Post on 24-Dec-2015
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Electronic Commerce’s (E-Commerce) Cooperation Model between China and ASEAN
Xiang Li, Senior Assistant to Xiang Li, Senior Assistant to Dr Xiangdong Yu
General Manager of China-ASEAN Expo International Information Co., Ltd
December 2005
33
Outline
Part I: E-commerce’s conception and its applied phasesPart II: E-commerce’s development in China and ASEANPart III: E-commerce opportunities and cooperation model triggered by China-ASEAN Free Trade Area (CAFTA)Part IV: China-ASEAN Expo’s (CAEXPO) impact Part V: A rising e-commerce platform--- www.caexpo.org
44
Part II: e-commerce’s development
in China and ASEAN
E-commerce’s development in China
E-commerce’s development in ASEAN countries Electronic ASEAN (E-ASEAN)
55
Part II: e-commerce development in China
Started from 1997
Growing rapidly with the average rate of 40% annually
Transaction amount of e-commerce reached US$53 billion in 2004
Had more than 4000 e-commerce website in Had more than 4000 e-commerce website in 20042004
Mainly centralize in eastern and costal cities such as Beijing, Shanghai and Guangzhou
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Part II: e-commerce development in China
Population of internet users (million)
50
100
150
E-commerce infrastructure situation in China
2002 2003 2004
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Part II: e-commerce development in China
E-commerce’s model in China
Some giant enterprises have their advanced Some giant enterprises have their advanced e-commerce websitee-commerce website: Sinopec, CNPC, Sinochem, COFCO and China Minmetalss
The third party network service platforms proThe third party network service platforms provides e-commerce opportunities to small and vides e-commerce opportunities to small and medium enterprise (SMEs): Alibaba.com, Ebamedium enterprise (SMEs): Alibaba.com, Ebay.com.cn, Taobao.com, www.hc360.comy.com.cn, Taobao.com, www.hc360.com
88
Part II: e-commerce development in China
US$ billion
20
40
60
The increasing of transaction value of e-commerce (source: China National Network Information Center (CNNIC) )
2000 2002 20042001 2003
99
Part II: e-commerce development in China
Challenge
Lack of specialized third party logistics distribution system’s support’s support
weakness in payment system
Distempered credit system
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Part II: e-commerce development in ASEAN
US$ billion)
2.5
5
7.5
The increasing of e-commerce revenue in ASEAN (source: ASEAN’s annual report)
1998 1999 2003
1111
Part II: e-commerce development in ASEANE-commerce infrastructure in ASEAN countries
Source: IBM’s report in 2004 2002Source: Factbook on the Telecom and IT Industry in Asia, January , IDA, Si
nnnnnnn
Country Population % ofTeledensity(Fixed/ Mobile)
% of PCDensity
% ofInternetPenetration
Myanmar 48.1 M 0.55/0.06 0.1 0.002
Philippines 76.5 M 9.15/11.2 1.2 6
Singapore 4 M 48.5/74.5 47.5 44
Thailand 61.8 M 8.9/5.85 2.4 4
Vietnam 77.8 M 2.57/2.23 0.9 0.12
Country Population % of Teledensity(Fixed/ Mobile)
% of PCsDensity
% ofInternetPenetration
Brunei 328,000 40.2/38.4 61.0 11
Cambodia 12.2 M 0.25/2.6 0.1 0.05
Indonesia 210.5 M 3.1/1.7 1.0 1
Lao PDR 5.2 M 1.2/0.28 0.2 0.08
Malaysia 23.2 M 20.2/23.9 9.5 14
Source: factbook on the telecom and IT industry in ASIA, Jan 2002
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Part II: e-commerce development in ASEAN
E-readiness of different ASEAN countries
Source: IBM’s report in 2004
1313
Part II: e-commerce development in ASEAN
Different countries’ development status in terms of e-commerce in ASEAN
Source: IBM’s report in 2004
1414
Part II: E-ASEAN
E-ASEAN Agreementsigned by ASEAN Leaders at ASEAN Informal Summit in Singapore in Nov 2000
Initiative: establish a region-wide approach to making comprehensive use of information and communication technology in business, society and government.
Target: develop a broad-based and comprehensive action plan, including physical, legal, logistical, social and economic infrastructure needed to promote an “ASEAN e-space” as part of an ASEAN positioning and branding strategy.
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Part III: E-commerce opportunities and cooperation model triggered by China-ASEAN Free Trade Area (CAFTA)
E-commerce cooperation model between China and ASEANbetween China and ASEAN
Opportunities brought by CAFTA
E-commerce’s future in CAFTA
1818
Part III: E-commerce cooperation between China and ASEAN
E-commerce Cooperation model
Improve infrastructure jointly
Adopt general standard and international norms
Strengthen communication and trainingStrengthen communication and training
Governments’ pushingGovernments’ pushing
1919
Part III: E-commerce cooperation model: improve infrastructure jointly
Infrastructure cooperation between China and ASEAN
China-ASEAN Information and communication technology (ICT) seminars
Draft Draft agreementagreement on Mid and Long-Term Co on Mid and Long-Term Cooperation in ICT Sectoroperation in ICT Sector
ICT workshop seriesICT workshop series Telecom Network ManagementTelecom Network Management
Wireless Internet and 3G Mobile CommunicationsWireless Internet and 3G Mobile Communications
IICTCT mmanagement and anagement and ttraining raining ccourseourse
New Technologies of Optical Network & InternetNew Technologies of Optical Network & Internet
Access Network TrainingAccess Network Training
2020
Part III: E-commerce cooperation model
Beijing Declaration on China-ASEAN Information Communication Technology (ICT) Cooperative Partnership for Common Development
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Part III: E-commerce cooperation model
Adopt general standard and international norms
Based on recognized international norms
Mutual recognition of digital signature frameworks, CA system
United regional electronic transactions, payments and settlements
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Part III: E-commerce cooperation model
Strengthen communication and training
Opened and clear policy of entering e-commerce field
Clear strategies and market regulations
More dialogue, exchange and training
2323
Part III: E-commerce cooperation model
Government and enterprises’ Government and enterprises’ pushingpushing
Regulate domestic laws and related rules
Provide favorable policies and condition to enterprises who pursue e-commerce
Host seminar, forum, lecture, promotion fair
Establish international e-commerce relationship and strategy
2424
Part III: Opportunities brought by CAFTA
E-commerce’s opportunities triggered by CAFTA
Introduction of CAFTA
E-commerce opportunities during the construction of CAFTA
2525
Part III: Opportunities brought by CAFTA
Introduction of CAFTA
Eleven members: China and ten ASEAN countries
The third biggest Free Trade Area in the world
- 1.8 billion population, cover 30% people in the world
- US$ 2 trillion GDP, total trade amount over 1.2 trillion
- will be set up in 2010
Fastest growth
- bilateral trade volume increase by 38.9% annually.
- import and export will be expected to increase by 50%.
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Part III: Opportunities brought by CAFTA
Introduction of CAFTAComplementary advantages
- bilateral trade volume reach US$ 105.9 billion
- five ASEAN countries are China’s top 20 trading partners
More convenience for trade and investment
- agreement on dispute settlement mechanism
- agreement on trade in good
- lift most of the commodities’ tariff in 2010- lift most of the commodities’ tariff in 2010
- started “early harvest” in 2004, more than 7000 - started “early harvest” in 2004, more than 7000 commodities’ tariff were abolishedcommodities’ tariff were abolished
2727
Part III: Opportunities brought by CAFTA
E-commerce opportunities triggered by CAFTA
Zero tariff or low tariff to telecommunication products, IT products and Internet products
CAFTA pushes united e-commerce standard
Increasing business transaction in CAFTA enhances transaction value of e-commerce
CAFTA promote the cooperation in e-commerce field
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Part III: E-commerce’s future in CAFTA
E-commerce’s future development in CAFTA
E-commerce’s transaction value in CAFTA is expected to be 1/3 of total transaction value, reach US$ 2.2 trillion in 2010
Important link between China and ASEAN
Have better infrastructure and more favorable development environment
Break current uneven situation and develop faster in some lagged ASEAN countries
2929
Part IV: China-ASEAN Expo’s (CAEXPO) impact
Part IV: Outline
Introduction of China-ASEAN Expo (CAEXPO)
CAEXPO accelerates e-commerce’s popularization in China and ASEAN countries
3030
Part IV: China-ASEAN Expo’s (CAEXPO) impact
Introduction of CAEXPO
CAEXPO was proposed to be held annually by China Premier on 8 Oct 2003. The proposal was favorably accepted by leaders of ASEAN countries
The 1st and 2nd CAEXPO were held successfully in Nanning, China in 2004 and 2005
CAEXPO is held by China, ASEAN secretariat and ASEAN countries jointly
3232
Part IV: China-ASEAN Expo’s (CAEXPO) impact
CAEXPO target
Promote the construction of CAFTA
Share opportunities of cooperation and development
Bring and create development opportunities for enterprises of China and ASEAN countries
3333
Part IV: China-ASEAN Expo’s (CAEXPO) impact
Five main contents of CAEXPO
Commodity trade
Investment and Cooperation
Trade in service
High-level Forums
Cultural exchanges
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Part IV: China-ASEAN Expo’s (CAEXPO) impact
Achievement of CAEXPO
Attracted more than 20, 000 exhibitors and purchasers
More than US$ 1 billion trade volume during the 1st and 2nd CAEXPO
US$ 4.99 billion and 5.29 billion cooperation contractual volume in the 1st and 2nd CAEXPO respectively
Brought country leaders and entrepreneurs of the region together
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Part IV: China-ASEAN Expo’s (CAEXPO) impact
CAEXPO’s promotion to e-commerce
Bring famous e-commerce enterprises into the CAEXPO
Hold forum and conference of e-commerce on CAEXPO
e-commerce behavior on CAEXPO
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Part IV: China-ASEAN Expo’s (CAEXPO) impact
Bring famous e-commerce enterprises into the CAEXPO
- raise brand and enterprise image
- opportunities of China and ASEAN market and customer resource
- New products, technology and service of e- commerce emerge on CAEXPO
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Part IV: China-ASEAN Expo’s (CAEXPO) impact
Forum and conference of e-commerce on CAEXPO
- E-commerce cooperation between enterprises
- E-commerce policies and related law’s release
- The application of e-commerce in different field
- Human resource’s exchange and training
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Part IV: China-ASEAN Expo’s (CAEXPO) impact
E-commerce behavior on CAEXPO
- Official website of CAEXPO---www.caexpo.org
- Exhibitors and purchasers’ online application and management
- CAEXPO’s online propaganda and promotion
- Combination of substantial booth and online interactive booth during the CAEXPO
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Part V: Case study: e-commerce platform (www.caexpo.org)
Part V: www.caexpo.org
Introduction of www.caexpo.org
Customers and products
Development steps and target
The competitive advantage and competitive strategy
Cooperative mode and cooperation partners
Blueprint
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Part V: Case study: e-commerce platform (www.caexpo.org)
Introduction of www.caexpo.org
Established in Feb, 2004
The uniquely official website of CAEXPO
Authoritative economic & trade website in CAFTA
Multi-language and non-boundary e-business platform
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Part V: Case study: e-commerce platform (www.caexpo.org)
Customers and products
Current customers: Expo’s organizers, exhibitors and purchasers
Potential customers: enterprises in China and ASEAN countries
Final customers: all enterprises interested in CAFTA market
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Part V: Case study: e-commerce platform (www.caexpo.org)
Clients and products
Products:
- online expo
- business matching
- online advertisements
- expo management system
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Online expoCompany slogan
FAQ
Main picture or flash
Company logo
Platform area
Company introduction
Personal picture
Chat with our staff
Chat with visitors
Media centre
gift
Business card
Questionnaire
Information center
Product introduction
Dynamic news
Contact us
E-card
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Part V: Case study: e-commerce platform (www.caexpo.org)
Online advertisement
Authoritative warrant, possess of numerous clients
The most professional and excellent e-commerce platform in CAFTA
Quintuple-languages websites help grasp business opportunities
Flexible advertisement, unique advantages
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Part V: Case study: e-commerce platform (www.caexpo.org)
Development steps and target
Phase 1
Phase 2
Phase 3
Official website of CAEXPO
B to B economic & trade website in China and ASEAN
Advanced e-commerce platform in CAFTA
Online propaganda
Expo management
Information release
Technical service
Online transaction
Online payment
Online logistic
“10+1” e-commerce cooperation
Advanced e-commerce
service in CAFTA
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Part V: Case study: e-commerce platform (www.caexpo.org)
Phase 1: official website of CAEXPO
Target: official, unique website
Customer: CAEXPO secretariat
Service content:
- expo management
- expo propaganda
- information collection and processing
- technical service
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Part V: Case study: e-commerce platform (www.caexpo.org)
Phase 2: B to B e-commerce website
Target: authoritative economic & trade website in China and ASEAN
Customer: enterprises in China and ASEAN
Service content:
- online transaction
- online payment
- online logistic
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Part V: Case study: e-commerce platform (www.caexpo.org)
Phase 3: Advanced e-commerce platform in CAFTA
Target: the most influential e-commerce platform in CAFTA
Customer: all enterprises interested in CAFTA market
Service content:
- “10+1” e-commerce cooperation
- online finance and investment
- research and application of new e-commerce fields
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Part V: Case study: e-commerce platform (www.caexpo.org)
The competitive advantages and competitive strategies
Competitive advantage - strong government support
- advanced service network
- good cooperation relationship with chamber of commerce, associations and organizations
- trade and investment of database of China and ASEAN
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Part V: Case study: e-commerce platform (www.caexpo.org)
The competitive advantage and competitive strategy
Market strategies - focus strategy: bilateral trade and investment
between China and ASEAN
- professional strategy: target in demands of customers, provide advanced information and e-commerce service
- reasonable resource utilization: official website of CAEXPO, government support
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Part V: Case study: e-commerce platform (www.caexpo.org)
Cooperative mode and cooperation partners
Cooperative mode - technical cooperation
- market cooperation
- project cooperation
- investment cooperation
“10+1” e-commerce platform
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Part V: Case study: e-commerce platform (www.caexpo.org)
Cooperative mode and cooperation partners
Cooperation partners - government level: CAEXPO secretariat, Chamber
of commerce, counselor office of China and ASEAN countries’ embassies
- market level: Hai-O group, APP, www.sina.com, www.sohu.com, Worldvideobusiness,
- technical level: China Telecom, Siemens, IBM, HP
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Part V: Case study: e-commerce platform (www.caexpo.org)
BlueprintThe most authoritative “10+1” e-commerce platform in CAFTA
The most comprehensive website in terms of trade & investment in China and ASEAN region
List on stock market in Singapore or Malaysia in 2008
List on NASDAQ in 2010
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Conclusion
E-commerce is growing rapidly in China and ASEAN region
B to B is the main mode of e-commerce in CAFTA
Third party e-commerce platform has bright future in CAFTA
The cooperation between China and ASEAN has unlimited potential