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M Commerce in China
3 BRAND stORIEs	
  
3’ ON M-Commerce in china
(Video)
DS
FIRSTautomobile brand to sell on
WeChat
Target:
Young	
  Modern	
  Business	
  Elite	
  with	
  
an	
  Interna5onal	
  culture,	
  in	
  search	
  
of	
  a	
  unique	
  and	
  very	
  contemporary	
  
French	
  luxury	
  experience	
  
"Chinese	
  consumers	
  want	
  a	
  new	
  type	
  of	
  premium	
  cars:	
  they	
  are	
  looking	
  for	
  
technology	
  and	
  aesthe9cism”	
  
Arnaud	
  Ribault	
  –	
  VP	
  Global	
  Sales	
  &	
  Marke8ng	
  at	
  DS	
  
Objective:
Develop	
  an	
  innova5ve	
  e-­‐commerce	
  
strategy	
  for	
  DS	
  5LS	
  while	
  illustra5ng	
  
DS	
  brand	
  values:	
  progressive,	
  
dis5nc5ve,	
  audacious.	
  
	
  
Strategy:
	
  
Leverage	
  WeChat	
  social	
  
commerce	
  plaJorm	
  as	
  the	
  key	
  
driver	
  for	
  conversa5on	
  and	
  
sales	
  
IDea:
First	
  automo5ve	
  crowdfunded	
  campaign,	
  
with	
  3	
  new	
  e-­‐commerce	
  products:	
  
Pay 1 Yuan and Get a 1 Yuan gift:
People	
  who	
  pay	
  1	
  Yuan	
  can	
  benefit	
  DS	
  5LS	
  Luxurious	
  
feast:	
  a	
  100	
  000	
  KM	
  free	
  maintenance	
  for	
  3	
  years	
  
“DS OrdersBao ”:
Pay	
  5	
  000	
  RMB	
  in	
  deposit,	
  and	
  get	
  11,11	
  RMB	
  per	
  day”	
  
*
*the	
  name	
  «	
  ordersbao	
  »	
  is	
  inspired	
  from	
  Alibaba’s	
  «	
  Yulebao	
  »,	
  the	
  crowdsourced	
  film	
  investment	
  fund	
  launched	
  march	
  31	
  
2014	
  witch	
  met	
  its	
  funding	
  target	
  of	
  $11.77	
  million	
  (73	
  million	
  yuan)	
  a_er	
  just	
  five	
  days	
  
“1 Yuan Premium DS
Crowdfunding”:
Create	
  a	
  mobile	
  internet	
  circle	
  sales	
  mode	
  
¥	
  
•  40	
  000	
  people	
  opened	
  an	
  
account	
  on	
  DS	
  Crowdfunding	
  
•  600	
  000	
  have	
  paid	
  1¥	
  for	
  their	
  
friend	
  to	
  get	
  a	
  car	
  
•  5	
  500	
  cars	
  sold	
  using	
  this	
  
WeChat	
  Crowdfunding	
  
9 Months
Campaign
Results
“We	
   want	
   to	
   develop	
   WeChat	
   as	
   an	
   Ecommerce	
   plaDorm	
   [...]	
   The	
   biggest	
  
challenge	
  with	
  WeChat	
  was	
  to	
  embark	
  with	
  us	
  all	
  our	
  dealers,	
  and	
  to	
  make	
  
them	
  understand	
  how	
  to	
  leverage	
  it	
  and	
  work	
  with	
  it”	
  
Arnaud	
  Ribault	
  –	
  VP	
  Global	
  Sales	
  &	
  Marke8ng	
  at	
  DS	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Source:	
  Yihaodian	
  
YIHAODIAN
Embracing mobile
commerce
YHD N°6
2013 CHINA B2C ECOMMERCE WEBSITE
Source:	
  advandgent.com	
  
68.7	
   67.7	
   65.7	
  
34.0	
  
10.0	
   7.0	
   7.0	
   6.0	
   5.1	
   3	
  
	
  	
  JingDong 	
  	
  	
  	
  	
  Tmall 	
  	
  Yihaodian 	
  	
  	
  	
  	
  Amazon 	
  	
  	
  	
  	
  Suning 	
  	
  	
  	
  	
  	
  	
  Jumei 	
  	
  	
  	
  	
  	
  Yixun 	
  	
  	
  	
  	
  VIP.com 	
  	
  	
  	
  	
  Womai	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Dangdang	
  
YHD ranked N°3
most capable e-commerce companies in china*
*The	
  5	
  following	
  capaci5es	
  were	
  totalized	
  to	
  give	
  these	
  scores	
  (rated	
  over	
  100	
  points)	
  :	
  commercial	
  strength,	
  strategic	
  
strength,	
  opera5onal	
  strength,	
  marke5ng	
  strength,	
  organiza5on	
  and	
  capacity	
  building	
  	
  	
  	
  	
   	
   	
  	
  Source	
  :	
  KantarRetail	
  
age
Of yihaodian customers
38,00%	
  
22,30%	
  
20,80%	
  
8,60%	
  
5,30%	
  
4,70%	
  
25-­‐30	
  
19-­‐24	
  
31-­‐35	
  
36-­‐40	
  
41-­‐45	
  
over	
  45	
  
Source	
  :	
  Yihaodian	
  
% Of customers
By Income
9,4%
1,9%
17,8%
33,2%
37,8%
12,0%
30,8%
25,9%
18,5%
13,7%
Above	
  5000RMB	
  
	
  
3000	
  –	
  5000	
  RMB	
  
	
  
	
  
2000	
  –	
  3000	
  RMB	
  
	
  
Below	
  2000	
  RMB	
  
	
  
No	
  Income	
  
	
  
Online	
  Shoppers 	
   	
   	
  YHD	
  Customers	
  
Source	
  :	
  Yihaodian	
  
GENDER
YHD customer vs overall customer
34%	
  
52%	
  
66%	
  
48%	
  
0%	
  
10%	
  
20%	
  
30%	
  
40%	
  
50%	
  
60%	
  
70%	
  
YHD	
  Customer	
   Overall	
  Ne9zen	
  
Male	
   Female	
   Source	
  :	
  Yihaodian	
  
Typical yhd customer
Primarily White Collar
High Income
High Consumption
19 – 40 Years Old
YIHAODIANVirtual stores…
In the subway,
... TO PLAY AND
WIN, in the
streetS
…TO 1,000 ACROSS THE COUNTRY
(video)
“We deliver goods in
less than 3 hours”Chris guo – VP YIHAODIAN
“Supply chain is the key to compete in the E-commerce market.
Tmall has just half of the value chain: they don’t deliver the
goods by themselves”
KFC CHINA
the magic mobile
gameplay recipe
objectives
•  Build	
  KFC	
  China	
  brand	
  
•  Generate	
  engagement	
  
•  Drive	
  purchase	
  
Strategy
•  Build	
  a	
  3D	
  Tap	
  Tap	
  branded	
  
game	
  	
  
•  Develop	
  O2O	
  ac5va5on	
  
IDEA
•  Associate	
  famous	
  Korean	
  
Boy’s	
  Band	
  EXO-­‐M	
  
•  Create	
  EXO-­‐M	
  figurine	
  
Toys	
  with	
  QR	
  codes	
  to	
  
unlock	
  game	
  levels	
  	
  
“The	
   opportunity	
   of	
   really	
   leveraging	
   games	
   for	
   brands	
   is	
   par9cularly	
  
important	
   today	
   because	
   the	
   cost	
   for	
   building	
   a	
   game	
   on	
   mobile	
   is	
   far	
   less	
  
expensive	
  than	
  on	
  a	
  console	
  or	
  PC	
  ”	
  
Thomas	
  Meyer	
  –	
  Co-­‐founder	
  of	
  Mobile	
  Now	
  Group	
  
TVC : campaign launch
(video)
TVC: Game Launch
(video)
Results
“Brands	
   are	
   selling	
   entertainment,	
   That	
   is	
   why	
   there’s	
   a	
   real	
   synergis9c	
  
symbiosis	
   with	
   games,	
   because	
   they	
   are	
   a	
   perfect	
   media	
   to	
   create	
   that	
  
experience,	
  and	
  even	
  to	
  sell	
  products”	
  
Thomas	
  Meyer	
  –	
  Co-­‐founder	
  of	
  Mobile	
  Now	
  Group	
  
Game Launch day: DeC. 29, 2014
•  Within	
  2	
  weeks:	
  reached	
  20	
  years	
  of	
  accumulated	
  game	
  play	
  
•  Within	
  4	
  weeks:	
  30	
  years	
  	
  
•  As	
  of	
  April	
  10,	
  2015:	
  43	
  years	
  	
  
•  +1.6	
  Million	
  downloads	
  
TOP MUSIC GAME
•  Top	
  music	
  game	
  in	
  China	
  for	
  many	
  days	
  (Android	
  &	
  Apple)	
  
•  Accidentally	
  reached	
  N°2	
  Music	
  App	
  in	
  Japan	
  too	
  (Apple)	
  
Millions of meals sold
Millions	
  of	
  downloads	
  +	
  Toys	
  produced	
  =	
  Millions	
  of	
  meals	
  sold	
  
 	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  	
   	
   	
  	
  	
   	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Source:	
  Mobile	
  Now	
  Group	
  
On	
  launch	
  day,	
  figurine	
  toys	
  were	
  already	
  sold	
  in	
  China	
  on	
  Tmall.	
  
	
  
The	
  day	
  a_er,	
  in	
  Asia,	
  toys	
  were	
  available	
  on	
  an	
  Ecommerce	
  website	
  
in	
  Thailand,	
  selling	
  the	
  whole	
  collec5on	
  with	
  pre-­‐payment	
  in	
  a	
  8	
  to	
  
10	
  day	
  delivery.	
  
Anecdote
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Twiber:	
  @ChinaconnectEU	
  	
  
www.chinaconnect.fr	
  

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Mobile Commerce in China: 3 Brand Stories

  • 1. M Commerce in China 3 BRAND stORIEs  
  • 2. 3’ ON M-Commerce in china (Video)
  • 4. Target: Young  Modern  Business  Elite  with   an  Interna5onal  culture,  in  search   of  a  unique  and  very  contemporary   French  luxury  experience   "Chinese  consumers  want  a  new  type  of  premium  cars:  they  are  looking  for   technology  and  aesthe9cism”   Arnaud  Ribault  –  VP  Global  Sales  &  Marke8ng  at  DS  
  • 5. Objective: Develop  an  innova5ve  e-­‐commerce   strategy  for  DS  5LS  while  illustra5ng   DS  brand  values:  progressive,   dis5nc5ve,  audacious.    
  • 6. Strategy:   Leverage  WeChat  social   commerce  plaJorm  as  the  key   driver  for  conversa5on  and   sales  
  • 7. IDea: First  automo5ve  crowdfunded  campaign,   with  3  new  e-­‐commerce  products:  
  • 8. Pay 1 Yuan and Get a 1 Yuan gift: People  who  pay  1  Yuan  can  benefit  DS  5LS  Luxurious   feast:  a  100  000  KM  free  maintenance  for  3  years  
  • 9. “DS OrdersBao ”: Pay  5  000  RMB  in  deposit,  and  get  11,11  RMB  per  day”   * *the  name  «  ordersbao  »  is  inspired  from  Alibaba’s  «  Yulebao  »,  the  crowdsourced  film  investment  fund  launched  march  31   2014  witch  met  its  funding  target  of  $11.77  million  (73  million  yuan)  a_er  just  five  days  
  • 10. “1 Yuan Premium DS Crowdfunding”: Create  a  mobile  internet  circle  sales  mode   ¥  
  • 11. •  40  000  people  opened  an   account  on  DS  Crowdfunding   •  600  000  have  paid  1¥  for  their   friend  to  get  a  car   •  5  500  cars  sold  using  this   WeChat  Crowdfunding   9 Months Campaign Results “We   want   to   develop   WeChat   as   an   Ecommerce   plaDorm   [...]   The   biggest   challenge  with  WeChat  was  to  embark  with  us  all  our  dealers,  and  to  make   them  understand  how  to  leverage  it  and  work  with  it”   Arnaud  Ribault  –  VP  Global  Sales  &  Marke8ng  at  DS  
  • 12.                                                                                                                                                                                                                                                                                                                        Source:  Yihaodian   YIHAODIAN Embracing mobile commerce
  • 13. YHD N°6 2013 CHINA B2C ECOMMERCE WEBSITE Source:  advandgent.com  
  • 14. 68.7   67.7   65.7   34.0   10.0   7.0   7.0   6.0   5.1   3      JingDong          Tmall    Yihaodian          Amazon          Suning              Jumei            Yixun          VIP.com          Womai                      Dangdang   YHD ranked N°3 most capable e-commerce companies in china* *The  5  following  capaci5es  were  totalized  to  give  these  scores  (rated  over  100  points)  :  commercial  strength,  strategic   strength,  opera5onal  strength,  marke5ng  strength,  organiza5on  and  capacity  building                Source  :  KantarRetail  
  • 15. age Of yihaodian customers 38,00%   22,30%   20,80%   8,60%   5,30%   4,70%   25-­‐30   19-­‐24   31-­‐35   36-­‐40   41-­‐45   over  45   Source  :  Yihaodian  
  • 16. % Of customers By Income 9,4% 1,9% 17,8% 33,2% 37,8% 12,0% 30,8% 25,9% 18,5% 13,7% Above  5000RMB     3000  –  5000  RMB       2000  –  3000  RMB     Below  2000  RMB     No  Income     Online  Shoppers      YHD  Customers   Source  :  Yihaodian  
  • 17. GENDER YHD customer vs overall customer 34%   52%   66%   48%   0%   10%   20%   30%   40%   50%   60%   70%   YHD  Customer   Overall  Ne9zen   Male   Female   Source  :  Yihaodian  
  • 18. Typical yhd customer Primarily White Collar High Income High Consumption 19 – 40 Years Old
  • 20. ... TO PLAY AND WIN, in the streetS
  • 21. …TO 1,000 ACROSS THE COUNTRY (video)
  • 22. “We deliver goods in less than 3 hours”Chris guo – VP YIHAODIAN “Supply chain is the key to compete in the E-commerce market. Tmall has just half of the value chain: they don’t deliver the goods by themselves”
  • 23. KFC CHINA the magic mobile gameplay recipe
  • 24. objectives •  Build  KFC  China  brand   •  Generate  engagement   •  Drive  purchase  
  • 25. Strategy •  Build  a  3D  Tap  Tap  branded   game     •  Develop  O2O  ac5va5on  
  • 26. IDEA •  Associate  famous  Korean   Boy’s  Band  EXO-­‐M   •  Create  EXO-­‐M  figurine   Toys  with  QR  codes  to   unlock  game  levels     “The   opportunity   of   really   leveraging   games   for   brands   is   par9cularly   important   today   because   the   cost   for   building   a   game   on   mobile   is   far   less   expensive  than  on  a  console  or  PC  ”   Thomas  Meyer  –  Co-­‐founder  of  Mobile  Now  Group  
  • 27. TVC : campaign launch (video)
  • 29. Results “Brands   are   selling   entertainment,   That   is   why   there’s   a   real   synergis9c   symbiosis   with   games,   because   they   are   a   perfect   media   to   create   that   experience,  and  even  to  sell  products”   Thomas  Meyer  –  Co-­‐founder  of  Mobile  Now  Group  
  • 30. Game Launch day: DeC. 29, 2014 •  Within  2  weeks:  reached  20  years  of  accumulated  game  play   •  Within  4  weeks:  30  years     •  As  of  April  10,  2015:  43  years     •  +1.6  Million  downloads  
  • 31. TOP MUSIC GAME •  Top  music  game  in  China  for  many  days  (Android  &  Apple)   •  Accidentally  reached  N°2  Music  App  in  Japan  too  (Apple)  
  • 32. Millions of meals sold Millions  of  downloads  +  Toys  produced  =  Millions  of  meals  sold  
  • 33.                                                                                          Source:  Mobile  Now  Group   On  launch  day,  figurine  toys  were  already  sold  in  China  on  Tmall.     The  day  a_er,  in  Asia,  toys  were  available  on  an  Ecommerce  website   in  Thailand,  selling  the  whole  collec5on  with  pre-­‐payment  in  a  8  to   10  day  delivery.   Anecdote
  • 34.                       Twiber:  @ChinaconnectEU     www.chinaconnect.fr