Online Shopping in China - Market presentation and new trends : Online luxury, group buying, etc.

1. San Francisco ● Paris ● Shanghai

2. Company Introduction
Paris Headquarter
16, rue de Hanovre
75002 Paris – France
L’Atelier is an independent consulting firm, part of Asia Regional Office:
Cloud Nine Plaza, 9/F
BNP Paribas Group. 1118, West Yan'an Road
Shanghai
200052 Shanghai - China
(8621) 62818533
They trust us
US Regional Office:
2415, 3rd street - suite 231
San Francisco, CA 94107 - USA
1(415) 8745525
San Francisco

3. A place to meet
More than 100 events a year
Auditorium
Web Events

4. Our mission
L’Atelier BNP Paribas brings a unique combination of
capabilities tailored to the complex issues of building
successful Digital strategies
 Consulting
Strategic advisory, investment
Market monitoring advisory, business modeling, project

Innovation and trends reports,
management, learning expeditions Digital
conference reports, innovation sourcing, Strategy
competitive intelligence.
Design & Execute
Analyze  Business matching
Partner identification, deal sourcing,
business introduction programs,
Observe networking events
 Market Studies
Market research, benchmark, case
studies, business model analysis,
company profile

5. DIGITAL SUPERPOWER

6. Fast growing digitalization of China
 Digital Market in 2010  Trends
2013
Today
245
WEB
200 million
users
160
e-SHOPPING
e-SHOPPING Population about 300 million Million of online shoppers
WEB 160 million users
460 million 2013
users MOBILE
Over 800 million
users 140
Today
WEB
475 million 50
users
Population about 1.3 billion Market Value
EUR Billions
Population about 800 million

7. Fast growing digitalization of China
 3 waves of digital adoption
1 2 3
Upper-middle class living in Eastern Internet adoption in second and Internet adoption through mobile
urban cities: BJ, SH, GZ, HK, SZ third level cities and remote areas phone (3G & 4G networks)
Internet
adoption Web
Mobile Web
460 million
300 million
2010
2009
200 million
300 million
mobile Internet users
2007
100 million
233 million
iPhone 160 millions
2004 3G online consumers
Timeline
1998 2004 2009
Global adoption: 100 million in: 7 years 3 years 2 years < 2 years
Mobile Internet: 100 million in: 1 year 1 year ?
adoption

8. Internet, the second major Media
 Over the years, digital media consumption is becoming a more popular habit
18.7
Newspaper Magazine Radio TV Internet
(hr/wk) (hr/wk) (hr/wk) (hr/wk) (hr/wk)
Data Source：2001-2009,CMMS中国市场与媒体研究数据
Chinese goes online for 18.7 hrs/wk, catching up with TV.

9. A REVOLUTION
IN COMMERCE

10. Evolution of shopping
Both Group buying and Microblog became big trends in 2010
 By 2010, almost all of big players in Chinese Internet industry are involved in group buying business.
 Microblog became an important information channel as well as an important platform for companies to
do online promotion besides SNS.
2010 2009
Internet Usage Growth Rate
User Size Penetration Rate User Size Penetration Rate
Search engine 374.53 81.9% 281.34 73.3% 33.1%
Online music 362.18 79.2% 320.74 83.5% 12.9%
Online news 353.04 77.2% 307.69 80.1% 14.7%
Instant message 352.58 77.1% 272.33 70.9% 29.5%
Online game 304.10 66.5% 264.54 68.9% 15.0%
Blog 294.50 64.4% 221.40 57.7% 33.0%
Online video 283.98 62.1% 240.44 62.6% 18.1%
E-mail 249.69 54.6% 217.97 56.8% 14.6%
SNS 235.05 51.4% 175.87 45.8% 33.7%
Online literature 194.81 42.6% 162.61 42.3% 19.8%
Online shopping 160.51 35.1% 108.00 28.1% 48.6%
Forum/BBS 148.17 32.4% 117.01 30.5% 26.6%
Online bank 139.48 30.5% 94.12 24.5% 48.2%
Online payment 137.19 30.0% 94.06 24.5% 45.9%
Top 3 fastest growing
Stock exchange 70.88 15.5% 56.78 14.8% 24.8% Internet usages all belong
Microblog 63.11 13.8% - - - to commercial category
Travel booking 36.13 7.9% 30.24 7.9% 19.5%
Group buying 18.75 4.1% - - -
* User size: million of people

11. RMB 1 billion sales in 24h
RMB
 November 11th, 50% sales promotion 1 billion sales
in 24H
 Part of a RMB 200 million marketing plan for
Taobao Mall to promote TMall.com
 1 billion sales in 24H
• RMB 10,000 per second
• 11 e-shops = more than RMB 10 million
• 181 e-shops = more than RMB 1 million RMB
10.95 million
 21 million shoppers
RMB
10 million
Logistics Crunch
for many third party
companies
RMB
8 million

12. China Ranking in first by 2014
 E-Commerce evolution compared with other countries
 Will overpass Japanese market in 2011
 Will overpass US market in 2013
RMB 100 Million
20,000 19,337
China Japan USA
15,000 14,852 13,198 14,078
12,310
11,384
10,408 10,234 10,744
9,860 9,793 9,691
10,000 8,649
7,719
6,542 10,961
5,232 7,627
5,000 3,867
3,293
2,630 4,980
561 1,282
0
2007 2008 2009 2010 2011e 2012e 2013e 2014e

13. Focus: Group Buying

14. Evolution of shopping
 Cumulated sales value reached 1.223b RMB from March to September.
RMB Million
600 372.70% 564.16 400%
300%
252.10% 248.10% 377.71
400
200%
175.28 115.50%
200
129.20% 100%
76.48 49.40%
6.24 21.97
1.32
0 0%
March April May June July August September
Chart: Group buying sales value, 2010
600.10%
14,000,000 600%
12,000,000 11,492,484
10,000,000
8,215,975 400%
8,000,000 298.90%
6,000,000
157.10% 3,670,453 200%
4,000,000 123.80%
1,629,911 125.20%
2,000,000 39.90%
158,957 408,616
22,706
0 0%
March April May June July August September
Chart: Consumer growth rate, 2010

15. Evolution of shopping
Top 3
• Taobao Juhuasuan ( ju.taobao.com)
• Lashou ( www.lashou.com)
• Meituan ( www.meituan.com) ?

16. Focus: Online Luxury

17. Local players entering the market

18. Foreign players

19. Foreign players
www.glamour-sales.com.cn

20. New trend: Group buying
Xiutuan (xiutuan.com)

21. New trend: SNS for HNWI
P1.cn
http://www.p1.cn/

22. What’s Up at
L’Atelier in 2011?

23. e-Commerce Solution
STRATEGIC ADVISORY
> 0% > 5% > 10% > 80%
100
Business Modeling GS
MSN Shoping Luxury
75 Ule China
Menglu
Brand position
setup 1
Distribution strategy Zoshow 2 Premium
Taobao
build Mall
Context Ecosystem 50 Togj
define
Opportunity Organization Letao Youa
DangDang
25 Joyo Taobao Mass
Consumers PaiPai
Players Project Planning 0
-25 0 25 50 75 100
Market share
MARKET STUDY
Your e-commerce advisor
Research Analysis Presentation
 Survey Methods  Market Expertise  Recommendations
- Research desk platform - Research institutes
- Expert Analysis - Statistical data
 On site presentation
- Local Network - Official key figures
- Workshop
 Research Methods  Proven Methodology
- Access to BNP Paribas - 30 years of expertise
core market research +
economists/analysts
■■■

24. E-Commerce Insider
More articles, More analysis
with e-Commerce Insider,
your monthly report dedicated to the Chinese market
Each month
What’s up in 2011?
Exclusive market news
Latest available market data
New consumers trends
Brands' strategy
Review of new players
■■■

25. Learning Expedition
e-Commerce Tour : Shanghai-Beijing – 20th to 24th of June 2011 (5 days)
 Discovers startups & new trends : Groupon-like services, social shopping, mobile shopping…
 Meet e-Commerce leaders : Taobao, 360Buy, VANCL, Rakuten-Baidu…
 Discuss with international brands locally involved in e-Commerce
 Understand new consumer trends and market potential
 Visit logistics centers and call centers
… and take part of one of the most promising market!
2013 2013 This learning expedition is specially designed for:
 Retailers
What’s up in 2011?
 Brand owners
140 2010
245
245  Consumers goods manufacturers
2010
 Luxury companies
160
145
52  International investors
 Logistics companies & e-commerce SP
Market Value e- SHOPPING
Euro Billions  e-Commerce players
■■■
Million of online shoppers

26. Contact us
asia@mail.atelier.net
L’Atelier Consulting Management (Shanghai) Ltd.
Cloud Nine Plaza, 9/F
1118, West Yan'an Road
200052 Shanghai - China
(8621) 62810333