seminar 1a tmall intro 2013 (vinitaly)
TRANSCRIPT
DIGITAL MEDIA TECHNOLOGY & WINE SERIES
E-COMMERCE: BREAKING DOWN THE GREAT (E-)WALL OF CHINA (Tmall)
#vinitaly2013 @vinitalytour
@steviekim222
• Janet Wang, Head of International Business Development, Tmall (Alibaba Group)
• Naran Andreyev, CEO, M1nt Cellars
• Jared Liu, Founder/CEO of YesMyWine
• Alvin Huang, Founder of Vinehoo
2007 2008 2009 2010 2011 2012 2013e 2014e 2015e¥0
¥500
¥1,000
¥1,500
¥2,000
¥2,500
¥3,000
¥3,500
¥56
¥128 ¥263 ¥461
¥785
¥1,304
¥1,850
¥2,450
¥3,020
113% 129% 105% 75% 70% 66% 42% 32% 23%
Transaction Size of China Online Shopping Market Transactions Growth Rate
Onl
ine
Shop
ping
Tra
nsac
tion
Size
(bill
ions
RM
B)
Ann
ual G
row
th R
ate
(%)
Total E-Commerce market size has sustained 70% AAGR over past 5 years; with total transactions breaking USD 200 billion in 2012.
Overall E-commerce Penetration and Uptake in China
Source: iResearch Consulting Group, 2013
As % of Total Retail : 1.1% 2.0% 2.9% 4.3% 6.2% 7.7% 9.0% 10.0%
2007 2008 2009 2010 2011 2012 2013e 2014e 2015e¥0
¥500
¥1,000
¥1,500
¥2,000
¥2,500
¥3,000
¥3,500
¥56
¥128 ¥263 ¥461
¥785
¥1,304
¥1,850
¥2,450
¥3,020
113% 129% 105% 75% 70% 66% 42% 32% 23%
Transaction Size of China Online Shopping Market Transactions Growth Rate
Onl
ine
Shop
ping
Tra
nsac
tion
Size
(bill
ions
RM
B)
Ann
ual G
row
th R
ate
(%)
Total E-Commerce market size has sustained 70% AAGR over past 5 years; with total transactions breaking USD 200 billion in 2012.
Overall E-commerce Penetration and Uptake in China
Source: iResearch Consulting Group, 2013
As % of Total Retail : 1.1% 2.0% 2.9% 4.3% 6.2% 7.7% 9.0% 10.0%
Shift in Consumer Demand: The Rise of B2C
China’s B2C sector has enjoyed rapid development in recent years; reaching 350 billion RMB in 2012
Source: iResearch Consulting Group, 2013
2009 2010 2011 2012 2013e 2014e 2015e0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
92% 86%77% 70% 65% 59% 54%
8% 14%24% 30% 35% 41% 46%
C2C B2C
Prop
ortio
n of
Sal
es R
even
ue (%
)
China B2C Market Penetration
Tmall is Asia’s largest B2C site, with USD 32 billion sales volume in 2012
57%20%
6%
5%
3%
2%1%
1% 1% 1%
4%Tmall
360buy
Suning
Tencent B2C
Amazon.cn
Dangdang
Gomei
Vipshop
Yihaodian
Vancl
Others
Tmall
Source: iResearch Consulting Group, 2013
The Alibaba Ecosystem
eTao
Product Search
Chinese consumers see Tmall as destination for:
Following the latest fashion trends
Accessing the widest variety of products
Purchasing high-quality, brand-name products
Asia’s Largest Shopping Platform
B2C Market Share in China
Registered Users
Daily Unique Visitors
GMV in 2012
#1
>57%
>500 million
>40,000,000
>200 billion RMB
KEY STATS
Tmall: China’s Premier Online Shopping Destination
26%
37%
18%
9%
10%Tmall Age Demographic
18-2525-3131-3636-41>41
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
50000000100000000250000000
500000000750000000
1000000000
1500000000
2100000000
11.11 2010: $142 million11.11 2011: $525 million
November 11 “Singles Day” “Online Shopping Day”
11.11 2012: $2.1 billion
On this day each year, history is made…
$3.1 billion by Tmall + Taobao 2x Cyber Monday 2012 ($1.46B) 217 merchants broke ¥ 10M
RMB 3 merchants broke ¥ 100M RMB 10 million UV in first minute 213 million UV total (40% China)
2012
2011 $525 million
2010 $142 million
24 hours
(In USD except where noted)
International Brands on Tmall
Wine Category on Tmall
The sales volume of wine grew from USD 15 million to USD 56 million in 2012
13
500,000 bottles of wine were sold on Tmall.com’s Nov 11 Single Day
100,000 liter of wine was sold during Chinese New Year promotion
YesMyWine Flagship Store Torres Flagship Store
1
2
3
4
5
Tmall Wine Shopper InsightsFavorite Wine by Countries
15
Single Italy Wine Sales Records on Tmall.com
Favorite Wine by Types
Red Wine
Sparkling wineWhite Wine
90,000 bottles 10,000 bottles 6000 bottles 5000 bottles 7800 bottles
• Gender: 60% Male v.s 40% Female• Age: 60% at 25-34• Prefer sweet , gift-packing• Avg basket: RMB 299
Marketing Campaigns to Promote Wine
16
Featured campaigns and events to promote wine sales and connecting lifestyle & culture
Other Interesting Sales Records150 gram of Chinese green tea was sold at price
of RMB 8,800
Haagen-Dazs Sandwich, 10,000 pieces valued ofRMB250,000 were sold
3,000 boxes of Leonidas Chocolate were sold out via pre-sales channel within 2 days