how to sell online to china

Objective-Oriented, KPI-Dependent

China Search Marketing Consulting

Enjoyed the speech? Learn more at:

How to sell online to China?Melbourne October 22, 2014

By: ChinaSEO

Date: October 9, 2014

Copyright @ ChinaSEO Ltd.

All rights reserved. Confidential

ChinaSEO.com

How to get from here to there?

USE THE CHINA WEB PLATFORMS

“The 5 steps”

for selling online in China..

6

5 Steps for Selling Online in China

BRAND ANALYSIS & FORM KPISGet quality market intelligence,form clear content, SEM/ SEO and Social Media strategies for gaining online brand and market share and success.Finance/ paperwork

CHINA FRIENDLY “FACE” AND BRAND/PRODUCT CUSTOMISATIONQuality translationsChina friendly design and SEO engineered web pages. Freight/logisticsPayment GatewaysChina Social Media platforms

CHINA MARKET PRESENCEChina Internet Account set upsCompany web pages registered on Baidu, Google HK and other Chinese SE’s Start Selling!!

ACTIVE SALES MANAGEMENTExpert SEO/SEM: ensure maximum possible rankings Expert prospect/ customer CRMFinance/ paperworkCompetitor reactions

ACTIVE MARKET STRATEGY & PR/ ONLINE CAMPAIGNMANAGEMENTOngoing tracking and reporting, SEM and SEO adjustments. Seasonal LPs and active SEM/PPC Campaign management services and reporting.Ongoing active CRMIncrease Market Share!

你好你呢

STRATEGYANALYSIS SET KPI’s

CHINA BRANDING BUILD & LAUNCH

Step 1

Step 2

Step 3

Step 4

Step 5



VS

CHINA E-COMMERCE TITANS

ARE ON FULL SCALE ATTACK!

Snapshot of Growth RateCompared with China’s E-Commerce market in 2011

2012 2013 2014 2015

2014

$350 Billion

2015

$550 Billion

China E-Commerce Share

Copyright ChinaSEO Ltd 2014

China E-Commerce Payment Share


“The 5 steps”

1. ONLINE ANALYSIS

“LOOK BEFORE YOU LEAP”

Both automated and human censorship.Is physically situated in Guangzhou, all international traffic is routed through it. Lag time of 3 seconds is “average” for 1st time viewers “high bounce rates”

For E-COMMERCE: yes, it can and does affect loading speed, advise hosting in HK or mainland“Jin Jin and Cha Cha” dance across PC screens.

Local ISPs are responsible for mainland content to maintain “harmonious communications.” 50,000+ PLA are active in monitoring, as are Police and internal security divisions.

Google and Facebook and Twitter are actively blocked, this greatly reduces any impact of your (regular) current online marketing spend.

However, for search algorithms it really does not matter.

Once your domain and account is registered on a local China

SE, essentially you are indexed and ranked on their server

banks just like everyone else.

Obvious rule of “Don’t mention the 3 T’s” eg: Tibet/ Tianamen/ Taiwan / weapons/ politics/ illegally imported products



THE GREAT

FIREWALL

OF CHINA

15www.ChinaSEO.com Objective-Oriented, KPI-Dependent, China SEO Consulting Copyright @ ChinaSEO

Source: Baidu

• Keyword search query in 12 months on Baidu, showing Keyword traffic queries. • Growth rate of “CZ SAMPLE” increased in March and April, 2012.• Growth rate of “DZ SAMPLE” increased in March and October, 2012.

1 year: User Attention (popularity) Trends of “CZ” and “DZ”

Period: Last 12 months

Keywords: CZ, and DZ SAMPLES

Menu Online Competition ContactConclusionKPI & BenchmarkAdvanced SEOKeywords Analysis

16www.ChinaSEO.com Objective-Oriented, KPI-Dependent, China SEO Consulting Copyright @ ChinaSEO

• Keyword search query by region on Baidu, showing Keyword traffic queries.• Top 5 provinces are all coastal, they are Beijing, Guangdong, Zhejiang, Shanghai, Liaoning.• Top 5 cities: Beijing, Shanghai, Bijie, Guangzhou and Shenzhen.

User Attention (popularity) of “AZ SAMPLE” by China Province

Period: Last 12 months to Feb 2013

Keywords: AZ SAMPLE BZ SAMPLES

Area Ranking by: AZ SAMPLE

1. Beijing

2. Shanghai

3. Bijie

4. Guangzhou

5. Shenzhen

6. Fuxin

7. Hangzhou

8. Shijiazhuang

9. Tianjin

10. Chongqing

Top 5 Cities

Menu Online Competition ContactConclusionKPI & BenchmarkAdvanced SEOKeywords Analysis



1. Supply of fake products 66%

2. Low seller/ brand credibility 43%

3. Delivery slow or unreliable 25%

4. Customer service sucks 23%

5. Unable to use preferred payment 20%Source: iresearch

What obstacles stop them from buying online?

Other Factors to consider:

Lack of Chinese content or web pages: no Chinese = “no chance” of winning their business

Payment methods: need to accept Chinese preferred payment platforms

Server speed: sites hosted outside of China are slowed by “Great Fire Wall”

SELLER NEGATIVES



1. Price is better 52%

2. Convenience of shopping online 19%

3. Variety of products 16%

4. Better product Information 6%

5. Products are not available in store 6%

Source: iresearch

What are Chinese Buyers looking for?

Other Factors to consider:

Regional locations: Tier 1 cities buy different products to Tiers 2-4

Good China Social Media presence: Used as a 2nd source of information

Product information: detailed product specifications and USP’s in Chinese and on home site

Friends and word of mouth: “likes” “shares” and recommendations help qualify purchase decision

SELLER POSITIVES

19

OWN e SHOP.com.cn

(B2C DIRECT)

BRAND SITE

&

E-COMMERCE SITE

BRAND

MOBILE

E SHOP

Multiple In House (brand controlled) POS & Shopping Cart Management

Options

Strong ability for CRM and Price Control

DISTRIBUTOR

STORE/ POS

DIRECT: SALES/

LIVE CHAT/ and

SOCIAL MEDIA

ASSISTED

Mobile pay, Direct

Bank Wire, COD,

Pay Pal, courier etc.

MAIN BRAND SITE,

LANDING PAGE +

SHOPPING CART

MOBILE

E SHOP

OFFLINE

RETAILOR/

DISTRIBUTOR

OR OTHER

POS

20

3rd Party (supplied) POS : Sales orders and shopping carts are on (other) 3rd

party controlled locations: *Management still required, and less control over

Pricing and CRM

OWN BRANDED

STORE SITTING ON

PLATFORM

OWNED BY 3rd

PARTY

SET UP FEES +

COMMISSIONS

DISTRIBUTOR

STORE/ POS

OFFLINE POS

“Traditional”

Distributors, Retailors

and Offline sales

channels.

POS not-connected to

Online Payment

System.

+ other Sales

Platforms

OTHER ONLINE

SHOPS:

PRODUCTS GIVEN TO

ONLINE STORES

WHOM INLCUDE IN

CATAGORIES

Eg: YIHAODIAN, 51BUY,



What platform is right for my product or brand?

¥¥

Depends on the value of product/s. And your in-market brand credibility.

China’s consumers trust is required before a brand’s products can begin to sell online.

3rd party re-seller platforms such as JD, Tmall and YHD are good way foreign firms to start.

100+ 1000+ 10000+

C2C and B2c SME SME products B2C and brand products

OWN

BRAND

SHOP

¥

OWN

BRAND

SHOP

OWN

BRAND

SHOP



OWN

BRAND

SHOP

OTHER CHINA

E-COMM

PLATFORMS

VS.

POSITIVES NEGATIVES

• Total brand and price control

• Direct CRM

• SEO/SEM on own pages

• Maximum profit margins

• Can choose what to sell

• Long term goal for every brand

• Own business

• Need local China partner and

offline sales support

• Time to begin selling

• High IT and set up costs

• Cross border issues/ payment

gateways/ duty and taxes

• Little to no brand awareness

Own brand shop vs Other China platforms:

• IT requirements covered just

“lease, decorate and sell”

• High traffic of shoppers

• 80-90%% of purchases are on

marketplace platforms

• SEM capabilities,

• Raise brand awareness

• Connected with major payment

gateways

• Still requires offline sales

support

• High traffic of shoppers (!)

• SEM pricing set by platform/

not market

• Set up costs and paperwork

• Pricing “discounting strongly

advised”

• Limited flexibility in design and

SEO/SEM

23

China e-Commerce CRM

What platforms to consider with China CRM?

Free Live Chat

mainly via desktops

“Like MSN”

Popular as 1st

consumer/brand

interaction

User id’s are

automatically

generated almost

anonymous

Free Live Chat incl.

voice mail mobile SMS

packets (radio)

Global: 13 major

languages

Has payment abilities

(restricted at present)

Can create private

networks and CRM

activity

Regional user search

capability e.g. taxis

Top blogging

platform in China

Micro-blogs to multi-

page websites

“Like Facebook” has

“share and likes”

and “fans”

Business upgrades

and certificates,

payments required

Mobile e-commerce

“essential”

Have ability to add a

contact page to “call

back this number now/

at convenient time”

Mobile EDM/ CRM

Phone as wallet

“The 5 steps”

2. DESIGN

“LOOKING GREAT FOR YOUR 1ST

DATE”

CHINA DESIGN…..

…Online Shopping

…Job Seeking

…news reading

….banking

….planning holiday

“The 5 steps”

3. GET THROUGH THE WALL

ACCOUNTS + PAPERWORK!

What are some of the differences between Baidu and Google?

• Free to join: automated signing up

• 1 day to join

• No search Censorship

• ”Not-great” with Chinese language

• Private Company

• Ranked number 1 site globally

• Offers email, personal services

• OK for HK but blocked in China

• Human Paperwork/ signing up fee

• Can take up to 3 weeks

• Active search Censorship

• Best Chinese language designed SE

• Government controlled/ mostly Private

• Ranked number 5 website globally

• Baidu Network (controlled content)

• No.1 choice / Preferred by Chinese

CUSTOMER SHOP

¥¥¥$$$

MOBILE WALLETS WILL KILLING CCDS + THE CASH REGISTER!!!

34

RMBFlash Currency Rates

Mobile Wallet funds transfer

Anti- fraud/ Secure

“Better than a Bank”

EXPORT MARKET DEVELOPMENT GRANT

“EMDG” A MUST-HAVE FOR ALL BUSINESSES!!

• All exporters are allowed to apply.

• Up to $200,000 in rebates.

• 50% of all expenses rebated.

• “Defn;: “for benefit of export marketing and

business development.

• Liberal Nationals recently lowered

minimums to $15,000 + increased fund!!

• Basically all services are EMDG

Compatible!! Cut your China marketing and

bus. development bill by 50%!!

HELLO

NICE TO

MEET

YOU

LEADS,

FOLLOW UPS

& COLD

CALLING

WEEKEND

SEMINAR

ROAD SHOWs

WEB

SEO

EMAIL

TRADE

FAIRS

GOOD

WEB

PAGES

AND

SEO/ SEM

“The 5 steps”

4. START YOUR ATTACK!

SEO + SEM + ePR

Meet Phorm: the internet’s richest data set, now at your fingertips

The benefit of position

Thanks to our unique, market leading,

ISP partnerships we can help you

access the largest consumer data set

with the highest of privacy standards

Vs.

Re-targeters

Data on

Search

Engines

Data seen by

The ISPs

Powered by China Telecom

At Phorm we’re breaking new ground-

our system is the first full service data

profiler and ad server to sit wholly

within the ISP network of China

Telecom. Literally in the heart of the

internet.

39

www.

competitors

web sites….

Phorm is the next generation re-marketing platform.

PHORM

“LISTEN”

THEN

“TARGET”

http://www.competitors

40

PPC留学澳洲 “Study in Australia”


Keywords Searching on Baidu:

留学澳洲 “Study in Australia”

2/3rds are PPC: pay per click slots

Organic ranking: which is achieved by SEO.

41

Ausin Group: www.houseau.com

Sydney based, Chinese Australian

co-partnership real estate

investment company.

Ironfish Property: www.ironfishchina.com

Chinese company, doing Australian real

estate investment business.

AUSPACIFIC Property Investment:

www.aus-pac.com

Chinese company, doing

Australian real estate investment

business.


Australia Property PPC players

ChinaSEO Market track PPC Keywords PROPERTY

$USD PPC Bidding Price Trends

$2.42

$0.97

$1.77

PPC March 20 2014


$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

澳洲房产 Australia

properties

法国房地产 France

properties

西班牙房地产 Spain

properties

美国房地产 USA

properties

$1.94

ChinaSEO Market track PPC Keywords Education

$USD PPC Bidding Price Trends

$3.39

$2.42

$3.87

PPC March 20 2014


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

留学澳洲 Study in

Australia

在法国留学 Study in

France

留学英国 Study in UK

China’s Online Advertising market has reached 130 billion CNY RMB

Approx*USD $4 billion per Q spent on attracting internet viewers and CT’s


“The 5 steps”

5. STAY ON TOP OF YOUR GAME

“COMPETITORS WANT TO KILL YOU!”

PPC variation SE’s: Australian Property Snapshot (sample 6.2013)

Keywords English Meaning

Baidu Google HK

Monthly SV CPC Price KVI Monthly SV CPC Price KVI

澳洲房产 Australia Properties 150 US$0.16 24 390 US$0.85 331.5

澳洲房地产 Australia Real Estate 150 US$0.33 49.5 58 US$0.46 26.68

澳洲房产网 Australia Real Estate Website 300 US$0.16 48 110 US$0.79 86.9

墨尔本房价 Melbourne Property Price 150 US$0.98 147 91 US$0.66 60.06

墨尔本房产 Melbourne Property 150 US$0.16 24 58 US$0.55 31.9

悉尼房价 Sydney Property Price 150 US$0.98 147 91 US$0.46 41.86

悉尼房产 Sydney Properties 150 US$0.49 73.5 73 US$0.53 38.69

澳洲投资 Australia Investment N/A US$0.65 N/A 46 US$1.02 46.92

澳洲买房 Buy Australian Property 150 US$0.16 24 91 US$0.75 68.25

澳洲商业地产 Australian Commercial Property N/A US$0.65 N/A N/A US$0.00 N/A

澳洲地产投资 Australia Property Investment 150 US$0.98 147 N/A US$0.00 N/A

Copyright wwwChinaSEO.com

2013

HOW MUCH DOES IT ALL COST TO GET STARTED?

*estimates only for 1 year

Consulting $1500, SEO $2500-$7500 per month

Account is free, Installation and testing from $2,000-

$15,000 depends on client requirements and systems

Tmall Global: $25,000 surety deposit, $5,000 annual

lease, $10,000 store design + $15,000 management

Minimum Credit deposit is USD $5,000 valid 12

months, min advertising per-month is $5,000

Minimum tracking fee deposit is USD $5,000

Minimum display fee per-month is USD$7,500 per month

TOURISM & DESTINATIONS

What can Australian businesses sell to Chinese online?

QUALITY FOOD & WINES FINANCIAL SERVICES & INVESTMENTS

LUXURY GOODS EDUCATION

AND…

YOUR

PRODUCT?

49

Some Clients…

50

Founded in Shanghai in 1997 ChinaSEO Ltd is

a China marketing company providing expert

SEO, SEM and e-commerce consulting

services.

ChinaSEO Ltd is a licensed media buying

agency and a licensed provider of: Baidu (+

other SE’s) Alibaba’s Tmall, Alipay and Phorm

by China Telecom.

Contact

[email protected]

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