From the association of Tencent –owner of the biggest social platforms in China- and JD.com –the leading online direct sales company in the country-, has emerged a new conception of Marketing and Brand Advertising.
In 2016 in Beijing, both released a plan based on Ecommerce marketing service called “J&T Plan”.
The new policy was aimed to provide a tool to accurate a better portrait of the potential user, and improve the interaction with the consumer.
As a result, users data has become extremely valuable for any company:
Knowledge is power, more than ever.
What are their main Goals?
To reach its purpose, they have focused on three main objectives to strength its business on mobile and Internet, such as:
- Mobile access points
- Traffic support
- Ecommerce activities
Their desire to turn the user into the protagonist of the new Marketing, has launched a new approach based on three main ideas:
- Multi-dimensional user insight
- Effectiveness analysis
- Precision target audience
What do they want in Return?
Not only a commitment to the future and an advantage over its competitors, their relationship also give them some specific advantages:
JD.com obtains a stake in Yixun, PaiPai C2C marketplace businesses, logistics personnel and assets and QQ Wanggou B2C.
In order to provide a better online shopping experience, they will also work together on providing solutions to online payment services and an overall digital marketing solutions.
If you are thinking on improving your company services, before starting a Business and Marketing Plan you should take in consideration some basic recomendations:
Build a well-aimed portrait of the users, improve brand experience with the client, and enhance technological tools to achieve it, have become the three key factors to consider on any approach to potential customers, and the best guarantee for the future of your company.
From 2 OPEN we have conformed a team capable of responding to new challenges and specialized on Business Intelligence. We can help you to deal with the new Marketing and Ecommerce trends.
Come with us. Together we will reach your company goals.
This article was edited by Paula Vicuña from 2 OPEN.
Interested in the B2B market? This article is for those currently interested in launching a B2B ecommerce initiative!
Following our instruction of How to Sell B2B Online in China, from 2 OPEN we will guide you on the most famous Chinese B2B platform –1688.COM, to obtain leads for your company, giving you the basic information to learn how to deal with traffic.
In order to develop your sales in a business-to-business, it is important to analyze which actions can be done to improve your company results.
From 2 Open, we have listed for you some of the key-factors to make it easier your landing on B2B. With our help, your company will take a huge advantage of this big chance on Chinese market!
WHAT IS 1688.COM?
Alibaba is currently the biggest Chinese eCommerce company. It dominates the Chinese online marketing in various aspects and includes on its services: online transactions, payments, promotion, service and communication.
In order to focus on B2B market, Alibaba created a portal for domestic B2B trade in China, 1688.COM. In 2013, 1688.COM launched a direct channel that is responsible for $30 million in daily transaction value.
After 14 years development, now Alibaba leads B2B into the full digitalization in China and it is responsible of the great revolution B2B has experienced in China.
HOW TO USE 1688.COM?
As the domestic B2B portal in China, 1688.COM has millions of vendors but does not support English version for foreign users.
To provide an accurate sketch for you and due to its importance, we have chosen Solostocks as the example below:
- First, Go to the homepage of 1688.COM:
- Second, Create Solostocks’s online shop in 1688.COM
After the registration, you can access it with Solostocks.1688.com.
- Third, Optimization:
When the online shop settles down, we can optimize the traffic through strategies within Solostocks.1688.com. The internal optimization of the online shop could bring your company more traffics and leads.
From 2 OPEN, we suggest you six strategies to apply to leads generation, such as:
- Product release:
In proper way, product release can fulfill the product category and increase Page View (PV).
Product quantity is not the key point for B2B selling but is the product category, title and description. Remember the more detailed the information is, the more opportunities for searching there will be.
- Shop decoration:
Shop decoration is aiming to provide a good visibility to viewers: useful information in organization will fully convey to viewers and improve the CTR also display structure has to be recognizable and practical.
Key modules include logo, navigation, introduction, display, share/favorite, communication etc.
- Text content:
Text content includes all the product descriptions and introductions.
It is crucial to pay attention to Key-words combination: they will be the best SEO to boost traffics: the more key words are recorded, more exposures there will be.
Refined and targeted content can also lift the ranking and improve the user experience.
- Tool assistance:
Tool assistance from 1688.COM’s back office can facilitate Solostocks.1688.com promotion. It contains various functions to assist the system management, which provides a better performance in internal optimization.
Tools for managing product, KPI, finance, transaction and marketing would optimize the operation.
Here we explain you three detailed functions which we consider especially important:
By the way, there are a plenty other tools provided by 1688.COM that you can find. You just need to discover them all and find the one which better suits you!
- Secondary platform:
The secondary platform of 1688.COM is called baike.1688.com. It is professional and dedicated to provide customers the solutions and commercial knowledge in business by means of questions and answers to solve business problems.
In this business platform, users can get connections and share their experiences. Do not forget to:
– Use proper key words to find out the related questions
– Answer professionally to promote Solostocks.1688.com
– Enhance the account activity and develop the business
- Paid service:
Paid service in 1688.COM can effectively promote the brand and product in bidding ranking.
The most popular ways of SEM in 1688.COM are WXB (pay-per-click) and Diamond Booth (slideshow on the homepage). Both of them strongly facilitate the brand and product promotion in direct way.
Actually, 1688.COM provides various means for sellers to promote its sales. Here we summarize some main tips to implement the internal optimization in a comprehensive way to obtain the best results!
- Information sufficiency
Make sure the sufficient and high quality information can be provided to browsers.
- Effective transmission
Transfer the product or brand information in all directions to browsers accurately and immediately.
- Qualified images
High definition pictures can highlight the brand quality also beatify the online shop.
- Customer service
Keep the effective communication and CRM during the whole sales process.
- Ranking optimization
Paid service can provide the better performance in brand exposure by bidding ranking.
If you are interesting in doing B2B in China through a more native approach, 1688.COM would be the most effective and direct way to help you face to the Chinese customers.
Keep checking our blog and contact us if you have any questions. 2 OPEN will happily assist you!
This article was edited by Paula Vicuña.
Most western economies enjoy an abundant offer of qualified talent that proportionally lacks in China. Nevertheless, China’s macroeconomic situation is starting to increase the demand of qualified talent, and more importantly, it is starting to value it more, rewarding it in ways that we do not often see in other economies, or at least not back in Europe.
All of this creates a reality of scarcity due to the fact that an increasing amount of knowledge is being accumulated in just a few hands and results in a division between talent knowledge and labor knowledge. When competing in the knowledge market, being capable of assembling a talented team is the key difference that will give you the competitive advantage.
Big companies and well-funded start-ups are very aware of this fact, they put a lot of effort and invest a lot of money on the recruitment of talented personal.
So what about small and medium-sized enterprises then? What can they do in order to be competitive as employers in the Chinese market? And what can they do when big foreign companies tend to concentrate on tier 1 cities candidates that have good English communication skills?
The questions mentioned above have very difficult answers. Truth be told, most foreign SMEs in China have no chance of succeeding, or being competitive, as an employers in such a shark tank, that is, tier 1 cities. Looking at it from a market perspective, tier 1 cities are a horrible place to build and sustain a capable and long lasting team.
Probably, trying to move out of a tier 1 city is the first advice for foreign SMEs. Even if the idea of living in a truly Chinese city, without Starbucks or McDonalds hanging around, frightens you, it will make it a lot easier for you to grow your company. The only real issue here is that clients and movement is mainly happening around cities like Shanghai and Beijing and less in other cities, nevertheless there are plenty of other means through which you can get clients. At the end of the day there is no perfect place to grow your business without a few drawbacks, maybe once your company has grown enough you could consider moving to a tier 1 city.
It is worth mentioning, however, that finding clients is the first stage of every business, that initial stage where it is considered a top priority. With its years of experience, 2 Open has long surpassed that, right now, finding clients is for us only a secondary priority. We are now focusing in process excellence, in nurturing scalable ways of working that continuously add value to our clients, keeping a stable and financially balanced organization that will last for many… many years…
This is one of the main reasons why our company does not only have offices in Weihai and Cáceres, but is based in Shanghai and Madrid. We are constantly making changes in order to maintain competitive advantage, we have already been in the market for 3 years and we are preparing for the upcoming 30. We strive in order to offer reliable, sustainable and long term oriented solutions that add value to China as a whole, not only its tier 1 cities
Probably you do not think that moving to tier 3 in order to assembly a powerful team is something you would like to do yourself. Well, do not worry about it. If you want to know more about how we work and how we help, engage, support, and lead our clients to succeed, contact us. We DO Open. Do you?
This article was edited by Andres Arroyo Olson from 2 Open.
Since first arriving to Shanghai in 2006, ZARA has had incredible achievements in the volatile Chinese fashion industry. Etam and Ochirly used to be considered as the “King and Queen” in this sector with the vast majority of the market share, however ZARA’s arrival crashed down this obsolete structure. In 2014, ZARA reached the top fashion brands in China, earning twice the revenue of Etam.
-Zara’s first Chinese store at Nanjing West Street in Shanghai.
In the same year, ZARA opened its official flagship store on T-mall. This is not the first step ZARA takes towards the Chinese digital market, in 2012, ZARA set up its own online shopping website “The ZARA China” and also published an m-shop application“ZARA”.
-ZARA China carries on with clear style.
-ZARA’s mobile application for IOS.
Despite all of this, the big brand’s official website is often tasteless, sort of similar to the one from Dell. Dell’s official Chinese website actually used to be the largest e-commerce platform, however, nowadays it has become a more passive marketplace. Apple is also a good example to illustrate this, its official e-shop is beautifully decorated, nevertheless, Chinese users rarely to buy any products on it.
The main reason for this is because e-commerce not only involves the build up of a simple website. It requires collaboration throughout the supply chain, especially the logistics, and of course, the follow-up services.
For many international brands, including ZARA, the option of building up the infrastructure to cover the broad Chinese market is perhaps not as profitable. Thus, it is essential, and more appealing, to cooperate with the third-party platform like T-mall.
-The frontpage of ZARA on T-mall
Why did ZARA choose T-mall?
Many people thought the main reason was that ZARA wanted to catch up with the “11.11” festival on T-mall, which is the Chinese version of Black Friday. However, based on the opinions of many insiders, the market and the decrease on revenue in 2013 forced ZARA to set a foot on e-commerce.
-In 2013, its growth rate of net profit was less than 1%, which was its worst performance in the past five years.
-For the first quarter of 2014, its revenue increased by 4.3%, but net profit fell -7.3%. In contrast, in the past three years, it has maintained double-digit growth in net profit. When the results were published, Citigroup cut its TSP down from 130 to 120 euros.
-In May 2014, the monthly sales reached 60 million yuan, and consequently in June, the headquarter announced the plan to cooperate with T-mall, saying the shop would officially be settled soon.
-As for 2015, the growth rate on revenue increased 20%, and the market performed positively.
We can safely determine now the main reasons why a big company like ZARA entered the Chinese e-commerce scene. They can be summarized as the following:
- E-commerce is a leading trend of buying behaviour in China and the amount of people buying things online is rapidly increasing.
- This is a good way to promote ZARA itself on second and third tier cities, as it seldom makes advertisements.
- The Chinese e-commerce contributes to the highest growing rate of GDP in the world.
- The business model of T-mall and its fellow platforms just fits the needs of ZARA – Small amount but multiplicity.
All in all, e-commerce seems to be the way to go in China and who else to help you than 2 Open. Our goal is to understand our clients business needs in order to provide the best possible services. If you have any questions or require any information about our services, please do not hesitate in contacting us, our group of specialists will happily assist you.
This article was edited by Andres Arroyo Olson from 2 Open.
In the first half of 2015, L’Oreal’s financial statement reported revenues of 12.82 billion euros worldwide. In comparison with 2014, there was an increase of 14.7%, which is the fastest growth that the company has had in the past 20 years. Its digital marketing campaign was not the exception, with an outstanding 40% increase in online sales, exceeding 1 billion euros; it represented 5% of the company’s total turnover strengthening its position in the online market.
Nowadays, in the cosmetic & beauty industry, 70% of customers search products online before they actually buy them, which means that social media must play a big role in this. Why? You might be wondering, well, the importance of knowing consumer’s needs and preferences enables companies to come up with tailored ads and maximize their marketing budget. Many industries have transitioned from the classic marketing model into its modern version to further understand consumers and optimize results.
It seems that the upcoming era is digital, the society now is constantly connected with their mobile phones, and people are interacting on social media all the time. Most Chinese people love to share moments of their daily life via Weibo or Wechat, these social mobile applications gather a lot of Chinese young people who are potential online buyers, this is one of the main reasons why this new consumption model results so profitable.
Taking all of this into account, L’Oreal, the global beauty brand, keeps track of trends and maintains strong competence in the Chinese online market. The business credo for the marketing industry “where are the consumers, where are we” is practiced well by L’Oreal. In fact, in the digital marketing revolution, L’Oreal is not only expanding its e-commerce channels, they also apply a complete strategy to digital marketing.
All the product and services have to be digitalized
For instance, on the CES conference in Las Vegas, L’Oreal released a patch for sun-induced skin damage – My UV Patch, helps users track real-time ultraviolet exposure damage on the skin with the help of an App. In addition, L’Oreal has also launched a mobile App called Makeup Genius. The App can help users find their own appropriate makeup. Most Chinese people are shy and they do not dare to try exaggerated makeup, with this App users can try hundreds of makeup options and share on various social platforms. In the future, L’Oreal will try to launch more service-oriented App.
-L’Oreal APP for IOS
Digital involvement into every step of decision-making
In the buying decision process, customers experience 4 steps: identifying, considering, purchasing, and sharing. L’Oreal gets involved in every step of the process. For brand awareness, they launched a video advertisement on the entire media platform of Weibo and Wechat. For the decision-making stage they issued a series of makeup tutorial videos on Youku and finally let the users use social media to share their purchasing experience. With this, the entire consumer decision-making process is digitized.
-L’Oreal official account on Weibo and Wechat
Take this case for example, in the 2015 Cannes Film Festival; L’Oreal launched a video advertisement on Wechat, where L’Oreal’s stars would post their pictures and voice message saying “I am in Cannes, will you come? ” and a link to L’Oreal’s e-commerce page. Through this event L’Oreal attracted a lot of fans and potential customers, and the brand’s social influence was digitalized.
-L’Oreal Cannes Event on Wechat
All brands on digital platforms
Based on the first two points, L’Oreal Group including Lancome, Maybelline, L’Oreal Paris and other brands, try to position themselves, as much as possible, on various digital platforms, that is, “where are the consumers, where are we”. Since, nowadays, almost all of the customers are online, L’Oreal has to be searched and discussed as much as possible by customers in order to gain more popularity in the digital world.
-L’Oreal brands on Weibo
When analyzing L’Oreal’s digital marketing strategy, it is worth noticing that this giant enterprise takes digital marketing as a key element of responding to the rising demand among beauty consumers. The O2O (online-to-offline) model gradually drives the enterprise transforming it into a new business model. Digital marketing could not only develop a new market but also help to create a new CRM (Customer Relationship Management) system for other companies. We believe in the future and Chinese digital marketing will become more and more important in the following years.
Have you learned Chinese yet?
If you have any questions or require any information about our services, please do not hesitate in contacting us, our group of specialists will happily assist you.
This article was edited by Andres Arroyo Olson from 2Open.
Have you ever asked somebody how to do something in China and gotten an unclear or contradictory answer? Worry no more my dear reader, getting to know things before actually doing them in China is extremely difficult, here is why!
Not all questions have a vague answer to them, we are mainly focusing on business related topics, to be more specific, new business models that are being implemented, for instance, WeChat account management, DSP advertising purchases, or cross-border e-commerce are among the main ones that seem to have a variety of answers to them.
Why? You might be wondering, well, these fields are fairly new and still need to mature a bit. This is the main reason why there is no general consensus yet, it basically comes down to who you are asking. A logistics company won’t give you the same answer as the Chinese Customs Administration, nor will an online e-commerce platform or a Chinese businessperson, everyone has a different perspective on the matter, finding out what works for you might be difficult.
In reality, nobody is 100% sure on how things should be done, in fact, it seems like everybody is experimenting with it. The information lacks, is unclear, or contradictory, so you ask yourself, what should I do in order to carry out my business in China?
Your first, and probably wisest option, would be to get in touch with 2 Open, we are used to deal with these types of problems all the time. Facing new challenges and pioneering is one our main strengths and we would be more than happy to help your business achieve its full potential.
Your second option would be to run a pilot test. Getting things right before actually starting is a smart thing to do. Try running some test orders and look at the problems that arise with its delivery process. This will not only give you the knowledge you need but will also let to know the experience you’ll be having later on. Even though this might not be as comfortable to do as it sounds, it certainly is the best way to go about it.
Apart form running this pilot test there is another important aspect you should keep in mind, that is trust. Uncertainty and risk taking are a part of these tests and having an honest trustworthy person on the other end is something that will help you solve any problems you might encounter. Trust issues within your working environment could harm the pace and results of your projects, this is something you might not want to take for granted.
All in all, trust is not enough, you also need to be patient, getting things right requires time and effort. Getting ahead of yourself without the knowledge required could costs you some precious time and money. Plan things ahead and gather all the information needed in order to succeed in the volatile Chinese market.
At 2 Open we have the experience and knowledge to develop your business in China. We not only know how solve problems but we also take that uncertainty on your behalf. Our team is passionate and enthusiastic about every project, our goal is to understand our clients business needs in order to provide the best possible services. If you have any questions or require any information about our services, please do not hesitate in contacting us, our group of specialists will happily assist you.
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This article was edited by Andres Arroyo Olson from 2Open.
The first quarter of 2016 is already behind us, are you still figuring out how to start your e-commerce business in China? For some of us e-commerce still feels like a new business model, however, China has long passed this stage, various data suggests that it has already become a traditional industry in China. Traditional or not, let us sort out the current e-commerce situation and forecast its areas of development.
Ecommerce is on its way to become a traditional industry in China
Ten years ago the ecommerce in China was brand new. Taobao was the most popular C2C online platform. At that time, people who had the technical skills and knowledge of search engines could get over 80% of return of investment on a Taobao shop. Nowadays, Taobao offers more than 1 billion products, has over 10 million sellers, and around 320 million active users. These huge numbers only come from one of Alibaba Group’s marketplace so you might be able to reckon the whole picture. After ten years high-speed development, China’s ecommerce is not a new industry anymore; its development is now as mature as the real estate or the catering industry.
Traditional industry vs Ecommerce
In recent years, the traditional industry has been strongly affected by the online market, some companies have managed to adapt their business to the new online scene, but some have failed at this task. This trend of transitioning from offline to online businesses will speed up this year, and although there are currently more traditional businesses than online ones, online businesses will eventually catch up.
It seems that both business models cannot co-exist, however, if the resourceful traditional industry would explore Chinese digital marketing and ecommerce solutions, they would be able to achieve better results with half the effort.
Develop a 020 (Online-to-Offline) business model
In coming years, online retailing will be a fully integrated part of the market, it will help companies grow, and sale more efficiently. On the other hand, they will also have to implement the offline part of it, a successful integration of a good O2O business will, without a doubt, thrive in market. Suning began handling deliveries for Alibaba, in order to push Tmall Supermarket into the massive market, and Jingdong is promoting Jingdong Daojia, all the actions from the leading Ecommerce companies indicate that the O2O model is inevitable to come.
Ecommerce in the rural areas
Last year ecommerce in rural areas had a rapid development. Alibaba made a long-term project to promote online shopping in order to expand its business coverage. The central government formally issued a document to help the promotion of rural ecommerce and facilitate the integration of online and offline. Alibaba, Jingdong and Suning are also pushing the development of ecommerce in rural areas so we should expect an huge increase this year.
Great development of CBEC (cross-border ecommerce)
Over the past 2 years, CBEC has become one of the most popular business models in China. It has given import business a lot of opportunities; moreover, since the Chinese middle class has grown considerably (first place in the world with over 100 million), it turns out to be a very profitable business. The main consumers are people between the ages of 30-40 and have great acceptance for foreign products, this will bring a lot of overseas ecommerce companies into the Chinese market.
Here at 2Open we specialize in ecommerce and digital marketing. Our goal is to understand our clients business needs in order to provide the best possible services. If you have any questions or require any information about our services, please do not hesitate in contacting us, our group of specialists will happily assist you.
This article was edited by Andres Arroyo Olson from 2Open.