Efficient strategies for international firms, to implement, compete and succeed on the Chinese E-commerce market. Study of local competitors, of the failures of Internet giants. Findings on how to enter and achieve success on this highly competitive and difficult market.

1. 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

2. Agenda
Motivations
Research
objectives
Background/Data
Methodology
Findings
Recommendations

3. Mo*va*ons
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.

4. Research
objec*ves
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.

5. Background/Data
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

6. 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

7. 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?

8. 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

9. Recommenda*ons
and
advices
(2)
• 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

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