We are witnessing an incredible transformation of the world economy, with China predicted to overtake USA by 2030. Billions of people coming out of poverty, populations around the world moving from the country to cities, and new generations of consumers around the world growing up entirely digital. The UK leads the way in digital retail and many of our leading brands are in demand around the world.
5. Small World – Big Growth
$1.3 trillion
B2C Sales
Up 18.3% in 2014
Cross-border trade expected to
triple over next 5 years according
to PayPal
6. Considerations
• Market opportunity
– Can just charge more for shipping and test demand
• International marketing
– Specify product assortment, marketing mix, Search Engine
Marketing - Relevant skills in-house or local agency
• Localisation and autonomy
- Customer service, local products, marketing efforts
- Country manager or do you manage this centrally via head
office
• Legal, financial and logistical
7.
8. China
• World's largest online population – 600 million
• Predicted to overtake USA by 2030 (eMarketer)
• Precise user experience needs
9. Chinese – Customer Experience
• “Click Culture”
• Very visual user experience
• Large product imagery
• Large merchandising bars
• Long pages – lots of scrolling
10. • SEO and PPC is different
• Baidu has 76% internet-
search revenue share
(Q2 2011)
• Massive usage - 5th
overall in the Alexa
Internet rankings - Oct
2012
11. Mobile First?
High priority in
western world but
also in China
75% of China’s
internet users are
mobile / tablets
[China Internet
Network Information
Center]
(Image – blast radius)
12. Payment
• UK/US/Others – Visa / Mastercard / Amex / PayPal
• Europe
– Benelux - Ideal
– Germany - ELV
– Nordics - Klarna (inc. monthly invoice)
• China – Alipay – Express Checkout, COD
13. Marketplaces
TMall - Platform of choice
– First port of call in China when
researching and purchasing
branded products online
– Massive user base
– Familiar, trusted seller of brands
– Convenient for consumers
– Guaranteed product authenticity
– Apple brand store
14. Top 5 Social Networks – China
“Social media has a greater
influence on purchasing
decisions of consumers in
China than anywhere else in
the world” (McKinsey)
15. • Orders before 11am -
6pm same day
• Orders before 11pm -
9am next day
• Delivery people -
smartphones for card
payments
• Free drinks
• Internet
• Games
16. Chinese Red Tape
• Local Fulfilment
– Clearance of goods
– Local delivery partners – cash transactions and vast distance
between urban centres
– Lease warehouse and team
• Business Ownership
– Business licence -> retail licence -> wholesale licence -> Wholly
foreign owned enterprise
– Takes up to a year with significant transfer of funds required and
high local ownership