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eChina
Accenture solution for E-commerce in China
Contacts
Your contacts in Europe
Eric MestreFashion and Luxury Europe Mob: +33 6 81 25 62 53 Email: [email protected]
Dimitri XavierConsumer Goods and Luxury Mob: +33 6 79 45 09 50Email: [email protected]
Your contacts in China
Christoph LoefflerAccenture InteractiveGreater ChinaMob: +86 1350 185 9464Email: [email protected]
Michael YeeRetail, Consumer Goods and LuxuryGreater ChinaMob: +86 21 2305 3667Email: [email protected]
Copyright © 2011 AccentureAll rights reserved.
Accenture, its logo, andHigh Performance. Delivered.are trademarks of Accenture.
Accenture assets
Accenture China is a full-service consulting, IT and outsourcingpractice active since 1989.Present for over 20 years, Accenture serves over 100 clients in theGreater China, 80% of which are local companies.Accenture employs over 5,000 people in China and has 10 officelocations in the country, including Hong Kong, Taipei, Shanghai, andBeijing, for consulting and BPO.
Accenture Interactive (AI) is a team of 950 individuals dedicated todigital consulting and web-related IT. With more than 400 clientsworldwide, AI has a strong track record for its ability to offer end-to-end E-Commerce solutions. It holds or has filed for more than 32 patents.
Accenture partners
Founded in 2004, Demandware is a leading SaaS E-Commerce solution provider. Demandware processes more than $5bn worth oftransactions and powers around 300 brands globally. The companyalso provides Demandware Mobile, a mobile Web storefront forcompanies selling direct-to-consumer.
With 35% of market share 360buy.com is China’s B2C market leader.With 150 000 daily orders on average and USD 3.0bn in revenues,360buy.com operates 6 major warehouses, 148 distribution stationsand 86 self pick-up stations across China mainland.
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••••
•Guangdong
Fujian
Hainan
Hubei
Wuhan Jiangxi
Heilongjiang
Nei Mongolia
Hebei
Henan Jiangsu
Shandong
Anhui
Guangxi
•Guizhou
•Beijing Tianjin
•Shanghai
Jilin
Gansu
Shaanxi
Shanxi Qinghai
Xinjiang
Xizang
Ningxia
Liaoning
Zhejiang
•Yunnan
•Nanjing•Nanjing•Nanjing
•Shenyang
••ShenzhenShenzhen
Xian
Sichuan •Chengdu
Chongqing
Key facts about eCommerce in China
At 36%, the average online penetration rate in China is still very low,but a high growth is expected (30%+ in rural areas).
Broadband is widely used (90-95%)
Who are the Chinese E-shoppers?
• 80% of us are under the age of 38.• Most of us learned to shop online on Taobao but nowadays we are
looking for more exclusive customer experiences.• We love brands and like trading up once in a while.• When indulging in a brand purchase online, we fear counterfeits.• Most of us have mobile phones which we are increasingly using to
make online purchases.• In fact, some of us exclusively go online using mobile phones.• We blog a lot and love sharing our shopping experiences on social
networks.• More than 70% of us prefer to pay on delivery rather than online.• We are likely to need more customer support than you expect.• We are very sensitive to pricing and discounts when shopping
online.
Our value proposition
Accenture offers a full range of E-Commerce services in China tailored to your specific needs and adaptable as you grow.
Digital Marketing• E-Merchandising• Analytics and site optimization• Multi-channel management• Content management
Our solution E-Shops are operated by Accenture Interactive (AI), a dedicated teamthat accelerates the journey towards agile intelligent marketing. AI combine the science of data with the art of social media to identify behavioral trends and turn browsers into buyers… and buyersinto lifelong fans.
Operations• Warehousing & shipping• Call center management• Planning & inventory optimization• Logistic 3rd parties and SLAs management
Our solutionAccenture partners with 360buy.com, the leading B2C E-Retailer inChina, to provide a full scope of logistic services. With 360buy.com,Accenture’s solution for China benefits from one of the largest logistic networks in China, which has specifically been designed forE-Commerce.
Technology• E-Shop design, maintenance and support• Order and fulfillment management• Multi-channel integration
Our solutionAccenture E-Commerce platform in China is powered by Demandware, one of the leading E-Commerce software. Being a SaaSsolution, Demandware constantly offers new site functionalities andtechnologies. In addition Demandware provides scalability, reliabilityand security and does not require any infrastructure to manage.
485 Million Netizens in 2011, the largest online population in the world and still growing at fast pace420 Million Netizens in 201020 hours per Week Online (vs. 13 hours in the US)325 Million Mobile Netizens
Online B2C turnover counts already for $23 bn yearly sales in 2011with 150 million online buyers…and the growth rate isexpected to be over 50%per year in the coming 5 years
Source: Accenture Research 2011 and CNNIC 2011
Pitfalls for E-Commerce in China
Operate inside the great China FirewallThe performance of websites hosted outside of China is extremelylow to a point where this restricts on-line usage. Companies willingto use their existing platforms often come across many hurdles evenwith an effective contact delivery network strategy.
Do not get burned by Chinese legal environment China has many regulations which govern corporate ownership, online sales, Internet Content Providers (ICP), as well as call centeroperations… It takes time and efforts to be granted the required authorizations and licenses to operate an E-Shop in China.
Set-up a reliable logistic solution that fits your business In China, it is challenging to find the appropriate on-line logisticpartner which will provide an integrated service across such a hugecountry and be flexible enough to address brands standards and requirements as well as develop new services in the long run.
E-Commerce in China is still new and un-mature, be innovative …E-Commerce in China is taking very different paths to E-Commercein Europe and in the US: M-Commerce and Social Media are developing very rapidly although multi-channel functionalities barely exist… Innovation is therefore required to foster growth.
Design a scalable solution which is ready for growth to come.As on-line sales are expected to go through a period of high growth,it is paramount to build a solution including a strong CRM strategyand a scalable technology platform that will sustain the high levelsof sales expected in the mid-term.
>50% penetration rate>30% penetration rate<30% penetration rate