This document discusses the benefits of e-commerce for businesses, including access to international markets, lower costs, and the ability to shorten business cycles. It outlines how e-commerce allows businesses to bypass middlemen and increase margins. The document also provides forecasts for growth in online retail sales in countries like the US and examines some common issues businesses face when selling online, especially in China.

1. KF Cheng
Vice President
kfcheng@icm.hk
11 Feb 2015

2. A Real Story
http://v.youku.com/v_show/id_XNzQwODIzMDY4.html

3. A Snapshot in Beijing

4. SME Issues
Access International
Market
Entrepreneur &
Innovation
Access to Finance

5. e-Commerce: The Pros
• Access to international
market
• Lower barriers
• Lower cost of operations
• Speed to market
• Systematic & efficient
management
• Automation
• 24x7 service
• Tools to reach customers
direct
• Direct connection with
customers
• Customer relation
management
• Business & Market
Analysis
Online
Marketing
Offline
Marketing

6. Online Business Cycle
• Online payment
• Online logistics
arrangement
• Integration with
real business
 Shorten transaction
time
 Shorten business cycle
 Improve cash flow

7. Change: Bypass the Middlemen
CustomersRetailersWholesalers
Import
Organizations
Export
OrganizationsFactory
Customerse-CommerceFactory
Traditional
Now

8. Increasing Margin from 5%to 54%
Advantage: Increased Margin
Logistics
10%
Net Profit
54%
Manufacturing Cost
12%
Online Payment
4%
Web Store
20%
Net Profit
5%
Manufacturing Cost
8%
Overseas Retail
25%
Overseas Channel
50%
Domestic Channel
12%
Traditionally e-Commerce

9. An ICT-based New Supply Chain

10. New Eco-System in Business
Margin
Transaction Cost
Business Cycle
Global Market
Safe & Transparent
Direct to Customers
Analytics

11. Examples of E-Commerce Users
Sellers Buyers
SME suppliers
Traditional
wholesaler
exporters
Trading companies
Web merchant
entrepreneurs
SME
retailers
Wholesalers &
distributors
Small business
for own use
Part/time
business
owners Young
entrepreneurs

12. Forecast: US Online Retail Sales 2012-2017
Forecast by Forrester back in 2013
http://mashable.com/2013/03/12/forrester-u-s-ecommerce-forecast-2017/

13. Forecast: Online Retail Growth in Other Countries
Forecast by Forrester back in 2013
http://mashable.com/2013/03/12/forrester-u-s-ecommerce-forecast-2017/

15. Driving A New Consumer Culture

16. e-Commerce: China vs US

17. Buyer Sourcing via Multiple Channels
Supplier websites
Web searches
Industry press (print)
Word of mouth
Direct mail
Press advertising
Facebook
Blogs
LinkedIn
Twitter
Other social media
Any traditional online — 88%
Any offline — 74%
Any new online/social media — 40%
*Source: A total of 1,017 European buyers took part in the
BUYERSphere survey 2011
Near 90% buyers source via online channels (including sourcing websites,
suppliers websites and search engines)
>70% continue to source via traditional mediums (trade fairs, magazines)

18. e-Commerce: Digital Marketing

19. Traffic to Your Website: SEO

20. Search Engine Marketing

21. Social Media Marketing

22. eDM: Email Marketing

23. CRM: Customer Relation Management

24. Video Marketing

25. Affiliate Marketing

26. Noise in the Market

27. Mobile, Tablets, & Others …
LBS
Wearable Technology

28. and more …

29. Know Your Business

30. Big Data: Business Intelligence

31. It’s all about TRUST
Build TRUST on
internet
Build your Digital
Branding

32. O2O

33. Common Issues in China
Sellers
• Dishonesty
– Product Description, Photo,
Color, Size, …
– Counterfeit
– Wrong Tracking No
• Language
– English, Spanish, …
– Communication, Culture
• Copying
– Products, photos,
descriptions
Buyers
• Dishonesty
– Fault Payments
• Custom & Tax
• Consumer Culture
• Returns

34. KF Cheng
Vice President
kfcheng@icm.hk
hk.linkedin.com/in/kfcheng
11 Feb 2015