E-commerce in China: when platforms support to master the market

E-commerce in China is for sure becoming literally a boom-phenomenon.  It’s like the first fast crazy running we got towards East at the end of 90’s  when everybody was looking at China as new economic power in the world.

And it must be so when we are facing with the biggest market in the world in terms of demand and wideness for online sales.

According with recent analysis we are going to overpass 600 millions of internet users until 2015 and around 150 millions of users in 2010 have been confirmed as already frequent buyers online; but more interesting to know,  the number of buyers should grow till approximately 520 millions of users before the end of 2015: effectively an incredible result if we consider that in Europe according with Statista© we will be able to reach approximately 190 millions of buyers at least in the same period.

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Usually when we think about e-commerce in China we could be stunk referring to complicated and un-protected system to develop online selling platforms. I think that problems concerning property rights and copycat’s risks should be pointed out as first element of the matters, but I would like to remind you that “the democracy of buying whatever you want” is one of most important perspectives followed strongly from 2010 by central Government and in general the legal system and also the awareness of consumers on buying original brands are bringing investors and developers to enjoy more safe and equilibrate environment.

Let’s check what kind of de-regulamentation nowadays represents a concrete step ahead for the development of the e-commerce environment in China

1500px-Flag_of_the_Peoples_Republic_of_China.svg_– 2010 with the  shangzizi 2010 n 272 the online sales are accepted as regular and natural prosecution of usual commercial activity for foreign companies so also  foreign investors are now allowed to make their products on sale online without any particular requirement as involvement of chinese co-investor and without any particular approval or distinctive business license issued by MOFCOM

– Then if you are not service provider for other operators but if you want to sell throughout your online platform your goods you don’t have to apply for specific ICP (internet content protocol) as it’s compulsory for providers that create online stores in name of  third operators

The second point is very interesting and represent a boost for online businesses: if you are a foreign company with base in China you can immediately open your e-commerce service without any other specific approval or license.

I’m used to suggest to follow this way to my clients ‘cause it represents a great system to educate customers to approach specific brand or production enjoying in particular sharing opinion’s tools and crossing information through social networks. I really think that even if volume of sales are one of most important goals for an online-store, we have to remember that in China the access to information through browsers represent the first step to get well detailed info and in particular comments from other users.

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Even if it seems more easy and quick try to being represented by third platforms like some services that T-Mall (owned by giant Alibaba) in particular when the company doesn’t present any legal entity registered on chinese market, we should remember that in this cases it’s more difficult to guarantee legal safety against fraudulent dynamics and payment is required oat of the times in foreign currency by exporters (due of absence of corporate- presence on chinese market) and it’s not always easy to pay for common users.

As researcher on marketing strategy for China I well recommend to place own brand or group of brands through e-commerce platform after registering own WOFE into chinese market , not only because it would be for real a concrete internationalization’s goal but also due to head for more well framed condition to boost own identity and at the same time to speed the realization of direct online store in safe and well guarantee condition without any specific additional business license.

as i’m used to say, chinese market follows specific P’s to ensure successful results on sales then

– Products: quality and distinctive features must be mediated with concrete perception of what chinese consumer is looking forward; and sometimes such elements cannot be put on focused so much through general e-commerce portal not directly managed by own management and partially created with third operators.

– Popularity: being online doesn’t mean only be sold on the web. The strategy of “word of mouth” needs to be boosted through social networks and specific promotion about brand and production that sometimes needs more intensive effort than general information  summed up in general categories of multi brand online sales.

– Price : information without price it’s not so attractive for chinese customers. They need to feel they are enjoying special bargain (it doesn’t matter if we are talking about middle level products or luxury). In particular if we have something to sell that fits with medium target, the announce of special sales are really attractive among young customers, otherwise the placement of products with high price for luxury field should be successful among specific senior targets

– Passion: chinese people loves to join shengyi (business) on both sides, as sellers as long as clients; being present in the market make us more aware about chinese culture and market’s needs. I think that e-commerce can express for real such passion on doing business into chinese market as more as you can be aware about what does China represent not only as producer but also as commercial operator who choose to invest in China.

I think that chinese law’s system will proceed on more concrete and responsible way to protect property rights against copycat’s actions and government will do all the best to boost  development for one of crucial factors for contemporary chinese economy like online businesses.

 

The features of new frontier of Business Tours for B2b – Introducing Kobe Healthcare Tour 2014

Too many times we’ve heard about international exhibitions that are important on worldwide scene due their well named reference that offers us the opportunity to collect lot of contacts and being protagonist of direct introduction in the field under international perspective.

Most of the times we realized then that even if the event has been pretty useful to get perception of we were looking for about doing business internationally, usually we cannot make concretely a business dialogue with potential partners cause we’re not directly introduced or we got lost on matching with profiles that fit with our research and structure.

If we add also conjuncture’s elements like international crisis, cut-off about extra expenditures for research and development, less resources concerning staff and managers who could take care about specific issues of business development, you could agree with us when we said that some international exhibitions don’t provide the best useful way to start real B2b mission.

That’s why recently it could have more sense try to join new experience of meeting partners when we try to approach a well framed market with long tradition on development of business dynamics like Japan. My studio is always pretty sensitive about such tools that can support commercial needs on concrete perspective and recently we’re more into consulting and supporting for business tours than usual attendance to international exhibitions with booth and hostess.

Some good features for such kind of service concern for example the opportunity to get “complete tools” to start to introduce yourself:  well advised matching of contacts and operators, business schedule well structured about meetings and inquiries collected by organizers, interpreter but also some elements that you cannot find during regular exhibition like factory visit, check about production and sample testing process, on site official introduction and discussion’s table with experts of the field as moderators (for example unlike the usual “booth – promotions”, during such briefing step we can resolve most of troubles that we are gonna face with during following business deal and that usually cannot being put of focus cause we’re not supported on local discussion with moderators contributions)

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Then, the business tour really makes possible to contribute with effective strategy on company – awareness or event’s promotion using cross media and social network’s tools more than usual exhibition like streaming conferences with colleagues and managers who can follow directly the mission by web and inter-act directly during the negotiation or company’s visit, or for example arranging a survey with online campaign which we can directly test some opinions from clients or key leaders about some products or new series of services we’re going to import or analyze for new marketing strategy. I’ve been already more familiar with the perception o that business tours as real “direct dimensions” of planning business mission which comparing with usual attendance to common international exhibition make everything more concrete, quick and cheap for companies.

Beyond that I’ve found companies really satisfied for having reach the goal about learning more on players and productions or for feeling more involved in some business exchanges comparing with “booth – dynamics”, also such conditions introduced by the tours allow company to make cross media and social network’s effects more intensive for team leading on particular projects as long for marketing strategy and general promotion about their activity abroad.

Usually such ventures cost approximately 1000 of dollars or something so less than any basic attendance to 3 days exhibition!

Today we have the opportunity to introduce the next business tour which we’re working about and it concerns very crucial field like Healthcare in Japan from 17 to 20 of March 2014

Core benefits you can experience in this tour :

1. A fully organized business tour in Japan for a much lower cost than done individually.
2. Discuss almost 60-to-80 products and possibilities of ‘Private brand’ Japan manufacturing and other forms of partnership with Japanese beauty healthcare product manufacturers.
3. Various forms of products and modern packaging such as : Drinks, Tablets, Gels, Creams, Powder, Granules, jelly sticks etc. available.
4. Sample dozens of products directly and discuss business on site.
5. Have factory managers (around 10 manufacturers), products and decision-makers in one place & time to allow smooth business flow.
6. All discussions in English with qualified interpreters.
7. Expand international networks and business possibilities by interacting with guests from other markets.
8. Enjoy Japanese culture and beautiful KOBE !

• The total tour package is US$1,250 per person  including three nights hotel stay, airport transfers to and from Kansai Osaka Airport, Meals (Breakfast, Lunch, Dinner – Veg and Non-Veg), local transportation, interpreter service, factory visit, product samples, mini-sight-seeing.

 

Marketing Strategy on east Asia – contents of marketing course for Master in Internationalization of SME – NIBI new institute for international business Milano

It started as professional collaboration 3 years ago and now it’s becoming an interesting opportunity for me to introduce specific contents about doing business in China and Japan, in particular focusing on marketing strategy’s tips for companies according with personal professional experience as advisor for such commercial dynamics.

For the next session that will start soon, I’m going to teach in Milan on 5 of October 2013 and I’ll provide to my students concrete tools to approach chinese market considering elements as follows

– now china represents a real business model that consist of specific and distinctive features (about target, IDE, regulamentations for specific fields, VAT , company lawa etc)  that must be considered on planning strategy (as model it means that way of doing business and promotion need particular attention on specific steps and as part of internationalization’s process)

– target’s control: we’re really sure to know well chinese market? we should remember that when we talk about china we’re approaching an highly framed market and also when we refear to “rich chinese as potential customers” we have to take care about several levels of richness (middle class, upper middle class, rich people etc)

– regional marketing in China needs probably the most demanding attention than any other market, that’s  first of all beacause it’s a very big country, then cause we’re approaching a multi ethnic – country and doing business locally needs local connections and specific awarness about elements that marks operators (suppliers) but also trading companies or final customers.

– during this lesson I’ll also specify some new elements that represent big change for China about e-commerce policies and doing business on the web

– then we’ll focus our attention on some cases and we’ll introduce some basic info about negotiation’s steps.

‘cause I’ve expertise about chinese language I’m used to introduce the above contents using some key-words in chinese and I’ll try to channel attention of students about specific Hanzi that will express the meanings i’m going to focus on –

If you wanna know more about NIBI’s faculty and didactic programmes check the link as follows. I’m proud to remind you that Asian Studies Group, the studies centre which I’ve founded is official partner of the Institute as Consulate of Republic of Korea in Milan and Confucius Institute.

 

 

http://www.nibi-milano.it/Corsi_internazionalizzazione_impresa/Corsi_impresa/Far_East.kl