E-Commerce in China

Presentation Transcript

Dr. Kaiquan Chen

TDV Inc.

Board chairman

20/09/01

No.1

Agenda

Internet market develops rapidly in China
The enterprises demand on EC intensively in China
Enterprises’ investment in EC changes to maturity and application
Market structure of E-commerce in China
Mobile EC market developes rapidly
The development of EC in China

No.2

Basic Establishment of Communication Develops Rapidly

Amounts of telephone develops rapidly in China, it will be 156 mil. by year 2000. Mobile telephone amount will be 72 mil.

Source: MII, 2000

No.3

Internet Customers Market Develops Rapidly

Internet customers will exceed 100 mil. by 2005,include mobile internet customers.

Internet Uesr Million

Source: CNNIC, 2001

No.4

Internet Customers Market turn to maturity

The lastest data of IDC indicated normalInternet customers has reached 61.9% in China,but it was 36% in 1999.

Source: CNNIC, 2001

abundant convenient and protean mobile terminal

Notebook

PDA

MP3 Player
(with download function)

Wirlless PIM

Home stakeout and control(with system movement and report function)

Digital Camera(with data exchange function)

No.5

Abundant,convenientand protean Mobile Terminal

Mobile

Mobile Secretary

World will be changed by Mobile Internet

Carry-home Game Player(with network play and select function)

Car (with data information and entertainment system)

Icebox(with information board controled by mobil phone)

No.6

Basic conditions of E-Commerce have been built

The Chinese government promote EC-market actively
Byelaw of Internet and security of communication network comes on conjointly
Constitute the laws of EC actively
Commercial banks found bank-online and China Finance Center of Authentication (CFCA)
Commerce dept. of government and large scale state-owned enterprise connect the Internet actively
Little enterprise’s local IT basic construction level raise quickly
Appeared new mode of EC like eMarktplace etc.

No.7

The level rises promptly that the enterprises cognize electronic commerce

In condition of the in-depth market education and intense market competition,there are 92% enterprises which need EC in China,that can raise competition ability.But there are only 34% that enterprises need EC in the same research in 1999.

Source: CNNIC, 2000

No.8

It raised intensely that the enterprises demand EC

There are 41% enterprises that have started the market propagandistic campaign online who have their owned net-site, and there are 38% that have started the application of EC

Source: CNNIC, 2000

No.9

Investment in IT of enterprise has been changed

Investment in IT of enterprise has been changed in 2000 in China,it increased in software and service,which indicated the mature of IT construction of the Chinese enterprises

Source: CNNIC, 2000

No.10

The change of investment for electronic commerce of the enterprises

For meet the development of EC in China,the emphases of investment have been changed that changed from solicitude enterprise outside to perfect the enterprise chain of supply & demand, build enterprise electronic commerce platform step by step .

Source: CNNIC, 2000

No.11

Development process of E-commerce in China

There will be $133G in B2B market of EC in China by 2005,which will be implemented with eMarketplace mainly.

Revenue
US$B

150

100

eMP

eInfo

50

25

eP/eD

Year

10

90

95

00

05

Source: CNNIC, 2001

No.12

The revenue of EC in China will enlarge rapidly

The revenue of EC in China will be $150G,CAGR will be 134% by 2005

Source: CNNIC, 2000

No.13

The construction of E-Commerce in China

Source: CNNIC, 2001

US

PRC

No.14

China VS U.S. in composing of B2C market

The income of more than 53%Chinese Internet subscribers is between 1500－2500 US$

Internet Uesr M

25

15

10

5

Income/Y

>$24,000

$3,000

$6,000

$12,000

$1,500

Source: CNNIC, 2001

No.15

The forecast of Mobile EC in China 2000-2005

No.16

Development process of EC in China

2000 – 2005
integration
additional characteristic
SCM
CRM
industry
function
Customization
individuation

1998 - 2003
transaction processing
B to C
B to B
EDI
SCP
ERP
Self-help service

1997-2000
interactive
Intranet
interactive
individuation
Basic Engine
Point connect

1996-1999
Info express
Market info
Product info

1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: CNNIC, 2001

Supply Chain

Management

Enterprise Resource

Planning

Customer Relationship

Management

Distribution

&Order

Management

Sales

Force

Automation

Customer

Contact

Center

Manufacturing

Organization

Logistic&

Transportation

Customer

Marketing

Management

eBusiness

No.17

Developing EC in China

CUSTOMERS

SUPPLIERS

No.18

The development tendency of the electronic commerce market in China

Develop EC internally and externally

Enterprises should improve their internal management across-the-board for development of electronic commerce and establish adaptive operation platform for electronic commerce environment

Lighthouse’s effect

The large scale enterprise will bring along medium or small enterprises to apply electronic commerce,there will come into being a new chain of supply and demand based on electronic commercial platform between the enterprises

Success will come when conditions are ripe

The improvement of external environment will be a good channel for electronic commerce
Electronic commerce companies build “cargo ship” for electronic commerce
Electronic commerce will start by enterprises’s in-house requirement which like water