MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
Exec Program: e-Commerce in China Under 40 Characters
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
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
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
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
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