E-commerce market in China: T-mall seminar 17th February 2014

The Westminster Conference

Tmall Seminar

17th February 2014y

e Centre

C t ib tContributorsJanet Wang TmallJanet Wang Tmall

Mike Rowe ESTATE

J th W MW T dJonathan Wyness MW Trade

Mary-Ellen Field Vintage Ma

M k Th R l M ilMark Thomson Royal Mail

Domenica Di Lieto Qumin

Michael Boarer ProfulfilmeMichael Boarer Profulfilme

Richard Unwin Backbone

2

M kMarks

anagement Ltd

entent

IT Group

The Westminster Conference

Tmall Seminar

17th February 2014y

e Centre

Tmall Seminar

Tmall

Janet Wangg

AgendAgendaAgendAgenda

China Ecommerce Lan

Introduction to Tmall and CollaborationTmall com or Tmall GlobalTmall.com or Tmall Global

Enrollment and Preparation to Launch o

dadadscape

 Model:

on Tmall 

Facts About Chinese NetizenChina’s online population reached 620 mill

t ti f 45 8% Chi i t tpenetration of 45.8% . China internet growusage frequency. 

Unit: 10000

Urban areas have a higher penetration amhave more potential to grow. 

Mobile Population reached 500 million by end of 2013

ecommerceTotal users reached 300 million in 2013 (half of total online population)Population grew 24.7% during 2013p g gMobile commerce accounts for 140 million users

slion by the end of 2013 with an internetth i t l i t ti b t l iwth is not only in penetration but also in 

ong the online population while rural areas 

Urban Rural

Social Media Reached 530 million users by the end of 2013y

Because the ratio of mobile population to total population is larger than the ratio of mobile commerce to total commerce, we believe there ,is large potential for mobile commerce to grow. Data source:  CNNIC

China eCommerce: Largest eCChina surpassed the US in both ecommercep

Source: Kantar Retail Analysis

Commerce Market in the Worlde sales and eCommerce share of total retail sales

eCommerce: 10% of China toeCommerce accounted for 10% of China’s treach 20% by 2017. 

Source: Kantar Retail Analysis

otal Retail Sales in 2013total retail sales in 2013 and is forecasted to 

China’s B2C sector has enjoyed rapid devel

B2C vs. C2Cj y p

China eCommerce, the total B2C market is 

Source: Kantar Retail Analysis

lopment in recent years. With the maturity of p y yforecasted to take over the C2C market in 2018. 

Consumer Profile and InsightNetizens aged 20‐29 are the largest onlinepurchase comments & eCommerce site rebrands and price.                                            

Under 10 10‐19 20‐29 30‐39

China’s netizens are more engaged in the Europe’s netizens.  This gives brands much

tse group. In terms eCommerce, they value more on  putation. Older age groups place more value on the                                         

Data source:  CNNIC

40‐49 50‐59 Above 60

social environment than the US’s and h opportunity to connect with consumers. 

AgendAgendaAgendAgenda

China Ecommerce

Introduction to Tmall aCollaboration ModelCollaboration Model

Enrollment and Preparation to Launch o

dada

and 

on Tmall

Alibaba Group’s MAlibaba Group’s Mission and Miss

Vis

To make it easy to do bu

To become the first platTo be an enterprise thaTo last at least 102 year

Goals for the CTo create an e‐commer• 10 million small busi• 100 million jobs and • 1 billion people arou

ission and VisionVisionsion

ion

usiness anywhere

tform of choice for sharing datat has the happiest peoplers

Current Decadece platform that will host: iness enterprises meet the everyday needs of

und the world

Tmall:  China’s Premier OnlinLaunched in April 2008 Tmall was estabLaunched in April 2008, Tmall was estab1. Brand owners’ need for a direct onlin2. Chinese consumers’ demand for gua

On January 11th 2012, Tmall changed its namfrom “Taobao Mall (淘宝商城)” to “Tmall (天猫)”猫)” 

This reflects Tmall’s status as a stand‐aloneplatform offering premium quality productsplatform offering premium quality products

e Shopping Destinationblished to fulfill two primary needs:blished to fulfill two primary needs:ne channel to the mass Chinese consumer marketranteed authentic, brand‐name products 

me 天

s.

Today, Tmall has become the largest B2C shopping  site in China (accounting for over 50% 

s.

of China’s B2C market) and the premier 

destination for  high quality products; catering to increasingly sophisticated Chinese consumers.g y p

Tmall: China’s Premier Online

O 1 T illi RMB i h dOver 1  Trillion 

100 000 000

RMB inmerchand

Tmall and Taobao 

Daily Average UV100,000,000

70,000

Daily Average UV 

International and 

Chinese consumers see Tmall as the premier destination for: 

• Following the latest fashion trends• Accessing the widest variety of brands• Purchasing high‐quality, premium products

e Shopping Destination

di l d bdise volume transacted by 

platforms in year 2012 

across Taobao/Tmall platformsacross Taobao/Tmall platforms

Chinese Branded Storefronts

International Brand Flagships on Tmall

Tmall.com vs. Tmall Global 

• Product is stored customs‐cleared in Mainland China• Customers expect fast delivery (typically within 1‐3 days 

of order placement)• Store has Chinese business license

• Local team required • Payment received in CNY

• Chinese legal entity required

• Product may be imported on a per‐order basis• Customers can accept a slower shipping time as 

product is indicated as coming directly from abroad• Business is located abroad

• No local team necessary • Payment received in local currency• International legal entity currency

Top Product Categories

Food3%

Other

Fashion

Beauty4%

14%

40%

3C Digital22%

Home17%

22%

Other3%

Baby Care17% Health & 

N t iti

Food11%

Nutrition19%

Apparel19%

Beauty31%

19%

Successful UK Brands on Tmal

• Clarks

• Mothercare

ll’s Platform

• KarenMillenKarenMillen

Marketing on the World’s LargTmall is the ultimate platform for Chinese ctrends, and to research product and pricinThis can be leveraged for executing effectiv

gest Billboardconsumers to shop, discover the latest g information. 

ve promotions and campaigns: 

How Tmall Creates Social ComTmall acts as a big social platform:  • NBA: online communitycommunity

• Weitao: Mobile social commerce page

• L’oreal eSkin: online expert consultation 

mmerce Influence

M i i i tiMaximize communication messaging on established SNS platforms•American Carnival: broadcast via Weibo, Wechat•Lacoste: co‐op with Sina, SNS •11.11: Leveraged celebrities’ social power

Merchants selling through Tmall enjoy

Marketing Tools and Exposur

Merchants selling through Tmall enjoy:• Various marketing and promotional opportuni• Consumers reassured that genuine product is 

re Opportunities

ities coming directly from brands/retailers

11.11 “Singles Day”  “Onlin

On this day each year, history is made…

¥30¥35 

¥40 

MB)

¥17 5¥20.0

¥30.

¥20

¥25 

¥30 

e (Billions RM

2013

¥5.0¥6.7

¥10.0

¥17.5

¥10 

¥15 

¥20 

Sales Vo

lume

¥1.0

¥0 

¥5 

0:06 0:38 0:01 5:49 12:00 13:39

24 hours

e Shopping Day”

11.11 2011:  ￥5 billion11.11 2012:  ￥19 billion11.11 2013:  ￥35 billion

…

0

¥35.0 ￥35 billion by Tmall + Taobao

>2.5x Cyber Monday 2013 ($2.3B)0 ￥100M RMB in first 55 seconds

>15% sales via mobile device

>400 million total UV in 24 hours

2012  $19.1 billion

21:19 0:00

AgendAgendaAgendAgenda

China Ecommerce

Introduction to Tmall and CollaborationTmall com or Tmall GlobalTmall.com or Tmall Global

Enrollment and PreparatioTmall

dada

 Model:

on to Launch on 

Tmall Platform’s Business Str

Brand Owner/Retail

Tmall Platform

In

3rd Party Service Provider or Brand’s In‐house Team

Store 

Maintenanc

ucture

ler ProductBrandingBrandingMarketing

Promotional 

IT &

Payment 

Tools and 

EventsData 

Analysis & y

nfrastructure

y

DiagnosticsProduct 

CustomerContent 

Editing

Customer 

ServiceDay 

to Day  Logistics & 

e Operations    Warehousing

Tmall Global: Cross‐border So

Set up branch office in Cor authorize company inMerchantsMerchants or authorize company inChinaMust comply with ChineCIQ requirements; only c

MerchantsMerchants

ProductsProducts CIQ requirements; only cimport model is accepteAnnual fee: 30K or 60K RDeposit: 50K or 150K RMFeesFees pCommission: 2‐5%

olution for Global Retailers

China  Overseas merchants using   local business entities

se cargo Direct shipment as personal cargo d parcel, no CIQ requirements

RMBMB

Annual fee: 5K or 10K USDDeposit: 25K USDpCommission: 3‐6%

Tmall Global: Cross‐border So

MainlaTarget Consumers

Within

Withi

g

Legal entity and tax g

Legal entity and tax registration

Corporate bank Within

Within

Corporate bank account

Warehouse

Registere

Within

Trademark

Shipment and 

2‐yDelivery

Commission Charge Commission Charge on Sales

olution for Global Retailers

nd China Mainland China

n China

Chi

Outside of China

H t b kn China

in China

Home country bank account

Outside of China

ed in China

n China

Any country

Overseas directly to 

‐5%Chinese consumers

3‐6%

Merchants’ Import/Fulfillmen

Income Tax

Overseas Import Fulfillment

Custom duties Import Tax VAT

Custom Duties V

Tmall.com ✔

Tmall Global

nt Models 

PersonalParcel Tax

Overseas PostChina Post

EMSEMS

*Parcels that would have less than 50 USD calculated tax are tax free

VAT Income Tax Personal Parcel Tax*

✔ ✔

calculated tax are tax-free

✔

li i

Tmall Payment and Instant M

Secure Online Payment Service

• Alipay is the leading online payment system in China

• Alipay provides an escrow service between Taobao buyers and sellers

Alipay Payment ProcessAlipay Payment Process

SelectProduct

Pay toAlipay

Shopperconfirms

order arrival

Alipay pays

merchantTransaComp

1 2 3 4 5

Seller fails todeliver/productstandard unmet

4 5 Alipayrefundsbuyer

Shopper applies for return

3

Messenger Tools

Instant Sales Messenger

• AliWangWang is the most utilized IM tool in China’s ecommerce market

actionplete

TransactionComplete

6

Tmall.com Store Application Process

List of Documents from Merchant

Tmall.com Required Docume

List of Documents from MerchantBusiness License

Tax Registration Certificates g

Certificate of Trademark or Notification of Acceptance of Trademark (Mandatory for Brand Owner)

Brand authorization certificate (Mandatory for Agent)

Terms of Services

Agreement of ServiceAgreement of Service (Download online and print)Alipay Authorization (Download online and print)(Download online and print)For full list see:  http://www.tmall.com/go/chn/mall/zha

Remarks

nts

RemarksBusiness License in Mainland China

Tax Registration Certificates in Mainland ChiChina

For Flagship Store

For Franchise Store

Minimum Guarantee & Commission Rate

5 copies with common seal and5 copies with common seal and  embossed stamp

5 copies plus original sealed copy

aoshang_flow.php?spm=3.21146.0.0.g0yFNd

Tmall Global Store Applicatio

Send application wSend application w1.Phas10  

Wait for applicatWait for applicat2.

se IDays

Register forRegister for3.Phase14‐20 

Sign theSign the4.

e IIDays

Tmall GTmall G5.

Final 

on Process

with merchant and product infowith merchant and product info

tion processing and approvaltion processing and approval

r Alipay oversea version r Alipay oversea version 

e service agreemente service agreement

lobal Store Openinglobal Store Opening

Tmall Global Required Documments

Visit about.ttmall.com for more information

The Westminster Conference

Tmall Seminar

17th February 2014y

e Centre

Tmall Seminar

Estate

Mike Rowe

ESTATEExploring the China Market with T

Mike Rowe, Director of ESTATE

2/24/2014

TMall Online and Estate Offline

ESTATE BackgroundESTATE公司背景

Parent company Dyna-Pac established 20+and exporter of footwear.

ESTATE公司背景

20多年之前母公司恒晋鞋业成立于青岛，是一

• Annual output: 4 millions pairs of vulcanized

年产量：400万双热硫化帆布鞋及室内拖鞋

• Key accounts 主要客户:• H&M• Dunlop• Padders• Clarks• Fred Perry• Hush Puppies

years ago in Qingdao as a manufacturer

一家专业从事鞋履制造的出口企业。

d sneakers and slippers

鞋

ESTATE as a Luxury RetailerESTATE：奢侈品零售商

Started importing UK and other European bl di UK b d i t th f f t f

ESTATE：奢侈品零售商

leading UK brands into the very forefront of

3年前开始将英国及其他欧洲品牌引入中国，

的最前沿的最前沿。

• Increasing domestic demand of Chinese c中国消费者不断增长的消费需求

• Rich history and heritage of UK brands英国品牌自有的历史底蕴和沉淀

• Quality of UK brandsQuality of UK brands英国品牌的质量水准

brands 3 years ago, and brought manyf Chi ’ t il tf China’s retail sector.

，并将优质的英国品牌引进到了中国零售业

consumers

Some of our UK partners我们的英国伙伴举例们的英国伙伴举例

More brands are enthuMore brands are enthu

更多品牌也在积极

usiastic to join…usiastic to join…

极加入……

In addition to UK brands, there are also many oth

除了英国品牌，在我们的组合当中，也有众多其他

• KENZO of LVMH granted ESTATE as the exclusive pa

LVMH旗下的KENZO授权ESTATE为其在中国市场的男LVMH旗下的KENZO授权ESTATE为其在中国市场的男

• We set up Santoni’s very first and so far the only “new

我们为意大利的Santoni建立了其在中国的第一家也是迄

her European brands in our portfolio, for example:

他欧洲品牌，例如：

artner of men’s shoes in China

男鞋独家合作伙伴男鞋独家合作伙伴

w concept” shop in China

迄今唯一一个“新概念店”

8 stores in premium shopping malls within just 2 yea

2年之内建立了8家实体店面

– Beijing 北京:– Shin Kong Place 新光天地

– Season’s Place 金融街购物中心

– Galleries Lafayette 老佛爷百货

– Charter Beijing 卓展购物中心

– Shanghai 上海:– L’Avenue 尚嘉中心

– Qingdao 青岛:– Hisense Plaza 海信广场海信广场

– Changchun:– Charter Changchun 卓展购物中心

ars

ESTATE multi-brand store in L’AvenESTATE在上海尚嘉中心的多品牌集合ESTATE在上海尚嘉中心的多品牌集合

ue Shanghai合店合店

ESTATE multi-band store in SeasonESTATE 在北京金融街购物中心的多ESTATE 在北京金融街购物中心的多

’s Beijing多品牌集合店多品牌集合店

ESTATE multi-brand corners in GalleESTATE 在北京老佛爷百货的多品牌ESTATE 在北京老佛爷百货的多品牌

eries Lafayette牌集合柜台牌集合柜台

Our Santoni Mono-brand store at L’Av我们在上海LV大厦的Santoni单品牌店我们在上海LV大厦的Santoni单品牌店

venue Shanghai 店店

The Right Location: an example“合适的场所”举例合适的场所 举例

LG11LG113

L’Avenue Shanghai – Brand-m

LG11305 s

Montbl(Duple

LG115

LG112229 sm

Gant

484 smBurberry(Duplex)

LG132

95sm

VertuLG

127

50sm

Tudo

r

LG114180 sm

Longchamp

LG115308 sm

Ralph Lauren(Duplex)

LG12583sm

a.testoni

LG12

810

0 sm

Rol

ex

LG117

LG116172 sm

Loro Piana

LG118221 smBerluti

LG12

976

sm

Hub

lot

LG12052

LG117193 smFendi

LG101823 sm

Louis Vuitton(Duplex)

LG102255 sm

Ermenegildo Zegna

(Duplex)140

LG103-104334 sm

Dior

52 smZenit

140 sqm

11

mix of LG1

Fashion & Accessories11smancex)

Menswear

Watches

LG109197 sm

LG110167 smHackett

Jewelry

Loewe

LG108121 smTod’s

(Duplex)

LG12264 sm

Santoni

0a LG120b26

LG106-107

496 smPRADA(Duplex)

LG105243 sm

Salvatore Ferragamo

mth

26 smBaume & Mercier

Ferragamo (Duplex)

ESTATE to expand in 2014/2015ESTATE在2014/2015年的发展规划ESTATE在2014/2015年的发展规划

ESTATE will expand in 2014/2015ESTATE在2014/2015年将继续拓展

• 20 new physical shops in 2014

2014年将增加20个实体店面

N b f h ill d bl b d f 2015• Number of shops will double by end of 2015

到2015年底，店面数量将翻番

49

Changchun/长春

Qingdao/青岛

Nanjing/南京

Beijing/北京

Chengdu/成都

Chongqing/重庆Hangzhou/杭州

Nanjing/南京Shanghai/上海

Who is the Chinese Consume

• In China, luxury consumers are much younger中国的奢侈品消费者比欧洲消费者年轻很多。

• The growing middle-class are those who gdevelopment.中国迅速增加的中产阶级是在经济迅猛增中国迅速增加的中产阶级是在经济迅猛增

• China’s middle-class are more used to seAlibaba is now the world’s largest e-comm这些中产阶级更加习惯于先上网查询而后

商平台）

• The “second generation wealthy” has comg y中国的“富二代”也已长大成人

• …

r?

than their European counterparts.

grew up during the country’s rapid economic

增长的大潮中成长起来的。增长的大潮中成长起来的。

eeking information online before shopping (e.g.merce platform)后再采购（例如：阿里巴巴已经成为全球最大的电

me of ageg

Who is the Chinese Consume

• To Chinese consumers, a credible shopping centcredibility to consumers, especially when a brandy p y对于中国消费者来说，高端商场里面的品牌可以让

候。

• China is the only luxury market where men spend• China is the only luxury market where men spend奢侈品市场中，中国是唯一一个男性消费者比女性

r?

er (shopping mall, department store) gives mored is “unknown”.让他们更放心，特别是当这些品牌尚不为人知的

d more money than womend more money than women.性花钱多的地方。

Chinese consumers are migrating from中国的消费者日趋成熟，并从 “in the s中国的消费者日趋成熟 并从

Source: “China Luxury Stud

m “in the show” to “in the know”show” 走向 “in the know”走向

dy 2012”, by Bain & Company

ESTATE to Launch e-commerceESTATE即将启动电商业务ESTATE即将启动电商业务

E-commerce will fundamentally change the wacommerce growing at the speed and scale ascommerce growing at the speed and scale as电子商务将彻底改变我们的购物方式。目前没有任

国相比较。

• Broader and deeper exposure of our partners’ brand

使得与我们合作的品牌的曝光率更广更深

• Practically unlimited display of various productsy p y p

产品的展示可以说是几乎是毫无局限的

• More options for the consumers

给了消费者以更多的选择给了消费者以更多的选择

• Larger demographic and geographic coverage

无论在地域上还是目标人群的覆盖都会更加广泛

ay we shop. In no other country is e-in Chinain China.

任何一个国家的电子商务发展速度及规模可以与中

ds

Why TMall for ESTATEESTATE为什么选择天猫

On the “double 11” event initiated by TMall,China’s largest e-commerce platform,

ESTATE为什么选择天猫

China s largest e commerce platform,transaction volume hit RMB35 billion(approximately GBP 3.5 billon) in aone-day trading.

仅仅是在双十一当天，天猫的日成交量就达到了350亿元人民币（约合英镑35亿元）。

ESTATE flagship store on TMALL will open in M

ESTATE在天猫的旗舰店将于2014年3月开幕

March 2014

How will ESTATE work on TMallESTATE将如何在天猫操作ESTATE将如何在天猫操作

• ESTATE is a one stop shop for both UK brandsbetween brands and end usersbetween brands and end users.

无论是对于英国的品牌还是中国消费者，ESTA

端用户提供了无缝链接。

• ESTATE will

ESTATE 将负责：

– Organize import of goods and handle tax commodit– Organize import of goods and handle tax, commodit组织货物的进口、报关报验、完税等一系列手续

– Handle customer service, return of unsatisfactory me客户服务、退换货等

– Take care of delivering goods to the consumers from从我们自己的仓库把产品的交付给顾客

– Initiating and implementing marketing activities策划并执行市场营销活动策划并执行市场营销活动

s and Chinese consumers and a seamless connection

ATE提供的都是一站式的解决方案，更是为品牌和终

ty inspectionty inspection

erchandise

m our own warehouse and

How will ESTATE Support British Bra

To explore and grow a market, you must inve

要拓展并培育市场，各个领域的投入是必须的要拓展并培育市场，各个领域的投入是必须的

• Financial investment

资金的投入资金的投入

• Human resources

人力资本的投入

• Time and energy• Time and energy…

时间和精力的投入…

ands

est:

的：的：

Some Requirements by TMall天猫国际的部分要求际的部分要求

• Products descriptions must be in Chineselanguage

商品信息必须用中文

• Chinese live service through Alibaba’sinstant messaging platform “Alitalk”

配备中文旺旺客服

• Product return facilities must be inmainland China

必须在中国大陆设置退货点

• Security deposit 保证金: USD25,000.-

• Annual Fee 年费:

• USD5,000.- or USD10,000.- according todifferent categories

按不同类目分5,000美金和10,000美金两档

How will ESTATE work on TMall

• We also support our partners in other regards, example, we have helped a couple of our partnregistration of trade mark.不仅仅是这些。我们在知识产权保护等方面给品

伴，把他们在中国被恶意抢注的商标夺取回来伴，把他们在中国被恶意抢注的商标夺取回来

• In short, to partner with a RIGHT Chinese comt k ti i t th dcustomer, marketing, service etc. on the ground

for a UK brand’s exploration in the China marke简而言之，对于一个希望开拓中国市场的英国品

中国本土公司联手合作，无论是线上还是线下业

such as intellectual Property Protection. Forners successfully in fighting against malicious

品牌以支持，例如，我们已经成功地协助一些合作伙

，维护了品牌的利益。维护了品牌的利益

pany with RIGHT skills who handles the logistics,d i Chi ill b d fi it l ffi i lti lid in China will be definitely an efficiency multiplierets, both online and offline.品牌而言，与一家拥有“合适的”能力的“合适的”业务，无疑会事半功倍。

How will ESTATE Market itself on TMaESTATE将如何在天猫操作

At the same time, as a portfolio manager of imp

image, ESTATE is working with an Italian PR co

ESTATE将如何在天猫操作

image, ESTATE is working with an Italian PR co

as design and construction of corporate website

做为一家进口品牌的管理公司，为了打造一个国

来协助我们的市场推广、网页设计和建设等诸个

all

ported brands, in order to build an international

ompany for marketing and PR activities, as wellompany for marketing and PR activities, as well

e which will be launched very soon.

国际化的形象，我们聘请了一个意大利的PR公司

个领域的工作。

ESTATE marketing activities Pop UpESTATE市场推广活动举例ESTATE市场推广活动举例

p Stores

Celebrity Endorsements!

Boris Johnson, Mayor of LBoris Johnson, Mayor of L伦敦市长鲍里斯·约翰

Source: BBC （http://www.bbc.co.uk/ukchina/simp/multim

London visiting ESTATELondon visiting ESTATE翰逊访问ESTATEmedia/2013/10/131014_pic_gal_boris_beijing.shtml）

Lesser known Celebrities!

Speech at UK-China Business Summit when受邀在卡梅伦首相访华期间举办受 卡 伦首相访华期间举办

n Prime Minister Cameron visiting China办的“中英贸易峰会”上演讲办的 英贸易峰会 演讲

Conventional Marketing

Special report by GQ and LEONGQ和《男人风尚》LEON杂志的深度专访

Social Media Marketing

ESTATE “WeChat”

ESTATE自有的微信二维码ESTATE自有的微信二维码

Marketing with Social responsibility

Joint-charity sales of ESTATE and Highgrove,y g g ,

founded and owned by Prince Charles,.

ESTATE携手由查尔斯王子创立并拥有的公益

品牌Highgrove举行慈善义卖。

The Westminster Confer

Tmall Seminar

17th February 2014y

rence Centre

Tmall Seminar

MW Trade Marks & M t LtdJonathan Wyness & MaManagement Ltd Jonathan Wyness & Ma

Vintage

ary Ellen Fieldary-Ellen Field

PROTECTING YOPROTECTING YOPROTECTING YOPROTECTING YO

• Jonathan W• Senior Partner M

• Jonathan W• Senior Partner M• Senior Partner, M

A• Mary-Ellen Field,

• Senior Partner, MA

• Mary-Ellen Field,

OUR IP IN CHINAOUR IP IN CHINAOUR IP IN CHINAOUR IP IN CHINA

Wyness FITMAMW Trade Marks LtdWyness FITMAMW Trade Marks LtdMW Trade Marks LtdAnd Vintage Management

MW Trade Marks LtdAnd Vintage Management

IntroductionIntroduction

What is intellectual property (IP) What is intellectual property (IP)

Risks of doing business in China

How to protect your brands, optio

Benefits of trade mark registration

New Trade Mark Law

Key points

Chinese versions

ons, costs

n

What are Intellectual Property RWhat are Intellectual Property Rp yp y

• Registered U• Registered

1.Trade Marks ®

U

1

2.Designs

1

2

3 Patents 33.Patents

Rights?Rights?gg

UnregisteredUnregistered

1. Unregistered Trade Marks1. Unregistered Trade Marks

2. Unregistered Designs

3. Copyright

A trade mark is a sign which distinguithose of your competitors A trade mark is a sign which distinguithose of your competitors those of your competitors those of your competitors

TMs includeTMs include• Brand names• Logos

Product shapes • Product shapes • Colours• Slogans

TMs can be owned, bought and sold like tra

TMs are valuable business assets which gua

shes your goods and services from shes your goods and services from

aditional property

rantee of origin and quality to your customers

Risk of doing business in ChinRisk of doing business in Chin

culture of copying

problem with trolls or cybersquatterto sell them back

no protection for foreign brands unle

products on TMall have high visibility

TMall (as with many e-commerce sitopportunity for counterfeiters

Local partners/contract mfrs will re

essential to register your trade mag y

na na

rs who steal foreign trade marks and try

ess registered

y

tes) provides a cheap and anonymous

gister your mark

ark

19

20

Registration is everything Registration is everything

No rights to a mark unless it is regist

Once registered it can be used as a b

- Cease and Desist letter against infringer

- Opposition to an application to register a sim

- Complaint to the administrative authorities

- Registration with Customs to prevent import

- Bringing infringement proceedings in Court

- Licensing local companies and receiving roy

in China! in China!

tered in China

basis for:

milar mark

(AIC)

ts/exports of counterfeits

yalties

18

Benefits of RegistrationBenefits of Registration

Provides freedom to use the trade marks without cha

l f bl k h d f Essential for blocking the use and registration of simi Required by law in China for licensing local partners

overseas)

Required for assistance from Customs and AIC

Improves the value of the business and the attractivsee that the trade marks and other intellectual propep p

Acts as a deterrent and warning notice to third partie

Allows the licensing of the mark to group companies g g p pmanner and/or control the manner in which the hous

Registrations can be used to generate funds via mortg

Increased remedies (damages) in litigation

allenge or interference

l k kl d lilar marks quickly and inexpensively(and recordal of license essential for royalty payments

eness of it to investors or potential buyers who need to erty are adequately protectedy q y p

es

or third parties to generate royalties in a tax efficient p g yse marks are used around the group

gages or other loans

Protecting your TM In ChinaProtecting your TM In China

Clear your trade mark(s) (circa GBP 450)

Register your trade mark(s) (circa GBP 90

Police, monitor and enforce your trade madistributors, manufacturers etc.

Register your patents and designs

Keep a record of your copyright works andp y py g

aa

0)

arks and control their use by local importers,

d sales

Registration procedureRegistration procedure

Filing (classification)

Examination

Publication for opposition Publication for opposition

Registration (12-18 months)

Renewal every 10 years

FilingFiling National or via the Madrid Protocol

National route is good if China is the only co

Madrid Protocol is a more cost effective wayChina (need a home application)

the application must be filed in respect of sp the application must be filed in respect of sp(45 classes)

China adopts sub-classes (identical marks cafootwear because they fall in different subcfootwear because they fall in different subcmust register in all relevant subclasses)

China does not currently allow multi-class apP t lProtocol

Consider also registering Chinese versions ofbrands in Chinese (creating an opportunity f

23

ountry of interest (nb. Hong Kong separate)

y of covering several countries including

pecified classes and goods/servicespecified classes and goods/services

an be registered for clothing and for lasses within International Class 25 so lasses within International Class 25 - so

pplications unless filed via the Madrid

f Latin marks as consumers will refer to for infringers)

Register in Latin and ChineRegister in Latin and Chine

Registration in Latin does not offergtransliteration/translation

A quarter of the worlds population A quarter of the worlds population and so you should consider a Chine

Bi b d ll h Chi i l Big brands all have Chinese equival

eseese

r protection for the Chinese p

(your potential customers) are Chinese (your potential customers) are Chineseese equivalent of your brand name

l t ( h th th lik it t!)lents (whether they like it or not!)

24

Highlights of New TM LawHighlights of New TM Law

Effective 1 May 2014 (but no imple

Multi class applications

Reduced time periods for respondin

Statutory damages increases from increased deterrent

Bad faith provisions - to help again

ementing regulations yet)

ng to office actions and oppositions

0.5 m to 3m RMB (360,000 Euros) -

nst TM trolls

29

Key pointsKey points Search to ensure your mark is available fo

Register it in Latin and Chinese and in all r Register it in Latin and Chinese and in all r

Deposit it with Customs

Put in place agreement and trade mark liclicense if royalties to be paid overseas)

Send Cease and Desist letters/complain to Send Cease and Desist letters/complain to

Put in place a trade mark watch service toregister your markregister your mark

Keep good records

ACT NOW BEFORE IT’S TOO LATEACT NOW BEFORE IT’S TOO LATE

r your use and registration

relevant classes/subclassesrelevant classes/subclasses

cense with distributor/partner (and record

o AIC immediately infringements are detectedo AIC immediately infringements are detected

o provide early warning of attempts to

30

Top 15 most valuable brandsTop 15 most valuable brands 8

TM protection in Chinese isTM protection in Chinese is

Coca-Cola: 可口可乐 (Ke Kou Ke

McDonald’s: 麦当劳 (Mai Dang La

P & G: 宝洁 (Bao Jie)

St b k 星巴克 (Xi B K )Starbucks: 星巴克 (Xing Ba Ke)

KFC: 肯德基 (Ken De Ji)

s importants important

e Le)

ao)

9

It is important to get the ChIt is important to get the Ch

When Coca-Cola started maW e Coca Cola sta ted awould sound like coca-cola to mean “Bite the wax tad

An advertising campaign inFinger lickin’ good! into Chiyour fingers off.y f g ff

Pepsi allegedly introduced tp g yalive with the Pepsi Generabrings your ancestors back

hinese TM righthinese TM right

arketing in China they used characters that a et g C a t ey used c a acte s t at when spoken. Unfortunately, it turned out pole”.

China attempting to translate the slogan inese failed miserably, proclaiming Eat

their slogan into the Chinese market “Come gtion” translated into Chinese it read “Pepsi

k from the grave”.

10

Don’t leave it to chance!Don’t leave it to chance!

Ralph Lauren didn’t a

L t f d th t Later found that cons‘San Jiao M

Whi h t l t “Which translates as “

Quaker Oatmeal beco

‘Lao Ren Pai’Lao Ren Pai

Which translates as “

adopt a Chinese version of their mark.

h d d th i sumers had made up their own:a’ (三脚马)

Th L d H ”Three Legged Horse”

ome known as:

(老人牌) (老人牌)

“Old Man Brand”

www.vintagefinancial.co.ukg

Mary-Ellen Field7a Wyndham PlaceLondon W1H 1PN

Mary Ellen Field

T: 020 8371 3111F: 020 8371 3112E: [email protected]

MW Trade Marks LtdMW Trade Marks Ltd• Jonathan Wyness • Senior Partner, MW Trade Marks Ltd• jon@mwtrademarks com• [email protected]

25 years experience helping businesses ofChi d i t ti llChina and internationally

including 10 years of industry experience goods groupgoods group

several visits to China to meet with the Redeal with counterfeitsdeal with counterfeits

offer cost effective strategies and practica

f all sizes protect their brands and other IP in

as in-house IP attorney for Richemont luxury

egistrar of Trade Marks and local lawyers to

al advice for all budgets

32

The Westminster Conference

Tmall Seminar

17th February 2014y

e Centre

Tmall Seminar

Royal Mail

Mark Thomson

Ecommerce fulfillmentChi ’ M k t lChina’s Marketplace

Mark Thomson

Managing Director -InternationalRoyal Mail GroupRoyal Mail Group

t - Opening the Door to

The opportunity

China’s cross-border online shopping pp gworth c. £5.5 billion in 2012 – five times 2011 figures

British brands are trusted and desiredBritish brands are trusted and desired The “GREAT” campaign The emerging middle class

How we respond Royal Mail is expanding its service offering acrooss the parcel delivery value chain

RMG resources & capaFull service offer from all aspects of marketin

– campaign manageto response and evaluationp

capability to man – capability to manto fulfillment

– extensive range of based on value and delivery timescales

abilityng to fulfillment

ement and advice from planning through

nage inward receipts stock managementnage inward receipts, stock management

products providing end to end service

RMG resources & capa

Sales specialists providing expert adviceand experience for all export productsand experience for all export products

Country specific data on restrictions and prohibitionsand prohibitions

We have helped some of the UK’s largeste-commerce concerns expand globally ae-commerce concerns expand globally aspecifically into China

Tailored product development based on Tailored product development based on bespoke customer or sector requirement

ability

e

t ndnd

ts

RMG partnerships

Long standing commercial relationship wit

Royal Mail, along with China Post and 8 of organisations is a member of Kahala Post

o Improving delivery and service capabo Operational and Customer Service audo Product development to enhance outbp

Dedicated partnership team co-located UK

o Frequent visits to manage service offe

Commercial partnership in China providing

th China Post

the largest global postal ts Group which aims to:

ilitiesditsbound and return logistics capabilitiesg p

K & China

ering and joint developments

g export to EU capability

RMG fulfilment Fully tracked Global Priority serviceFully tracked Global Priority service

oo 33--6 day end to end delivery timesc6 day end to end delivery timesccollection to delivery and all eventcollection to delivery and all eventcollection to delivery and all eventcollection to delivery and all event

oo Supported by a dedicated customeSupported by a dedicated customePost’s express networkPost’s express network

oo Option to build in dedicated after sOption to build in dedicated after s

Tracked small parcel service (InternatioTracked small parcel service (Internatiooo <2kg, providing tracking out of UK<2kg, providing tracking out of UKoo Delivery aim of 5Delivery aim of 5--7 days7 days

Untracked small parcel serviceUntracked small parcel serviceoo <2kg providing economic service<2kg providing economic serviceoo Delivery aim of 5Delivery aim of 5--7 days7 daysyy yy

All undeliverable items returned free ofAll undeliverable items returned free of Loss compensation included for trackeLoss compensation included for tracke

purchase additional coverpurchase additional coverpurchase additional coverpurchase additional cover

cales. Tracking from UK cales. Tracking from UK ts in betweents in betweents in betweents in betweener service link with China er service link with China

sales servicesales service

onal Signed For)onal Signed For)K and signatureK and signature

f chargef chargeed products with option to ed products with option to

RMG fulfilment

Currently dispatching over 8 tonnes of parcCurrently dispatching over 8 tonnes of parcChina on a daily basis containing documensupplies

Frequency and volume support robust endtimescales and an economic supply chain

Now actively engaged with Alibaba to exploopportunities covering:

P to Paymento Consolidation and fulfillmento Customs integration

cel and letter traffic tocel and letter traffic to nts, clothing and essential

d to end delivery

ore integration

Top 10 tips for exporting

1. Do Your Research – be clear on any import restri2. Be Prepared to Adapt2. Be Prepared to Adapt3. Protect Your Profit4. Make Your Website Easy to Understand – what w

consumer5. Get Your Payment Sorted6. Address Packages Accurately – provide telephon

used to effect delivery in China7. Package Securely – items will be flown and mech8. Get the Price Right9. Consider Customs and Insurance - product by prp y p10. Any Questions, we have specialists who can adv

on your requirements

g success

ictions by country

works for the Chinese

ne numbers as they will be

hanically sorted

roductvise specifically

A Guide to Chinese Con

• Royal MBusines

• We havecomprehcompreh

Leave youth

nsumers

Mail is a member of the China British-s Council

e worked with them on the development of hensive guide on the Chinese Consumerhensive guide on the Chinese Consumer

ur business card with us today & we will give he first 50 a free copy of the guide!!!

Resources

Doing Business with China’s CA Guide for UK Business CBBA Guide for UK Business – CBB

Consumers –BC & Royal MailBC & Royal Mail

Thank you

For your time todayy y

To UKTI for the opportunity to invoinitiativeinitiative

Contact us through : [email protected] [email protected]

Good luck with your expansion into

lve ourselves with this

omco.uk

o the Chinese market

The Westminster Conference

Tmall Seminar

17th February 2014y

e Centre

Tmall Seminar

Qumin

Dominica Di Lieto

MARKETING YOUTHE BASICS OF

BY DOMENIC

UR TMALL STORE CHINA DIGITAL

CA DI LIETO

WEIBO

50 million daily active 

users

503 macco

FACTS

millions unts  

Link with Taobao 

ecommerce

WECHAT

100 million overseas users

5.0 vewit

enhanfunct

T FACTS

ersion th nced tions

235.8 million active users

CONVERTIN

• C t t d i f ti th t APPEALS• Content and information that APPEALS

• What is the value of the brand?

• MerchandisingMerchandising

• Price

• Offers/ promotionsp

• Product adaptations

• Customer service

NG TRAFFIC

RETAINING C

• Aft l i• Aftersales service

• CRM

• Social media engagementSocial media engagement

• Mobile marketing

• Listen and adapt- don’t stay still! Be flexible

CUSTOMERS

MEASURING

• Setting achievable tangible goals is essential

• Track success against metrics focused on China tr• Track success against metrics focused on China tr

• Social media engagement

• Tmall sales

• Order value

• Site traffic

Sit i• Site conversions

G SUCCESS

raffic/salesraffic/sales

SUMM

hChina is 

• Listen and adaptListen and adapt

• Emphasise your “Britishness “, communicate your

• Use a specialist reputable agencyp p g y

• Grow credibility and trust through social media

MARY

f !for you!

brand values

The Westminster Conference

Tmall Seminar

17th February 2014y

e Centre