JUGIER  François,  诚雷声    

Graduation  Thesis:  

E-­‐commerce  in  China  

国际化公司在中国电子商务市场  实施、竞争和成功的有效战略    

Efficient  strategies  for  international  firms,  to  implement,  compete  and  succeed  on  the  Chinese    

E-­‐commerce  market  

Agenda  

Motivations  

Research  objectives  

Background/Data  

Methodology  

Findings  

Recommendations  

The  immense  potential  of  China’s  E-­‐commerce  

•   Huge  market,  tremendous  growth  and  low  market  penetration.  •   Rapid  development  and  sophistication  of  its  structure  and  environment.  •   Major  influence  on  every  aspect  of  the  Chinese  society,  and  its  evolution.  

The  disastrous  track  record  of  International  web  giants  on    China’s  E-­‐commerce  market.    

•   Inability  for  foreign  web  firms  to  establish  a  successful  position  in  China.  •   Tremendous  success  and  achieved  dominance  of  young  local  firms.  •   Image  of  China’s  Internet  as  a  highly  complex  and  extremely  difficult  market.  •   Conventional  wisdom  that  cultural  barriers  are  too  high  for  foreign  firms  to  succeed.  

High  value  :  Knowledge  required  to  succeed  on  China’s  E-­‐commerce  market.  

•   Insight  on  the  complex,  and  singular  Chinese  E-­‐commerce  market.  •   Recurrent  mistakes  and  wrongdoings  of  unsuccessful  firms.  •   Strengths  and  effective  actions  of  successful  firms.  •   Workable  strategies  and  useful  advices  on  how  to  achieve  success  on  the  Chinese  online  market.  

Mo*va*ons  

Analyse  the  Chinese  E-­‐commerce    situation,  structure,  environment,  operations,  users  and  characteristics  

•   Global  knowledge  of  the  market.  •   Understanding  of  its  particularities  and  differences.    

Study  foreign  and  local  E-­‐commerce  firms  growth,  struggle,  competition,  achievements  and  downfalls  

•   Determinants  of  success  and  failure  on  China’s  E-­‐commerce  market.  •   What  works  and  what  does  not  work.  

Determine  key  information  and  strategies  to  succeed  on    the  Chinese  E-­‐commerce  market.  

Research  objec*ves  

Literature   -­‐  E-­‐commerce  in  China    -­‐  Chinese  culture      

Case  studies  -­‐  Success  stories  

-­‐  Difficulties,  struggles  and  failures  -­‐  Competition  

Statistical  websites  

-­‐  CNNIC    -­‐  MIIT  -­‐  iResearch  -­‐  CIW  

Observation  -­‐  Internet  environment  -­‐  Influential  websites  

-­‐  Consumer  behaviours  -­‐  Patterns  

Background/Data  

Analysis  and  study  of  the  Chinese    

E-­‐commerce  market:  

 Overview    Online  shopping  market   Uniqueness  and  particularities  

Analysis  and  study  of  web  firms  in  China:  

 Local  firms    International  firms   Competition  for  dominance  

Practical  advices  and  workable  strategies  to  succeed  on  the  Chinese  E-­‐commerce  

market  

Methodology  

Findings  

•  A  youth  phenomenon  •  Importance  of  social  networking  •  Advent  of  Mobile  Internet  •  Domination  from  local  players  

Chinese  Internet:    A  unique  market  

•  Failing  to  identify  the  singularity  of  the  market    •  Replicating  home-­‐grown  business  models  •  Poor  dealings  with  the  Chinese  authorities  •  Underestimating  the  local  competition  •  Poor  partnership  and  management  choices  

Why  do  International  firms  fail?  

•  Influential  leadership  • Willingness  to  take  risks    •  High  reactivity  and  smart  decisions  •  Knowledge  of  the  market  •  High  flexibility  and  adaptation  capabilities  

How  do  local  players  triumph?  

Recommenda*ons  and  advices  

• A  multitude  of  markets  •  Identify  who  is  the  typical  Chinese  users  •  The  importance  of  Chinese  culture  •  The  rapid  and  ever  changing  aspect  of  the  market  •  Patterns  and  behaviours  

Understanding  the  market  

• Adapt  services,  offerings,  user  experience,  website  design...  •  Build  a  new  business  model  •  Identify  and  follow  trends  and  changes  in  lifestyle  •  Remaining  flexible  and  adaptable  

Adapting  to  the  market  

•  Strong  local  managerial  organization  and  team  • High  autonomy,  independent  decision  making  • Usage  of  local  tools  and  market  efficient  instruments  •  Importance  of  关系  (Guanxi)  and  local  ties  

Localizing  

•  Understanding  the  regulatory  climate  •  Building  strong  relationship  with  government  •  Playing  by  the  rules  and  keeping  a  low  profile  •  Staying  away  from  sensitive  sectors  

Dealing  with  the  authorities  

•  Cooperation  based  on  common  interests  •  Equally  beneficial  and  indispensable  to  both  parties  •  Build  trust  between  partners  •  Long  term  goals  and  benefits  

Finding  the  right  

partnership  

Recommenda*ons  and  advices  (2)  

Thank  you  for  your  aCen*on  Any  ques*ons?