Understanding markets and customers - Turkey Supplier Day (sharing)

Understanding Your Markets & Customers

Michael Mang Buyer Service & Development, Alibaba.com

19 June, 2012

Top 10 Buyer Markets for Turkish Suppliers

2

Q1 2012Market % of total inquiriesEgypt 8%United States 5%Iran (Islamic Republic of) 4%United Kingdom 4%China 4%India 4%Pakistan 3%Turkey 2%Tunisia 2%Greece 2%

Top 10 Supplier Markets for Turkish BuyersQ1 2012

Market % of total inquiriesChina 66%India 4%Turkey 2%Hong Kong 2%South Korea 2%Malaysia 2%Taiwan 2%United States 2%Ukraine 1%Pakistan 1%

3

International Trades

4

Important Trading Hubs

Buyer MarketsManufacturing and Trading Regions

Top 10 Industries for Turkish Suppliers

5

Q1 2012Industry category % of total inquiriesMachinery 11%Agriculture 9%Food & Beverage 8%Construction & Real Estate 7%Apparel 7%Minerals & Metallurgy 6%Textiles & Leather Products 6%Beauty & Personal Care 6%Chemicals 4%Automobiles & Motorcycles 3%

The Importance of Sourcing Channels to Buyers

53

52

50

46

40

39

27

26

47

39

48

42

30

35

24

24

56

57

50

48

44

41

28

27

Internet-Search engine

Internet-B2B e-commerce

platforms/portals

Local trading markets/wholesale

centers

Recommendation from others

Trade shows/exhibitions

Association

Yellow pages

Magazines and newspapers

Importance of various channels to buyers

Overall International Sourcing

Online channels

Offline channels

Traditional channels

• International buyers prefer sourcing through multi-channels, but the online channel is the most important one for them.

Local Sourcing

Source: The Nielsen Company

Manage Your Digital Content - Catch Buyers’ Attention in a Few Seconds

BRICS GDP Forecast2006 2010 2015 2020 2030 2040 2050

US US US US China China China

Japan China China China US US US

Germany Japan Japan Japan India India India

China Germany Germany Germany Japan Brazil Brazil

UK UK UK UK Russia Russia Mexico

France France France India Germany Japan Russia

Italy Italy Italy France Brazil Mexico Indonesia

Canada Canada Russia Russia UK Germany Japan

Brazil Russia India Italy France UK UK

Russia Brazil Brazil Brazil Mexico France GermanySource: Global Insight World Service and Goldman

Sachs

Group 2Big order, better margin

Pros: Cash flow & Quality Group 3Small order, thinner margin

Pros: Variety & Diversification

Group 4Small order, medium margin

Pros: R&D

Group 1Big order, thinner margin Pros: Branding & Capacity

Small

General Merchandise

Professional

Large

Medium

Classification of Your Customers“Busy and Business”

Top 3 Considerations When Buyers Choose Suppliers

What concerns the buyers most in dealing with new suppliers?

Buyer’s Needs

• Small : Integrity > Cost > Quality > Service

• Medium: Integrity > Cost = Quality > Service

• Big: Integrity > Quality > Service > Cost

Understanding of Buyer’s needs

15

Buyers’ Needs %To get market intellegence 50To find cheaper quality sources for existing products 30To find new products and innovations 20To consolidate existing supplier base 0To find backup suppliers 0

To get market information

To look for cheaper quality sources for existing products

To look for new products and innovationTo consolidate exisiting supplier base

To look for backup suppliers

0%

50%

Implications• buyers may not have immediate

purchase orders and may not understand the supply market; But he / she should have certain product knowledge and sales channels;

• Buyer has existing supplies but would like to change suppliers and should have certain product knowledge and orders;

• Buyer has no existing supplies but would like to develop new suppliers and should have limited product knowledge and orders;

• Buyer has exisitng supplies but would like to consolidate the orders for less suppliers. He / she should have certain product knowledge and orders;

• Buyer has existing supplies but would like to split the orders to backup suppliers to lower the risks. He / she should have certain product knowledge and orders;

Research Result by Nielsen

What is the key elements on the first contact:

• Understanding of Buyer’s needs 63%• Supplier’s Response Time 55%

Range <1 1-2 3-5 6-7 >7

Satisfaction Rate

Number of Days

Response Time Expectation from SME buyers （ Source: Alibaba.com Internal

Survey）

18

Sourcing Hub Service

Meeting with Suppliers

Package A: Meeting with suppliers in local office

Package B: Meeting with suppliers & factory visit

Market Intelligence

Acquire sourcing tips from our expert team on:- Market information;- Sourcing tips;

Pre-trip Arrangement

Leave all transportation arrangements to us:- hotel pick up;- Alibaba.com local office;

More Information: http://www.alibaba.com/sourcinghub

please apply here

Meet pre-screened suppliers in one day in one of the 17 Asian industrial Zones (Sourcing Hubs)

17 Sourcing Hubs

please apply here

Sourcing Hub - Mumbai

Sourcing Hub - Vietnam

Professional Sourcing Club(PSC)Supporting by Alibaba.com, PSC (Professional Sourcing Club) is an online and offline networking group aiming to gather trading, sourcing and supply chain experts from various industries and regions to share market intelligence and creative ideas, search for talents and encourage more interactions between members such as organizing professional seminar, networking, leisure activities, sourcing tours, visiting trade shows etc. to contribute the industry as a whole and benefit mutually.。

To join, please click herePlease contact Mr. Michael Mang at [email protected] for more information

Professional Sourcing Club

Alibaba.com Market Intelligence Series – Vietnam

November, 2011Prepared by Allan Yau & Thuy

ConclusionsAlibaba.com makes

doing business easier anywhere

Thank you!Michael Manghttp://buyer.alibaba.com/Skype: michaelmang1119YM: [email protected] line: 852-22155233Mobile Phone: 852-93423430

Copyright NoticePlease note:Michael Mang & Alibaba.com retain the right of copyright of all material in this presentation. No part of it is to be copied or published or circulated to any third parties without permission from Vincent Wong or Alibaba.com