Published on February 17, 2014
Wenli Liao CEO of Dataotuan
How to leverage consumer insights and marketing intelligence to build your business in China
Understanding the Chinese Market Big Rapid growth Complex 4
China - Not ONE Market Big Difference by Region Huge Difference between Tier 1-4 Cities Very Different Speed of Growth 5
Trend Internet Penetration Data source: 2012 CNNIC 6
Online Shopping Spending Data source: McKinsey online shopping survey, 2013 March 7
Challenge vs = Opportunity Opportunity – Big territory, limited store covering – More rich people in tier 3/4 cities are looking for high quality goods; online is an easy channel to approach them. 8
Challenge vs = Opportunity Challenge = future opportunity – Logistics Big Ecommerce sites and delivery companies have seen it as an opportunity and took action – Lower internet penetration Increasing steadily in tier 3/4 cities – Users recognition of Ecommerce Stimulated by daily deal, flash-sales sites 9
Brand building on the Chinese Market Trial Measure Optimize Expand 10
How to Enter the Market Important channels to enter a market •Ecommerce site – Online sales channels – Partnership – SEO/SEM/Social media – ........ but .... compared to more developed countries, you need to test even more on this market. 11
Channels to Try the Market Daily deal websites – – – – – – Fast/still growing Aggressive Flexible Attractive price Bring E-commerce close to daily life Educated many non e-shoppers into e-shoppers Flash-sales websites – – – – Clear positioning Exclusive Create urgency Aggressive marketing 12
Trial Results Should Be SMART Specific Measurable Achievable Realistic Time-bound 13
Try...Optimize...Expand • Try out different test markets in China • Display yourself at places where people go to find a good deal • Measure – be SMART • Get insights directly from the first buyers and then Try...Optimize...Expand 14
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