Embracing Change with Digital Marketing in cross-border e-Commerce

KF Cheng Vice President

[email protected] 11 Feb 2015

A Real Story http://v.youku.com/v_show/id_XNzQwODIzMDY4.html

A Snapshot in Beijing

SME Issues

Access International Market

Entrepreneur & Innovation

Access to Finance

e-Commerce: The Pros

• Access to international market

• Lower barriers

• Lower cost of operations

• Speed to market

• Systematic & efficient management

• Automation

• 24x7 service

• Tools to reach customers direct

• Direct connection with customers

• Customer relation management

• Business & Market Analysis

Online Marketing

Offline Marketing

Online Business Cycle

• Online payment

• Online logistics arrangement

• Integration with real business

Shorten transaction time

Shorten business cycle

Improve cash flow

Change: Bypass the Middlemen

Customers Retailers Wholesalers Import

Organizations Export

Organizations Factory

Customers e-Commerce Factory

Traditional

Now

Increasing Margin from 5% to 54%

Advantage: Increased Margin

Logistics 10%

Net Profit 54%

Manufacturing Cost 12%

Online Payment 4%

Web Store 20%

Net Profit 5%

Manufacturing Cost 8%

Overseas Retail 25%

Overseas Channel 50%

Domestic Channel 12%

Traditionally e-Commerce

An ICT-based New Supply Chain

New Eco-System in Business

Margin Transaction Cost Business Cycle Global Market

Safe & Transparent Direct to Customers Analytics

Examples of E-Commerce Users

Sellers Buyers

SME suppliers

Traditional wholesaler exporters

Trading companies

Web merchant entrepreneurs

SME retailers

Wholesalers & distributors

Small business for own use

Part/time business owners Young

entrepreneurs

Forecast: US Online Retail Sales 2012-2017

Forecast by Forrester back in 2013 http://mashable.com/2013/03/12/forrester-u-s-ecommerce-forecast-2017/

Forecast: Online Retail Growth in Other Countries

Forecast by Forrester back in 2013 http://mashable.com/2013/03/12/forrester-u-s-ecommerce-forecast-2017/

Driving A New Consumer Culture

e-Commerce: China vs US

Buyer Sourcing via Multiple Channels

Supplier websites

Web searches

Industry press (print)

Word of mouth

Direct mail

Press advertising

Facebook

Blogs

LinkedIn

Twitter

Other social media

Any traditional online — 88%

Any offline — 74%

Any new online/social media — 40%

*Source: A total of 1,017 European buyers took part in the BUYERSphere survey 2011

Near 90% buyers source via online channels (including sourcing websites, suppliers websites and search engines)

>70% continue to source via traditional mediums (trade fairs, magazines)

e-Commerce: Digital Marketing

Traffic to Your Website: SEO

Search Engine Marketing

Social Media Marketing

eDM: Email Marketing

CRM: Customer Relation Management

Video Marketing

Affiliate Marketing

Noise in the Market

Mobile, Tablets, & Others …

LBS

Wearable Technology

and more …

Know Your Business

Big Data: Business Intelligence

It’s all about TRUST

Build TRUST on internet Build your Digital Branding

O2O

Common Issues in China Sellers

• Dishonesty – Product Description, Photo,

Color, Size, …

– Counterfeit

– Wrong Tracking No

• Language – English, Spanish, …

– Communication, Culture

• Copying – Products, photos,

descriptions

Buyers

• Dishonesty – Fault Payments

• Custom & Tax

• Consumer Culture

• Returns

KF Cheng Vice President

[email protected]

hk.linkedin.com/in/kfcheng 11 Feb 2015