Success factors of ecommerce in China
Success Factors of e-commerce in China
1.0 Executive Summary
Because of the huge population in China and its growing economy and consumption power, e-commerce has been a hot industry in China in the recent years. There are many active players in the market, competing for market share and market leadership and Alibaba Group Holding Limited (“Alibaba”) is the most dominant and successful player.
It rides on its ability to successfully capture the peculiar features of the economic situation and consumer market in China and creates a very successful and scalable business model over the past 10+ years.
There are 3 critical success factors leading to the establishment of a successful online/mobile business in China. They include:
1. Understanding of the direction of growth of China’s economy
2. Understanding of China’s consumer market and consumers
3. Establishing the right distribution channels
2.0 1Background of Alibaba
Alibaba is the largest online and mobile commerce company in the world in terms of gross merchandise volume (“GMV”) in 2013. The company was founded in China in 1999.
Alibaba operates several online/mobile trading platforms for B2C type of online and mobile commerce business in China. The major ones being (1) Taobao Marketplace, China’s largest B2C online shopping destination (merchandises offered by individual sellers, similar to e-bay in United States); (2) Tmall, China’s largest B2C third-party platform for brands and retailors (similar to Amazon in US); and (3) Juhuasuan, China’s most popular group buying marketplace (similar to Groupon in US).
Merchandises trading on these platforms cover a wide variety, including clothing and footwear, household goods and services, and electronic gadgets and home appliances…etc.
Alibaba does not take any inventory of merchandises itself and it just provides the platforms/marketplaces and other value-added services for selling of merchandises owned by third
1.0 Executive Summary
Because of the huge population in China and its growing economy and consumption power, e-commerce has been a hot industry in China in the recent years. There are many active players in the market, competing for market share and market leadership and Alibaba Group Holding Limited (“Alibaba”) is the most dominant and successful player.
It rides on its ability to successfully capture the peculiar features of the economic situation and consumer market in China and creates a very successful and scalable business model over the past 10+ years.
There are 3 critical success factors leading to the establishment of a successful online/mobile business in China. They include:
1. Understanding of the direction of growth of China’s economy
2. Understanding of China’s consumer market and consumers
3. Establishing the right distribution channels
2.0 1Background of Alibaba
Alibaba is the largest online and mobile commerce company in the world in terms of gross merchandise volume (“GMV”) in 2013. The company was founded in China in 1999.
Alibaba operates several online/mobile trading platforms for B2C type of online and mobile commerce business in China. The major ones being (1) Taobao Marketplace, China’s largest B2C online shopping destination (merchandises offered by individual sellers, similar to e-bay in United States); (2) Tmall, China’s largest B2C third-party platform for brands and retailors (similar to Amazon in US); and (3) Juhuasuan, China’s most popular group buying marketplace (similar to Groupon in US).
Merchandises trading on these platforms cover a wide variety, including clothing and footwear, household goods and services, and electronic gadgets and home appliances…etc.
Alibaba does not take any inventory of merchandises itself and it just provides the platforms/marketplaces and other value-added services for selling of merchandises owned by third