Group 74, LFM @ Sophia: The unknown story of the big success

Taobao operated by Alibaba and is often called the ”Chinese eBay” and is one of the most visited sites in China. Taobao.com is an online platform where consumers have the opportunity to buy and sell their products to other consumers. With Taobao having more than 5 million vendors who offer close to 80 million products online as well as dominating the Chinese C2C market with 96.5% share in 2013, Taobao is often seen as the best platform to reach the masses.

All above are easily found on the Internet, and now, we will present you two little stories behind this big success.

The life of E-commerce stars-couries    

The opportunity to reach out to a market almost the population size of America, Taobao become one of the most desired E-commerce platforms a brand desires due to the huge audience reach in China. With almost 500 million registered users on the site and an average of 60 million visits a day, the opportunity for business is enormous.                                                                                                                                                         However, as the direct participants of the e-commerce’s terminal services, couriers have become the last link to users whether satisfies the process of online shopping. They get up early every day and trips to dark night, the majority of them working more than ten hours a day, but to get the few income.

When the dawn of the city yet to come, they have departure to embarked on a day trip, come to the company put the parcel sorting, classification, packaging and finally transported, often to run around the every streets of the city everyday, but also bear a strange person eyes, and even customers complain.Usually cannot eat lunch meal normally, needless to say an enough sleep.

They are ordinary people, either to run around for themselves living or for family, they always quietly pay, as like those tiny stars of the sky but have connected the magnificent Galaxy.

Over 4.8 billion courier packages were delivered nationwide last year, on November 11, 72 million packagers were produced, 800,00 couriers were put to test to get the job done.

When you clicked on your mouse to complete the transaction, this huge network starts to service you . They are couriers who are also fathers/mothers, husbands/wives, and sons/daughters, and they rarely get to spend time with their families.

These couriers look like they are doing simple and ordinary work. However, with their bare hands, they tirelessly deliver one package after another, they are the backbone of e-commerce in China.

 

The dream of coutures – never stop                                                                  图片1

This is one online fashion couture in Taobao, inspired and headquartered in USA, named by the nick name of the founder – Jing FANG.                                                                                                                                                                         图片2                                                                                                                                    Description, Service and Delivery is full score of 5 for each, the Comparable Data in term of Description is 6.3% higher than others, Service remains the same because the entire service in Taobao is doing good, Delivery is slightly lower. The ”Certified via Gold Sellers” and the above illustrate that ALU couture ranks satisfactorily.                                                                                                                                                                       Jing FANG is a lady who was model before running her own fashion couture. The couture was founded in 22 September,2009, and now has already owned 5 crowns.图片3                                                                                                                    What does this mean? In Taobao, each图片4LIKE contributes one point, each图片5SOSO contributes zero point, each图片6DISLIKE minus one point.                                                                                                                                  图片7

This means ALU couture has owned 200,001 to 500,000 LIKEs during the last 5 years, there are 3 SOSOs and 4 DISLIKEs, and just within the latest month, there are 9759 LIKEs from the business.

She lives in USA, her market and clients are in China. Her clients are the girls who dream to have an elegant life, who dream t live oversea and be able to travel around, who admire the life that Jing FANG shows or even want to be another Jing FANG. Jing FANG illustrates all the dreams via Taobao, via Weibo. But she sells and produces products in China, even some raw material may be from oversea.                                                                                                                                                                                                                                                        图片8

Her couture is designed to show ALU style – full of product photos with model – easy to overview all the products, and announces new arrivals twice per month. For each item, there is a description around 300 words, mainly about how she works out the special item, how she adjusts it to fit Chinese girl’s figure, her suggestion about style. And then there will be around 30 photos to illustrate the product on the model (normally she is the model, and depict 3 styles), with everything from her couture or from luxury, fashion brands (Hermes or Chanel leather products, Valentino or any in-time new arrivals).                                                                                                                                                     She is slim, white skin and long hair girl with warm smile. She might not be the cup of tea of Americans, but she represents one main popular taste in China, even Korea and Japan.

Some elements make her success: Pretty + Model + ALU style + She lives oversea (in USA, but moves between USA and China) + She is an idol in internet (people who keep showing off their  comfortable life) + She attends nice shopping malls and restaurants ( where she normally takes photos) + She keeps promoting herself (857,331 Weibo fans for herself and 171,104 Weibo fans for the Brand) + She looks signal (hence her independence and confidence win lots of girls who admire that)                                                                                                                                                                                 Tools help her success: Internet + Globalization + Off shoring strategy ( Inspired in USA or even worldwide, but made in China)

There are many succeed cases like ALU couture, they have the same PR strategy and producing strategy, I believe that the tools mentioned above point a new way for people alike Jing FANG – perhaps ex-model, singer, idol… they may worry about the future and don’t want to give up the bright and different life style – to run their own business online with the help of Internet, to choose products worldwide with the help of globalization, and to control the cost by off shoring.

When we are attracted by the big development and success of the globalization to our life, don’t forget to pay some attention to the amazing stories behind it, in which you will find some unexpected surprises you may never know.

 

 

Group 74, LFM @ Sophia: How globalization impacts personal purchase behavior

  1. INTRODUCTION
  • Traditional purchase behavior
  • Internet development
  • Online purchase behavior
  1. CHANGES
  • Advantages                                                                                                              a)  Convenient                                                                                                                                                                                                                                                b)  Multifunctional                                                                                                                                                                                                                                          c)  Multi-selectional                                                                                                                                                                                                                                    d)  Do not need to go to the crowded malls for buying                                                                                                                                                                              e)  Fast and synchronous                                                                                                                                                                                                                              f)  Without the time limitation
  • Cases analysis                                                                                                            a) eBay                                                                                                                                                                                                                                                             1)  eBay enjoys a huge success in USA, but is facing to intensive competition in         some main countries of the Far East.                                                                                                                                                                                                        2)  PayPal accepts over 20 currencies, which pleasures consumers world                   widely.                                                                                                                                                                                                                                                        3)  eBay as one of the well-known e-commerce companies has influenced a lot.                                                                                                                                      b)  Amazon                                                                                                                                                                                                                                                      1)  Internal analysis                                                                                                                                                                                                                                          *  Scale: the largest and most widely users retail website which account for               20% online business users in the world.                                                                                                                                                                                                    *  Customer Distribution: 35.4% from the north America, 31.8% from Europe             24.1% from Asian.                                                                                                                                                                                                                                      *  Main three categories: Book、Music、Video                                                                                                                                                                                              *  First touch: Well known in China by book business                                                                                                                                                                                  2)  External analysis                                                                                                                                                                                                                                        *  Marketing Strategy:                                                                                                                                     Product Strategy                                                                                                                                                                                                                                             Price Strategy                                                                                                                                                                                                                                                 Promotion Strategy                                                                                                                                                                                                   *  Opportunity:                                                                                                                                                   Amazon.cn                                                                                                                                                                                                        c)  Taobao                                                                                                                                                                                                                                                       1)  Customer basics: their age range is 15-45, mostly are around 18-30, among                                       which, 64.66% is female. They are from all works of life,                                           especially students and white collar. Before 2011, more                                           than 370 million people already has Taobao account and                                         now, which comes to 1 billion maybe.                                                                                                                                                                         2)  Customer distribution: mostly from China, in which 12.2% from Guangdong,                                              11.8% from Zhejiang, 9.2% separately from Jiangsu                                                and Shanghai and so on.                                                                                                                                                                                       3)  Sale: In 2011, the turnover of Taobao is 610 billion, accounted for 80% of the                 China online shopping market.                                                                                                                                                                                                         4)  Origin: Taobao was founded in 10th May, 2003 by Alibaba and during the 11                      years development, nowadays, its business includes C2C and B2C                        two parts.                                                                                                                                                                                                                                       5)  Features and advantages:                                                                                                                                                                                                                           *  Taobao is like a virtual supermarket, you can buy every daily supplies on it.            Clothes, foods, books, perfumes, sport products, anything you can come up          with and you cannot come up with.                                                                                                                                                                                                             *  For the same products, you can have thousands of choices with different                price.                                                                                                                                                                                                                                                           *  The website is better organized and decorated.                                                                                                                                                                                         *  The global purchase allows Chinese to buy products from other countries              easily.                                                                                                                                                                                                                                                       6)  Marketing strategy :                                                                                                                                                                                                                                     *  Pay attention to the organization and decoration of website.

             *  Use catchy words to attract the browser.

             *  Develop It’s own chatting software and third party payment tools                                      “Alipay”to facilitate the trade between sellers and buyers.

             *  Promote it’s products on many famous website like ”Baidu” and ”Weibo”

  • Limitation of global online purchase                                                                          a)  User experience                                                                                                                                                                                                                                        b)  Transportation                                                                                                                                                                                                                                        c)  Returns
  1. CONCLUSION