@ecargo.com
+44 7787 518 832
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