overview of the innovative b2c business models in china · (backed by online b2b platforms) netease...
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Business Model Innovation (Part 1)
Management Theories and Business ModelsWinnie Lo, Iris Tong
E-com
merce . B
usin
ess Mo
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vation
s
January 2020
Overview of the innovative B2C business models in China
Key takeaways
2
A vast number of innovative B2C business models have emerged in China. Key drivers of the innovation include:
• Chinese consumers are empowered by mobile internet. Retailers have a clearer picture of the changing consumer demand by analyzing mobile footprints
• Technological advance leads to digital transformation• Internet giants continuously expand their business ecosystems to engage with consumers and facilitate startups to provide innovative solutions
Zoom in – B2C business innovations emerged at the “consumer”, “product” & “channel” levels
Consumers• Multiple generations have distinctive
consumer preferences and mobile footprints
• Physical distance is no longer a critical barrier for online retailing
Products• Is there consumption upgrade or downgrade
in China? Consumption stratification patterns have developed
• To better fulfill different needs of multipleconsumer groups, more specialized supply chains emerge in China
Channels• Online sellers no longer rely on traditional pure-play
e-commerce model, but seek more channels to increase consumer stickiness and conversion rate
• Certain O2O retailers integrate the merits of online and offline formats to offer innovative fulfillment solutions
What’s next?• Some enterprises/ startups are facing big challenges in running sustainable B2C business• To differentiate from competitors, some B2C operators are exploring B2B business and enhancing their supply chain capabilities.
Source: Fung Business Intelligence
Traditional self-operated e-commence
Traditional e-commercemarketplace
Today: Innovative B2C Models
• Shopping malls• Department stores• Specialty stores• Convenience stores• Mom-and-pop stores
JD.com
Taobao Tmall VIP.com
Past:Traditional B2C Formats
*Various business giants share similar concepts on innovative B2C model. See also Box 1For detail of the discrete O2O models in the past, view also Fung Business Intelligence’s Report in 2016 “Business Innovation in China (Part 1): Embracing New Opportunities by Adopting O2O Strategies & Building Business Ecosystem”Icon source: InternetSource: Fung Business Intelligence
China South City
HLA
Yonghui RT-Mart
Suning Intime
3
Social commerce
Yunji BeidianKoudai Weidian
Mobile commerce
A vast number of innovative B2C business models have emerged in ChinaSome pure-play and brick-and-mortar retailers in China explored O2O (online2offline/ offline2online) models in 2014. However, they recognized that discrete O2O models were unsustainable. More innovative retail models* with integrated O2O operations were gradually launched.
Meituan DianpingEle.me
On-demand/ lifestyle services
platforms
Vivo
Concept stores
Tiktok Kuaishou
Short-videoe-commerce
XiaohongshuMogujie
Content-sharing platforms
SecooMei.com
Luxury products platforms
Pop-up stores
Kaola.com Tmall Global
Cross-border e-commerce
platforms+
Experimental stores
Bianlifeng
Unmanned stores/ kiosks
Web celebritye-commence
Pinduoduo
Group-buyingplatforms
XingshengYouxuan
Communitygroup-buying
platforms
YCloset
Sharing/ rental
platforms
Freshippo
Shopswith in-store
fulfillment center
Xianyu Zhuanzhuan
Second-hande-commerceOnline
Offline
Mom-and-pop stores
(backed by online B2B platforms)
NeteaseYanxuan JD Jingzao
Taobao Xinxuan
Private-labelplatforms
Onlinex
Offline
Box 1. Business giants share similar concepts on innovative B2C model with their own highlights
“New Retail” Initiative, 2016
E-commerce is evolving into “New Retail”, which is an integration of online and offline channels and modern logistics.
~ Jack Ma, Co-founder, Alibaba Group
“Decentralized Smart Retail Solution” Initiative, 2017
Tencent aims to serve as a digital platform connecting brands, physical stores and other service providers and provide consumer-driven retail solutions.
~ Pony Ma, Founder, Tencent
“Smart Retail” Initiative, 2017
By integrating with mobile Internet, traditional offline business can offer retail services for numerous consumers anytime, anywhere.
~ Zhang Jindong, Chairman, Suning
“Boundaryless Retail” Initiative, 2017
In the future, retailers will be able to fulfill any consumers demand anytime, anywhere
~ Richard Liu, CEO, JD.com
4
Source: Compiled by Fung Business Intelligence
Innovative B2C model To facilitate
a consumer-oriented retail experience by
integrating online and offline channels with the
support of logistics, technology and data
Key drivers of the B2C business innovation:
1. Chinese consumers are empowered by mobile internet. Retailers have a clearer picture of the changing consumer demand by analyzing consumers’ mobile footprints.
6
Group buying platforms
Private labels
In the past, retailers didn’t have a clear picture of consumer preferences. Consumer segments were ambiguously grouped by historical data in terms of age, gender, income level, etc.
Value for $$Branded goods
Imported goods
With holistic data analytics of individuals, retailers can now push their marketing feeds to targeted shoppers and groups, based on lifestyle, interest, family status, etc.
Functional goods
TV shopping
Ads
Gaming,entertainment
platforms
Fulfill basic needs
Show uniqueness
Improve quality of life
Recommended by KOL/ KOCEnjoy shopping
excitement/ discount Personalizeditems
Traditional physical stores
Brands’ official online
platforms
Social commerce platforms
Chinese consumers
* Abbreviations: KOL = Key opinion leader; KOC = Key opinion consumerSource: Fung Business Intelligence
E-commerce marketplaces
ThroughKOL/KOC on
livestreaming platforms
Luxury goodsAuthentic goods
Stores backed by
retail technology
Big data analytics Cloud computingBlockchainArtificial Intelligence
Key drivers of the B2C business innovation:
2. Technological advance leads to digital transformation
7
D A T A
Source: Fung Business Intelligence
o Increase visibility & traceability
o More accurate market forecast
o Improve efficiency o Enhance consumer experience
o More convenienceo Increase consumer stickiness
o Real-time response
o Quick delivery, accurate, efficient product fulfillment & replenishment
DownstreamUpstream
Manufacturing
Product development and design• Digital Design• 3D printing
Manufacturing• Internet of Things• Augment Reality/
Virtual Reality• Robotics• Automation
Quality Control• Blockchain• Augment
Reality/ Virtual Reality
• Mini-program• Location-based marketing • Social marketing• Customer relationship management• Online feeds to targeted individuals• Augment Reality/ Virtual Reality
Marketing
• Optimized visual merchandising • Smart devices at store level, e.g. magic
mirror, smart shopping guide, etc.• Unmanned payment kiosk• QR code/ Facial recognition payment
Retailing
• Automation • Robotics• Augment Reality/ Virtual Reality• Internet of Things• Unmanned vehicles
Logistics
Mobile technologyAnytime (24 hours x 7 days); Anywhere (shop, restaurant, home, office, on the road, etc.)
• Product research • Order placement • Consumer financing• Product reviews
Consumers
D A
T A
D A
T A
8
Key drivers of the B2C business innovation:
3. Internet giants continuously expand their business ecosystems to engage with consumers and facilitate startups to provide innovative solutions
Juhuasuan
Tmall Global
Cainiao NetworkAlibaba Pictures
Fliggy
Koubei
Guangzhou Evergrande FC
Ad China
My Bank Tianhong Asset
Management
Vulnhunt
RRS
Alimama
Alibaba Cloud
Ele.me
Dida Chuxing
Hellobike
Intime
Freshippo
Suning
YCloset
Mei.com
Youku
UC Browser
SenseTime
Ant Financial
KXTXBest Express
STO Express
ALOGTudou
HuayiBrothers
CBN
Huayi TencentEntertainment
Technology
SanJiang
Lianhua
EasyhomeBailian
Taobao Xinxuan
Souche
Yiguo.com
Xianyu
Ganjie
Haoshiqi
Xiaohongshu
Wanda Film
China Media Capital
Focus Media
EjoyTechnology
Canxing
iTrigger.cn
Video++
China Unicom
Health2sync
XiaopengMotors
Shiji
Baison
Moredian
Babytree
CloudCare
AuthineNetwork
Kaola.com
ZTO Express
DingTalk
YTO Express
Alibaba Sports
Alipay
Tmall XiaodianTmall
Taobao
AutoNavi Alibaba Health
Seven Ages
CambriconTechnology
DT Dream
Plex-VR
MegviiTechnology
Damai.cn
* Note: This figure includes part of the business units and invested companies of Alibaba Group within ChinaIcon source: InternetSource: Fung Business Intelligence
Qyer.com
Real (or Ruwo)
WPP China
Suning Sports
Sun Art
New Hua Du Supercenter
Tungee
Shuwei
CICC
HTSC
9
Key drivers of the B2C business innovation:
3. Internet giants continuously expand their business ecosystems to engage with consumers and facilitate startups to provide innovative solutions (cont’d)
* Note: This figure includes part of the business units and invested companies of Tencent Group within ChinaIcon source: InternetSource: Fung Business Intelligence
ZhihuQQ
Weixin/WeChat
Douyu
iDreamSky
TencentGames
Koudai
JD.com
Pinduoduo Vipshop
Youzan
MissFresh
China South City
HLA
Yonghui
58.comDianping
Meituan1jiajie
LejuTencent Map
56QQRRKD ExpressG7 Networks
Technology
Tenpay
Weixin Pay/WeChat Pay
ZhongAn
WeBank
CICC
Renrendai
KingsoftTencent Cloud
Element AI
TencentVideo
Tencent Pictures
China ReadingLimited
Elong
Mafengwo
HuayiBrothers
Huayi TencentEntertainment
DXY Health
Tongcheng
Weimob
WeDoctor
TencentSports
Tencent Comic
WPP China
Haoyiku
Zhuanzhuan
Renrenche
XiaoxiangShengxian
Better Life
7Fresh
Xiaohongshu
Man Bang
JD LogisticsSunline
QTRADE
Yixin Group
Enflame
Ulucu
Momenta
Keytop
tstudy
Changshan Textile
NextTao
UBTECH
AISEC
Kuaishou
10
Key drivers of the B2C business innovation:
3. Internet giants continuously expand their business ecosystems to engage with consumers and facilitate startups to provide innovative solutions (cont’d)
Content sharing
TopbuzzNews2015*
ToutiaoNews2012*
DongchediAutomobile infomation
2017*
BidewuProperty
information 2018*
PipixJokes2018*
HupuSports
information 2019#
DailyhuntNews2016#
News RepublicNews2017^
BABENews2016#
Douyin/ TikTok2016/ 2017*
Xigua2016* Vigo
2017*Flipagram
2017^
Huoshan2016*
DoushanVideo-based
social messaging 2019*
Feishu/ LarkEnterprise messaging
2019*
UlikecamPhoto taking
& editing 2018*
Live.meLive streaming
2017#Helo
Social media 2018*
Social media (Others)
Education OthersGoGoKid2018*
FaceUPhoto taking
& editing 2018^ Baike
Web-basedencyclopedia
2019^
SmartisanSmart devices
2019^
TuchongStock images
2014^ Mokun TechnologyGame2019^
TerarkBig data2019^
LevelupAIAI solutions
2019^
Ocean EngineMarketing services
2019*
aiKID2018*
HaoHao XueXi2018*
Minerva project 2019#
Xiaoyang2018#
VsceneVR
2018^
NameiStock trading
2017*
GeogifAnimation
2019^
NutstoreEnterprise cloud
storage2018*
*Notes:- App icons with outline are targeted at international users, icons with outline are for local users- * Year of establishment; ^Year of acquisition; # Year of investmentIcon source: InternetSource: Fung Business Intelligence
Product uniqueness
Zoom in - B2C business innovations at the “consumer” level:
Number of Chinese netizens reached 854 million in June 2019. 99% of them accessed the internet via mobile (847 million)
12
Source: China Internet Network Information Center, compiled by Fung Business Intelligence
Instant Message
APPs
Food Delivery
APPs
Mobile Payment
APPs
VideoAPPs*
OnlineShopping
APPs
NewsAPPS
Online Game APPS
Online Music APPs
821 mil#
96.9%^
660 mil#
78.0%^
622 mil#
73.4%^
759 mil#
88.8%^
621 mil#
73.4%^
585 mil#
69.1%^
468 mil#
55.2%^
417 mil#
49.3%^
Convenience & quick delivery
Real-time interaction
Value for money
Smart device users
Info searchAPPs
662 mil#
78.2%^
Notes:# Number of the Chinese netizens using particular services via mobile apps (million, June 2019)^ The penetration rate of using particular services via mobile apps (%, June 2019)* For Video apps, the number of the Chinese netizens and the penetration rate cover all online channels
4.0%
16.9%
24.6%
23.7%
17.3%
6.7%6.9%
AGE GROUP
< 10
10 - 19
20 - 29
30 - 39
40 - 49
50 - 59
> 60
Zoom in - B2C business innovations at the “consumer” level:
Unlike the previous generations, young Chinese netizens are tech-savvy and wealthier, and have become the major consumer group They can fulfill their daily basic needs by simply clicking their mobile apps anytime, anywhere.
13
Source: China Internet Network Information Center, QuestMobile, compiled by Fung Business Intelligence
48.6%
26.7%
11.2%
8.4%5.1% AGE GROUP
Below 24
25 - 30
31 -35
36 - 40
Above 41
Among the netizens who frequently used click-and-delivery services, over 3/4 were aged < 30 in December 2018
Major click-and-delivery services in China
In June 2019, nearly half of the Chinese netizens wereaged < 30
Tech-savvyconsumers
Beauty services
Cosmetics services
Facial
Hair servicesMassages
Food delivery
Snacks
Takeaway
Fresh Produce
Home services
Repairing services
Relocation services
Cleaning service
Errand services
Parcel picking/ delivery
Medicine delivery
Personal shopping/ “Daigou”
Travel agent services
5.8%
14.1%
6.5%
5.3%
7.7%
12.6%
20.8%
14.1%
13.0%
INCOME GROUPNo income
1 - 500
501 - 1000
1001 - 1500
1501 - 2000
2001 - 3000
3001 - 5000
5001 - 8000
Over 8000
Zoom in - B2C business innovations at the “consumer” level:
Physical distance is no longer a critical barrier for online retailingHowever, retailers should be aware of the different behaviour of the netizens living in various tiers of cities and belonging to distinct income groups
14
9.2%
18.4%
18.8%22.2%
18.7%
12.7%
CITY-T IER
1st-tier
1.5 tier
2nd-tier
3rd-tier
4th-tier
5th-tier or lower
Chinese netizens from various city-tiers in 2019Q1
* Abbreviation: MAU = monthly active usersSource: China Internet Network Information Center, Jiguang, QuestMobile, compiled by Fung Business Intelligence
In lower-tier cities,Buying behavior:• Price sensitive• Value the recommendations from family,
friends and communities• Trust in brands• Prefer touch and feel of products in a
physical store, before check-out online
Top 5 apps in June 2019: (in terms of the strongest annual growth of MAU*)
Pinduoduo(backed by
Tencent)
Tiktok(backed by Bytedance)
Kuaishou(backed by
Tencent)
AutoNavi(backed by
Alibaba)
Weishi(backed by
Tencent)
In June 2019, around 40% of the Chinese netizens earned RMB 2001 – 5000 every month. Over 1/4 earned more than RMB 5000 per month
Willing to pay for quality goods
Lower-tiercities
Zoom in - B2C business innovations at the “consumer” level:
With the aid of mobile technology and data analytics, retailers have a clearer picture of multiple generations in China and plan for corresponding product portfolios and marketing campaigns
Small-town Youngsters Generation Z Young Mothers White-collar Workers
Middle Class Blue-collar Workers Urban Silver-hair Consumers
Small-town Middle-age &Silver-hair Consumers
Who are they?• Age: 20-30• Live in lower-tier cities
Who are they?• Post-95s/ Post-00s• Live in 1st- to 3rd-tier cities
Who are they?• Pregnant mother and/or
mother with kid(s) aged ≤ 12• Live in 1st- to 3rd-tier cities
Who are they?• Age: 25-35• Live in 1st- to 3rd-tier cities• High purchasing power
Who are they?• Age: 35-45• Live in 1st- to 3rd-tier cities• High purchasing power
Who are they?• Age: 25-45• Live in 1st- to 3rd-tier cities
Who are they?• Age: > 50• Live in 1st- to 3rd-tier cities
Who are they?• Age: > 35• Live in lower tier cities
Major behaviour: • Follow urban fashion trends• Seek value-for-money products• More disposable income without
heavy financial pressure on mortgage
• More idle time, prime users of entertaining apps
Major behaviour: • Tech-savvy, prefer online
shopping• Seek personalized/ customized
products• Prefer community sharing, ACG*• Willing to invest in personal
appearance
Major behaviour: • For kid: aware of product safety • For herself: aware of personal
health and appearance• For family: aware of health and
willing to pay for convenience
Major behaviour: • High income, high expenditure,
low saving• Willing to pay for convenience• Seek quality living & trendy
lifestyle
Major behaviour: • Seek personalized products• Enjoy offline shopping
experience• Rational consumption
Major behaviour: • High living cost• Long commuting time and spend
much time on entertaining apps• Risk-averse consumers• Seek value-for-money products
Major behaviour: • Potential online consumer group• Frugal consumers• Tend to shop offline• Frequent users of instant
messaging apps• Easily lured by social media ads
Major behaviour: • Stick to value-for-money products• Risk-averse consumers• Strong trust in the buying reviews
from family and friends• More idle time, frequent users of
entertaining apps15* Abbreviation: ACG = Animation, Comic and Game
Source: Alibaba, Kantar, compiled by Fung Business Intelligence
Zoom in - B2C business innovations at the “product” level:
FAQ: Consumption upgrade or downgrade in China? Different consumer groups have different consumption preferences. New generations are not only fond of foreign brands, but also seek domestic unique brands, e.g. private-label brands or rejuvenated Chinese brands. Some consumers seek value-for-money products, some expect customized goods with speedy delivery, some prefer conspicuous consumption, etc.
16
Source: Fung Business Intelligence
Pri
ce p
oin
t
LOW
MEDIUM
HIGH
Typ
es o
f go
od
s
General merchandising
Products for community/ group-buying
Fresh produce Private-label products
Low price products
Second-hand products
Luxury products
Overseas branded products
Mother and baby care products
Zoom in - B2C business innovations at the “product” level:
Answer: Consumption stratification patterns have developedTo better fulfill different needs of various consumer groups, specialized supply chains emerged in China.
17Source: Fung Business Intelligence
Pri
ce p
oin
t
LOW
MEDIUM
HIGH
Typ
es o
f go
od
s
General merchandising
Products for community/ group-buying
Fresh produce Private-label products
Low price products
Second-hand products
Luxury products
Overseas branded products
Mother and baby care products
Spec
ializ
ed
Su
pp
ly C
hai
ns• E-commerce marketplaces
• Sourced from reliable suppliers
• Cross-border e-commerce platforms
• Offer authentic products
• With strong international logistics support
• Vertical e-commerce platforms
• Sourced from suppliers with strong specialties
• Private-label goods platforms
• Offer customized products, good quality/ value for money products
• Luxury products platforms
• A close relationship between luxury brands and sellers/ distributors
• Fresh produce e-commerce platforms
• High visibility in supply chain
• With cold chain logistics facilities and handling
• Second-hand products platforms
• Embedded with sharing economy concept
• With flexible logistics support
• Community/ group-buying apps
• Sourced from cost-minimized suppliers
• Social commerce platforms
• Sourced from cost-minimized suppliers
Via Top KOL/KOC ononline channels20%
Zoom in - B2C business innovations at the “channel” level:
Online sellers no longer rely on traditional pure-play e-commerce model, but seek more channels to increase consumer stickiness and conversion rate
18
Social commerce platforms
Read a blog/ view a video online
randomly on an online community
Be attracted by the blog description
Impulse purchase
Share their reviews on
online communities
Conversion rate (%) of different e-commerce channels in China
Traditional e-commerce platforms
Product research & price comparison among various
channels
Shopping cart
checkout
Rate the purchase on the
e-commerce platform
* Abbreviations: KOL = Key opinion leader; KOC = Key opinion consumerSource: iResearch, compiled by Fung Business Intelligence
Consumer needs a particular
product
Traditional e-commerce platforms
0.37%
Supplier
E-Seller uploads product information
KOL/KOC prepares contents (text, pictures, short video,
live streaming etc.)
Social commerce platforms6-10%
Consumer A
Consumer B
Zoom in - B2C business innovations at the “channel” level:
The longer time a netizen spent on particular mobile app, the more likely it is for the app operator to earn from the netizenTime is a scarce resource of Chinese netizens. Internet giants strive for the attention of the netizens via mobile apps
19
Source: QuestMobile, compiled by Fung Business Intelligence
42.0%
12.5%10.3%
7.8%
27.5%
% OF HOURS
Tencent's Camp
Bytedance's Camp
Alibaba's Camp
Baidu's Camp
Others
70% of the time that Chinese netizens spent on mobile internet were occupied by major business camps in September 2019
Chinese netizens spent nearly 1/4 day on mobile internet per day on average, according to a survey
Dec 2018
341.2 mins
Mar 2019
349.6 mins
Jun 2019
358.2mins
Sep 2019
359.8mins
Zoom in - B2C business innovations at the “channel” level:
Mini-program is a new weapon of the Tencent’s Camp for capturing more attention from online shoppers
20* The calculation was based on Monthly Active Users (MAU >100 million) of major apps in December 2018Source: QuestMobile, compiled by Fung Business Intelligence
XianyuTaobao
Top 5 Online Shopping APPs (MAU)
580 million 271 million 228 million 78 million 54 million
Top 5 Online Shopping Mini-programs (MAU)
109 million 57 million 41 million 30 million
Tencent’s Camp: MAU of apps = 577 million; MAU of mini-programs = 256 million; Total sum = 833 million (User numbers of app and mini-program of particular company may be overlap)
JD.comPinduoduo
Pinduoduo JD.com VIP.com
VIP.com
Zhuanzhuan
1 2 3 4 5
1 2 3 4 5
Alibaba’s Camp: MAU of apps = 634 million
19 millionJD coupon
Vs.
Low price
Home delivery
Time saving
Long-tail product choices
Zoom in - B2C business innovations at the “channel” level:
Consumers have different expectations when they shop online and offline
21
Online
Obtain the goods on-site
Good shopping experience
Product authenticity & reliability
Excellent service
Source: Nielsen, compiled by Fung Business Intelligence
Offline
1
2
3
4
1
2
3
4
22
Zoom in - B2C business innovations at the “channel” level:
Other than exploring new online channels, the Top 2 largestonline retail camps in China ally with offline players to offer O2O shopping experience for Chinese consumers
Icon source: InternetSource: Fung Business Intelligence
New Hua Du Supercenter
Yiguo.com
SanJiang
Lianhua
Easyhome
Intime
Suning
Bailian
Sun Art
Vs.
MissFreshYonghui
Xiaoxiang Shengxian(Under Meituan)
Better Life HLA
7Fresh(Under JD.com)
23
Zoom in - B2C business innovations at the “channel” level:
To differentiate from their competitors, O2O retailers not only integrate the merits of online and offline formats, but also offer innovative fulfillment solutions
Traditional offline store
Traditional online store
Social commerce platform/
community group-buying
platform
* Abbreviations: CDC = Central distribution center; RDC = Regional distribution center; FC = Fulfillment centerSource: Fung Business Intelligence
Citydepot
Smart locker
Factory
Citydepot
Smart locker
O2O
CDC/ RDCIn-store
FC
Store-front FC
Factory
Door-to-door delivery(Short distance radius with delivery lead-time pledge)
Citydepot
Self-pick
In-store FC
Store
Store
Store
Shoppers
Shoppers
Shoppers
Shoppers
Parcel pick-up point
Parcel pick-up point
Door-to-door delivery
Door-to-door delivery
Factory
Factory
Factory
Factory
CDC/ RDC
CDC/ RDC
In sum, B2C business innovations emerged at the “consumer”, “product” & “channel” levels
24
ProductsConsumers
Channels
ProductsConsumers
Channels
• Consumer data andsegments were not effectively analyzed
• One advertisement “fitted” all
Traditional B2C business
Innovationsin
B2C business
• Consumers are powered by mobile technology and able to shop anytime, anywhere.
• With the aid of data analytics, retailers have a clearer picture of consumer segments with a lower cost
• Consumers, KOL, KOC and retailers connect with each other via many marketing channels
• Supplier-driven• Product expectation:
affordable, functional, durable
• Mass production
• Consumer-driven• Product expectation:
large varieties of goods offered, value for money with excellent consumption experience
• Low brands loyalty is new normal
• Specialized supply chain for mass customization, or even product personalization
• Mainly in offline stores• Low adoption level of retail
technology in store• Lack of after-sale support
• Integrated multi-channels• Store technology available for
data capturing and retail operations
• After-sale services, e.g. quick delivery, goods return, customer services, etc.
* Abbreviations: KOL = Key opinion leader; KOC = Key opinion consumerSource: Fung Business Intelligence
人
場
貨 人
場
貨DATA
* Abbreviations: AI = Artificial Intelligence; CBEC = Cross-border E-commerce; IOT = Internet of Things; KOC = Key Opinion Consumers; KOL = Key Opinion Leaders; O2O = Online2Offline/ Offline2Online; P2P = Peer-to-peer funding; SAAS = Software-as-a-serviceSource: Fung Business Intelligence
Some enterprises/ startups are facing big challenges in running sustainable B2C businessB2C business buzzwords, reflecting the heat level of certain innovative business concepts/ models, kept evolving in China in recent years. Fading of a buzzword usually signals the fall of the business model in China. The lifespan of a B2C business buzzword is affected by technological breakthroughs, consumer behaviour and expectation, regulatory changes and funds.
26
2017
Short video platform
Fresh produce
e-commerce
O2O
Web celebrity economy
New Retail
Unmanned stores
Sharing economy
AR/VR
Takeaway delivery platform
Social commerce
Big dataIP marketing
Live streaming commerce
AI
KOL
Second-hand
platform
Consumption upgrade
Fresh produce supermarkets
Mini-program
Private labels
Lifestyle platform
CBEC
Customization
Rejuvenated
Chinese brands
2018
AI
Big data
Mini-program
Rejuvenated Chinese brands
IP m
arke
ting
Live streaming commerce
Fresh produce
e-commerce
O2OConsumption
upgrade
Social commerce
Short video platform
Facial recognition payment
KOL
Fresh produce supermarkets
Private labels
Smart stores
Consumption downgrade
Web celebrity economy
AR/VR
CBEC
Community
group-buying
CustomizationLifestyle platform
Lower-tier market
New Retail
Takeaway delivery platform
Unmanned stores
Second-hand platform
2019
AI
Community group-buying
Social commerce
Low
er-t
ier
mar
ket
Big
dat
a
Short video platform
Mini-program
Rejuvenated Chinese brands
IP marketing
Facial recognition payment
Live streaming commerce
Fresh produce e-commerce
KOC
KOLConsumptionstratification
Smart stores
Membership stores
Night economy
O2O
Private labels
Web celebrity economy
AR/VR
CBEC
Customization
Fresh produce
supermarkets
Lifestyle platform
Takeaway delivery platform
Second-hand platform
Major B2C business buzzwords in China
To differentiate from their competitors, many B2C operators are exploring various methods for enhancing their supply chain capabilities. Some of them engage in upstream B2B business. Some seek assistance from “to B” solution providers.
27
Some supply chain experts offer digitized
solutions for enhancing supply chain visibility
Some online B2B platforms emerge with
expertise in design, sourcing and distribution
Some operators provide all-round
marketing services to individual consumers
Certain B2B platforms support online payment system and offer supply
chain finance to business partners
Source: Fung Business Intelligence
Supply chain solutions companies analyze big data of the market and
provide precise forecasts
B2C conglomerates invest in nation-wide
logistics infrastructure
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ContactManagement Theories and Business Models
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