CRG Presentation on China

1. USING E-COMMERCE TO EXPAND YOUR
RETAIL BUSINESS INTO CHINA
Wing-Yun Wong, London 2015
CHINA RETAIL GROUP
1

2. Market Opportunity
China’s population is
over 1.34 billion.
They are all SPENDING
at some level

3. The China Retail Market
Chinese consumers are
starting to spend & will
create one of the world’s
largest retail markets

4. The China Retail Market
China’s consumer economy
has been likened to that of
the USA, developing from
the 1970s where many
consumer brands started
from this time to dominating
the US market by building
their brands & distribution
through this consumer
growth cycle

5. Who & Where are your Customers?
• There are over 650 cities in China
with considerable growth in the 3rd
and 4th tier cities.
• There are over 120 cities with a
population of more than 1 million
people.
• China has several different
economic cycles developing at
different stages & paces at the
same time.

6. The Existing Chinese Consumer
The Chinese are transforming from savers to
spenders in this generation
They have adopted the “What About ME?”
approach
They are gaining access to credit cards and facilities
They are very aware of brands and what they want
The evolving Chinese consumer is growing in
maturity and in an online environment

7. E-Commerce in China
CHINA RETAIL GROUP
7

8. Why E-Commerce in China?
Only way to reach
consumers across China
Effective way to operate
on a low cost model with
effective stock controls
COST
1 shop fit-out ≈ setting
up an e-commerce
response, servicing 500
cities in China
Removes risks of dealing
with property leases
Removes staff & training
issues
Counteracts fake
products in the market

9. E-Commerce in China

10. E-Commerce in China

11. E-commerce in China – What They Buy

12. E-Commerce in China – Desire for Foreign Goods

13. E-Commerce in China – Desire for Foreign Goods

14. E-Commerce in China – Desire for Foreign Goods

15. E-Commerce in China – Desire for Foreign Goods

16. E-Commerce is Evolving
CHINA RETAIL GROUP
16

17. E-Commerce is Evolving in China
Today’s e-commerce
in China is mainly
dominated by the
Alibaba Group
There is a shift with
consumers towards
more specialty
websites that focus
on market sectors
Sales are starting to
grow for stand-alone
websites that have
effective social media
support

18. China Logistics & Fulfilment
CHINA RETAIL GROUP
18

19. Logistics & Fulfillment Flowchart
International fulfilment & Importer of Records (IOR) model : Retailer just needs to simply integrate into
the current site with our logistic systems. CRL can connect, communicate and fulfil orders to consumers in
over 500 cities in China without the retailer establishing operations in China.
Parcel consolidation
Custom
clearance
Returns
Management
Orders
contracted courier
delivery
Shipment
CRL DC
Quality Check and
re-racking for
secondary sales
Domestic Courier deliver
to customers
RETAILER

20. IOR – Processing
IOR contract
3. Clearance Contact 4. Documents preparation
5. Orders and Products input into system
• The Retailer can use DHL or other international couriers. It will be efficient though cost is high.
• CRL can provide a consolidated solution to save logistics cost when orders are more than 20/day.
6. Delivery to consumer
2. Shipment to China
1. Purchase at term of DDP
CRL is one of the few proven fulfilment providers that can ensure timely and effective delivery under
our IOR model, where CRL acts as the Importer of Records for all parcels entering China.
RETAILER

21. Key Elements to Succeed in China Retail
CHINA RETAIL GROUP
21

22. How to Succeed in China Retail
Be aware of where the current market is & how fast changes take place –
different to international trends.
You don’t have to be the largest international brand to succeed, though
you have to be smart on how you enter & service China.
Know where your customers are across China
Have access sales channels that can touch your customer
Have access to distribution that reaches your customers
Have access to payment gateways that link to your targeted customers
22

23. How to Get Started
CHINA RETAIL GROUP
23

24. Where Do I Start?
Retailers entering China must first:
Decide Who and Where your Customers are located
Decide what products are really suitable & the range accordingly
Decide if you want to establish your own operations or use an integrated
agent
Decide what sales channels best suit their products

25. MUST DO for Retailers Entering China
CHINA
Look at the
most efficient
brand building
strategies
Continuous
ongoing product
development to
keep up with the
incredibly fast
changing market
Think
INTERNATIONAL
Act LOCAL

26. How Can CRG Assist?
CRG can provide consulting to a
Stand-alone e-commerce sales &
support solution that can also
include full back-end fulfillment
and an end-to-end solution

27. The Retail Question
“The Question is:
Can you ignore what is evolving in the
retail sector China & can you ignore
what your competitors might do in
China”

28. China Retail Group
CHINA RETAIL GROUP
28

29. Why CRG
• CRG’s core divisions CRS and
CRL provide an end-to-end e-
commerce solution
• CRG understands the whole
retail process, from initial
marketing campaigns to the
point of selling the right
product to the right consumer
through the right channels
29
Strong local networks and partnerships
Local knowledge and experience
Cost efficient strategies and effective ways to access the market and
target consumers
Strong operational capabilities of e-business marketing, access to top
tier sales channels, fulfillment, customer care, payment solutions, etc
End-to-end local partner for China market across all spectrums of the retail
process

30. CRG’s Distribution Capabilities
“CRG’s nationwide
distribution network
connects you to your
Chinese consumer”

31. Offshore Model
• Chinese name creation & brand registration (English & Chinese)
• CRG manages the Retailer’s social media accounts in China – weibo / wechat
• CRG builds a Chinese marketing website (.cn) – mainly for selected product
promotion to the Chinese consumers.
• If Chinese consumer is interested in the product(s), they are taken to the
international website for purchasing.
• CRL manages the freight & logistics of the parcels from offshore, importing them
through customs into China, and delivers them to the end consumer.
• CRL also manages the back-end customer services and returns.
• Retailer can opt for stand-alone online/offline marketing campaigns subject to
budget.

32. User Experience
www.selfridges.cn
www.selfridges.com
More than 60
million active
daily users on
Weibo
270 million
active users
on We Chat
CRG can manage Retailer’s social
media accounts on an on-going
basis to generate brand awareness
and interact with target consumers
Customer Services &
Returns
Stand-alone digital
marketing and offline
advertising campaigns as
well as Baidu SEO/SEM
optimization

33. Tmall Model
• T-Mall is currently China’s most popular dual language B2C platform. T-Mall
has 150,000 merchants and 200,000 brands selling to 180 Million customers. It is
considered a good solid dependable first step into e-commerce in China.
• CRG are accredited agents for T-Mall and are not seen as a foreign entity.
Using our in-house expertise, we can establish the site and channel for sales
far quicker than independently by the Retailer or by any other agent.
• T-Mall offers various store formats:
• Flagship Store – owner of the store must be formal or exclusive representative of the
brand
• Specialty Store – Dealers with distribution rights without geographical restrictions in
the Greater China region
• Franchise Store – Franchisees with rights to distribute licensed products & valid
license from Franchisor
• Monopolized Store – Merchants with two or more brands within one of T-Mall’s
product categories. Limited to one per merchant per product category

34. www.ibdshop.com

35. International Brands Direct (IBD)
• An affiliate of CRG, IBD is a stand-alone end-to-end sales and fulfilment platform for international
retailers to sell to Chinese consumers in China at minimal cost and no risk.
• Sell from offshore into China, fulfill from home country. Chinese consumers pay in RMB, Retailer
collects in own operating currency.
• No need to hold stock in China.
• IBD provides customer services and handles returns (for damaged goods only)
• IBD is attractive to retailers who have no current operations in China, or have stores in key major
cities only and cannot reach consumers in the rest of China.
• IBD allows retailers to test what works in China, and migrate to their own Chinese website and/or
set-up in China with knowledge and confidence.
• 3 key features:
 IBD sales platform
 IBD Travel Directory (to drive tourism sales in-store)
 IBD Outlet
• For mock website, visit: www.ibdshop.com

36. Contact Us
China Retail Group
2nd Floor, Building 8
485 Feng Lin Road
Shanghai, China
Suite 504, 5th Floor, Chinachem Tower
34-37 Connaught Road
Central, Hong Kong
Contact Us:
Wing-Yun Wong, Director
London, U.K.
wy.wong@chinaretailgroup.com
www.chinaretailgroup.com www.chinaretaillogistics.com www.ibdshop.com