电子信息与通信学院 - eic.51taoshi.com

电子信息与通信学院


Electronic Commerce

许炜（Xu Wei）

Email: [email protected]


About You?

Make some investigations through Wechat later.


About me

Teach EC since 2000 in an engineering dept.

A serial entrepreneur in university

Online karaoke in 2012-2015

Teachermate.cn(google classroom) in 2015,

4million users now

Music AI project In 2016

Think different, enjoy innovation and

entrepreneurship in my life




About the class

Is not only about EC, but also about internet,

innovation, entrepreneurship, Hi-tech……

We are talking about China in the past 20 years.

From C2C (Copy to China) mode to CFC

Watch some precious videos and play

jigsaw puzzle（E, T, B）

Finish a BP and give a presentation

Not the textbook


Recommended books


Anything You know about

China’s Internet Market?


Alibaba story 中国梦China Dream

马云，Jack Ma



The review of last lesson

EC is more than shopping online.

Alibaba has changed everyone's life over the past

20 years.

opportunities and challenges for developing

country

problems – product – merchandise

formula（E, T, B）


Alibaba IPO road show(2014.9)

Serve millions of small business

Serveral stories

Alibaba is a lifestyle (Shanghai)

For express, 85% packages from Alibaba

Small business (individual enterprise) sell goods to

customers around the world

Taobao village (new organization)

Save time for white-collar workers (Beijing)

Help entrepreneur by its international platform

Declaration of maturity


Alibaba’s dark prequel (part zero)

15 years are not so easy, there is chance and there

is necessity, What trapped Jack Ma in these year?

1995, see the beginning of internet

CTC (Copy to China) did not work well

network infrastructure

user scale

business model

team


1995~1999

56kbps, telephone charge ￥0.6/min

China Pages of Jack Ma

Everything were not ready.


Alibaba’s story (part I)

It was built in 1999.2.

Business to Business mode

Dr. Cai (Joe蔡崇信) visited the team in 1999.5

and persuaded Goldman Sachs(高盛) to invest

$5 million

Joe helped Alibaba get another $20 million

investment in 2000

revenue model was limited to membership fees

Customer teach Alibaba the right revenue model

Investor Asia Limited VP $700k annual salary


Right time，Right place and Right partners

microscopic view

The Internet economy has changed the rules of

the market game. (Netscape, Amazon, Yahoo)

explosion of e-commerce in 1999

macroscopic view

The achievements of China's reform and

opening-up in the past 20 years.

China becomes the factory of the world.


A 16-month-old company is worth

$2.9 billion in a day. (1995)


改革开放 reform and opening-up

邓小平 Xiaoping Deng

Since 1978

Command Economy Market Economy


Yangtze

Pearl

surplus rural labour

SMEs

Social/medical insurance/ pollution/tax/ Labor Protection Act ……

Canton Fair

World Factory


The cost of making a shirt

selling price：$14 (Canada)

cost: $5.67

company owner: $0.58

worker: $0.12


Canton Fair (广交会) 2 times per year

One of the few official business channels at that time.


Suppliers

Manufacturer

End User

Distributor

Retailer

Financing Provider

Publisher

Value-Added Reseller

Corporate Reseller

Challenge of B2B supply chain


Roadmap of Classical B2B

1975

1980

1985

1995

2000

2003

Point-to-point connection

VANS

X400

VANS + Interconnect

IP Networks

Internet / Intranet

Extranet

Individual

Nat.

Industry Standards

EDI Translation Services

EDIFACT

Web EDI

Simpl-EDI

EDI Outsourcing XML-EDI

ebXML Web Services - SOAP


RosettaNet

Dialog

Alphabet

Grammar

Words

Sound

Business Process

Telephone

Business Process

Telephone

DIALOG PIP™

Ro

setta

Net

Framework

Dictionary

eBusiness Process

XML

Internet

Ecom Application


Process PO Send PO Customer

Send PO Supplier

Process Sales Order

Customer Supplier

Receive PO

Acknowledge

Send PO

Acknowledge

Send PO

Response

Close

Send PO

Receive PO

Response

Send PO

Response

Acknowledge

Receive PO

Send PO

Response

Receive PO

Response

Acknowledge

Receive PO

Check

Customer

Check

Credit

Check

Availability

Create Sales

Order

Receive PO Acknowledge

Send PO Acknowledge

Send PO Response

Close

Receive PO Request

Select Supplier

Generate RFQ

Send RFQ

Select RFQ Response

Send PO

Close

Send PO

Receive PO Response

Send PO Response

Acknowledge

Receive PO

Send PO Response

Receive PO Response

Acknowledge

Receive PO

Check Customer

Check Credit

Check Availability

Create Sales Order

Private process (Company -specific)

Public process (Standard)

Public process (Standard)

Private process (Company -specific)

PO

CRM

SCM

ERP


Suppliers

3 rd Party Logistics Company

Delivery Replenishment

Physical Goods Movement

Information Flow

Legend:

3.Inventory

Reporting

(PIP®4C1)

3.Inventory

Reporting

(PIP®4C1) 4.Shipment

Receipt (PIP®

4B2)

4.Shipment

Receipt (PIP®4B2)

7. Consumption Reporting (PIP® 4B2)

8.Invoice (PIP® 3C3)

2. Forecast Acceptance (PIP® 4A5)

1. Notify of Forecast (PIP®4A2)

5,6.Request and

Fulfill Demand

(PIP® 3B2)

5,6.Request and

Fulfill Demand

(PIP® 3B2)

Seagate


Why could Alibaba win the war with

eBay?（part II）

Taobao was the result of the passive defense

action.

There is no C2C environment in 2003 in China.

Taobao is suitable for China.

“Free” is a business model in internet in China.

Alibaba has a lardge number of SMEs customers

Yahoo’s financial support

Successful experience in part I


YARD SALE


Engel's coefficient

The proportion of income spent on food

The lower the coefficient, the richer the country


My personal experience in 2000

I live with my parents, the salary was no more than

￥2000

Just had a debit card, international payments must be

made through a bank, no online payment channels

China Post Express only express documents (a week

from Wuhan to Beijing), mail-order goods may two

weeks.

There was no credit system for individuals and

businesses, only shop in physical stores, buy only

what is useful and hope to last for many years.


Why could Alibaba win the war with

eBay?（part II）

Taobao was the result of the passive defense

action.

There is no C2C environment in 2003 in China.

Taobao is suitable for China.

“Free” is a business model in internet in China.

Alibaba has a lardge number of SMEs customers

Yahoo’s financial support

Successful experience in part I


Suitable for China

B S

T

B S

Credit Rating

Paid Listing


International trade to domestic economy

SMEs working hard for foreign purchasers for

high profit (large order)

Domestic demand has sustainable growth

Some individuals of SMEs make micro-business

on internet platform (little business)

More and more SMEs took part in domestic

market

Domestic market is activated


Timeline of Alibaba

1999-2003：Alibaba for B2B

2003-2009：SARS, Taobao, 2004alipay, defeat

eBay, express, network……

2009-2012：Double 11 shopping festival (2009,

￥50m-2020, ￥860b)

2012-now：Tmall, Mobile Internet

Payment/Logistics/Credit/Custom


2006’s data in China

Number of internet users scale of online shopping market


37.21tr

4.5% 860b 29%


Is Taobao the final state?

Ebay (C2C) is for non-standard goods

Amazon (B2C) more efficiency

Tmall is more like Amazon

Taobao may be a transition state, individual agent

of B2C

Efficiency



Jeff Bezos Founded in 1995.7 and its market value($6b) is

more than the sum of Barnes and Noble

Jeff is the youngest VP of company in Wall Street

He used his parents’ pension ($300k) to start up

Amazon

He chose books to sell

Rate of internet-user increase is 2300%

3m kind of book and $82b market

There is no big brother in the market (12%)

Book selling is more acceptable (list 20 goods)


Income | Deficit 1996: 15.6m -6m 1997： 148m -30m 1999： 1600m -720m 2001: 2700m -1400m …… 2015: turn losses into gains


Dash Button


The review of last lesson

Amazon is pure B2C business in America.

Alibaba is gradually expanding its B2B business

into the B2C field.

From 0 to 1 of B2C market in China (37 trillion)

Different development patterns in different

environments




Ebay (C2C) is for non-standard goods

Amazon (pure B2C) is more efficiency

Taobao is a of B2C variant (individual agent)

Efficiency


JD 1998, ￥20k, sell CD writer(low-profit)

2001-2003, from distributor to retailer

(ITSmallShop), SARS, Cdbest, o2o retail,

2005, B2C ★Quality goods

2006, $10m (is most like Amazon in China),

2007 from IT to more category, Self-built

logistics, ★2-11 policy

2010，$256m investment

market value $120b ( 59th in Top 500)


Tmall of Alibaba

Came out from Taobao since 2012

The real meaning of B2C platform of Alibaba.

Brand flagship store

100% quality guarantee products

Return without any reason in 7 days


SF Express 1993, ￥100k, PRD(Pearl River Delta) to

HongKong(50k+ SMEs)

Branch belongs to franchisee

1997, 70% market

2002, turn to self-operational pattern

★ Small and light goods

Quick(2009, two plane)

2011, ￥15b, 2021, ￥500b

★ Two rules

Contract an area

piece wage


JD local inventory

JD 3rd party seller

SF Express


卷皮网


贝贝


Live streaming sales

14 hours sales 12 hours sales

500 million people took part in the live streaming sales in 20th, Nov



PDD social e-commerce

Was built in 2015

In 2018, PDD was listed on NASDAQ with

$24b market value.

In 2020, PDD has 500 million users with $72b

market value.

Analysis:

social power

serve the potential users


Meituan takeaway service

2010, started with group buying

2013, added hotel reservation and

food delivery services

2015, purchase Dianping.com

for local catering information

service

Local living service (takeway

service) 500k riders, 250m users,

2m merchants and 18m orders/d


Conclusion

For developing countries, the development of

e-commerce is a curve pattern

E-commerce may start differently, but the

destination is efficiency

For standard commodities, regional or vertical

market has no future

Flow is the essence of e-commerce

Centralization and decentralization are two

sides of the same coin


Thank You！

Documents

电子信息与通信学院 - eic.51taoshi.com