If you are not online, you will be out of Business

Bill Gates said ...;

Ebusiness is a great opportunity for Industrial companies in China !

Ebusiness is a great opportunity for Industrial companies in China ! 

We knew China as the first country of Internet users worldwide. In 2014 she became the first market for online commerce , with a meteoric rise of 24% compared to 2013. Online shopping grew by 47%.
While the European market is the way to stabilization, Chinese e -commerce therefore continues to show spectacular growth rates . This vitality is expected to accelerate in the coming years , thanks to a powerful ecosystem and consumers ' digital oriented " . By 2015 , China will see an annual increase of 40 to 50 million Internet users and 30 to 40 million online shoppers according to the Boston Consulting. By 2020 , this market will reach 300 billion euros in China.
Retailers and brands , including Western , can find a major growth , provided you know how to adapt to the local context and the specific challenges of this market.



At local actors hand, many Western brands or retailers have already opened own online activities , whether (some examples) , L'Oréal , Lane Crawford, Uniqlo , Zara, Clarins , Cache Cache , Asos , Amazon ... other players prefer the way the association with local partners in the form of equity , like Walmart with Yihaodian in food , Neiman Marcus with Glamour Sales or BestBuy with FiveStar in electronic products . Whatever the mode used , one can speak of a wave for two years, and that should continue even accelerate this year , judging by some recently announced projects ( Gap, H & M. .. ) .
"SEO is very important, because it is linked to your visibility" explain Fil control , the textile spart part specialist

If significant positions have been taken by local and international players , the market is still open, in a context marked by a strong fragmentation. The top 20 distributors in fact represent 20% of market share in China (online and offline) , when this figure is at least twice in the West. An additional opportunity to position , especially as the attraction for Western brands is real and often pledge of confidence .

Performance of Internet on the Business 

Performance required for omni Chinese trade infrastructure facilitates this development : whether logistics, now very powerful , sometimes even better than in the West ( in very large cities, same day delivery is becoming a standard , to the most remote cities , all major e-commerce players are investing heavily to develop logistics platforms ensuring delivery to height) , payment systems , hosting or customer support capabilities are good level , to manage traffic and volumes to be processed. Only constraint : strong localization , particularly in terms of accommodation , not subject to constraints of Great Chinese Firewall ( performance sites that are not hosted in China are significantly degraded ) .
According to the 33th report on the development of the internet in China CNNIC (China Internet Network Information Center) , e -commerce has great potential for businesses, especially industrial SMEs.
This potential is currently not sufficiently exploited, especially for companies B to B. The penetration of e -commerce vary across industries, the most active being the manufacturing and wholesale and retail trade.
Succeed in the Chinese market demand consistency and especially the meaning of adaptation. Market and finger habits are vastly different and need to be taken into account , otherwise miss its target . Some tips before embarking ... are :
- Ambitious : e- consumers are already there, and infrastructure performance .
- Humble : China is a digitally advanced countries. Know understand and integrate local characteristics to succeed.
- Agile uses quick change (channels , social networks) , requiring flexible and scalable platforms.
- Fast: market shares are not established and the prospects for strong growth.
- Demanding : quality of service expected by consumers is high ( delivery, client, content service).
- Local : local presence and a network of established partners in China are essential for success .


More information about ebusiness here

China Online Ordering site——饿了么

What are hungry

"What are hungry," the integration of offline and online food brands of network resources, users can easily through mobile phones, computer search the surrounding restaurants, online ordering, enjoy the food. At the same time, "What are hungry" to convey to the user a healthy, young eating habits and lifestyle. In addition to creating value for customers, hungry, it pioneered the concept of C2C online ordering, and for the next line restaurant offers solutions integrated operations.

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Jiangsu Internet users in 2013 reached 40.95 million

Jiangsu Internet users in 2013 reached 40.95 million , accounting for 80% of mobile phone users

Jiangsu Province, the Internet infrastructure has improved , the total length of fiber-optic cables which 1,757,500 km , ranking first in the country . Jiangsu Province by the end of 2013 the number of Internet users reached 40.95 million , Internet penetration rate of 51.7% . Especially mobile phone users reached 3349 million, an increase of 12.9% compared to the end of 2012 , accounting for 81.8 % of the total Internet users.

Micro-channel users obviously substantial growth rate of 63.6% using the microblogging usage dropped 6.7 percentage points lower than in 2012 , was 55.6 %.

Online video users reached 2852 million , an increase of 9.2 percentage points over 2012 .

Monthly income of 3000-5000 , was the main users

Jiangsu Province, the proportion of male and female users is 52.4:47.6 Internet users , 52.4% of the proportion of college , much higher level of 20.9% of the country, perhaps associated with a high level of education universal.

Monthly income of 5001-8000 yuan and 8,000 yuan more than the population than the national average , higher than 0.7 , respectively , 2.7 percentage points ; monthly income of 3001-5000 yuan crowd is no income except the highest proportion of people crowd outside accounting ratio was 17.5 %, higher than the national average of 1.7 percentage points.

Online banking using a high 26 percent nationwide

2013 Jiangsu Province 2368 million users of online shopping , utilization rate 62.8% , up 9.6 percentage points over 2012 , higher than the national average of 16.9 percent. Online Travel Booking utilization rate of 32.4% , an increase of 10.9 percentage points higher than in 2012 , higher than the national average of 3.1 percentage points. Internet banking usage rate of 52.2% , improved 8.1 percentage points higher than in 2012 , higher than the national average of 26.4 percent. Discount card online printing class information utilization rate of 38.9%.

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The online shopping plateforms in China

Taobao and Tmall are leading the Chinese ecommerce

Taobao, Tmall, DangDang, … They are known still relatively a little in Europe. Nevertheless these platforms dominate the main market of on-line sale of the world. According to a report of Bath and Company, with some more of 60 % of growth over the last two years, China should soon overtake the United States as first world e-commerce market. In spite of an economic and demographic environment more than favorable, it would be an error to forget the role played by the Chinese Internet superior powers, which knew how to democratize the on-line sale by adapted and aggressive strategies. The Chinese e-commerce is an example to be followed?

The figures of the Chinese e-commerce have enough to make envious persons. Nevertheless, there are only few foreign companies to know it the success. The Chinese companies knew how to stand out  within the prosperous market of the e-commerce and stand out  in front of world leaders, being sometimes lacking humility on this market which is so particular (see the example of EBay). On the contrary, in a country where the attachment in the symbols is very strong, the Chinese commercial platforms knew how to surf on events as " 15.8" (the holiday of the moon), the " Double 12” (December 12th, 2012 ), but especially the " Double 11 (November 11th ), the holiday of the single women(men). These periods of promotion shaped the popularity of the e-commerce in China.

Still some improving area for ecommerce in China

In a country where, according to the site PROVERB, still only 44 % of the population is connected, Alibaba still has beautiful perspectives of development. Ways were already opened with the growing improvement of the logistic systems, the efficiency and the practicality of the systems of payment as Alipay, Tenpay even Tecent WeChat but especially the exponential development of purchases on mobiles, increasing by 107 % on the past year (according to a study EnfodeskChina relieved by chinainternetwatch.com).

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Daxue Consulting

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