A Practical View of the Chinese Online Market for Food and Beverages Presented by Zo Liang SVP of Operation & Co- Founder Pipex Australia 1
Today Cover 01 02 03 My Story Online Market in China Now Food & Beverages Opportunities 04 What is Challenges 05 06 07 08 Case of Dairy Industry: Viplus Who We Are & What We Do Conclusion Q&A 2
My Story Personal life China (16 years) U.S.A (3 Years) Australia (13 Years) Passion Food Beverage Technology Education & Qualification Prescott High School (USA) Monash University University of South Australia Work 8 Years Digital Marketing Technology E- Commerce (Taobao & Tmall Partner) 3
Online Market in China Industry Value China $426.8 b Australia $14 b 3% Australian Chinese Market Research (ACMR) 632.0 Million Internet Users 332 Million Online Shopping Users $426.8 Billion Industry Revenue 4
Food & Beverages Opportunities Who? Middle Class Internet Savvy Young families Predominantly female shops for family Female Under 30 RMB11,000/m ~2800AUD How and when? E- Commerce accounts for 2.5% national food sales. Room to grow ü Cost effective ü Simplified export process Special events: eg. Alibaba Singles Day: $9.3bn (2014) About 10 such days throughout the year What? As incomes increase, animal products substitute food grains and vegetables Quality and safety of foods Health products Where? Beijing, Shanghai, GuangZhou, Hangzhou, Shenzhen Urbanization Tier 1 2 3 Cities 5
What is Effective Way Understanding Your Product & Market Decline Maturity Growth Introduction Research & Development Sales Stage 1 Innovators Stage 2 Early Adopters Stage 3 Early Majority Stage 4 Late Majority Stage 5 Laggards Markets Market Development "same to new" Diversification "new to new" Products Existing New 6
What Is Challenges Increase Sale in More Places - Multichannels 02 Cross- Boarder Logistics Management 01 03 Streamline your Supply Chain Control 7
Viplus Case of Australia Diary Who is Viplus Food & Beverage company from Dairy Industry Historical milk powder manufacturer from South Gippsland of Victoria From reputed milk producer region One of the earliest manufacturer accredited by CNCA Currently full capacity to supply OEM baby formula and other milk power to China 8
Concerns What we can help Viplus is concerning Brand Awareness Losing value and losing control No Product Strategy Order all base from distributor requirement Politic Risk - Food & related regulation change Cost High - increase associate with traditional export supply chain Online Strategy - Multichannel sale distribution 9
Re- Branding Addressing the B2C brand awareness Viplus From B2B to B2C Branding Focus on Health Nutritional Products Focus on People 10
Re- Positioning Products Addressing no product strategy and marketing 11
Re- Positioning Products Addressing no product strategy and marketing 12
ecommerce Channels Addressing the online strategy for multichannel Viplus (Now) Multiple Distributors issues: Viplus supplied products were scattered on various channels at different prices, brand, descriptions etc PIPEX Channel Management Integrated, efficient, direct, holistic 13
ecommerce Supply Chain Addressing the politic risk and cost high Traditional Journey Products Supplier in OZ Distributors in OZ Export Agents Wholesalers in China Retailers in China Consumers in China ecommerce Journey Products Supplier in OZ Cross- Border e- Commerce Channels Consumers in China Manufacturer Warehouse Ship or Air Freight FTZ Bonded Warehouse Handling & Packing B2C Delivery Consumers In China 14
Pipex Who We Are Pipex is a cloud-base supply chain control services that simplifies your entire export business. Supply Manufacturers PIPEX Supply Chain Control Service - Multichannel Listing - Order Consolidation - Smart Inventory Control - Streamline Fulfilment Opeartion Demand Channel Consumer Manufacturer Warehouse Ship or Air Freight FTZ Bonded Warehouse Handling & Packaging B2C Delivery Consumers in China 15
Supply Chain Control Service What We Do Let's start with the basics. Know what s in stock in real time. Track inventory quantities across your channels and warehouses from one location. Use views to quickly see what products are available, running low, or awaiting to be replenished. Increase sales in more places. Manage multiple sales channels without increasing your workload. Save time by automatically syncing inventory availability across your webstore, marketplace and POS channels in one supply chain control platform. You can even create and publish new listings in a snap. Easily manage orders. With a central hub for all order activity, you ll have your finger on the pulse of your business. Keep your team focused on fulfilling orders quickly and making customers happy. Get everyone on the same page with shared views of what s been paid, packed and shipped. Make better business decisions. The smartest decisions begin with actionable data. We provide you with insights that help you optimize purchasing, pricing, selling, and shipping. With Pipex at the center of your operations, you ll gain access to profits, COGS and how your business is really doing. Streamline your supply chain. It s easy to run an efficient business when you have everything working together in our supply chain control platform. Use current and historic sales to forecast upcoming inventory needs. Create purchase orders, track order statuses, and automatically update inventory all in one location. 16
Conclusion In A Better Way Effective Multichannels Increase Sales Smart Inventory High Turnover esupply Chain Control Reduce Cost Market Intelligent Stay Focus Stay Profit 17
Questions? More Questions Welcome to Contact Me moreanswers@pipex.com.au Or Talk with me on Wechat Zo Liang Your Private ecommerce Assistant 18