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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.
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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?